XN000022-1997-01-22 — Page 26

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(c)

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the applicant must demonstrate to be of good integrity, and have good management capability and performance record of its services;

funds raised must be used to support charitable activities. Priority will be given to those applications relating to the provision of essential social welfare, medical and health services to meet local needs;

the applicant must demonstrate a genuine need for fundraising. The Department would assess the applicant's financial status based on the annual statement of account taking into consideration its operating deficit or surplus, amount of usable reserve and the availability of other sources of funding; and

the applicant must have the ability to organise a flag day effectively.

The Community Chest and six specified organizations, namely the Tung Wah Group of Hospitals, the Po Leung Kuk, the Pok Oi Hospital, the Yan Chai Hospital, the Yan Oi Tong and the Lok Sin Tong Benevolent Society Kowloon are automatically allocated a flag day every year in recognition of their long standing contributions to help the disadvantaged and vulnerable groups in our community.

As explained in para (a)(iii)(3) above, one of the reasons based on which an application for fundraising is rejected is that the amount of funds raised by the applicant in a previous flag day is well below average compared with the net proceeds raised in flag days in that year. However, the Director of Social Welfare would take into account justified causes such as inclement weather before taking a decision on whether to reject the application on such ground. This requirement is to ensure that organisers will make the best use of the limited number of "flag days" to maximise proceeds.