Kuala Lumpur: The growing accessibility of technology, combined with society’s generosity, has become a key driver behind the proliferation of online donation activities. These campaigns, often spearheaded by non-governmental organisations (NGOs), institutions, and individuals, frequently emphasise charitable causes as their core premise. However, alongside these noble efforts lies a darker reality: some individuals and organisations exploit these methods as a personal revenue stream, misusing the funds collected for purposes far removed from their stated objectives.
According to Bernama News Agency, misappropriating public donation funds is not a new phenomenon. Yet, the dramatic rise in online donation campaigns has significantly amplified the risk of such criminal activities. Experts point out that the absence of stringent oversight and clear regulations governing these activities creates ample opportunities for exploitation by unscrupulous quarters. They also highlighted recent legal actions taken by the
Malaysian Anti-Corruption Commission (MACC) against a non-governmental organisation (NGO) and a well-known influencer for allegedly misappropriating public donations intended for the Palestinian cause. This case underscores the severity of the issue, suggesting it is far more pervasive than generally perceived.
Experts caution that if such trends persist, public trust in charitable organisations and humanitarian initiatives could be severely undermined. This erosion of trust would not only deter future donations but also deprive genuinely vulnerable communities of the crucial aid they depend on.
Commenting on the issue, criminology and psychology expert from Universiti Sains Malaysia, Associate Professor Dr Geshina A. Mat Saat, said perpetrators view online donation collection as “easy money with the least amount of effort.” She noted that some perpetrators establish fake NGOs or misuse the names of reputable organisations to collect donations, which are not directed to the intended recipients but used for
personal gain. Geshina further explained that taking an excessively large percentage under the pretext of covering administrative costs is also a form of fraud.
Crime analyst Shahul Hamid Abdul Rahim expressed similar concerns, highlighting that many people are unaware of donation fraud, especially in online fundraising campaigns. He stressed that society must take proactive measures to investigate and confirm the legitimacy of any fundraising effort by consulting relevant authorities or organisations such as the RoS.
According to Shahul Hamid, the misappropriation of public donations has been deeply rooted and is becoming increasingly difficult to control with the advent of social media platforms and crowdfunding methods. He emphasized the need for immediate action, particularly as some cases involve substantial amounts of money, reaching millions of ringgit.
Shahul Hamid pointed out that current legal practices require organisations intending to collect donations to obtain approval or permits from author
ities, but there are no binding guidelines or regulations governing these collections. He urged the government to introduce specific legislation to regulate donation collections, particularly online, and suggested strict conditions for collecting funds to ensure they are used for their intended purposes.
When asked about the issue of donation collection, RoS Director-General Datuk Mohd Zulfikar Ahmad said NGOs are permitted to engage in such activities if they are outlined in their constitution. He stressed that registered organisations are required to submit annual financial reports to the RoS to monitor the flow of funds and ensure no misappropriation or misuse in their fundraising activities.
Meanwhile, Bank Negara Malaysia (BNM) stated that it does not have full authority to oversee donation activities conducted by NGOs or non-profit organisations (NPOs) and advised the public to always refer to official sources for accurate information.