DONATIONS TO CHARITIES

DONATIONS TO CHARITIES

6.

Ms Audrey Wong Wai Yen asked the Minister for Community Development, Youth and Sports (a) whether donations to charities in the past year increased or decreased; (b) whether the additional tax exemption introduced for cash donations to Institutions of Public Character (IPCs) in Budget 2009 made an impact, and (c) what other measures are being considered to encourage philanthropy in our society.

Dr Vivian Balakrishnan: In 2009, the Government increased the tax deduction on donations for Institutions of a Public Character (IPCs) from 200% to 250%. While the increase provides an additional incentive to donate, many other factors, such as the state of the economy and public confidence in IPCs and charities, will influence the decisions of corporations and individuals to donate.

Our preliminary estimates show that overall tax deductible donations has dropped by about 8% from $686 million in 2008 to approximately $630 million in 2009. This was due to a drop in corporate donations, which was likely a result of the financial turmoil in the past year. As our economy begins its recovery, I hope that corporations will once again give generously to charitable causes.

But there is a bright spot in the past year – tax deductible donations by individuals have held steady at slightly over $200 million, showing that the philanthropic spirit is alive and well despite the economic crisis. To encourage both individual and corporate giving, the Government has extended the 250% tax deduction for an additional year.

Most Singaporeans do give to charity. According to the Individual Giving Survey published by the National Volunteer and Philanthropy Centre, about 90% of Singapore residents have been donating to charities over the last three years.

There are a number of existing platforms to encourage giving in Singapore. The Community Chest has been established for 26 years, and continues to receive donations of close to $50 million annually. The SHARE programme, which is a payroll-based giving system, encourages regular giving and has over 200,000 donors yearly.

In 2009, the Community Foundation of Singapore was established to promote giving among high net worth individuals. The Foundation helps these individuals give back to society, by providing them with independent advice on causes to support, and helping them manage their philanthropic giving.

The National Volunteer and Philanthropy Centre has also recently rolled out the Singapore Gives portal. This will be a first-stop portal for online donations to charities across the different sectors such as the arts, social service and sports. It will allow donors to easily search for and identify causes or target groups to give to, and offer a convenient way for the public to make regular donations.

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It is also crucial to develop confidence in the charity sector. The Charity Council and the Charities Unit have been providing guidance for charities to comply with charity regulations to enhance public confidence. For example, the Charities Unit conducts regular field visits to charities and IPCs to better understand their work, as well as to engage them on the need for good governance. Grants are also available for charities and IPCs to undergo training on governance.