Budget 2021: Tax deductions for donations extended; employees urged to volunteer

TO encourage charitable giving and corporate volunteerism, the Singapore government will extend tax deductions and a number of initiatives to assist charities.

This comes as community partners, charities and social service agencies are facing new challenges amid the coronavirus pandemic, with donations to many charities declining, Deputy Prime Minister and Finance Minister Heng Swee Keat said on Tuesday.

The government already offers tax incentives for donations made to institutions of a public character (IPCs) and also matches donations raised.

The 250 per cent tax deduction on donations to IPCs will now be extended for another two years, till the end of 2023, Mr Heng announced in Parliament while unveiling this year's Budget.

The additional government support for the Tote Board's Enhanced Fund-Raising Programme will also be extended by one year. Charities can apply to receive dollar-for-dollar matching on eligible donations, which are raised from projects in FY2021, up to a cap of S$250,000 per applicant.

This will hopefully help tide charities through the crisis, "to enable them to do their good work to support the vulnerable in our community," Mr Heng said.

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Support will also be extended to Community Chest (ComChest), which plays a critical role in raising funds for many social service agencies.

The government will extend the matching period to FY2023 for ComChest's SHARE as One scheme. The scheme provides dollar-for-dollar matching for new and additional donations through the SHARE programme, under which corporates, employees and individuals can commit to regular giving.

Moreover, the government will set aside S$20 million for a new Change for Charity Grant.

"There is potential for businesses to do more to facilitate spontaneous acts of daily giving, for example, by encouraging their customers to make donations at the point of transaction," Mr Heng said.

The Change for Charity Grant will match ComChest donations raised through this new initiative, and also co-fund one-off development costs to integrate or enhance donation functions on to businesses' payment platforms.

To spur more employees to volunteer, the government will extend the Business and IPC Partnership Scheme for another two years, till the end of 2023.

Mr Heng encouraged corporates to partner IPCs to make a bigger impact to meet the diverse needs of the community.

In addition, the government will provide three dollars for every dollar raised for the Community Development Councils' Care and Innovation Fund.

Some S$50 million will be set aside for this matching grant, which is meant to support bottom-up, innovative initiatives addressing the needs of the community.

Mr Heng urged individuals and corporates to do more for Singapore's charity sector if they can.