Encouraging Charity Collaboration and Supporting Humanitarian Efforts Abroad
In response to the growing willingness among Singaporeans to help those affected by international crises, Finance Minister Lawrence Wong announced key measures in the Singapore Budget 2024 to support charity efforts both locally and abroad.
The Charities Capability Fund Collaboration Grant will be extended for three more years, until the end of the 2026 financial year. This initiative is aimed at encouraging charities to collaborate, sharing resources and expertise to improve their governance, efficiency, and impact. By supporting such partnerships, the government aims to ensure that charitable efforts are more effective in meeting the needs of their beneficiaries.
Additionally, a new tax incentive has been introduced to motivate Singaporeans to contribute to overseas humanitarian efforts. The Overseas Humanitarian Assistance Tax Deduction Scheme (OHAS) will allow individuals to claim a 100% tax deduction for cash donations made to overseas emergency humanitarian causes through designated charities. The scheme covers a wide range of emergencies, including natural disasters and sudden crises like pandemics. To qualify for the tax deduction, donations must go through charities that have obtained a valid fundraising permit for foreign charitable purposes from the Commissioner of Charities.
The OHAS scheme will be in effect for four years, from January 1, 2025, to December 31, 2028, with a cap of 40% of the donor’s statutory income for tax deductions. If donors are also enrolled in the Philanthropy Tax Incentive Scheme for Family Offices, the combined tax deductions under both schemes will be capped at 40%.
These moves reflect the government’s commitment to fostering a culture of giving in Singapore, making it easier for citizens to contribute to international humanitarian causes. By extending support for local charity collaborations and providing financial incentives for global humanitarian assistance, the government is helping to strengthen the spirit of philanthropy and social responsibility among Singaporeans. As Minister Wong noted, “A stronger culture of giving will bind us closer together and make us a more caring and gracious society.”
