Such was the situation in the pre-1999 period.
In the spotlight
Six years ago, the 921 earthquake destroyed many people's homes and also brought to light the fact that the fund raising regulations were seriously out of keeping with the times. The disorderly management of relief funds made people start to ask questions about where there donations were going.
A fund raising bill was drafted after the earthquake that aimed to create a better environment for both NPOs and those who make donations. The bill also places restrictions on fund raising campaigns initiated by the government.
But, six years later, the bill still lies under pile at the Legislative Yuan waiting to be passed.
The Taiwan NPO Self-Regulation Alliance, therefore, has come at a good time. It has two objectives: to push through fund raising bill legislation and to promote self-imposed higher standards on NPOs that will ensure transparency and accountability.
Self-reforming
"Apart from the legal regulations, NPOs themselves need to establish a mechanism for the general public to have access to the operations of the organizations. People have the right to know how the money is raised, how it is managed and what the group has done and achieved with the funds," Feng said.
One source of possible abuse by NPOs lies in the fact that many of them shun their duty to make their financial reports public. According to statistics gathered by the Directorate General of Budget, Accounting and Statistics (
The alliance is urging charity groups to disclose their financial reports and allow public access to information.
Charity begins at home
According to Feng, more than 50 percent of the total amount of annual donations goes to major religious groups, while United Way of Taiwan, the only fundraising organi-zation that distributes funds to smaller NPOs, takes around NT$100 to NT$200 million, of the total NT$42 billion pie.
For small-to-medium-sized organizations, the alliance offers an agency for growth through counseling and exper-ience and information-sharing. Not only can these groups gain legal and financial information and know-how, but they can also become more visible through the alliance's assistance.
"Most of our members to date are small- and medium-size groups. But if we can all live up to these standards and let the public know this is how it should be done, then we can place pressure on major NPOs to fulfill their obligations to be transparent and accountable," Feng said.
As for the general public, the alliance also sets a goal for public education.
"Givers should also be smart consumers. If people know it's their right to find out whether or not their money is used efficiently and sensibly, then NPOs will have to pay more attention to accountability if they want to seek recognition and support," Feng said.
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