Bad Act of Philanthropy – Fri 15 July 2022
Editorial Board (The Jakarta Post)
Fri, July 15, 2022
Allegations of gross mismanagement of massive funds at Aksi Cepat Tanggap (ACT) are giving Indonesia’s nascent modern philanthropic activity a bad name. As in modern banking, trust is the main currency of philanthropy, and it is now abandoned because few people would want to donate unless there are strong guarantees that the money will be spent on good causes.
ACT is one of the top performing philanthropic organizations in the country when it comes to raising funds, which in 2020 stood at 519 billion rupees ($6.7 million). Most of this money came in the form of religious alms from Muslims, although the ACT also received corporate donations. The money he received from Boeing intended for the families of the Lion Air plane crash that killed 189 people on board in 2018 is now a source of contention.
We are now wondering where the money went following an investigation report by Tempo review this month. The report said the ACT took an average of 13.5% of the money it raised, more than the 10% allowed by the Department of Social Affairs, which oversees these organisations. Tempo also said that the founders and executives of ACT pay themselves generously, along with benefits that befit executives of large corporations, but not nonprofits.
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