IPCs and Charities-FAQ[1]

8/8/2019 IPCs and Charities-FAQ[1]

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Last updated as at 01/11/2010

General Queries on Charities and IPCs

Setting Up and Registering a VWO1. How do I set up a VWO?

VWOs are typically set up as societies, companies limited by guaranteeor trusts. You may wish to visit the NCSS website(http://www.ncss.org.sg/vwocorner/about_vwos.asp#how ) for moreinformation on registering as a society, company limited by guarantee or forming a trust.

2. What is a trust?

A trust specifies a relationship, by way of a deed, in which one partygives another party the right to hold title to property or assets for the

benefit of a third party, the beneficiary.

3. How do I set up a trust?

You would need to ask your legal advisors or lawyers to do thenecessary administrative papers to set up a trust under the Trustees Act.For more information, you may wish to check the website,http://statutes.agc.gov.sg , under the Trustees Act.

4. Can I first register my NGO as a society, and converting

it to a company limited by guarantee later?As societies and companies limited by guarantee (CLG) are governed bydifferent bodies and have different regulatory requirements (the former

by the Ministry of Home Affairs and subjected to the Societies Act, andthe latter by ACRA and subjected to the Companies Act), it is not

possible to 'convert' from one entity to another. If such a move isnecessary, you will have to deregister the society before registering thecompany.

We would advise that you read the respective Acts governing each typeof entity (Societies Act and the Companies Act) to assess their suitabilityand regulatory obligations before registering your NGO. The Acts can beobtained from http://statutes.agc.gov.sg/

After setting up the NGO, you may register the entity as a charity or anInstitution of a Public Character (IPC). The former exempts a non-profitorganisation from having to pay corporate income tax (provided its

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objectives are exclusively charitable). Charity status is also required if anon-profit organisation intends to raise funds from the public. IPC statusoffers double tax deduction for donors, thereby helping non-profits toattract donations. You can find out more about the two and their qualifying criteria at the Charity Portal website(http://www.charities.gov.sg).

5. How do I access the database for VWOs?

Members of the public are not allowed to access the VWO database.However, for a list of VWOs who are NCSS members, you mayvisit the NCSS website athttp://www.ncss.org.sg/vwocorner/about_vwos.asp , or alternatively, you may click:http://www.ncss.org.sg/documents/vwoContactDetails.pdf .

Charities/IPCs6. What is a charity?

Charities are organisations set up exclusively for relief of poverty,advancement of education, advancement of religion and other purposes

beneficial to the community.

It may be a society, a company limited by guarantee not having a sharecapital, or a trust under a trust deed. An organisation with charitable

purposes should register as a charity within 3 months of set up.

7. Where can I obtain a list of charities?

Please visit the Charity Portal website ( http://www.charities.gov.sg/ ) andclick on "Registered Charities" on the top right hand corner. It will thenshow you a list of registered charities.

8. What is an IPC status?

IPC stands for Institution of a Public Character. IPCs can issue tax-deductible receipts (double tax deduction) to its donors, which makes iteasier to attract donations.

IPC status can be for an organisations General Fund or Building Fund,and can be issued to either an agency or a programme. IPC status can begiven for a period of 1-5 years.

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9. Where can I obtain a list of charities with IPC status?

Please visit the Charity Portal website ( http://www.charities.gov.sg/ ) andclick on "Registered IPC" on the top right hand corner. It will then showyou a list of registered charities with IPC status.

10. Is the Charity Portal available on the NCSS website?

You may find the link to Charity Portal at About VWOs under theVWO Corner ( http://www.ncss.org.sg/vwocorner/about_vwos.asp#char ).

11. I read in the papers that Charity ABC is facing some internaldisputes among the Board members. Should I continue to donate tothis charity?

It is advisable for members of the public to find out more about a charity, before making a donation (depending on the amount involved). Donorsmay want to take the following into consideration:

a. Causes/outcomes that the charity supports b. Purpose of soliciting donationc. Type & quality of services run by the charityd. Track recordse. Financial situationf. Validity & impact of prevailing issues (if any)

It is up to the individual to decide if donations are to be made.

Tax-Deductible Receipts (TDR)12. How do I know if I can get tax-deduction for my donation?

The charity that you donate to must be an IPC. To check whether thecharity that you have donated to is an IPC, refer to question 9.

The following types of donations are eligible for double tax deduction:

a. Cash donations b. Shares donationsc. Computer donationsd. Artefact donationse. Public sculpture donationsf. Land and building donations

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For more information, please visit the Inland Revenue Authority of Singapore (IRAS) website ( http://www.iras.gov.sg/ ) or click here (HomePage >> Information on >> Others >> Charities/IPCs >> Donations andTax Deductions >> How do I know which donations are taxdeductible?).

13. How do I claim a Tax-Deductible Receipt (TDR)?

Individual donors do not need to claim deduction for donations in their income tax form if they have given their NRIC No. or FIN No. to theapproved IPC at the point of donation. The donation details will be

provided to IRAS by the approved IPC and the donation deductions will be included automatically in the individual's tax assessment.

For more information, please visit the IRAS website, or click here

(Home Page >> Information on >> Others >> Charities/IPCs >>Donations and Tax Deductions >> How do I claim tax deductions?).

Fundraising14. When are flag days administered by NCSS held?

Flag days allocated by NCSS fall on all Saturdays, and also Wednesdaysduring school holidays.

15. Where can I find a list of approved fundraising events and flagdays?

For a list of NCSS-approved fundraising events, you may wish to visitthe NCSS website: http://www.ncss.org.sg/events/index.asp . For a list of fundraising events approved by the Police Licensing Division, you mayvisit http://www.spf.gov.sg/licence/HH/others/HHPoster.pdf .

For a list of assigned flag days, you may visit the NCSS website:http://www.ncss.org.sg/vwocorner/index.asp .

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IPCs and Charities-FAQ[1]

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