INTHEBLACK July 2025 - Magazine - Page 21
“What motivates our donors is that asylum seekers and people
seeking refuge have human rights — and those human rights
need to be upheld.”
ANGELA TAYLOR FCPA, ASYLUM SEEKER RESOURCE CENTRE
If the government decides to reform DGR
as recommended, more charities would gain
DGR status, says Robson.
“Applying some of the estimates, we find
a modest increase in overall giving.”
But again, there are trade-offs. For example,
the report recommends removing tax
deductions for school building funds from
DGR status. It noted that “the transaction
here is closer to a market exchange
of donations for lower fees”.
The Labor government ruled out this
particular recommendation prior
to the May 2025 election.
HOW SINGAPORE PROMOTES PHILANTHROPY
Singapore leapfrogged 19 places to land near the top of the Charities Aid
Foundation's World Giving Index 2024.
In recent years the Singapore
government has moved to promote its
philanthropic credentials. An Economic
Development Board article in 2023
announced: “Singapore can be a
philanthropic hub for South-East Asia”.
As of 2024, Singapore-based family
offices can receive a 100 per cent tax
deduction for donations to overseas
charities if they are made through
approved channels, which will boost
Singapore’s position as a regional
philanthropic hub. And from 1 January
2025, both individuals and corporations
can receive a 100 per cent tax deduction
for direct contributions to
overseas-based charities under the
Overseas Humanitarian Assistance Tax
Deduction Scheme.
These innovations dovetail neatly
with the Variable Capital Companies
(VCCs) structure Singapore launched
five years ago. VCCs aim to increase the
funds management industry and provide
discretion and tax incentives to family
offices, including foreign corporate
entities relocating to Singapore.
It is a blend of business and charity
that is likely to appeal to a mobile
business class who prefer to decide
for themselves where their wealth
is distributed, rather than leaving
it to high-taxing governments.
As for Singapore’s rocket ride up
the World Giving Index, Charities Aid
Foundation says the main reason
for Singapore’s jump to third place
overall in 2024 was the upsurge in
volunteering. Around 40 per cent
of the Singapore sample said they
had volunteered, compared with
24 per cent in the 2023 report, and
they are looking to recruit more than
2400 “Silver Guardians” — senior
citizens — by 2028, from Active Aging
Centres island-wide.
Singapore’s Corporate Volunteer
Scheme allows companies to deduct
up to 250 per cent for expenses incurred
in sending employees to volunteer with
approved organisations.
Singaporeans can also claim a
250 per cent tax deduction for donations
to government-approved institutions.
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