TRW & Co · Private Wealth & Family
Charities and Philanthropy in Singapore
Charities in Singapore are regulated by the Commissioner of Charities under the Charities Act, with Sector Administrators overseeing each field. For families and businesses, good philanthropy means choosing the right structure, registering correctly, understanding IPC status and the 250% donation deduction, and governing well so that the giving lasts.
Key pointCharity is a status, not a legal form: you first create a company limited by guarantee, society or trust, and only gifts to an IPC or approved institution earn donors a tax deduction.
At a glance
Three legal structures
A charity must be a company limited by guarantee, a society or a charitable trust before it can apply to the Commissioner of Charities for registration.
Board composition rules
The governing board needs at least three members, at least two of them Singapore citizens or permanent residents, all aged 18 or above.
250% donation deduction
Qualifying donations to IPCs earn a 250% deduction until 31 December 2026, and Budget 2026 proposed extending it to donations made up to 2029.
Governance code since 2024
The April 2023 Code of Governance applies from financial years starting 1 January 2024 on a comply-or-explain basis, tiered by size and status.
Family office incentive
MAS’s Philanthropy Tax Incentive Scheme gives qualifying single family offices a 100% deduction for overseas donations, capped at 40% of statutory income.
Swipe or scroll →
What setting up and running charities in Singapore involves
Charities in Singapore range from neighbourhood welfare groups and religious bodies to universities, hospitals and private foundations established by families. What unites them is a legal status: a registered charity must exist for exclusively charitable purposes and be governed in a way that protects the public's trust.
For families and businesses, the legal questions usually arise at three moments. The first is deciding how to give: through an existing charity, a donor-advised arrangement, a private foundation or a family office programme. The second is establishing and registering a new entity. The third is running it well, which means governance, reporting, fund-raising rules and tax compliance year after year.
This page explains the framework, the choices and the practical steps, with particular attention to families who want their giving to be well structured, compliant and lasting.
The legal and regulatory framework
The Charities Act 1994 and its regulations govern registration, governance, fund-raising and the Commissioner of Charities' powers. The Commissioner of Charities (COC) registers charities, oversees the sector and can inquire into charities and act against misconduct, including removing board members. The Charity Portal is the public register and the channel for registration and annual submissions.
Day-to-day oversight is shared with Sector Administrators, government agencies that look after charities in their sector, such as health, education, social services, arts and heritage, sports or community causes. Your Sector Administrator receives your annual submissions and assesses applications for Institution of a Public Character (IPC) status.
Charity is a status, not a legal form. A charity in Singapore must first exist as one of three structures: a company limited by guarantee registered with ACRA, a society registered with the Registry of Societies, or a charitable trust. Each brings its own law, such as the Companies Act for a company limited by guarantee, alongside the charity rules.
Registration criteria
The COC’s registration criteria require that the governing instrument provides for exclusively charitable purposes, that the purposes are wholly or substantially beneficial to the community in Singapore, and that the governing board meets membership rules. The board must have at least three members, at least two of whom are Singapore citizens or permanent residents. Members must be at least 18 and must not be undischarged bankrupts, disqualified directors or persons with unspent convictions for dishonesty, terrorism, terrorism financing or money laundering.
Recognised charitable purposes include the relief of poverty, the advancement of education, the advancement of religion and other purposes beneficial to the community, such as health, community development, arts, heritage and science, environmental protection, relief of disadvantaged groups, animal welfare and sport that promotes health. Self-funded grantmakers that cannot meet every condition can apply under a Grantmakers Scheme, where some conditions may be waived case by case.
Choosing a structure for charities in Singapore
The structure shapes governance, liability, flexibility and how the public perceives the organisation. The choice should follow the purpose and the funding model, not the other way round.
| Structure | Registered with | Strengths | Watch points |
|---|---|---|---|
| Company limited by guarantee | ACRA | Separate legal personality, limited liability, familiar governance model | Companies Act filings plus charity reporting; constitution must lock in charitable objects |
| Society | Registry of Societies | Suited to membership-based organisations and community groups | Governance depends heavily on the constitution and member meetings |
| Charitable trust | Trust deed; registered as a charity | Flexible, private, suited to endowments and family giving | Trustees bear personal duties; succession of trustees must be planned |
| Giving through an existing charity or fund | Not applicable | Low cost, no new entity, immediate impact | Less control over grants and less visibility for the family name |
Families who do not need a separate entity can often achieve their aims through a donor-advised fund or a gift agreement with an established charity. Those who want a lasting institution, family involvement across generations or a distinctive programme may prefer a company limited by guarantee or a trust. Our note on private foundations compares the options in more depth.
Key questions for families
Before choosing, a family should answer a few questions honestly. How much control do you want over each grant, and for how long? Will the next generation be involved, and how will disagreements be settled? Will you raise money from the public, or fund the work entirely yourselves? Is the cause in Singapore, overseas, or both?
The answers point to the vehicle. A family that wants to fund overseas education projects from its own wealth may be better served by a family office programme or a foreign foundation than by registering one of the charities in Singapore, because registration expects purposes that substantially benefit the Singapore community. A family that wants to build a local institution with public support will need registration, a strong board and, in time, IPC status.
IPC status and tax deductions
Registered charities in Singapore enjoy income tax exemption on qualifying income, but donors receive tax deductions only when they give to an IPC or another approved institution. IPC status is granted through the Sector Administrator and allows the organisation to issue tax-deductible receipts for qualifying donations.
Qualifying donations to IPCs attract a 250% tax deduction. The government extended that rate to donations made up to 31 December 2026, as the Charity Portal’s Budget 2023 announcement explains, and Budget 2026 proposed a further extension for qualifying donations made from 1 January 2027 to 31 December 2029. IRAS guidance sets out how deductions are given. The 250% rate does not apply to every gift: donations must be qualifying donations, and a gift that brings the donor a material benefit is treated differently.
IPCs carry extra obligations, because the public relies on them. They are expected to apply the higher tiers of the governance code, maintain controls over receipting and use funds for causes that benefit the Singapore community. Losing IPC status can quickly affect fund-raising, so compliance deserves board attention.
Corporate giving and volunteering
Businesses can also support IPCs through employee volunteering and secondment under the Corporate Volunteer Scheme. From 2024, the annual cap on qualifying expenditure per IPC was doubled to S$100,000. Corporate programmes work best when the company's ESG governance sets clear criteria for partner selection and conflicts.
Philanthropy Tax Incentive Scheme for family offices
For families with a single family office, the Philanthropy Tax Incentive Scheme administered by MAS offers a 100% tax deduction for qualifying overseas cash donations made through approved qualifying local intermediaries, capped at 40% of the donor's statutory income. It is available to family offices managing a fund under sections 13O, 13OA or 13U of the Income Tax Act 1947, subject to conditions that include appointing a philanthropy professional, additional local business spending of S$200,000 and an additional local professional hire. See our page on family offices in Singapore.
Tax incentives are a reason to give well, not a reason to give hastily. Before announcing a programme, confirm which entity will receive the deduction, whether the recipient is an IPC or approved intermediary, and whether any benefit flows back to the donor. Correcting a structure after receipts have been issued is far harder than designing it correctly.
Governance, reporting and fund-raising
The Code of Governance for Charities and IPCs, revised in April 2023 and applying to financial years starting from 1 January 2024, sets out six principles: serving the mission, an effective board and management, acting responsibly and with integrity, sound management and planning, accountability and transparency, and active communication to sustain public confidence. It operates on a comply-or-explain basis and is tiered by status and size.
Charities and IPCs to which the Code applies submit a Governance Evaluation Checklist through the Charity Portal, where it is publicly viewable. Charities with gross annual receipts or total expenditure below S$50,000 are excluded from submitting it but are encouraged to follow its principles. Annual reports, financial statements and the checklist are generally due to the Sector Administrator within six months of the financial year-end, and extensions are considered case by case.
What the board is responsible for
Board members of a charity are stewards of other people's money and of the public's confidence. In practice that means approving a strategy and budget, monitoring programmes against the charity's objects, setting a reserves policy, overseeing risk and internal controls and making sure the organisation complies with the law. Boards should meet regularly, keep proper minutes and review key policies periodically. Term limits for board members, including for the treasurer role, are a recurring theme in governance guidance, because they bring fresh oversight and reduce reliance on one person. New board members benefit from a short induction on the charity's governing instrument, finances and obligations.
Fund-raising and foreign causes
Fund-raising appeals are regulated. Charities must keep fund-raising costs proportionate, account properly for donations and respect donors' restrictions. Appeals in Singapore for causes overseas, such as disaster relief abroad, can require a permit from the Commissioner, so check before launching any appeal for a foreign cause.
A charity's most valuable asset is public trust. Good governance is not paperwork; it is the evidence that the trust is deserved.
Setting up a charity: step by step
- Define the purpose and impact. Settle the charitable purposes precisely, the beneficiaries in Singapore and the activities that will deliver impact.
- Choose the structure. Decide between a company limited by guarantee, a society or a charitable trust, or whether an existing charity or fund would serve better.
- Draft the governing instrument. Lock in exclusively charitable objects, board composition, conflict rules, dissolution clauses and restrictions on benefits to members.
- Form the entity. Incorporate with ACRA, register with the Registry of Societies or execute the trust deed, and set up bank accounts and financial controls.
- Apply for charity registration. Submit the application through the Charity Portal with the governing instrument, board details and a description of programmes.
- Consider IPC status. If the organisation will raise funds from the public, apply through the Sector Administrator once it can show a track record and sound governance.
- Build the compliance calendar. Schedule annual reports, financial statements, governance checklists, ACRA or Registry filings and board reviews of policies.
Documents to prepare
Registration and IPC applications move faster when the papers are complete and consistent. Prepare the constitution or trust deed, board members' particulars and declarations of eligibility, a description of programmes and beneficiaries, a budget and funding plan, and draft policies on conflicts of interest, reserves, procurement, receipting, data protection and whistleblowing. Founders should also document how initial funding will be provided and on what terms. Regulators reviewing charities in Singapore look closely at whether the organisation's activities match its stated objects and whether controls are proportionate to its size, so explain the link clearly.
Risks and common mistakes
Objects that are not exclusively charitable
A constitution that allows non-charitable activities, or private benefit to founders and their families, will not support registration. Common problems include broad clauses permitting any lawful activity, objects that benefit a closed group such as employees of one company, and provisions allowing assets to return to the founder on dissolution. Draft the objects narrowly enough to be charitable, but broadly enough to allow the organisation to evolve without frequent amendment.
Conflicts of interest in family foundations
Families often want relatives on the board and may want the foundation to work with family businesses. Both are possible, but the charity must manage conflicts transparently. Board members should declare interests, abstain where conflicted and avoid any transaction that confers private benefit. Paying family members, leasing premises from a family company or granting to an organisation controlled by a relative all need careful, documented approval, and some may not be appropriate at all.
Misusing tax-deductible receipts
Issuing tax-deductible receipts for gifts that do not qualify, such as donations that come with tickets, advertising or other benefits, or donations earmarked for a named individual, can expose an IPC to regulatory action and donors to disallowed deductions. Receipting procedures should be documented, staff trained and edge cases referred to the finance committee. Sponsorships and donations should be distinguished in agreements.
Weak controls over overseas grants
Grants to organisations abroad carry risks of diversion, fraud and, in the worst cases, terrorism financing. Charities should carry out due diligence on grantees, use written grant agreements with reporting and audit rights, pay in tranches against milestones and keep records. Board members can be disqualified for certain offences, so controls protect individuals as well as the charity. Our page on AML compliance explains the wider obligations.
No plan for succession and dissolution
Foundations established by a founder often depend heavily on that person. If the founder dies or loses capacity without a plan, board composition, banking mandates and grant decisions can stall. Build succession into the constitution or trust deed, align it with the founder's will and lasting power of attorney and specify where assets go if the charity winds up, which must be to another charitable purpose.
Cross-border philanthropy
Many families based in Singapore give in more than one country. Tax relief in one country rarely follows the money abroad, and each country regulates foreign funding of local organisations in its own way. Bangladesh, for example, regulates foreign donations to NGOs, and China has specific rules for overseas organisations operating there. The UK and UAE have their own charity registration and fund-raising regimes.
Charities in Singapore that make grants overseas should check whether the recipient can lawfully receive foreign funds, whether local registration is needed and how funds can be transferred and accounted for. Families may also coordinate giving through vehicles in more than one jurisdiction, each meeting its own tax and governance rules. Currency controls and banking compliance checks can also delay transfers, so build time into grant schedules and agree reporting formats with recipients in advance. TRW & Co's offices in Dhaka, London, Dubai and China help coordinate this local advice, and our guide to charitable giving covers planning for individual donors.
How TRW & Co helps
We advise families, businesses and charity boards on structure, governance and compliance, working with Singapore-qualified counsel where Singapore court or regulatory representation is required.
Philanthropy strategy
We help families decide how to give, comparing direct gifts, donor-advised arrangements, private foundations and family office programmes in light of their goals and tax position.
Formation and registration
We coordinate incorporation, constitutions or trust deeds, charity registration and IPC applications, aligning documents with the founder's estate plan.
Governance and compliance
We review board composition, conflict policies, receipting and grant procedures against the Code of Governance, and support boards through inquiries or regulatory questions.
Cross-border giving
We coordinate advice in Bangladesh, the UK, the UAE and China on receiving foreign funds, local registration and grant documentation.
To discuss your plans, contact our Singapore team, or browse all our practices, including trusts and succession planning.
Checklist for founders and boards of charities in Singapore
- Are the purposes exclusively charitable and substantially beneficial to the Singapore community?
- Have you chosen the right structure, or would an existing charity or fund achieve the aim?
- Does the board have at least three eligible members, at least two of them citizens or permanent residents?
- Are conflict-of-interest, related-party and receipting policies written and applied?
- Will you seek IPC status, and can you meet its governance expectations?
- Is the compliance calendar for annual reports, financial statements and governance checklists in place?
- Do overseas grants have due diligence, written agreements and reporting rights?
- Is founder succession aligned with wills, trusts and lasting powers of attorney?
Well-structured charities in Singapore outlast their founders and earn lasting public confidence. Investing in the structure at the start makes everything that follows simpler.
Frequently asked questions
01How do I register a charity in Singapore?
First establish the organisation as a company limited by guarantee with ACRA, a society with the Registry of Societies, or a charitable trust. Its governing instrument must provide for exclusively charitable purposes that are wholly or substantially beneficial to the Singapore community, and the board must meet membership rules. You then apply to the Commissioner of Charities through the Charity Portal. If you plan to raise funds from the public, consider an IPC application once you have a track record.
02What is the difference between a charity and an IPC?
A registered charity enjoys tax exemption on qualifying income and recognition as a charity. An Institution of a Public Character is a charity that has also been approved, through its Sector Administrator, to issue tax-deductible receipts to donors. IPCs therefore attract donors who want a tax deduction, but they face higher governance and reporting expectations. Not every charity needs IPC status, particularly self-funded family foundations.
03How much tax deduction do donors get?
Qualifying donations to IPCs and other approved institutions currently earn a 250% tax deduction, which has been extended to donations made up to 31 December 2026. Budget 2026 proposed extending it further, to qualifying donations made up to 31 December 2029. Deductions are given only for qualifying donations; gifts that bring the donor a benefit, or donations to organisations without IPC status, generally do not qualify. Check IRAS guidance for the details that apply to you.
04Can foreigners set up charities in Singapore?
Foreigners can be involved, but the governing board of a registered charity must have at least two Singapore citizens or permanent residents among at least three members, and the charity’s purposes must be wholly or substantially beneficial to the Singapore community. A foreign family focused on causes abroad may find a different vehicle more suitable, such as a family office giving programme using approved intermediaries, or a foundation in another jurisdiction.
05Can family members sit on the board of a family foundation?
Yes, but conflicts must be managed carefully. Board members owe duties to the charity, not to the family. Related-party transactions, payments to relatives and grants to organisations linked to the family need transparent approval with conflicted members abstaining, and some may be inappropriate. Many families add independent board members to strengthen governance and public confidence.
06What is the Philanthropy Tax Incentive Scheme?
It is a scheme administered by MAS for single family offices managing a fund under sections 13O, 13OA or 13U of the Income Tax Act 1947. It gives a 100% tax deduction for qualifying overseas cash donations made through approved qualifying local intermediaries, capped at 40% of the donor’s statutory income. Conditions include appointing a philanthropy professional, additional local business spending and an additional local professional hire.
07What are a charity’s annual obligations?
Charities generally submit annual reports, financial statements and, where the Code applies, a Governance Evaluation Checklist to their Sector Administrator within six months of the financial year-end. Companies limited by guarantee also make ACRA filings, and societies file with the Registry of Societies. Boards should review policies, conflicts and receipting each year, and charities raising funds for foreign causes should check whether a permit is required.
Sources and official materials
- Charity Portal — Register of charities, registration and annual submissions
- Criteria for registration as a charity — Purposes, legal forms and board requirements
- Code of Governance for Charities and IPCs — April 2023 Code, tiers and governance checklist
- Charities Act 1994 — Statutory framework for charities
- Budget 2023 measures for philanthropy — 250% deduction to 2026 and Corporate Volunteer Scheme
- Philanthropy Tax Incentive Scheme (MAS) — Family office overseas giving incentive
- Donations deductions (IRAS) — Tax deductions for qualifying donations
General information only, current as at 20 October 2026. It is not legal advice and does not create a lawyer–client relationship. Singapore law and regulatory practice change; check current official sources and take advice on the facts of your matter.
Talk it through
before you decide.
Share the decision, the jurisdictions and the timetable. A partner will tell you what matters, what can wait and what it will take.