With the increase in crowdfunding, are there any loopholes in the current charity laws which could lead to abuse?
The Charities Act requires fund raisers to provide accurate information including the name of the charity or the person to which the donation will be given, the purpose for which the donation will be used, and whether any commercial fund raiser has engaged in soliciting funds.
Any information relating to donors must be kept confidential and all information collected must comply with the Personal Data Protection Act of Singapore.
All donations collected by the commercial fund raiser shall be paid in gross directly to the charity or the person and any payment to such fund raiser shall be paid separately by the charity or the person to the fund raiser.
All donations must be used in accordance with the specified intention.
Finally, accounting records must be kept for a period of 5 years.
These are not the only rules which apply to crowdfunding in Singapore.
For a clearer picture, you should engage professional legal advisers to examine and advise you on the specific circumstances of your case.