Charities and IPCs
What defines a Charity in Singapore?
Charities are non-profit organisations that are established exclusively for charitable purposes and execute activities that benefit the public
- Relief of poverty;
- Advancement of education;
- Advancement of religion; or
- Other purposes beneficial to the community, which include commonly recognised ones such as :
- Promotion of health;
- Advancement of citizenship or community development;
- Advancement of arts, heritage or science;
- Advancement of environmental protection or improvement;
- Relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantages;
- Advancement of animal welfare; and
- Advancement of sport, where the sport promotes health through physical skill and exertion.
(Information retrieved from www.charities.gov.sg)
What are Institutions of a Public Character (IPCs)?
Institutions of a Public Character (IPCs) are exempt/registered charities that are capable of issuing tax-deductible receipts for qualifying donations to donors. Therefore, donors can claim tax relief from their assessable income based on the donated amount, at current deduction rates.
Thus, IPCs appeal more to donors which attracts a greater number of donations. These organisations require a higher standard of regulatory compliance as well as governance.
Incorporation of Charitable Organisation
To set up a Charitable Organisation in Singapore, the entity needs to be incorporated and registered with ACRA. On top of that, a qualified Corporate Secretary needs to be lodged with ACRA. These processes are made simple with Forbis’ Professional Corporate Secretary Plan(S$68/month), where we’ll keep you covered and take care of the bare necessities.
Registration of Charitable Organisation with the Commissioner of Charities
Your journey to be a Charitable Organisation will be made simple with Forbis.
We will take care of the paperwork and take charge of your registration with the Commissioner of Charities.
Accounting & Financial Statements
We are equipped to prepare your Financial Statements (Accounting & Bookkeeping) and oversee your HR/payroll requirements with reputable software which you have access to 24/7.
Check out our Accounting Package (S$135/month) here.
Clients benefit from the experience and knowledge of our professionals. Here are some of the most common advisory and consulting services:
- Internal Audit: Human Resource, Process and Operations, IT)
- IT: Strategy, Implementation and Project Management
- Business Strategy: Process and Operations, Market Research and Intelligence, Business Structuring and Modelling
- Finance Strategy: Planning, Control, Fundraising and CFO
IPC registration in Singapore
Registering your non-profit organisation as an IPC in Singapore can get quite complex and complicated. Hence, don’t fret and leave it to our Forbis professionals to manage the fundamentals.
Chat with us today to discuss how we can be at your service.
Compliance requirements for Charities and IPCs
Charities and IPCs are required to make an annual submission to the Commissioner of Charities or Sector Administrators.
These submissions include:
- Annual Reports
- Financial Statements
- Online Financial Summary
- Governance Evaluation Checklist
In addition to the aforementioned requirements, IPCs are obligated to file additional reports:
- Details of every tax-deductible donation received, except for those mentioned in (2), must be submitted to IRAS either via ipcLink or Offline Validation Programme
- An annual return of tax-deductible donations* must be submitted to the Commissioner of Charities or Sector Administrator only if your IPC received any tax-deductible donations which are not reported by the IPC to IRAS (e.g. payroll deduction donations).
*The tax deduction scheme for the donation of computers has been withdrawn with effect from 21 February 2017
(Information retrieved from www.charities.gov.sg)
Additional requirements to qualify for IPC status
It is mandatory for the organisation to be a registered/exempt charity or other charity that is not required to be registered by virtue of section 5(4) of the Charities Act.
Additionally, under the Charities Act (Chapter 37, Section 40C), the activities of an IPC must benefit the community in Singapore as a whole, and not confined to the sectional interests of a group of persons based on race, creed, belief or religion, unless otherwise approved by the Minister.
These activities must meet the IPC’s objectives under its governing instruments and the objectives of its Sector Administrator.
The IPC must also be administered by governing board members, at least half of whom are independent and citizens of Singapore.
IPC status requires more administrative upkeep:
- The need for transparency
- Information to be made public and available online
- Present clear donation records
- Renew IPC’s auditors at least once every 5 years
Tax benefits for registered charities
Only registered charities that meet charitable objectives (based on the standard of the Commissioner of Charities) would be able to enjoy tax benefits.
- Tax Exemptions
- Greater credibility of NPOs which encourages donations and funding
A Social Enterprise that cares
Forbis is a proud member of raiSE, therefore, we are extending a helping hand for both established and up-and-coming Charity Organisations.
All Charities are entitled to a 10% discount on all our services.
Chat with us today to discover what we can do for you.
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