Midway through SG 60 and the SG Cares campaign, the month of May marks the start of two landmark events in Singapore's philanthropy calendar - the Philanthropy Asia Summit (PAS) and Ecosperity Week. Many would also know that at PAS, the Gates Foundation announced that they would be opening an office in Singapore, a vote of confidence in Singapore's role as a global player in the philanthropy ecosystem. Mr Gates observed a growing interest of family offices in Singapore and Asia are now looking towards something "beyond the family business, having the family philanthropy, getting the family members working together".
In this short post, we answer some common questions we've been getting from clients and contacts looking to formalise their philanthropic giving in Singapore.
What vehicle should I choose?
Common vehicles we see include companies limited by guarantee (CLG), charitable trusts, societies and donor-advised funds. The appropriate vehicle depends on where you are in your giving journey, your future plans and the purpose of your vehicle. After all, determining whether a vehicle is fit-for-purpose requires one to distil said purpose first!
As a donor, is there any tax deduction available to me? Will it matter if I have a family office?
If you are an individual or corporate donor with taxable Singapore income, you may be able to qualify for a tax deduction from your donation. Some examples include:
- A 250% tax deduction for local donations to an Institution of Public Character (IPC) registered with the Commissioner of Charities Singapore (CoC).
- A 100% tax deduction for overseas donations under the Overseas Humanitarian Aid Scheme (OHAS).
- A 100% tax deduction for overseas donations under the Philanthropy Tax Incentive Scheme (PTIS). If you have a family office awarded with the Section 13O / 13U tax incentive, you or a qualifying entity, may benefit from this tax deduction.
Note that family offices may be able to take advantage of both the OHAS and PTIS. Tax deductions available to donors should also not be confused with tax exemptions available to charities, grantmakers and IPCs registered with CoC or non-profit organisations.
Great, I want to donate and qualify for a tax deduction. Where and how can I help?
- If you wish to donate to an IPC registered with CoC, a full list of IPCs are available on CoC's website here.
- If you wish to make an overseas donation which qualifies for a 100% tax deduction under the OHAS, you could consider donating to The Singapore Red Cross' ongoing fundraising appeal for the Myanmar Earthquake which ends on 30 June 2025.
- If you are clear about your charitable purposes but not sure who and where to give to, you could consider formulating a philanthropic strategy with a philanthropic advisory service provider.
This post is made possible and proudly powered by our friends at The Singapore Red Cross and Impact SG (www.impactsg.org or email them at community@impactsg.org)!
Dentons Rodyk thanks and acknowledges Practice Trainee Daryl Loy for his contributions to this article.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
