Panadda foundation case puts charity transparency in spotlight

The investigation surrounding television presenter Panadda “Boom” Wongphudee and the Ongkorn Thamdee Foundation has brought renewed attention to Thailand’s laws governing charitable organisations, particularly the management of donations and accountability for public funds.

The controversy has raised questions about several matters, including the use of state-owned land for a trail-running facility, reported transfers of foundation funds linked to pool villa construction and disputes involving family relationships.

While these issues remain subject to scrutiny, the broader concern is how foundations manage donations and ensure that money contributed for charitable purposes is used appropriately. Other foundations associated with public figures have faced similar examinations in the past.

The case has also highlighted the potential legal consequences of misusing donations, particularly where investigators find evidence of deception, misappropriation or other financial offences.

Charitable donations estimated at THB150 billion annually

Research cited in the discussion estimates that charitable donations in Thailand amount to approximately THB150 billion a year, covering foundations, associations, non-profit organisations, temples and other religious activities.

The amount is estimated to increase by around 2% annually, with roughly one-third to one-half of donations going towards temples, merit-making and religious ceremonies.

These figures illustrate the substantial financial resources entrusted to charitable and religious organisations, reinforcing the importance of transparent accounting and the ability to trace how donations are collected and spent.

Thailand has an estimated 40,000–50,000 temples, alongside approximately 32,800 foundations, associations and other non-profit organisations.

Although foundations and associations both operate on a non-profit basis, their legal structures differ.

An association is established by people joining together to pursue common activities. A foundation, by contrast, is formed through the allocation of assets for charitable or other public-benefit purposes, without distributing profits to individuals.

Registration requirements and financial controls

Under Thailand’s foundation registration requirements, an organisation generally needs initial capital of THB500,000.

A lower threshold of THB200,000 applies to certain foundations established for purposes including social welfare, education, sport, disaster relief and drug-related prevention or assistance.

Cash funds must be deposited with a commercial bank, with supporting certification provided before registration. A foundation must also have a management committee comprising at least three members.

Foundations are required to operate within their registered objectives and are subject to restrictions concerning partisan political activities and financial or material support for political parties.

A central concern in foundation management is whether money collected from the public can be deposited into an individual's personal bank account.

A legal specialist from the Office of the Attorney-General emphasised that donations intended for a registered foundation should be transferred directly into an account held in the foundation's name.

Where contributions were initially collected through a personal account before a foundation was formally registered, the specialist maintained that the money should be transferred promptly to the foundation's account once registration was completed.

Keeping such funds in a personal account for three or four years, or using them for unrelated expenses, could raise serious legal concerns. Whether an offence has occurred depends on the circumstances and evidence.

Online fundraising and unused donations

Thailand's Fundraising Control Act of 1944 regulates public appeals for donations, including fundraising activities that may require prior authorisation.

Public appeals promoted through online platforms such as Facebook and TikTok can fall within these requirements, depending on the nature and purpose of the fundraising activity.

Organisers operating under a fundraising permit must comply with the relevant conditions and reporting requirements concerning money collected and spent.

Restrictions also apply when donations remain unused or the original charitable objective can no longer be fulfilled.

Funds collected for a specified purpose cannot simply be redirected towards unrelated activities. Where the intended use is no longer possible, organisers must follow the procedures required by the authorities before reallocating the money.

Multiple agencies oversee charitable organisations

Responsibility for monitoring foundations is divided among several government agencies.

The Ministry of Interior oversees foundation registration and financial reporting, while the Ministry of Finance examines commercial income, taxation and eligibility for public charitable organisation status.

The Anti-Money Laundering Office (AMLO) can investigate financial transactions and trace funds where potential money-laundering concerns arise.

The Department of Special Investigation (DSI) and police may also become involved when suspected criminal offences are identified. Depending on the circumstances, investigations can include possible violations of the Computer Crime Act.

These responsibilities mean that foundation management may be examined from several perspectives, ranging from compliance with registration requirements to financial transactions and potential criminal wrongdoing.

Distinguishing public fraud from misappropriation

The legal consequences of improperly using charitable donations depend partly on the circumstances in which the money was obtained and the intentions of those involved.

Where investigators establish that funds were solicited through false claims and that there was never a genuine intention to use the money for the stated charitable purpose, the conduct may constitute public fraud.

Public fraud is a criminal offence that cannot be resolved solely through a private settlement between the parties.

A different issue arises when donations were initially collected for genuine charitable purposes but were subsequently diverted to unrelated activities or appropriated for personal benefit.

Such conduct may fall within the offence of misappropriation, depending on the evidence and the legal relationship between those responsible and the funds involved.

Repeated financial irregularities or arrangements involving kickback payments may also prompt investigations into possible money-laundering offences, provided the relevant legal elements are established.

The investigation into the Ongkorn Thamdee Foundation therefore highlights a wider issue for Thailand's charitable sector: ensuring that donations are properly recorded, managed according to their intended purposes and subject to effective oversight.

With an estimated THB150 billion in charitable contributions circulating annually, the ability of foundations and other organisations to demonstrate financial accountability remains central to maintaining public confidence.