Yahoo! Answers users appear to be split down the middle on whether it’s still worth donating to the Singapore Red Cross.
This week, the non-profit organisation hit the headlines when it revealed a female administrative assistant in the finance department allegedly misappropriated $90,000. The Commissioner of Charities has since advised it to stop all fundraising activity until an internal investigation is completed.
Over 70 Yahoo! users answered the question, “Will you still donate to the Singapore Red Cross?” with many saying they would no longer donate to the charity as they have lost confidence in the organisation.
However, the Red Cross – part of a world-wide, non-political, non- religious, humanitarian organisation – is still allowed to collect donations.
One Yahoo! Answers user, Maddie L, said she was intending to donate to the Red Cross but “the news stopped me”. She will now wait until “they sort out their mess first” .
Another user Derrick stated, “Nope, I will not spare a single cent to this organisation since they are unable to manage their resources. This is a case of mismanaging public donation.”
Teresa Lau added, she would rather donate in kind, than in cash.
“So sad to say that we struggle to make a donation to the needy and the ‘vultures’ are swallowing our hard earned money,” she lamented.
Others came to the Red Cross’ defence and ssaid they would keep supporting it.
“The Red Cross has been around for more than a hundred years. Its goals and missions are noble, and have changed very little over the years,” said Stewart.
“This incident is an isolated one, and is not reflective of the Society as a collective,” he said.
Kirizuku said, “I have always liked the cause of the Red Cross. Yes, of course I will continue to donate. One bad apple does not spoil the whole bunch. In fact, with more measures taken, it will be safer.”
Others such as Keel, noted, it was an individual who supposedly took the funds and she was “of rank-and-file staff” and not in a leadership role.
Some Yahoo! Answers users also called for more to be done to strengthen the charity sector.
As Josh puts it, “This is a dire call for greater vigilance on the part of the management of the various charities, and the Commissioner of Charities.”
He urged for “greater accountability” and “transparency” in the handling of funds, as well as “harsher and more decisive punishments” for those who misappropriate funds to serve as a deterrent.
The Red Cross said it has since instituted one additional measure to tighten procedures for donations.
Now, only a senior executive can receive donations, with the amount to be verified with a senior manager. A temporary receipt will be issued for all cash and cheque orders.
This case is the latest after a string of recent high profile charity scandals, involving the National Kidney Foundation, Youth Challenge (which announced its closure in March) and Ren Ci Hospital and Medicare Centre.
Investigations are on-going into the Sri Siva Krishna temple and on the possible misuse of funds at City Harvest Church.
Last Friday, the National Volunteer & Philanthropy Centre announced it will be introducing an Independent Charity Analysis next year to boost public confidence and promote informed giving.
-- Yahoo!
Red Cross freezes salaries of three supervisory staff for lapses
The Singapore Red Cross (SRC) has decided to freeze the salaries of three supervisory staff for lapses which led to the misappropriation of funds by an ex-employee, uncovered in October last year.
The immediate supervisor of the former employee will also be demoted and redeployed.
Announcing the disciplinary actions, the Singapore Red Cross said an
independent audit by KPMG identified lapses were in the areas of cash
handling and documentation.
However the amount that was misappropriated was smaller at some $76,000 instead of an earlier estimate of $90,000.
The misappropriation occurred between 19 January and 30 November 2010.
KPMG said the misappropriation could be attributed to the delegation of
responsibilities without proper approval, lack of supervisory checks and
non-compliance of standard operating procedures.
The Singapore Red Cross said remedial actions were taken immediately on the identified faults.
As part of its ongoing process to tighten its procedures in both
monetary and in-kind donations, it has instituted an additional
measure.
Two staff, one of whom must be from the finance department, will be present to receive cash donations.
A receipt will be issued immediately.
Donors will also be reminded to collect their receipts.
A sample of the receipt and a reminder has been placed at the donation counter.
A senior manager will conduct regular spot checks on the total cash
donations collected against the receipt books at the end of each working
day.
The Red Cross also assured all donors and stakeholders that every effort
will be taken to ensure that their support for the its humanitarian
work is not misplaced and that every dollar contributed will be
safeguarded and applied in the manner intended by them.
In its statement, the Office of the Commissioner of Charities noted that
Singapore Red Cross has taken proactive steps to investigate into the
misappropriation and review their internal control processes.
And the Office of the Commissioner of Charities is satisfied with the
actions that have been or will be taken to rectify the areas of
weaknesses identified.
It also expressed its confidence that SRC is fully committed to prevent
such incidents from recurring in future and thus, they will be permitted
to resume fund-raising activities.
-- 938Live