Fifty percent of charity money goes to city coffer

JAKARTA (JP): Fifty percent of earnings collected for charity by private organizations must be handed over to the city administration, an official said on Monday.

Head of the City Social Agency, Eddy Widodo, insisted that the policy was stated in a 1994 city rule, the implementation of which is being "intensified" after the agency found that many needy sectors lacked funds while there are those with adequate contributions.

He said the rule aimed to ensure that those in need got enough contributions, which would be distributed by the agency, "because we have the data on the more needy sectors" such as homes for the elderly.

In comparison, for instance, more is contributed to the construction of mosques and people afflicted by disasters such as fires, Eddy said in a gathering with private organizations.

Ensuring that funds reached the needy, he said, has been more difficult since the dissolving of the ministry in charge of social affairs in the early days of President Abdurrahman Wahid's administration.

Eddy said the rule affected fund-raising in the forms of donation boxes and charity shows.

He said this year the agency had received 49 proposals for fund-raising, in line with procedures.

However, a councilor said the 1994 rule on the distribution of charity funds should be revised.

Deputy chairman of Commission E for social welfare at City Council H.A.H Ishak said the rule lacked necessary details on the allocation of funds, and what the government should do with its 50 percent share.

"In general the rule does not provide a solution to possible fraud in the collection of charity funds."

He questioned why charities should be regulated by the governor.

Eddy said the punishment of those who violate the 1994 rule was that "permits to collect funds would be withdrawn".

Another councilor, Tubagus Sofyan, as quoted by Antara news agency, said it was not possible to hand over 50 percent of charity funds to the city administration.

The party to benefit from contributions, he said, citing as an example alms to Bengkulu earthquake victims, are always announced to potential contributors.

"It would be a betrayal of trust to the contributors" if the party collecting alms then delivers half of the funds to the city," Tubagus said.

"Often 100 percent of contributions don't reach targeted groups, how much would be left if we cut 50 percent?" he said. The City Social Agency, he said, has its own budget for helping the needy. (07)