Detailed Usage Disclosure... Donation Funds Become More Transparent

From now on, organizations that collect donations will be able to verify in more detail when, where, and for what purpose the collected donations were used.

The Ministry of the Interior and Safety announced that the "Enforcement Decree of the Act on the Solicitation and Use of Donations," aimed at ensuring transparency in donation management and promoting donations, was approved at the Cabinet meeting on the 19th.

Organizations that collect donations must register their solicitation (over 10 million KRW: local government, over 1 billion KRW: Ministry of the Interior and Safety), and after use, submit a "Solicitation and Usage Statement" to the registration authority and disclose it through the 1365 Donation Portal. However, the current "Solicitation and Usage Statement" only requires simple entries of 'amount solicited' and 'amount used,' making it insufficient to verify where and for what projects the donations were used, which has been criticized as not meeting donors' expectations.

Through the amendment, the related forms will be revised to require solicitation organizations to record details such as 'date, name of usage location, and purpose of the project' regarding the solicitation and use of donations. To reduce the administrative burden on donation solicitation organizations in filling out forms, the number of forms will be reduced by integrating similar forms (from 7 to 4), and automation of form completion will also be promoted.

The Ministry of the Interior and Safety expects that this amendment will enhance transparency in donation management and contribute to the activation of donations.

Deputy Minister Kim Min-jae stated, "Showing transparently how donations are used is an important condition for promoting donations," and added, "The amendment allows donors to verify in more detail where and how their donated funds were used."

This content was produced with the assistance of AI translation services.