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Budget 2023: Govt to extend 250% tax deduction for donations until 2026
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Budget 2023: Govt to extend 250% tax deduction for donations until 2026

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Singapore will extend its tax deduction rate for donations for another three years until the end of 2026, as part of efforts to foster and sustain a spirit of giving.

Deputy Prime Minister and Finance Minister Lawrence Wong said on Tuesday that this will be done although the tax deduction for donations at 250 per cent is 
already very high compared with other jurisdictions.

The Government will review thereafter what would be a more sustainable level of tax deduction for the longer term, he said.

He added that Singaporeans have donated generously. Despite the economic downturn due to Covid-19, the donations received through Giving.sg were about three
times higher than pre-pandemic levels, and have remained around $100 million in the last three years.

Giving.sg is a one-stop national giving platform by the National Volunteer and Philanthropy Centre, which hosts more than 600 registered non-profit groups in
Singapore.

Another way to continue to foster the spirit of giving that Mr Wong highlighted is through tax-deductible donations to Institutions of a Public Character (IPCs) and
eligible institutions.

The Government will also enhance the existing Business and IPC Partnership Scheme into a broader Corporate Volunteer Scheme, which will be extended for three
more years to Dec 31, 2026.

From January 1, 2024, the scope of qualifying volunteering activities will be expanded to include activities which are conducted virtually or outside of the IPCs’
premises.

The Government will also double the qualifying per-IPC cap to $100,000 per calendar year, to facilitate deeper partnerships between businesses and IPCs, he said.

It will also continue to strengthen the capabilities and support the services of charities, social service agencies (SSAs) and community organisations.

“(They) play critical roles in looking after the vulnerable, and mobilising Singaporeans to support those who are in greater need,” said Mr Wong.

Also announced was a $1 billion top-up of the Community Silver Trust, which provides dollar-for-dollar donation matching grants for SSAs that provide community care services for seniors.

This will enable the SSAs to enhance the quality and accessibility of community care, especially for the more vulnerable seniors, he said.

Charities and SSAs can also continue to tap the Charities Capability Fund (CCF) and the Community Capability Trust (CCT) to drive innovation and transform their
operations.

The CCF aims to enhance productivity, operational efficiency, governance and management capabilities of charities and IPCs. The CCT is a platform to support
capability and capacity-building schemes and initiatives for the social service sector.

The Government will also top up $10 million towards self-help groups over the next three years.

Said Mr Wong: “They are doing good work on the ground, and are well placed to provide assistance to members of their respective communities who need help.”

He also cited the example of Ms Emily Yap, a registered nurse at Alexandra Hospital, as someone who still volunteered on her days off for the wider community
despite her heavy workload during the pandemic.

Ms Yap started a ground-up initiative with other like-minded people to deliver grocery packs to the elderly and lower-income families in the community.

She also used her own Community Development Council vouchers to buy kueh bangkit (coconut cookies) for vulnerable families during the Chinese New Year period.

“This is what the Singapore spirit is about,” said Mr Wong.

“We have seen it in action, and experienced it in abundance over the last three years – how we are responsible for one another, keep an eye out for our fellow citizens, and always band together as a team.”

This article was originally published in The Straits Times here. Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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Stories Of Impact

International Women’s Forum: From seeding bursaries to expanding horizons for young women

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Grit. Confidence. Passion. When it comes to long-term success, these qualities matter.

For Chen Si, an awardee of the International Women’s Forum Singapore (IWF) Education Grant, her pursuit to become a psychologist was driven by a personal conviction. “Two of my close friends almost lost their lives to depression. I’m convinced mental health is a serious issue and I hope to be there for those who struggle in the dark,” says Chen.

Started in 2014 and managed by the Community Foundation of Singapore (CFS), the IWF Education Fund has been supporting young women from financially-challenged backgrounds during their tertiary education. To date, the IWF Education Grant has disbursed over $150,000 to 60 young women from 12 local tertiary institutions.

But beyond affirming academic excellence, the grant has also aimed to nurture women of ‘steel’ – individuals with the character and commitment to achieve in their chosen field. Applicants for the education grant are personally screened by IWF, whose panel includes some of Singapore’s top women business leaders, to recognise young women with the potential to excel and give back to society.

For Chen Si, receiving the IWF Education grant has been a great encouragement. “It affirms the work I do and spurs me to achieve excellence in what I believe in”, she says.

With CFS’s facilitation, the IWF Education Grant has in recent years expanded to more tertiary institutions, including the Nanyang Academy of Fine Arts (NAFA) and LASALLE College of the Arts, thus supporting women who wish to pursue alternative career paths.

The IWF Education Grant has also grown to include a mentorship programme, in collaboration with the Young Women’s Leadership Connection (YWLC). All recipients of the IWF Education Grant are eligible to apply for the IWF-YWLC Mentorship programme, which opens doors for these young women to benefit from connections to successful women mentors, whether it’s building confidence, valuable industry contacts, or a role model they can learn from.

Celeste Marie Jacob, previously an opera student at NAFA, and who now teaches voice at a local music school, received the IWF Education Grant and took part in the IWF-YWLC Mentorship Programme. She was delighted to find that her mentor, despite coming from a business background, helped her to address her career concerns as an arts practitioner.

“It was important for me to think outside my job scope and have interactions with people from different backgrounds,” says Celeste. “As an opera student, my mentor opened my eyes to see new possibilities and opportunities to use my skills.” As a result of the mentorship, Celeste began emceeing for concerts and productions, which has benefited her through the additional income.

For Chen Si, the mentorship programme has offered support in a time of transition to work life, “My mentor reminded me to stay rooted in my values and beliefs and strive for excellence with confidence. With this confidence, I am now better able to face the uncertainties of the future and take things in my stride.”

Goh Swee Chen, President of the IWF Grant Committee Singapore said, “Over the last five years, it has been a joy to see the IWF Education Grant blossom and become a catalyst for personal and professional growth for these talented young women. Empowering women is not merely about supporting them financially, but exposing them to opportunities, networks and career options as they make this critical transition from student to working life. CFS’s facilitation has played a pivotal role, helping to establish a strong foundation that has enabled us to develop collaborations and increase our impact over time.”

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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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Opinion

How Family Offices Could Shape Philanthropy

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Singapore has a long history of family philanthropy. The first family foundations were established after World War II and they donated generously to alleviate poverty, care for the vulnerable and build schools and hospitals. Today, there are over 400 foundations and trusts registered with the Commissioner of Charities but families that institutionalized big-ticket giving early on – such as the Lee Foundation and the Lien Foundation – continue to dominate philanthropic giving in Singapore.

Family offices are entities which typically manage assets for or on behalf of a family. And Singapore – well-regulated, transparent and politically stable – is rapidly becoming the region’s preferred choice for family offices. In 2020 alone, approximately 200 single family offices were set up here, doubling the total count. As wealth grows, charitable giving is likely to keep climbing.

These high-net-worth families have the potential to shake up philanthropy in Singapore. Traditionally, the Asian family office was an extension of the family business, with a laser-sharp focus on the bottomline. “However, as founders age and younger successors take over, we expect to see greater value placed on sustainable and responsible investing as well as on strategic philanthropy,” says our CEO Catherine Loh.

Research firm Wealth-X estimates that $1.9 trillion worth of wealth in Asia will be passed on to the next generation in the coming decade. For many heirs, giving back is emerging as an integral part of doing business. For them, philanthropic activities are an optimal way to build and sustain a family’s legacy, strengthen family cohesion and better engage family members. 

But here’s where it gets interesting. “Family offices have the power to shake up traditional philanthropy as they tend to be more agile and responsive compared to large foundations or corporate foundations, which are answerable to multiple stakeholders and layers of decision makers. Secondly, family businesses tend to be built by entrepreneurs and disruptors, making them more open to new ways of doing things,” says Catherine. 

What this means is that the new wave of family-driven philanthropy could fund untested, possibly radical new approaches to problems. It could find innovative ways of harnessing capital for social impact. It could move away from cheque book charity to a more engaged approach which could lean towards social enterprises or private-public initiatives. 

However, while most family offices across the globe are engaged in some form of giving back, only 41% of them have a philanthropic strategy in place, notes the Milken Institute. Few family offices have the in-house expertise to evaluate nonprofits, deploy philanthropic dollars optimally, or monitor and measure impact. 

“At CFS, we believe giving should be thoughtfully planned and driven by evidence-based insights,” says Catherine. As a cause-neutral philanthropy advisor, CFS offers unparalleled access to over 400 charities in Singapore, across a diverse range of sectors. We conduct due diligence to ensure the giving is accountable and creating a social impact.  

For family offices, a cost-effective and flexible way to embark on philanthropy is to set up a donor-advised fund (DAF). Since 2008, CFS has set up close to 200 DAFs: of these, almost half have been for families. We pool donor funds for investment management and with over $90 million in assets at any one time, smaller individual funds can reap the economies of scale that large foundations enjoy. Beyond this, as the country’s largest convener of philanthropic activities, we mobilise donor capital through collaborations and collective models to scale up impact and generate more empowering solutions. 

If you would like to find out more about how CFS can help you achieve your giving goals, please click here.

 

References:

  1. June Lee (January 2019) Exploring Family Philanthropy in Singapore – Asia Centre for Social Entrepreneurship & Philanthropy, National University of Singapore https://wings.issuelab.org/resources/34346/34346.pdf 
  2. EDB Singapore (February 2022) How Singapore is Becoming Asia’s Family Office Hub https://www.edb.gov.sg/en/business-insights/insights/how-singapore-is-becoming-asia-s-family-office-hub.html 
  3. Richard Newell (March 2022) New study sees Singapore as top family office hub – Asian Investor https://www.asianinvestor.net/article/new-study-sees-singapore-as-top-family-office-hub/476226 
  4. Milken Institute (June 2021) Philanthropy in a Family Office https://milkeninstitute.org/article/philanthropy-family-office
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Opinion

Speech by Grace Fu, Minister for Culture, Community and Youth at CFS’s 10th anniversary celebrations: Working together to build a caring Singapore

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Grace Fu delivering speech at podium to audience.

Mr Laurence Lien, Chairman, Community Foundation of Singapore
Ms Catherine Loh, CEO, Community Foundation of Singapore
Distinguished Guests
Ladies and Gentlemen

It is indeed my great pleasure to be here today. First, I would like to congratulate the Community Foundation of Singapore (CFS) on its 10th anniversary. Throughout the past decade, CFS has done excellent work in raising funds and giving out grants, as well as in inspiring and enabling giving in Singapore. This is in no small part due to the generosity and hard work of staff, donors and partners. I’d like to express my gratitude and to commend all of you for your contributions. CFS was first started during the tumultuous period after the global financial crisis, and conversations about donations must have been difficult. Nevertheless, under the stewardship of Laurence, Catherine and Stanley, CFS has really grown over the years. Once again, thank you so much!

Philanthropy has played an important role in Singapore’s history
Philanthropy has always played an important role in the history and development of Singapore. In fact, records of philanthropy in Singapore go back to as early as the 1800s when immigrants came to this country in search of opportunities. Notable philanthropists such as Lim Nee Soon, Tan Kah Kee, Syed Mohamed Alsagoff and Govindasamy Pillai have responded to the needs of their times. These are early pioneers who have very selflessly and generously helped their communities. They helped to build up Singapore in the pre-war years, rebuild it in the post-war years, and worked alongside the government to develop our infrastructure after independence.

Today, it is just as crucial to build a culture of care and contribution. We live in an increasingly complex and dynamic environment. In many developed countries, socio-economic challenges have bred distrust and grown uncertainty. Terrorism continues to be a global threat. Within our region, exclusivist trends are rising, and societies are becoming increasingly polarised. At the same time, technology is disrupting nearly everything, from industries and jobs, to the way we live, to the way we do business and interact with one another, to our social hierarchy. Singapore is not immune to such threats and challenges, especially when we are so diverse as a people. So when we care and look out for one another, when we have that relationship that is beyond the transactional but instead comes from within the heart and is genuine, we will be better equipped to stand together in times of crisis.

Government support for philanthropy
There is already a strong support infrastructure for philanthropy to thrive. The Government gives tax deductions for donations to charities. There are matched-funding initiatives that have spurred more giving by individuals and corporates; for example, MCCY’s Cultural Matching Fund which supports giving to arts and culture, and the One Team Singapore Fund, which supports high performance sport.

The Government is also committed to developing a well-governed and thriving charity sector, with strong public support. In January this year, the Parliament passed the Charities (Amendment) Bill, which seeks to strengthen governance of fund-raising in response to trends in charitable giving.

As Singapore’s only community foundation, CFS plays an important role as a bridge between local communities and the larger charitable ecosystem. Beyond just encouraging cheque-book donations, CFS has connected donors with organisations that support their cause. For example, 71-year-old Mr Govind Bommi felt an affinity for the eldercare sector. Through CFS, he was connected with Metta Day Rehabilitation Centre, which provides rehabilitative care for elderly beneficiaries from all races and backgrounds. He then set up a fund to support the Centre, and continues to volunteer there today.

Closing gap between aspiration and participation
But there is more we can do for Singapore to be a more caring society. The Individual Giving Survey conducted by the National Volunteer & Philanthropy Centre (NVPC) showed that although the total donation amount to organisations has grown over the years, the overall rate of donation* has declined, with 3 in 4 donating in 2016, compared to 9 in 10 a decade ago. However, among the non-donors, 1 in 3 said they are likely to donate in future. Similarly, in the volunteering space, there is high propensity among non-volunteers to volunteer in future.

We want to close this gap between aspiration and participation, and unite Singaporeans through a common culture of care. This is the basis for SG Cares, a national movement for us to better support one another in making Singapore a caring society through giving, through volunteering, and through acts of kindness. By bringing together partners across the people and private sectors, SG Cares enables the building of capabilities across organisations to grow opportunities for contribution. SG Cares also better equips individuals and organisations who want to give back, and connects them with suitable opportunities to do so. So it’s very much an encouragement and a call to action. But more importantly, it’s about building the infrastructure, platforms, connections and capabilities within the sector.

The work at CFS contributes to SG Cares, because an impactful philanthropy landscape is a hallmark of a caring society, where those with resources give back effectively to help those in need. Collaboration is the way to go, and donors today are taking more initiative, and seeking more meaningful engagement opportunities. CFS is well positioned to seize these opportunities and provide the platforms. For example, the Colabs series by CFS and NVPC brings together givers, non-profits and sector experts to build insights and co-create solutions together. This not only encourages more collective efforts that deliver impact, but also deepens the knowledge base to guide donors to areas of needs. It also improves the design of programmes and how volunteers are involved, to better serve the community.

Caring involves all of us
The making of a caring Singapore involves and requires all of us – the government, non-profit sector, businesses and individuals – to work together to find solutions and demonstrate care and compassion for our community. With this shared sense of responsibility, we stand a better chance in riding out the waves of global uncertainty and disruption. By caring for one another, we foster resilient communities that stand together in both good and bad times.

To conclude, I would like to leave you with the words of Winston Churchill: “We make a living by what we get, but we make a life by what we give.”

Once again, congratulations to CFS on your 10th anniversary! And once again, thank you for your contributions and I hope you will continue to inspire others with your efforts and actions. I’m sure there will be greater capacity for CFS to grow. Thank you.

Grace Fu
Minister for Community, Culture and Youth

*Through both formal and informal means.

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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

Set up during the covid-19 pandemic, Sayang Sayang Fund raised $9.7m over three years, supporting over 400,000 lives
应疫情设立 Sayang Sayang基金三年筹970万元惠及40万人

Established in 2020 as an emergency response fund during the covid-19 pandemic, the Sayang Sayang Fund (SSF) raised $9,700,000 in three years, supporting over 276 organisations and touching over 401,000 lives.

互助团体Mum’s Collective主办康乐与交流活动,旨在为低收入家庭的母亲建立支援网络,去年获得Sayang Sayang基金的部分资助。(中南社区家庭服务中心提供)

Established in 2020 as an emergency response fund during the covid-19 pandemic, the Sayang Sayang Fund (SSF) raised $9,700,000 in three years, supporting over 276 organisations and touching over 401,000 lives. 

According to the Sayang Sayang Fund report published on CFS’s website, the fund disbursed $6,542,000 (67% of donations) in 2020, $2,060,000 (21% of donations) in between 2021-2022, and $1,11,900 (12% of donations) in 2023. 

CFS CEO Catherine Loh shared that when the pandemic started, CFS recognised the need to provide a platform to pool together resources to help those that required support, including frontline healthcare workers, students from lower-income families, rough sleepers, and migrant workers. Through collaboration with community care organisations and various agencies, CFS was able to better understand the needs of the people and allocate assistance more efficiently.

Read our Sayang Sayang Fund report.

因应冠病疫情推出的Sayang Sayang基金过去三年筹集的约970万元,支持了276家社会服务、医疗和教育机构的援助项目,惠及约40万人。

Sayang Sayang基金由新加坡社区基金会于2020年设立,已全数拨款支持各援助项目。根据社区基金会在网上发布的Sayang Sayang基金总结报告,2020年拨出的基金款项占67%,达654万2000元;2021年至2022年拨出的基金占21%,达206万元;其余的12%在2023年拨出,达111万9000元。

2020年,基金主要用来支持前线医疗人员,以及低收入家庭、年长者和客工等有需要群体应对冠病疫情。2021年至2022年,社区基金会扩大基金的使用范围,资助慈善机构提升数码能力,适应新常态。

2023年,基金着重于加强社会在后疫情时代的韧性,例如资助有关露宿街头者、最低收入标准等社会研究项目,以及社区保健计划。

新加坡社区基金会总裁罗佩仪指出,冠病疫情暴发时,基金会意识到须集合各方的专长,并提供一个平台汇集善款来帮助有需要的群体,因此设立这个新基金。通过与各社服机构的协作,基金会能更好地了解民众的需求,更有效率地拨款协助。

Sayang Sayang基金2020年2月11日正式推介时,最初的筹款目标为50万元,其间获得企业和民众的踊跃支持,同年6月就筹得690万元。

基金共资助11项计划,这些计划包括为前线医疗人员提供德士礼券和礼包、为低收入家庭的孩子提供经济援助、为街友提供住宿和经济援助、为客工填补电话卡储值等。

当中,CommunityGrants@Work计划的拨款最多,达205万7000元,旨在帮助慈善机构应付疫情期间增加的开销,并协助机构转变运作方式,推动数码化进程。其次,是获得192万2000元的SeniorsOK@Home计划,这项计划资助可惠及弱势年长者的项目,照顾乐龄的福祉与身心健康。


基金疫后侧重加强社会支援

步入2023年的后期阶段,基金侧重加强社会支援,支持人民坚韧地走出疫情。民间团体Mum’s Collective去年获得基金的部分资助。这个互助团体由居住在红山租赁组屋的妇女组成。活动由受惠者倡导并策划,中南社区家庭服务中心为团体提供所需的协助。

Mum’s Collective旨在为低收入家庭的母亲提供一个交流平台,吐露彼此面对的问题,并一起参与烘焙等休闲活动。参与者诺希达雅(33岁)说,她通过互助团体获得力量,明白自己不是唯一面对生活困难的。有了这个支援网络,她如今能更好地处理压力,也变得更加自信。

信用:联合早报©新报业媒体有限公司。复制需要许可

This article was originally published in Zaobao here. Source: Zaobao © SPH Media Limited. Permission required for reproduction.

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