With the growing numbers of NPOs in Hong Kong, strengthen internal governance and improve transparency and accountability in fundraising activities for NPOs in Hong Kong is important.

All agree that Boards of NPOs, despite their voluntary nature, are publicly accountable bodies, responsible to their stakeholders for the effective management of public funds, donations and services entrusted to them and of staff in their employment. This accountability ranges from the way in which the Board conducts its affairs, and the means by which it ensures the resources at its disposal are put to the best use, to the way in which it informs its clients and stakeholders of its activities and achievements.

The Hong Kong Independent Commission Against Corruption ("ICAC") received a number of corruption complaints related to fund-raising activities. The ICAC has launched the best practice guidelines "Management of Charities and Fund Raising Activities. It recommends practical measures to help these organisations minimize such risks through strengthening internal controls.

Charitable organisations are advised to adopt best practices including proper budgeting, good record-keeping, regular auditing of accounts, capping administrative expenses, safe-keeping of donations and publicising audited accounts of fund-raising activities.

There is a growing trend among Hong Kong citizens to expect charities to be as well managed as good business organisations. Some officials suggest that the government should consider strengthening the legal framework in this regard with a view to introducing a registration system and an overall regulatory framework for charities and fund-raising activities.

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