Two charities recognised at the Charity Governance Awards 2013

Mrs Fang Ai Lian, Chairman of Charity Council

Members of Charity Council

Partners, Sponsors and Judges

Distinguished Guests

Ladies and Gentlemen

1. I am happy to be here at the Charity Governance Awards (CGA) to celebrate our best-governed charities. I was told that this year, there are also two special commendations to be given out to charities that have made concerted efforts in specific areas. I am encouraged by the high standards shown by all our finalists, and I would like to commend them for all their efforts.

Becoming a Giving Nation

2. The charity sector in Singapore has made tremendous progress over the years.  Our charities have been growing and evolving to meet the diverse needs of our society, and they have been instrumental in creating opportunities for volunteers to take the initiative and to make a difference in the lives of others.

3. We often think of the charity sector as a sector that is filling in gaps between what the government can provide and what the private sector can produce. But I would like to suggest that the charity sector is more important than than. More fundamentally, I see the broader charity sector as playing an integral role in our system of capitalism. Through charitable giving and philanthropy, we soften the hard edges of the market. When giving and philanthropy are absent, wealth will become concentrated and opportunities will be limited to those with means. But when those who are successful give back to society, the wealth is recycled and more opportunities will be created for the next generation. This reduces income inequality and contributes to a more fair and just society.   

4. So to build a better Singapore, we must not only have a strong economy, but we must also be a giving nation – a nation where our people give of their time and resources to the less fortunate, where we as a community work together to complement the government's efforts to help those in need, and where volunteerism and philanthropy is a way of life.

5. As many of you will have observed firsthand from your own experiences, the giving of time and resources is also fulfilling and engaging for the giver. A recent study by the National Volunteerism and Philanthropy Centre (NVPC)  confirmed this, finding that people who volunteer or donate are more satisfied and happy with their lives. This is not just in Singapore as similar observations have also been made around the world.

6. So, I am heartened to know that more and more Singaporeans are giving of their time and resources every year. Over the past 5 years, the national volunteerism rate has risen from 17% to 32%, exceeding the 30% mark for the first time last year. Donations from both individuals and corporates have also risen significantly, with a record of $1 billion in tax-deductible donations received last year. These are encouraging trends that show us that we are indeed becoming a giving nation.

The Role of Charities

7. A thriving charity sector is an essential part of this giving eco-system. Our charities create avenues for volunteers to reach out to those in need, and cultivate a greater sense of empathy in society. They also help to bridge the differences within our community as they provide opportunities for those who have benefitted from our system to pay it forward and lend others a helping hand.

8. Our charity sector has done well. However, we can still do more to encourage the public to donate their time and resources. One way is to create more opportunities for meaningful volunteerism. Volunteers seek purpose in what they are doing – they do not just want to provide their hands and legs to get things done, but they also want a sense of ownership to initiate and lead projects.

9. We see more and more charities are now hiring volunteer managers and setting up committees to ensure that volunteers are deployed meaningfully based on their skills. I recognise that such volunteer management systems may be difficult to implement especially when your sources are constrained. But I would encourage all charities to consider putting in some effort to building their volunteer management capabilities – it may be difficult in the short-term, but it will lead to higher volunteer involvement and retention, and the investments will reap dividends in the long-run.

10. Another important area that charities must continue to focus on is good governance, which is the focus of our event this evening, so as to maintain the trust and confidence that the public has in the charity sector.

11. While corporate giving has increased over the years, NVPC surveys found that some still hold back because they have “little confidence that fundraising proceeds will be put to good use”. This is a finding based on the NVPC's survey. Corporate donors don't just want to write cheques and hand over their monies to an organisation. Instead, they want the organisation to be properly managed to create value, and they also want to engage more deeply in shaping the programmes they support. As Warren Buffett is fond of saying, “it is far easier to make money than to give it away effectively.” Indeed, many corporate donors and philanthropists see themselves as stewards of their wealth.

12. So charities must step up their efforts to uphold standards of good governance. They must show potential donors that they are transparent, accountable and effective – deserving of the time and resources given to them. Charity board members in particular must govern their charities responsibly and sustainably, and ensure that they project integrity in their interactions with their staff, stakeholders and the public.

13. In this regard, let me say that today's award recipients have done particularly well in exemplifying good governance – they have gone beyond basic financial management and conflict of interest policies, and have put in place comprehensive frameworks that inspire confidence in donors and volunteers alike. I also note that the recipients today all receive strong support from their stakeholders and the public, which is a testament to their good governance and management.
    

Conclusion

14. In closing, I would like to thank Ai Lian and her fellow Charity Council members for their contributions to the charity sector. Since its inception, the Council has equipped charities with the knowledge and knowhow of good governance through numerous initiatives such the Code of Governance, seminars and workshops. Together with the partners, sponsors and judges who have graciously volunteered their  expertise and resources, congratulations for putting together today's awards.

15. Finally, I would also like to commend our award recipients, who have taken exceptional steps towards good governance. As Ai Lian said earlier, in an environment where resources are constrained, putting in place good governance is not easy. And I am glad that there are charities that uphold such high standards. I hope that your accomplishments will inspire others to strive for equally exemplary standards. With your tenacity and commitment, I believe we can realise our aspiration of a well-governed and thriving charity sector with strong and continued public support.