Compliance with the Code of Governance for charities and Institutions of a Public Character (IPCs)

1012. Mr Melvin Yong Yik Chye: To ask the Acting Minister for Culture, Community and Youth in the past three years (a) how many complaints have the office of the Commissioner of Charities received of charities that have failed to comply with governance requirements under the Code of Governance for Charities and Institutions of the Public Character; and (b) of these charities, how many were taken to task.

Response:

1.           The Charities Act provides the legal framework for the registration of charities, administration and regulation of charities and Institutions of a Public Character (IPCs), and the regulation of fund-raising activities carried on or in connection with charities and other institutions. It seeks to ensure sound administration of charities and IPCs through regulatory oversight and mandatory annual submissions.  This is also to ensure that charitable assets are managed properly, and that fund-raising appeals are conducted with accountability and transparency. 

2.           The Code of Governance for Charities and IPCs, on the other hand, serves as a best practices guide covering key areas of governance and management. It consists of tiered guidelines that apply to registered charities based on their IPC status and financial size.

3.           The Code operates on the basis of "comply or explain". While it is not mandatory for charities to adopt and comply with all the guidelines, they are encouraged to do so as a matter of good governance. Where charities are unable to comply with certain guidelines, they should explain the reasons for the non-compliance in their annual submissions to the Commissioner of Charities (COC), which are published on the Charity Portal (www.charities.gov.sg) to promote transparency.

4.           Over the past three years, the Office of the COC received an average of 80 feedback each year relating to fund-raising conduct, and charities’ governance and internal controls. For context, there are approximately 2,400 charities registered with MCCY. The COC will investigate such feedback. In most cases, the breaches or gaps are due to unfamiliarity with the legislative requirements or good governance practices, or due to differences in views amongst members within the charities. The COC works with these charities and fund-raisers to tighten their governance and processes, including issuing advisories and guidance if needed.

5.           Most of our charities operate with integrity and sound governance. For the minority of cases, where there is gross misconduct or mismanagement of a charity, or where improper fund-raising activities are conducted, firmer action is taken. These include the issuance of Orders. For example, the COC issued two Orders in 2025, prohibiting certain individuals from conducting fund-raising appeals as they were either unfit to administer or had failed to ensure proper accountability of the appeals.

6.           The COC will continue to support the development of the charity sector while upholding high standards of governance that preserve trust and accountability across the sector.