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Even charitable organizations that aim to help the needed cannot withstand the destructive power of the financial tsunami. Some of these organizations face the fate of dissolution as their financial viability is at stake. The Hong Kong Council of Social Service (HKCSS) recently revealed that many of its members had found it difficult to raise funds and were deep in financial problems. Worst of all, the council received two notices of membership termination in January this year, which had never happened in the past 10 years.
According to HKCSS, in two meetings held in November and December last year, many members had already pointed out that they were unable to meet their fundraising targets in these two months due to the hit caused by the financial crisis. Some said the proceeds they received were 30% less than their targets. This has been a clear indication of the financial pressure faced by charitable organisations in this time of economic downturn. In January this year two organizations terminated their membership with HKCSS due to financial problems.
Data of HKCSS shows that after the two cases of membership termination, the council now has a total of 365 member organizations. HKCSS charges each of its members an annual fee calculated on the basis of their annual operating expenses. The maximum amount charged is HK$5,000 per year (for organizations with an annual operating expense of over HK$50 million). The minimum fee is HK$500 per year (for organizations with an annual operating expense of HK500,000 or less). The council did not disclose the names of the two organizations that terminated their membership but said that these two organizations were small-sized charities which paid an annual fee of HK$500.
HKCSS revealed that one of the two organizations was a women group that had served in the New Territories West for over 10 years. Its main service was to organize mutual aid activities for residents in the neighbourhood. The other case involved a branch of a medium-sized organization. It mainly provided services for the handicapped and organized activities such as hosting seminars in schools. HKCSS said that this branch organization, which was manned by only 2 to 3 persons. ■translated by 開明
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