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Start a donor-advised fund: plan your giving flexibly and sustainably
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Start a donor-advised fund: plan your giving flexibly and sustainably

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The breakfast huddle with Catherine Loh: A group of individuals gathered around a table, engaged in a morning discussion.

CEO Catherine Loh goes on Money FM 89.3 to speak about the donor-advised funds.

Elliott Danker: Funds such as DAFs are especially needed during the current COVID-19 pandemic because that’s where you have more people in need. Many charities have shared that donations have been falling.

Manisha Tank: A DAF allows donors to give in a more informed, structured and sustained manner over time. As of March 2020, there are 143 DAFs set up with CFS, which is double the number in March 2015. How does a DAF actually work and why has there been an increase in the number of DAFs over the years?

Elliott: With us is Catherine Loh, CEO of the Community Foundation of Singapore. We’ve been trying to describe and nail down the meaning of donor-advised funds or DAFs. It’s like a personal charitable savings account; is there anything more you could tell us about DAFs?

Catherine Loh: It’s easier to give you a concrete example. One such DAF is the SR Nathan Education Upliftment Fund, which was set up by our late president when he retired in 2011. As he had received help himself back when he was young, Mr Nathan wanted to set up a fund to help students at risk of dropping out of school due to financial difficulties.

So through this one endowment fund established with us, he was able to reach out to many educational institutions like ITE (Institute of Technical Education), various polytechnics and universities to support students in need. Some special schools like the Mountbatten vocational school and even the four self-help groups have benefitted.

Even though he is no longer with us, we work with a committee comprising a family member, close friends and those who have a deep interest in the community to guide the fund. Over the years, thousands of students have obtained their diplomas and degrees with the support from the Fund. Hopefully from the example you can see that for a donor-advised fund, donors get to name their fund, to choose the causes that they are interested in supporting, and they can use the fund to support more than one charity. There’s a lot of flexibility here.

Manisha: Is a DAF only for the wealthy?

Catherine: There is a minimum amount to set up a donor-advised fund. The minimum amount is $200,000 but a donor can start off with $50,000 and fulfil the pledge over a period of time.

Elliott: How big is the concept of a DAF in Singapore when compared to the rest of the region or the world?

Catherine: This concept is pretty new. In Southeast Asia, we are one of the few established community foundations. However, in the US community foundations are very well established and donations into donor-advised funds are large.

Manisha: If you’re someone who’s decided on having a DAF to take care of your charitable causes and your contributions, is the due diligence all done for you?

Catherine: Before we talk about a charity or their programmes to a donor, we would have done the basic due diligence; checking up on their finances, making sure it is a charity that is doing good work. When we recommend, we try to match the donor’s interest with what the charities can offer and really helping the donors achieve their objectives.

Manisha: Do the donors come to you for different reasons, or some have just come into money and have decided to do something useful with it?

Catherine: People come with their personal reasons, but most do want to do good and they do want to give. The whole purpose is to ensure that their money is put to good use. They want to have the peace of mind that the charities are doing the work that they are supposed to do. This is where we can help to provide the professional advice and to give them the peace of mind.

Elliott: You talked about the minimum amount to start a DAF. How do you start one, and if I’m opening one with CFS, do I have to pay a fee?

Catherine: It is signing a deed and that’s it. It takes about two to four weeks depending on the complexity of the donor’s unique circumstances and what their requirements are. But it is definitely easier than setting up your own family foundation or a corporate foundation.

Manisha: Why has there been an increase in the number of DAFs?

Catherine: We have seen an increase in awareness as we have also been more active in explaining this concept to the public. Over the years, we’ve had happy donors referring their friends and colleagues to us and we’re glad that we’ve gained the trust of our donors and charity partners alike

We’ve also seen an increase in demand because this structure meets the needs of many donors. We’ve established funds for both individuals and businesses; individuals set up memorial funds to remember a loved one or to celebrate significant events like retirements, birthdays and wedding anniversaries. DAFs are useful for financial and legacy planning as well, because donations into a fund can be eligible for two and a half times deduction off taxable income. It can be used as an instrument for tax planning. It can also be named as a beneficiary in a will or a trust. Increasingly, we work with lawyers and executors of wills to administer money left behind for charity.

Very often executors are left vague instructions to just gift the money to charity, and by working with us they have the peace of mind that there are professionals working to identify the right charities and programmes for them.

Manisha: What are the differences between giving to charity and setting up a DAF?

Catherine: If the donor is interested in accountability and transparency and they want to keep track of the donations for regular, long term and more strategic giving, then a DAF is very useful. What we want is for the donor to understand the cause or causes that they are interested in, to get to know the charities and the types of programmes that are out there. Once the donor gets involved, they are more likely to support their causes for a long period of time.

Manisha: One of the best things to donate is time; does that happen and do the donors get involved with these causes and turn up in person to see what’s on the ground?

Catherine: We do have donors who do that whenever they have the time. They are busy professionals who may not have a lot of time and they just give with money first. But we do encourage them to get involved and not just themselves but with their families. Very often we want to not only engage the donors but their family members as well, to get them to understand what they are really helping. In so doing, they would be the ones coming up with new ideas and working directly with the charities to create positive social change. This is a culture that we want to build in Singapore.

Elliott: Some charities are suffering during this COVID-19 pandemic, unable to have fundraising dinners; what has the impact of the pandemic been on DAFs? Should people consider going into a DAF during this pandemic because it’s more focused and safer with due diligence all done?

Catherine: We have seen activity throughout this whole year, so activity hasn’t slowed down for us at all. In fact, donors are talking to use because they want to know how they can help over the longer term; they want to know what are the underfunded sectors and the pressing issues that need
support going forward.

What this pandemic has taught is that it is good to be prepared. As the pandemic continues, we have rising unemployment, health risks and donations from the general public that have decreased. For the donors who have planned their giving and established their donor-advised funds in the past with us, this is an opportunity where they have stepped up. Over the past few months, we have seen a very significant amount being given out from our existing donor-advised funds to COVID-19 related causes.

Manisha: What about businesses?

Catherine: We have quite a few businesses who have established donor-advised funds with us as well. There are many reasons for doing so. There is more marketing mileage with a named fund; this can be a starting point to learn about philanthropy before setting up their own corporate foundation. They use it for planning and tracking their charitable budget, and also to give more strategically by tapping on our knowledge, experience and network in the sector.

Elliott: Is it more high network individuals that are taking part in donor-advised funds?

Catherine: For the Community Foundation of Singapore, a donor-advised fund is just one product which we offer; these are targeted at those who have more to give and they want to give in a longer term manner, so their own named fund is suitable. However, we established our own Community Impact Funds (CIF) in response to social issues that we want to address; you may have heard of the Sayang Sayang Fund which was set up in February as an emergency response fund in the wake of COVID-19.

These kinds of Community Impact Funds receive thousands of donations with thousands of donors donating to these funds. These people could be anywhere from students to retirees, anybody who is linked or feels close to the cause.

Listen to the full interview here:
https://omny.fm/shows/money-fm-893/the-rise-of-donor-advised-funds-in-singapore

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The competition was organised by City Harvest Community Services Association and received support from FUN! Fund, a Community Impact Fund jointly established by the Community Foundation of Singapore and the Agency for Integrated Care, with the aim of addressing social isolation among the elderly.

Senior Minister of State, Ministry of Communications and Information & Ministry of National Development Mr Tan Kiat How attended the event. He encouraged the elderly to stay physically and mentally well, as well as urging them to participate in community activities and enjoy their golden years together.

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

 

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.

L.S., a volunteer with the Reading Odyssey programme @ Spooner Road

中心“常胜将军”胡锦盛:比赛限时反应要快

现年92岁的胡锦盛是最年长的参赛者。自2017年退休后,他几乎每天都到活跃乐龄中心报到,从此爱上了玩拉密,每次可玩上三个小时,在中心是“常胜将军”。

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News

Portfolio Magazine: Helping others help others

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Asian woman (Ms Loh) in red dress posing for camera.

“These six years at CFS have definitely been a fulfilling learning journey for me,” says Ms. Catherine Loh. She smiles for the first time since we sat down to discuss how she traded her successful banking career to one in charity – as CEO of CFS. “I developed greater empathy and learned to see things from another person’s perspective. I’m also humbled by the selflessness displayed by so many in the social sector as they strive daily to help their beneficiaries overcome life’s challenges.”

Set up in 2008, CFS currently manages 110 donor funds, including the SR Nathan Education Upliftment Fund, and has raised over S$100 million in total donations. It also works closely with over 400 charities to identify the gaps in the community that need support.

Ms. Loh sees her work as stimulating attempts at innovation and problem solving. “The needs of donors and beneficiaries are always changing, and there are constantly new ways that we can work with donors and charity partners to solve complex social issues.”

A Different Start
The moment she stepped out of the university, Ms. Loh, like most of her peers, began an earnest pursuit of the 5Cs: cash, car, condominium and country club – popular benchmarks of success in the rapidly developing economic powerhouse that Singapore was in the 1980s and ‘90s.

She started her career at the Government of Singapore Investment Corporation, followed by leadership positions in the Singapore offices of Nomura, Lehman Brothers and Goldman Sachs. “I’m very fortunate to have spent many years of my career in banking, which has seen tremendous growth over the past 20 years,” Ms. Loh says. Work in a dealing room was intense – a virtual roller-coaster ride that followed the constant fluctuations in the financial markets. It was also very competitive and profit-driven.

But there were genuine perks: “The best part of the job was meeting clients from all over the region, understanding their needs, and finding suitable financial solutions in volatile financial markets. Many colleagues and clients have become my good friends and I will always treasure these relationships forged over the years,” Ms. Loh says.

The thrilling ride came to a grinding halt, however. In 2008, the financial crisis that would trigger a global recession had peaked; its aftermath took a toll on Ms. Loh’s health. “I decided to take a break to spend more time with my family and regain my health. After leaving the banking industry in 2010, I spent a year and a half at home looking after my third child who was born in 2009.”

Changing Tracks
When her toddler entered preschool, Ms. Loh considered returning to work. A job offer from the social sector came along. Although it was a different path, her previous volunteer involvement with Assisi Hospice, Metta Welfare Association, and Telok Kurau Primary School prepared her for it.

“I thought it was a wonderful opportunity for me to contribute back to society in a way that can maximize my skill-set and experience in management, sales and marketing, and financial investment management.”

Transitioning into her new role was initially difficult. Ms. Loh had to adjust from working in a large profit-driven organization to a small non-profit focused on doing good. “Being in a lean organization means every team member often has to multitask. Another learning curve was managing staff who are driven by the will to do good and not just by money alone.”

Ms. Loh also found that the largely female-dominated CFS required a more consensus style of management versus a more direct confrontational style in a male-dominated dealing room. “Working with charity partners also demanded more patience and empathy as they are generally understaffed and unable to work at a speed investment that bankers are used to.”

Inspiring Philanthropy
”Our goal has always been to inspire philanthropy, and that has not changed. When I first joined, CFS was still at its infancy and donors were simply looking for a convenient way to consolidate their donation and disburse grants. The needs of donors have evolved along with the shifting social landscape, and CFS has had to rise up beyond an administrative role to better accommodate these changing needs.”

Over the years, as donors gain a better understanding of the social landscape, they began to ask for more information and transparency on how their donations actually help those in need. “We then have to assist our charity partners to better articulate the impact of their programs to donors. For donors who want to find out even more, we facilitate charity visits and meetings with beneficiaries, with the objective of building deeper collaborations and strengthening partnerships among our donors and the communities we serve,” Ms. Loh elaborates.

In the recent years, donors have sought out CFS for strategic philanthropy advisory to obtain help in devising strategies to achieve their philanthropic goals and objectives. “We do that by understanding what donors want to achieve with their philanthropic dollars and we create a ‘portfolio’ of charity programs which they can support to achieve their goals. We would also follow up with evaluation and reporting back to donors so that they understand the impact of their giving.”

A Distinct Difference
Ms. Loh observes that although many people want to help, some may not have time, experience or expertise to do it themselves. “This sentiment can be exacerbated by the sheer volume of information available online. Donors want efficient ways to structure their philanthropy, so they can plan sustained giving to the causes they care about.

“This is where CFS can help with our philanthropy expertise spanning administration, strategy and grant-making. We save donors the work and resources needed to set up a private foundation. By tapping on our philanthropy services, they avoid high overheads, save on time and legal expenses, and enjoy tax deductions upfront.”

CFS has in-house resources to identify charities and evaluate their programs. “We help avoid duplication in funding areas where there may already be adequate government funding or private support. For donors who establish endowment funds with us, we invest their monies to ensure that there is a steady income stream to benefit their selected charities.”

CFS helps donors understand the issues and let them decide how they want to help. It then applies the donors’ funds to the particular area they have identified, and help to track the outcome. “This enables donors to feel a sense of fulfillment, and when they do, very often, they want to do more to help.”

Ms. Loh maintains that donors appreciate CFS following up on the outcomes of their grants. Donors understand that their support is part of a greater whole, and they like to understand how their money has made a difference. “The desire for accountability has always been there, and 10 years on, we see enhanced reporting capability in the charity sector. At CFS, we would like to think that we have contributed positively to this trend.”

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.Lorem ipsum dolor sit amet consectetur adipiscing elit dolor

The competition was organised by City Harvest Community Services Association and received support from FUN! Fund, a Community Impact Fund jointly established by the Community Foundation of Singapore and the Agency for Integrated Care, with the aim of addressing social isolation among the elderly.

Senior Minister of State, Ministry of Communications and Information & Ministry of National Development Mr Tan Kiat How attended the event. He encouraged the elderly to stay physically and mentally well, as well as urging them to participate in community activities and enjoy their golden years together.

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

 

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.

L.S., a volunteer with the Reading Odyssey programme @ Spooner Road

中心“常胜将军”胡锦盛:比赛限时反应要快

现年92岁的胡锦盛是最年长的参赛者。自2017年退休后,他几乎每天都到活跃乐龄中心报到,从此爱上了玩拉密,每次可玩上三个小时,在中心是“常胜将军”。

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News

Our Annual Report 2021 is now available for download

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cover of CFS annual report

We are pleased to share that the Community Foundation of Singapore (CFS) Annual Report 2021 has been published. Download your copy here to learn more about the year’s highlights and our impact on the community. 

Even as the pandemic gripped our nation, we are humbled to report that – together with our donors, charities, and partners – CFS delivered a year of bold action and made tremendous progress on our mission to facilitate impactful giving.

CFS delivered a record of $24 million in grants – the highest since our inception – disbursed to 291 organisations and 13 individuals, and a total of $5.7 million via the establishment of 19 new funds for the financial year ended 31 March 2021.

The Annual Report contains the following information:

  • Corporate Information 
  • Key Highlights
  • Forward Vision
  • Governance and Policies
  • Financial Statements
  • Grantees List

Regarding the year under review, the report reflects the information contained in CFS’ annual results, as well as the audited consolidated financial statements. 

CFS stands ready to work alongside all of you to champion greater giving and create a better world for future generations. To find out more about CFS, get in touch with us.

About CFS

The Community Foundation of Singapore is a non-profit organisation founded in 2008 to encourage and enable philanthropy in Singapore. We match donors’ interests with causes and offer ways for them to make a greater impact through their charitable funds. We also collaborate with charity partners to identify and develop programmes that support diverse communities. 

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News

Singapore Tatler: Living Legacy

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Engaging magazine article highlighting living legends, individuals whose exceptional contributions have made them iconic figures in their respective domains.

More people are starting to think about philanthropy and giving back, instead of leaving it as a post-retirement consideration. Thio Shen Yi and Stefanie Yuen Thio, and Adrian and Susan Peh tell Singapore Tatler how they are making more strategic and effective giving through their private charity funds with the Community Foundation of Singapore.
Read more.

Courtesy of Singapore Tatler, October 2018

Speaking after the association’s annual general meeting at Kallang Netball Centre on Friday, Liang-Lin, a fund manager for a US$7 billion (S$9.5 billion) firm focused on green real estate investments in Asia, hopes to bring her expertise to the table and increase the amount of financial support for Singapore netball during her four-year term.

The 53-year-old took over from Deputy Speaker of Parliament Jessica Tan, who has been the association’s president since 2012. Tan had reached the end of her tenure, which saw the national team make several breakthroughs, including a gold medal at the 2015 SEA Games in Singapore.

Liang-Lin holds various appointments such as being Singapore’s representative to the G20 for Women appointed by the Ministry of Finance. She is also a board member of the Community Foundation of Singapore, which promotes philanthropy through facilitating the establishment of charitable funds.

She said: “One of the things that is overlooked when we look at philanthropy and fundraising is that sport is not really part of the things that people will automatically think about.

“Less than one per cent of the funds that we raise in the Community Foundation goes to sport. The values that sport brings need to be amplified more, so that corporates… see the need to support sport. I think that link needs to be stronger so that we get not just more corporate sponsors, but also they can come in for longer periods of time.”

While national agency Sport Singapore provides funding to netball, corporates can also do their part, she added.

She said: “If we play our cards correctly, we can get corporates to come in and hopefully support them, to see the wider purpose of sport and bring the nation together.”

She also hopes the association can be proactive in looking for financial support, adding: “We must work more strategically with governing bodies on educating corporates on the importance of really supporting sport.”

The former netball player also made references to the recent Women’s World Cup for football, noting the “ability for a game that focuses on women in the sport to bring global attention”.

She said: “I want that kind of trajectory of the limelight going to women’s sport. I think that is a trend that will continue, and I hope that netball will be part of that trend.”

Meanwhile, Tan was satisfied that she has achieved the three objectives she had set out to do when she came on board – to improve quality of play, build a fan base and create an ecosystem which involves coaches and players.

The 57-year-old added: “As much as I do feel sad about having to step down, but at the same time, leadership renewal is very important.

“I think Trina will help to galvanise the team together, and bring a lot of new perspectives and quality to the association.”

Join us in making an impact on Singapore sports scene! Reach out to us for more information.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.Lorem ipsum dolor sit amet consectetur adipiscing elit dolor

The competition was organised by City Harvest Community Services Association and received support from FUN! Fund, a Community Impact Fund jointly established by the Community Foundation of Singapore and the Agency for Integrated Care, with the aim of addressing social isolation among the elderly.

Senior Minister of State, Ministry of Communications and Information & Ministry of National Development Mr Tan Kiat How attended the event. He encouraged the elderly to stay physically and mentally well, as well as urging them to participate in community activities and enjoy their golden years together.

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

 

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.

L.S., a volunteer with the Reading Odyssey programme @ Spooner Road

中心“常胜将军”胡锦盛:比赛限时反应要快

现年92岁的胡锦盛是最年长的参赛者。自2017年退休后,他几乎每天都到活跃乐龄中心报到,从此爱上了玩拉密,每次可玩上三个小时,在中心是“常胜将军”。

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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

Opinion

A turning point for community philanthropy

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Woman delivering a speech at a podium, inspiring the audience with her words.

In the life of any organisation, there are special moments that will be remembered as being turning points.

Last month, CFS held our Philanthropy Forum 2019, where we were extremely privileged to have keynote speaker Ms Eileen Heisman share with us several crucial moments in her career that fueled the growth of National Philanthropic Trust (NPT). As its President and CEO, Eileen has been responsible for steering NPT to raising an incredible US$13 billion in charitable contributions over the last 22 years.

Some of you might know Eileen was a founding member of CFS’s international advisory committee 10 years ago. As we come full circle, Eileen was once again in town to encourage, challenge and inspire us with a vision of what CFS can achieve.

Stepping into a new phase of growing philanthropy in Singapore, I believe this time will be remembered as a turning point in CFS’s history, in more ways than one.

We know that community philanthropy is poised for exponential growth in the next decade. The past year has been a phenomenal year for CFS– in financial year 2018, CFS achieved a year-on-year, four-fold increase in donations amounting to S$35 million. A big thank you to our donors, community partners and collaborators for helping to make this possible.

But what else is needed to create lasting social change? How can we grow from smaller, ad hoc and fragmented giving to bigger, better and smarter giving? Donor advised funds are the way to go as they enable smarter, better giving by helping donors give more thought to the purpose of their charitable dollars.

To take CFS into the future, CFS also welcomed our new Chairman Christine Ong on 1 April, taking over the reins from Laurence Lien. I am deeply honoured to have worked closely with Laurence to build a strong foundation for CFS and confident Christine’s extensive experience in banking and finance, corporate social responsibility and the community will usher CFS into a new phase of growth.

It may be another 10 or 20 years before we look back again at this moment, but I’m sure it will be one we will all be proud of.

Catherine Loh
CEO
Community Foundation of Singapore

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.Lorem ipsum dolor sit amet consectetur adipiscing elit dolor

The competition was organised by City Harvest Community Services Association and received support from FUN! Fund, a Community Impact Fund jointly established by the Community Foundation of Singapore and the Agency for Integrated Care, with the aim of addressing social isolation among the elderly.

Senior Minister of State, Ministry of Communications and Information & Ministry of National Development Mr Tan Kiat How attended the event. He encouraged the elderly to stay physically and mentally well, as well as urging them to participate in community activities and enjoy their golden years together.

Learn more about FUN! Fund at https://www.cf.org.sg/fun-fund/.

 

The programme provides the children with a non-threatening platform to connect with peers and have positive conversations. In addition, it exposes them to different people who can assist to broaden their perspectives.

L.S., a volunteer with the Reading Odyssey programme @ Spooner Road

中心“常胜将军”胡锦盛:比赛限时反应要快

现年92岁的胡锦盛是最年长的参赛者。自2017年退休后,他几乎每天都到活跃乐龄中心报到,从此爱上了玩拉密,每次可玩上三个小时,在中心是“常胜将军”。

Picture of admin bluecube
admin bluecube

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

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