Flag days

People often contribute to charities without knowing where the proceeds go

by Moira Lau

Every Saturday morning, it is customary to be stopped by volunteers representing different organizations selling "flags" on the streets.

A "flag day" _ the phrase being a translation of the Cantonese expression maaih keih yaht _ is a day on which charities solicit public donations in publicplaces. The "flags" of former times have given way today to lapel stickers.

Most Hong Kong people are generous givers on flag days, but few take the time to investigate the use of the money raised.

Said Miss Catherine Lee, 45, of Kowloon Tong: "I do not know how the money is used, and I have no time to care about it either.

"I do not know whether the government is monitoring the use of donations or not.

"Anyway, $10 is not a large amount of money. Besides, I believe charitable organizations will not misuse the donations," said Miss Lee.

Mrs. Chu Siu Sin Yee, 30, of Kowloon Bay, said, "I do not know exactly how the donations are used. I think they are usually given to hospitals or the elderly."

She said that she had only seen one advertisement in a magazine stating the use of donations received.

"I have helped in flag days three times," said Miss Chris Lee, 15, a student of Holy Trinity College.

"Only few people asked what organizations we were selling flags for. I encountered no one who asked about the uses of the money," said Chris Lee.

According to the Social Welfare Department, there are some statutory measures designed to avoid abuse of these charitable activities.

All flag day organizers should be charitable institutions registered under Section 88 of the Inland Revenue Ordinance.

They are required to submit audited accounts to the department.

They also need to publish their accounts in at least one Chinese newspaper and one English newspaper within 90 days after a flag day.

The accounts, annual reports and other financial documents are reviewed from time to time by the Commissioner of Inland Revenue. This is to ensure that the objectives of the institutions are charity- driven.

Like all fund-raising activities licensed under public subscription, the money raised on flag days is totally voluntary contributions from the public, with no government subvention or funds.

Therefore, the Social Welfare Department is in no position to supervise the actual spending of the money.

However, there are regulations governing the use of such funds.

For example, all proceeds of flag days should be spent on projects and services provided by the organizations. And expenses in connection with the flag day should not exceed 10 percent of the gross receipts.

Also, services financed by these funds must be valuable to a wide spectrum of local people.

In a study of 10 organizations which held flag days last year, it was found that the amounts and the uses of money varied, depending on the nature and the organizing abilities of the organizations.

Their channels to inform the public of the uses of donations are mainly press releases, newsletters, annual reports, or and other publications.

All groups welcomed direct inquiries from about flag days they have held.

"We publish Oxfam News every three months to tell people how the donations are spent," said Miss Judy Au, publicity officer of Oxfam, Hong Kong.

The group held a flag day last December, and the money was spent on helping developing countries.

"The use of donations is open for public knowledge. People are welcome to inquire," said Miss Au.

Added Administrative Officer of Haven of Hope Christian Service Susan Ho Siu Shan:

"We report how the donations are spent in our annual reports. Besides, we publish the Audited Accounts of the Appeal in one Chinese and one English newspaper.

"Personally, I think these are quite effective ways to inform the public," said Miss Ho.

According to the Social Welfare Department, flag day is open for application once a year.

In early May, notices are published in newspapers to invite applications.

Applicants are required to return the application forms, the latest annual reports and audited accounts by the end of the month.

There is no quota for applications. Applications are accepted as long as they are made within the specified period. Results are announced in October.

However, an organization can hold a flag day only once a year, and only one organization is allocated to one flag day.

At present, all flag day applications are subjected to assessment by the Social Welfare Department and the Subvention and Lotteries Fund Advisory Committee.

The nature and scope of services provided, and their contributions to the community, are other considerations.

Moreover, the financial need and the availability of other funding sources are also considered.

According to the Social Welfare Department, there are several ways that people can acquire information about flag days.

There are hotlines open for inquiries. Examples are the Social Service Hotline of the Hong Kong Council of Social Service, and the Departmental Hotline of the Social Welfare. In releases to different newspapers every month listing the organizations that are going to sell flags in the month, hotline numbers are included.

The Department has not received any report on the misuse of charitable funds so far.

Meanwhile, if necessary, people can complain directly to the police.