Effects of Individuals Seeking Donations through Social Media and Crowdfunding Platforms

Mr Sitoh Yih Pin asked the Minister for Social and Family Development (a) what are the effects and conflicts, if any, which the rising trend of individuals seeking welfare donations through social media and other crowdfunding platforms have on the Government's welfare system; and (b) whether the Ministry has plans to regulate these activities in light of the potential fraudulent online claims to exploit public sympathies.

There has been a number of reports recently on individuals who have started online crowdfunding campaigns, some of which have gained large sums in donations.

We are encouraged to see many Singaporeans step forward to help others in need. More acts of kindness and generosity for those who face challenging circumstances is a positive thing, because this can help nurture a more caring and gracious society.

At the same time, such crowdfunding initiatives present certain concerns.

First, do-gooders may not always know where their donations are going to. In some cases, we have found that some information presented by the individuals raising funds was inaccurate, or facts were only partially presented. For instance, some individuals said that they are raising funds as they have not received assistance from the Government when, in fact, they were beneficiaries of subsidies and other assistance from the Government.

Every so often, there are also stories published on mainstream and social media about some individuals in difficult circumstances. Some of these individuals are, indeed, in challenging situations and are deserving of assistance from the Government and the community. But not all of the accounts presented were accurate. Ministry of Social and Family Development (MSF) officers found that some of these individuals were not seeking help or were ineligible for ComCare assistance. We have even come across individuals with accumulated savings to the tune of five or six figures. That is why MSF has provided factual clarifications on some reported cases of vulnerable persons.

Additionally, fundraisers, whether individuals or organisations, are expected to provide accurate information to the public, properly account for donations received and disbursed, and ensure that all expenditure is above board. However, some fundraising practices are lacking in transparency and accountability and this leaves some questions unanswered. Are records of donations received and funds disbursed properly maintained? What proportion of the proceeds will be used for the intended purposes? How are unused funds being accounted for? These are important questions that donors need to ask, especially when public appeals are involved.

If many cases of fund-raising are discovered to have exploited the generosity of donors, the public may become sceptical towards truly worthy fundraising initiatives. It may make Singaporeans think twice whether to help someone in need. This would run counter to our goal to nurture a gracious and compassionate society.

Another concern is if easy access to public donations through crowdfunding leads to a weakening of our work ethic or the important role of family support. We should be concerned if crowdfunding becomes the preferred way out for an individual, even before he taps on his own resources and efforts or support from his family.

Finally, we would like to encourage the public to remain vigilant and discerning in responding to fundraising appeals, so as to avoid falling victim to improper fundraising activities. When in doubt, they should find out more from the fundraisers before making a donation. If the public have concerns regarding any improper fundraising activities, they should report the matter to the Office of the Commissioner of Charities. If fraud and scams are suspected, they should file a Police report immediately.

All fundraising appeals, including those conducted online, to any member of the public or community in Singapore for charitable, benevolent or philanthropic causes are regulated under the Charities (Fund-Raising Appeals for Local and Foreign Charitable Purposes) Regulations 2012 (the Fund-Raising Regulations). The Fund-Raising Regulations spell out the duties and obligations of fundraisers, which include the need for disclosure of clear and accurate information to donors about the beneficiary and the purpose of the donation, proper usage of donations, as well as keeping proper records of donations received and disbursed.