The " Charity " Rat Race !

Perhaps one of the easiest ways to attain the good life is to start a " Charity ".  Find an appealing need  across the entire charity spectrum.that is not being serviced and use the media to draw it to public attention.   It is not hard to attract a few famous celebrities to add their voices to an appeal for public funds and very quickly you have a legally established charity.   The government maintains a charities " watchdog " but it mainly oversees that the charities under its control submit an annual balance sheet and meet the criteria of having a duly elected supervising board. Who sits on that board is up to the charity.

It is usual for the person who sponsored the charity to serve as its chairperson - and that becomes a paid position.  The charity needs a registered office, and in many cases it will provide a company car and meet the expenses that its chief executive needs to keep that charity in the public eye and ensure that the donations keep rolling in.

These days charities seem to raise money mainly by mailing out professionally enhanced appeal letters to the public.  Obviously, it must work of they wouldn't keep doing it, but that is an expensive " hit or miss " way to attract funds.  Another clever way of funding operations is to attach the services provided to one of the government programmes whereby it becomes simply a conduit for a government entitlement for the end recipient.   Many a charity is nothing more than a " money manager " organising the distribution of government funds.

On the social scene, being the chief executive of a charity is a matter of upscale prestige.  That person is usually feted by the media - and politicians love nothing better than to appear on television giving their support for a worthy cause.   Not only do some charities lose direction along the way, others descend into what can only be termed " criminal activities " when the money passing through their hands tempts avarice.

Such is the situation with the failed Guardian Youth Care charity.   It set out to care for children with high needs and dangerous behaviour in group homes throughout western Sydney.   This not-for-profit charity raised six million dollars from the public but now its largest creditor is the Federal government to whom it owes $19.6 million by way of various entities who received unauthorised subcontracts.   It is likely that this money is gone - and will not be recovered.

This charity malaise extends right across the entire charity spectrum.   Even the distribution of funds from the RSL organization is being questioned.  Several thousand registered charities are on the government books and many have ceased operation and not lodged a balance sheet in years.  Often the registered office holders are no longer contactable.

Probably, the majority of charities are legitimate and doing a good job for the community, but it is obvious that control is lacking.  It is too easy for people with ulterior motives or even those with criminal records to infiltrate an existing charity or start a new one.   The government charity watchdog needs to be given new teeth - and the ability to probe deeper to ensure that public money is being protected.