Temple donation loopholes spark concern over corruption and money laundering risks

A recent report from the Thailand Development Research Institute (TDRI) has shed light on the systemic weaknesses in the financial management of temples in Thailand, where billions of baht in donations each year remain largely unregulated. The lack of oversight and transparency, the report warns, opens the door to corruption and money laundering, eroding public trust in Buddhism.

On April 19, 2023, the TDRI published an article titled “Temples and the Risk of Being Used for Money Laundering”, using high-profile cases as examples—including the well-known “Wat maintenance fund kickback” scandal (2014–2018), which exposed corruption involving officials from the National Office of Buddhism (NOB) embezzling over 270 million baht by demanding kickbacks from state grants allocated to temples.

Other notable cases include that of Phra Nen Kham, who solicited donations to build a jade Buddha and hospital, only to spend the money on personal luxuries; and the recent case involving the former abbot of Wat Rai Khing, who allegedly embezzled 300 million baht from temple bank accounts to fund online gambling.

These cases have sparked broader concerns about how temple names may be used as fronts for financial misconduct.

According to TDRI’s research, the average annual revenue per temple is approximately 3.24 million baht, mostly from public donations. Key sources include:

• Donations for temple renovation: 2.02 million baht
• Offerings for religious items: 1.46 million baht
• Donations during religious festivals (e.g., Kathin and Pha Pa): 1.05 million baht

The National Office of Buddhism reported in 2019 that there were 41,310 temples nationwide. Such a large number makes financial oversight difficult, particularly as many temples rely heavily on donations and lack clear accounting standards.

In addition to public donations, temples also receive substantial government funding for three main purposes:

• Renovation of religious sites
• Education in Buddhist scripture (Pariyatti Dhamma)
• Promotion of Buddhism

Data from the Budget Bureau shows that from 2013 to 2019, the state spent an average of 3 billion baht annually on temple subsidies, with spending reaching as high as 4.7 billion baht in 2016–2017.

The concern is that the budget allocation process often lacks transparency and is vulnerable to abuse, as there are no mechanisms for external audits or public disclosure.

While current laws require temples to submit monthly income and expenditure reports to provincial NOB offices, TDRI found that accounting standards vary widely. Most temples still use basic cashbooks without proper categorisation or monthly reconciliations.

Worryingly, less than half of the temples submit financial reports on time, and there is little to no public disclosure—such as posting reports within temple grounds or publishing them on official websites.

TDRI has called for urgent reforms to improve financial transparency in religious institutions and restore public faith in the management of temple finances.

Examining the Loopholes in Temple Fund Mismanagement: A Structural Problem

According to data compiled by Spring News, donations remain the primary source of income for temples across Thailand, amounting to tens of billions of baht each year. In 2018, it was reported that Thai people donated approximately 54 billion baht to temples.

In 2014, data showed that the total deposits in the banking system from temples stood at around 300 billion baht, likely including accumulated savings and revolving funds. Aside from public donations and merit-making offerings, temples also generate income from other sources such as rental income from real estate and land owned by the temple (thorough Thoranisong land arrangements) and the sale of sacred amulets. The overall amulet market alone is believed to be worth tens of billions of baht.

Temple financial management is governed by multiple laws and regulations. The Sangha Act B.E. 2505 (1962) requires abbots to be responsible for financial accounting and defines “temple property.” Meanwhile, Ministerial Regulation No. 2 (B.E. 2511 or 1968) stipulates that abbots must ensure that a Waiyawatchakorn (lay administrator) or designated person maintains income and expense accounts and prepares an annual financial summary.

The Sangha Supreme Council (SSC) Regulation of 2014 sets criteria and approval authority for disbursements. It states that an abbot can approve disbursements up to 50,000–90,000 baht (depending on interpretation). For amounts exceeding that, approval must be obtained from a higher-ranking ecclesiastical authority, and for amounts over 500,000 baht, the SSC must approve. However, these rules are difficult to enforce due to a lack of standardised accounting systems, a lack of transparent accounting practices, and most importantly, the absence of auditing mechanisms that meet international standards.

There is also a shortage of skilled personnel to oversee temple finances. Oversight by the National Office of Buddhism is seen as weak, despite being responsible for supervising over 42,000 temples nationwide. Resistance to reform is common, and authority remains highly centralised in the hands of abbots. Without effective checks and balances, this centralised power structure creates the risk of misuse of funds and authority.