At the National Day Rally, I spoke about the need for Singaporeans to be active participants in the new social compact I proposed for Singapore, by helping those less able than ourselves.

Joining half-percent clubs is one way for Singaporeans to do so on a regular basis. The idea has been steadily gaining momentum since I raised it last December. I am happy to learn that 10 more people, pledging a total of $23,000 this year, have joined 108 of us in the Marine Parade Half-Percent Club. This evening, we are also launching the Community Chest's Half-Percent Club, and two chapters of the Marine Parade Half-Percent Club - the Grassroots Chapter comprising grassroots leaders, hawkers, shop owners and residents from Marine Parade; and the Tao Nan School Chapter for teachers of the school. These two chapters have succeeded in recruiting 150 members, who have pledged a total of $20,000 for the year.

This evening, we are also launching the Community Chest’s Half-Percent Club.

I am encouraged by the support for the half-percent club idea. It shows that Singaporeans are prepared to step forward to share what they have with the less fortunate.

As the fund-raising arm of the National Council of Social Service, the Community Chest, or ComChest, is using the half-percent club concept to raise much-needed funds.

This year, ComChest needs to raise $40 million. This is a tall order, given the difficult economic climate. But I am confident that if all of us dig into our pockets and give what we can, we will be able to raise the funds. Unlike most other charities, every dollar donated to the ComChest goes to charity. This is because ComChest’s administrative costs are sponsored by Singapore Pools. Every dollar raised is also immediately disbursed, rather than accumulated as reserves over many years. So ComChest is not rich, neither does it have a treasure chest of funds to fall back on. It needs the constant support of Singaporeans in order to be able to continue helping those in need.

ComChest plays as relevant a role today, as when it was first set up in 1983. Then, the objective of ComChest was to relieve voluntary welfare organisations of fund-raising activities so that they could concentrate on providing services for the needy. Since then, ComChest has raised and disbursed hundreds of millions of dollars. The number of beneficiaries has increased from 22,000 in 1984 to 300,000 this year.

Through its half-percent club, ComChest will be even better placed to draw sustained support from individuals and corporations.

For several months, ComChest has been actively garnering the support of individuals and organisations to form half-percent clubs. A total of seven clubs now come under the umbrella of ComChest, with the funds being channelled either directly to ComChest or to charities funded by ComChest.

These ComChest clubs are called Giving Circles - appropriately so, because each club comprises a circle of people pooling their resources towards a common cause. In your very act of forming such circles, you are all helping to build a stronger sense of community, and strengthening the compassion of Singaporeans for the disadvantaged. These are emotional ties that will bond Singaporeans more firmly to the nation, and to one another.

Seven Giving Circles is a good number to start with. ComChest aims to establish a total of 20 Giving Circles in a year’s time, to raise about one million dollars annually. Given the progress so far, I am confident that this target can be attained.

I want to highlight the Giving Circle formed by the Singapore National Employers Federation (SNEF). SNEF is approaching the concept of half-percent clubs in a novel way. It is contributing half a percent of its members’ annual subscription fees to charity. This is an approach which I hope more federations, clubs and associations will consider.

It is important that ComChest continues to innovate new ways to garner and keep the support of donors. It has done well so far, but increasingly, it has to fight for the same dollar with many other charities. Charities need to be more savvy in marketing and managing donors, and in developing long-term relationships with them. Fund-raising events these days, for example, are no longer simple affairs. Organisers have to put in more money and creativity to attract donors. But most importantly, in the keen competition for charity dollars, charities have to show donors that their donations will be put to good use and not frittered away. There is a greater demand for accountability as to where the charity dollar goes.

Especially in this downturn, it will be more difficult for charities to attract the support of donors. All Singaporeans are feeling the pinch, and invariably, might feel less inclined to contribute to charity. Yet it is during this period that charities need your contributions most, as there will be more Singaporeans getting retrenched and wages come down. So I would urge those of you who are in a financially more comfortable position, not to let the general pessimism about the economy hold you back from contributing to charity. Think of your many other fellow Singaporeans who might be harder hit than you.

Here, I want to make a special call to companies. Today, the civic responsibilities of corporations to their local communities are taking on new forms. Corporate philanthropy and community involvement are assuming a more entrepreneurial character. Through corporate giving to good causes, corporations are speaking to the hearts of consumers, particularly in the communities where they operate. The result is that people are more attuned to the products and services of socially responsible companies.

Also, many organisations have already moved away from the idea that corporate philanthropy and community involvement are the exclusive domain of the Chairman, the CEO, their spouses, and upper echelon executives. Indeed, the half-percent club concept is one way for organisations to involve all levels of staff in charitable causes. This boosts staff morale and camaraderie.

On its part, the Government will strengthen the framework to support charity. We will work with the people sector to enable informed giving, for example, by providing information and tips to help Singaporeans decide on which charity to give to. We will review our administrative rules to enable bona fide charities to obtain their fund-raising permits more readily. We are also looking into relevant training for charities to help them sustain their good work, and better manage their resources.

To help the cause of charity, the Minister for Finance has decided to grant double tax deduction for all donations made to Institutions of Public Character. He will announce the details at the next Budget.

There is a saying, that "It takes a noble man to plant a seed for a tree that will some day give shade to people he may never meet." I am pleased therefore to see so many Singaporeans like yourselves coming forward to help the less fortunate. It reflects well on the values of our society, and gives me hope for the future of our nation. I hope more Singaporeans will follow in your footsteps. The best way we can ensure the survival of Singapore, is to build up a strong spirit of care and concern for our fellow Singaporeans.

Thank you.

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