Auditor: Megachurches BREACH Charity Act

[makapaaa]

Mar 24, 2010

Check on charity status of religious groups

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I REFER to the letters about commercial investments by mega churches and last Saturday's letter, 'Drawing the line on commercial deals', by the Ministry of Community Development, Youth and Sports; Urban Redevelopment Authority; and Inland Revenue Authority of Singapore.
As an auditor of several charitable groups, I wonder if significant involvement in commercial activities by mega churches, through investments in properties, still qualify the churches as charities under the Charities Act and their Constitutions.
According to the Charities Act, the purposes/objects of the charities must be exclusively charitable, which, in the case of religious groups, is the promotion of their respective religions.
The authorities, including the Registrar of Societies and Commissioner of Charities, should look into statutory compliance and evaluate if such religious groups still qualify as charities.
New Creation Church and City Harvest Church are registered as charities but not Institutions of a Public Character. This means that donations to these churches are not tax exempt, so donors do not enjoy tax deductions of 2.5 times.
Nevertheless, I am impressed by the ability of these churches to obtain significant donation income, which is a feat few organisations can match.
Tan Saw Bin (Ms)

 

[makapaaa]

Mar 24, 2010

Lines are blurred

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'A religious group and its associated business entity might not be distinctly separated in reality.'
MR HARVEY NEO: 'While the relevant agencies have shed some light on the commercial dealings of religious groups ('Drawing the line on commercial deals', last Saturday), key questions remain. It was stated that any business carried out by a charity under a separate legal entity does not enjoy tax-exempt status and is subject to normal corporate tax. Yet, a religious group and its associated business entity might not be distinctly separated in reality. For example, the initial start-up funds for the business entity could come entirely from the church. Tax-exempt funds from the church might also be diverted to the business entity in indirect ways. It was also stated that some charities engage in business activities to generate additional income. In principle, most people would have no problems with that. However, there is a difference between, for example, investing in low-risk government bonds to generate sustainable income and setting up an entertainment conglomerate to earn profits. The problem arises when the associated businesses of a religious group balloon to such an extent that one starts to forget the raison d'etre of religion and begins to wonder where the profits of such businesses go to.'

 

[SneeringTree]

mar 24, 2010

lines are blurred

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'a religious group and its associated business entity might not be distinctly separated in reality.'
the problem arises when the associated businesses of a religious group balloon to such an extent that one starts to forget the raison d'etre of religion and begins to wonder where the profits of such businesses go to.'

agreed 100%!

 

[Queen Seok Duk]

Isn't the whole idea to blur the line between religious and commercial when a pastor declares herself a pop queen ?

 

[halsey02]

Isn't the whole idea to blur the line between religious and commercial when a pastor declares herself a pop queen ?

Revelation 17: 1: And there came one of the seven angels which had the seven vials, and talked with me, saying unto me, Come hither; I will shew unto thee the judgment of the great whore that sitteth upon many waters:
2: With whom the kings of the earth have committed fornication, and the inhabitants of the earth have been made drunk with the wine of her fornication.
3: So he carried me away in the spirit into the wilderness: and I saw a woman sit upon a scarlet coloured beast, full of names of blasphemy, having seven heads and ten horns.
4: And the woman was arrayed in purple and scarlet colour, and decked with gold and precious stones and pearls, having a golden cup in her hand full of abominations and filthiness of her fornication:
5: And upon her forehead was a name written, MYSTERY, BABYLON THE GREAT, THE MOTHER OF HARLOTS AND ABOMINATIONS OF THE EARTH.

We Shudder!. when the lines are blurred!!