SINGAPORE - Singapore’s decision to extend its tax deduction rate for donations for another three years until the end of 2026, one of the measures announced during the Budget unveiled on Feb 14, was welcomed by Institutions of a Public Character (IPCs) and other bodies The Straits Times spoke to.

“The extension... will continue to encourage the spirit of giving over the next few years. This scheme will continue to benefit donors, charities and beneficiaries,” said the Hope Initiative Alliance (HIA) in a statement on Feb 15. 

HIA president, Reverend Ezekiel Tan, said: “When people of different races, religions and identities collectively work for the betterment of those around us, they nurture trust and positive bonds. As a result, we become a resilient and united society.”

Deloitte South-east Asia’s clients and markets leader James Walton said the steps are “consistent with the Government’s ongoing effort to foster a culture of giving, particularly in a time where the rising cost of living... could present more challenges for certain community groups”.

Also announced during the Budget was the enhancement of the existing Business and IPC Partnership Scheme into a broader Corporate Volunteer Scheme (CVS). 

Come Jan 1, 2024, the scope of qualifying volunteering activities will be expanded to include those conducted virtually or outside of the IPC’s premises. 

The qualifying per-IPC cap will also double to $100,000 per calendar year, to facilitate deeper partnerships between businesses and IPCs.

“The new CVS... is promising. We hope this will increase the number of businesses that integrate the spirit of volunteerism into their human resources and corporate social responsibility programmes,” said the HIA.

The move to include virtual activities is in line with how social services have evolved since the Covid-19 pandemic, a spokesman for the Young Men’s Christian Association (YMCA) told ST. 

This is because most social services’ activities, programmes and services are now available in-person or online.

“The doubling of the cap will increase the resources that organisations can tap,” YMCA said. 

Deloitte’s Mr Walton also welcomed the move to include online activities under the scheme. 

“Much of the skill-based volunteering, such as mentoring and tuition, has moved online in recent years,” he said. “This expansion opens doors to opportunities to reach more people, making it easier for individuals to fit volunteering into their work schedules.”

Social service needs are also becoming more complex, according to Ms Charmaine Leung, managing director at Community Chest. 

She observed that Community Chest had already been rallying its corporate partners to adopt more sustainable philanthropy practices, such as regular volunteerism, to ensure that the social service sector is adequately supported. 

The expansion of the CVS is useful because organisations will find it more convenient to carry out their volunteering efforts, she said. 

Ms Leung added: “We hope more organisations will leverage this scheme to engage their employees and make regular volunteerism a part of their corporate culture.”

Others pointed out that external factors could still hinder the Government’s efforts to cultivate philanthropy. 

YMCA said: “We are mindful that with the ongoing manpower crunch and inflationary pressures, there can be some counterbalancing.

“At the same time, we will take these measures as motivation for us to continue to work hard to engage individuals, corporates and groups to come alongside us in serving the community and pursuing causes for the greater good.”

Ms Vivien Chan, chief executive of Willing Hearts, a charity, shared the sentiment.

“With the higher cost of living and impending recession, it is not easy to predict if Singaporeans will donate more or less,” she said, adding that Willing Hearts will create more opportunities for donors who want to lend a hand.

The latest enhancements to encourage philanthropy and volunteerism here come amid a surge in donations. 

Despite the economic downturn due to Covid-19, the donations received through Giving.sg – a one-stop national giving platform by the National Volunteer and Philanthropy Centre – were about three times higher than pre-pandemic levels, and have remained around $100 million in the last three years.