SGM money matters (2): Analysis from a reader

From a concerned reader.

What is your take on the report? Is it good?

Let me start by commending SGM for taking the first step to provide a financial overview. Good to see that the top executives of SGM is taking baby steps towards transparency and see that it is proper to give members some ideas of how their sincere contribution is being spent.

The report, I find, is too general and not much details are given. There are many rooms for improvement. Here, I would like to list down the areas of my concern and also provide some recommendations.

Firstly, to report on financial information, you would need to provide the figures, not merely percentages. Without figures we wouldn’t know the materiality and the significant of the financial information eg there is a huge difference between 10% of RM10,000/- and RM100,000,000/- .

Secondly, comparison with the previous year financial information. This would make the reader know whether our contribution and expenses has increase or decrease over the years and any explanation for the movement.

Thirdly, only the income and expenses info are provided. What about the balance sheet item, i.e. fixed assets, cash in hand, fixed deposits, liabilities etc.? These are the basic information that a financial report/summary should have. Whether a company or an organization practice good governance can be seen by how transparent the financial information are disclose to the public.


How would you analyse this report?

Based on the limited information given, I have summarized the inflow and outflow as below:-

Inflow of fund

Outflow of fund

(Assuming it was used for the following)


Interest from FD – 21%

Operating expenses and general admin – 21%

The interest from FD itself is enough to cover the daily operation of SGM.


TSS Fee – 4%

TSS expenses – 3%

TSS is self-sustaining with 1% profit.


Sales of books and accessories – 4%

Office equipment, furniture and fitting – 7%

The balance 3% will be from contribution.

Assuming majority of the 7% was used for the SGI Asia Training center, which mean that in 2017 the % will reduce significantly.


Contribution – 70%

Land and building – 28%

Mainly for the SGI Asia Training Centre

Which mean in 2017 the 28% will be extra saving for SGM.


FD saving – 40%

Will increase the interest payout for 2017.



Points to take note from the above analysis:-

  1. SGM can sustain its day to day running of the 34 culture center nationwide by utilizing the interest from FD alone.
  2. Moving forward, from the data provided, all contribution will be for saving in the FD.

Question to ponder from the above analysis:-

  1. Is it necessary for SGM to continue actively promoting and emphasizing on monetary contribution? Presently, we have the annual special gokuyo (twice per year), Kofu funds, and special contribution for New Year and Chinese New Year.
  2. Since the contribution from these are meant for kosen-rufu activities, why do members still have to pay for seminar, exams, events, cultural practice, etc.? If members are paying for these events individually, then what is the money from contribution and Kofu funds for?
  3. Why no proposal to set up fund to assist the needy members in SGM and our community? Isn’t Soka stand for value creation? Are we not creating value when we help those in need?
  4. It is also important that SGM outline specifically what are the purpose of contribution, what are they meant to be spent on and how much is required each year.




Quietrevo comments:

We believe that money matters in SGM is something to be taken very seriously and it is a chief responsibility of SGM top executives to be more transparent, making more effort to explain and justify the various comments and questions brought up.

This is not a malicious attack against SGM. These criticisms and questions are meant to identify areas of weaknesses, rectify and strengthen them, to prevent abuse or mishandling of funds.

To enable more understanding, we believe that it is important we discuss and share this information with our friends and members who are mature and those who are able to distinguish between asking mature and legitimate questions. And not to share, in our opinion, with members who cannot think in a mature manner and see ALL forms of criticisms, regardless of its merits, as devils or some kind of threat that needs to be kill off immediately.


It is not our intention to discriminate or belittle anyone who disagree with us. We just find that it is not very productive to spent time discussing with those who are not open minded and those who like to label others as devils, cunning priests, ‘intellectuals’, enemies of Soka Gakkai, not Sensei’s disciples and all types of derogatory terms. We respect each person as a Buddha and has their unique roles in kosen-rufu, nonetheless.

One thought on “SGM money matters (2): Analysis from a reader

  1. Thank you for this post, it gives me a better idea where my money was going to the past few years. Thank you again and keep it up, I appreciate very much the efforts to keep us all informed, and to enable us to ask the right questions to the right people.


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