Fund management not new

Prof Yeo said the issue of managing finances of religious organisations is not new. Traditional churches such as Catholic and Methodist churches also had to deal with the problem of managing their funds.

Over time, these organisations have learnt how to manage their finances through an appropriate governance structure.

He said: "It takes time to learn about these things and to put good governance structure in place."

That learning curve mirrors the experience in the US when a Senate committee was set up in 2007 to investigate six mega churches. The committee's concern was the issue of transparency of non-profit groups.

The central problem was ministries which operated like corporations in the US but without the accompanying regulatory checks and balances.

Similar concerns have also been raised in Australia about such churches.

How best to ensure good governance within such religious organisations then?

It all boils down to members of the organisation, said Prof Yeo.

"Members or people who give funds should insist on accountability and transparency," he said.

"If you are going to give money to an organisation out of your own free will, you should make sure the money is spent in a manner that you are comfortable with.

"It's good practice for any organisation, if you don't have the expertise to manage your finances, to get the expertise."

tnp@sph.com.sg

This article was first published in The New Paper.