THE Consumers Association of Penang (CAP) urges the government to seriously consider 2020 call by the then-deputy prime minister Dr Wan Azizah Wan Ismail or the establishment of a charities commission.

The law as it stands does not allow for the regulation of NGOs except for charities and charitable trusts and institutions outlined in the Ninth Schedule of the Federal Constitution. The Ninth Schedule states that Islamic charities come under the state list but it does not provide for their administration.  We call for the state administration to provide an oversight body for Islamic charities.

Over the years, numerous requests have been made to the public for funds to build mosques, tahfiz institutions, and other charitable causes. Transparency and authenticity in fundraising are crucial to maintaining trust within the community and guaranteeing that donations are utilised for their intended purpose. Implementing mechanisms for verification can play a vital role in achieving these objectives.

It is imperative for Malaysia to enact legislation that addresses the following:

· Registration of charities;

· Administration and governance of charities;

· Regulation of charities and institutions of public character;

· Oversight of fundraising activities associated with charities and other institutions, including the conduct of fundraising appeals, and related matters; and

· Laws to provide a structured framework for the operation and oversight of NGOs, ensuring accountability, transparency, and effective management of charitable endeavours and public institutions.

Such a statute would regulate the governance of charities by addressing key areas such as registration, deregistration, and enforcement measures for submission of accounts, reports, and other necessary returns. Additionally, it should oversee fundraising activities, ensuring they adhere to prescribed guidelines and standards.

The statute must be empowered to disqualify individuals convicted of offences involving dishonesty or deception from holding any position within the NGO. It should prohibit their involvement in other organisations to maintain the integrity and trustworthiness of the social financing sector.

Potential donors can browse through the charities commission website to find a list of registered charities that they may want to donate to. They can also read the annual reports of the charities. Such would ensure their accountability and transparency.

We emphasise our plea to the government to expedite the establishment of a charities commission through dedicated legislation. This action is crucial to rebuild public trust in donations to charities and NGOs, and it will serve to mitigate the risk of these organisations deceiving the public for funds or operating ineffectively due to poor organisation. – April 25, 2024.

* Mohideen Abdul Kader is Consumers Association of Penang president.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.