Here's a press release from MCYS, dated last year.
Assuming nobody has stolen the money, did the board manage to
fulfill all that the COC required?
PRESS RELEASE
GUIDANCE FOR CHARITIES ENGAGING IN BUSINESS ACTIVITIES
Business activities must not put charities’ assets at
risk
As part of a wider effort to help charities improve their
governance, the Office
of the Commissioner of Charities has issued guidance for charities
which are
engaging or intend to engage in business activities.
2 Some charities engage in business
activities to generate additional income or
to provide goods or services for their members or clients. The
guidance aims to
provide greater clarity to charities on when and how they may
engage in business
activities. It also provides advice on when business subsidiaries
should be set up to
conduct such activities.
3 Mr Low Puk Yeong, the Commissioner of Charities,
said, “It is essential that
business activities do not undermine a charity’s focus or distract
it from its
exclusively charitable purpose. In addition, they should not expose
the charitable
assets to significant risk. ”
4 As with other investment decisions, it is
the responsibility of a charity’s board
members to be prudent in making the assessment. “Ultimately,
charity boards are
responsible for the proper use of their charities’ assets and
resources, and are
accountable for their investment decisions,” added Mr Low. However,
if necessary,
the Commissioner of Charities can direct a charity to cease funding
or to terminate
its business activities, in order to protect its charitable
assets.
The guidance is posted on the Charity Portal
<http://www.charities.gov.sg> for public reference.
Issued by Office of the Commissioner of Charities
Ministry of Community Development, Youth and Sports
Date 22 July 2011
Here's something on engaging in business activities. It's
8-page long. So I am not pasting here. Go to the link to
download the PDF to do your own reading.
http://www.charities.gov.sg/charity/charity/charityCMSFileDownload.do?id=155
