Don’t punish welfare agencies in Hong Kong for their success in raising more money
Chua Hoi-wai says the success that NGOs have had in raising funds from the private sector has led to charges that their subsidisation by the government could be cut back, but this is inaccurate, because funding has expanded to meet changing community needs
In recent years, government-subsidised welfare agencies in Hong Kong have gone the extra mile to rally community resources to meet our rapidly multiplying social needs. But as agencies garner more private donations, should the government reduce its support, lest it be seen as “subsidising” private funders?
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With these extra resources from the community, NGOs have quickly and innovatively met social needs. They hire more social workers to provide better care for seniors with dementia in government-funded homes. By improving community centres’ manpower ratios, agencies can serve more children with special needs. NGOs can also extend services to support carers or family members not considered direct beneficiaries of government-funded programmes. The community spirit is palpable as private funders work with the government and NGOs to make society more caring and inclusive.
The Audit Commission report criticised NGOs for spending grant money on non-government-funded services. Though office overheads, such as the salary of agency heads and office rental, are typically covered by the lump-sum grant, the commission said NGOs should attribute some of these overheads costs to the “self-financing activities”.
This seems a logical request, but is based on the misperception that NGOs waste taxpayer money on activities unrelated to their mandate.
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The “self-financing activities” the report refers to are an extension of the government-approved core services of the NGOs. These activities are “self-financing” because they are supported by private funders who want to help the government and NGOs do better. The government has clearly not suffered at all, nor has any public money been misused, when private funders chip in.