THE Charities Capability Fund Collaboration Grant will be extended by three years to encourage charities to work together and meet the needs of their beneficiaries, said Finance Minister Lawrence Wong on Friday (Feb 16).
The grant, which has been extended to the end of the 2026 financial year, will support collaborative projects among charities to enhance their governance, efficiency and capabilities, he said during his Budget speech in Parliament.
In addition, the government will introduce an Overseas Humanitarian Assistance Tax Deduction Scheme (OHAS) to encourage Singaporeans to support those in need abroad.
OHAS will provide a 100 per cent tax deduction for cash donations made towards overseas emergency humanitarian assistance causes through designated charities.
The cause must have a valid fundraising for foreign charitable purposes permit from the Commissioner of Charities. Designated charities must apply for the permit before commencing a fundraising appeal.
Incidents that require emergency humanitarian aid include natural disasters and sudden crises such as pandemics.
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The tax deductions under OHAS will be capped at 40 per cent of the donor’s statutory income.
For donors who also fall under the Philanthropy Tax Incentive Scheme for Family Offices, tax deductions under both schemes will be jointly capped at 40 per cent.
OHAS will be piloted for four years from Jan 1, 2025, to Dec 31, 2028. Any unutilised tax deductions under the scheme cannot be carried forward to offset the donor’s income for subsequent years.
Wong, who is also deputy prime minister, said this comes as many Singaporeans are readily stepping forward to support those affected by humanitarian crises overseas. He highlighted the earthquake relief efforts in Turkey and Syria, and the donations made in response to the Israel-Hamas crisis.
“A stronger culture of giving will bind us closer together, and make us a more caring and gracious society,” he said.
For more of BT’s Budget 2024 coverage, go to bt.sg/budget24
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