Mixed reaction from charity bodies on IRB ruling

PETALING JAYA: While the Inland Revenue Board’s (IRB) decision to lower the donation reporting threshold to RM1,000 is unlikely to affect donations, it may be an administrative burden, said charitable bodies.

According to the National Autism Society of Malaysia chairman, Feilina S.Y. Muhammad Feisol, the extra paperwork required will likely affect smaller charities which do not have a finance team.

“A lot of smaller NGOs do not do financial reporting, so this will entail a lot of administrative work for them” she said.

However, Feilina welcomed the move to tighten regulations to prevent charity bodies from abusing public donations.

“We know of NGOs who fiddled with the books, and NGOs who have kicked out people who fiddled with the books.

“This ruling is perfect because NGOs now cannot fiddle with the books anymore. It safeguards both sides, ” said Feilina, who added that the latest move by IRB will, in fact, give the public more confidence in donating.

Malaysian Nature Society (MNS) president Professor Datuk Dr Ahmad Ismail also agreed that the new ruling is an extra administrative burden that takes time away from his organisation’s core work.

“For MNS, there is no problem to declare our donations. We are transparent and a not-for-profit society.

“But I think RM1,000 is too little to declare now, ” he said.

OrphanCare deinstitutionalisation manager, Shahida Musa, said the new ruling is not a huge burden as tax-exempt charities like theirs are already required to submit an annual audit report and list of donors to IRB.

She said donors are required to provide information such as name and identity card or business registration number, in order to be issued a tax-exemption receipt.

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