Donations and grant making entities in Singapore (6 Dec 2011) and grant... · 2019-03-06 · Asia Centre for Social Entrepreneurship and Philanthropy Landscape Study on Donations

Asia Centre for Social Entrepreneurship and Philanthropy

Landscape Study on Donations and Grant Making

Entities in SingaporeLam Swee Sum, Director, ACSEP

Associate Professor of Finance, NUSNovember 2011


Outline

1. Donations in Singapore2. Grant Making Entities in Singapore3. Bibliography


Donations in Singapore

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Individual 85 131 202 150 182 184 255 211 240 269Corporate 296 251 310 325 462 351 565 476 447 507Total 381 382 512 475 644 535 820 687 687 776

0100200300400500600700800900

Millions (SGD)

Tax Deductible Donations to IPC*

Source: Chart constructed based on data from Commissioner of Charities Annual Report*IPC = “Institutions of a Public Character” – A nonprofit charity, institution or fund meeting certain qualifications and approved by the government of Singapore.



2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Corporate 77.7% 65.7% 60.5% 68.4% 71.7% 65.6% 68.9% 69.3% 65.1% 65.3%Individual 22.3% 34.3% 39.5% 31.6% 28.3% 34.4% 31.1% 30.7% 34.9% 34.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Distribution of tax deductible donations to IPC

Source: Chart constructed based on data from Commissioner of Charities Annual Report



Source: Index constructed based on data from Commissioner of Charities Annual Report* Index tracks the cumulative growth of individual and corporate donations starting from year 2001 (Base = 1000)



Source: Chart constructed based on data from Commissioner of Charities Annual Report*NKF = “National Kidney Foundation”; **GFC = “Global Financial Crisis”



Source: Chart constructed based on data from Commissioner of Charities and Department of Statistics Singapore

20.53

31.34

49.15

35.97

42.62 41.82

55.56

43.6048.10

52.95

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Individual tax deductible donations per capita (SGD)Individual tax deductible donations per capita ($)



Source: Ratio constructed based on data from Commissioner of Charities, Department of Statistics Singapore and NCSS

0.016

0.018

0.02

0.022

2005 2006 2007 2008 2009 2010

Ratio of funds raised by Community Chest as Percent of GDP

00.020.040.060.080.1

0.12

2005 2006 2007 2008 2009 2010

Ratio of Individual Donations to IPC as Percent of GDP

00.050.1

0.150.2

0.250.3

0.35

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Ratio of Total Donations to IPC as Percent of GDP


National Average Individual Charitable Giving as a Share of GDP (2005)

Ireland0.47%

United States1.7%

UK0.73%

Canada0.72%

Australia0.69%

South Africa0.64%

Netherlands0.47%

Singapore0.29%

New Zealand0.29%

Turkey0.23%Germany

0.22%France0.14%

Source: Charities Aid Foundation (2006)


Charitable Activity among NationsWorld Giving Index 2010

Country World Giving Index

% Giving money % Volunteering time

% Helping a stranger

Australia 1 70% 38% 64%

US 5 60% 39% 65%

Switzerland 5 71% 34% 60%

UK 8 73% 29% 58%

Hong Kong 18 70% 13% 50%

Singapore 91 35% 10% 35%

Japan 119 17% 23% 25%

China 147 11% 4% 28%

Source: Charities Aid Foundation (2010)


Charity Sector in Singapore

2003 2004 2005 2006 2007 2008 2009

Number of large charities 47 59 64 65 67 98 104

Number of non‐large charities 1,612 1,688 1,743 1,810 1,823 1,846 1,869

Large charities share of income 83% 75% 77% 82% 82% 85% 84%

Source: Chart constructed based on data from Commissioner of Charities Note: Large charities are those with annual income more than SGD10 million

5,0004,350

4,9705,450

6,000

9,020 9,400

4,1303,263

3,8274,469

4,920

7,667 7,896

870 1,088 1,143 981 1,080 1,353 1,504

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

2003 2004 2005 2006 2007 2008 2009

Millions (SGD)

Distribution of charities income by size of charities

Total income Total income received by large charities Total income received by non‐large charities



Source: Index constructed based on data from Commissioner of Charities Annual Report* Index tracks the cumulative growth of annual income of charities starting from year 2003 (Base = 1000)



Source: Index constructed based on data from Commissioner of Charities Annual Report

10.2% 10.9% 13.0% 9.8% 13.7% 7.6% 7.3%

89.8% 89.1% 87.0% 90.2% 86.3% 92.4% 92.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006 2007 2008 2009

Donations to IPC relative to total charities income

IPC donations / Total income of charities Non‐IPC donations / Total income of charities



• Tax price is the most important determinant ofgiving (Chua and Wong, 1999)

• Study shows that on average, if the tax rate were to decrease by1%, giving is expected to decrease by between 3% to 6%,depending on the giver’s educational attainment

• 21% of the population in Singapore pay tax

• 27% of charities in Singapore enjoy IPC status


Grant Making Landscape in Singapore

• A cross‐sectional study

• Motivation

• Little research has been conducted on the local grant making scene to date


Caveats

• NUS student project

• Secondary data sources

• Sample not representative of Singapore’sphilanthropic sector


A Taxonomy of Grant Making Entities



• Foundations take the name of the grantmaker or the family name and funds areusually raised from individual grant maker

• Examples: Lien Foundation, Tan Chin TuanFoundation, Lee Foundation

Private Foundations

• Trusts are governed under the Trustees Actand are separate legal entities set up tofurther the charitable intention ofindividuals

• Examples: Isaac Manasseh Meyer TrustFund, The Chen Su Lan Trust Fund

Charitable Trusts



• Foundations set up by corporations tofurther their corporate social responsibilityefforts

• Examples: Asian Pacific Breweries Foundation, Banyan Tree Global Foundation

Corporate Foundations

• Funds set up by corporations to further theircorporate social responsibility efforts

• Examples: The Straits Times Pocket Money Fund, Singapore Power Heartware Fund

Corporate Funds


A Taxonomy of Grant Making Entities• Organisations formed under the direction ofthe government to maintain harmonywithin each ethnic community, as well asthe different ethnic communities inSingapore

• Examples: Chinese Development Assistance Council (CDAC), Yayasan Mendaki

Ethnic Self‐Help

Organisations

• Associations set up to address the welfareof Chinese immigrants

• Examples: Nge Ann Kongsi Foundation, The Hokkien Foundation

Chinese Clan Associations



• Entities and foundations started up byreligious organisations to contribute to thewelfare of society

• Examples: City Harvest Church, TheSingapore Buddhist Lodge

Religious Organisationsand Affiliated Foundations

• Funds established by hospitals andhealthcare groups to help individuals andfamilies cope with medical costs

• Examples: Leukemia and LymphomaFoundation, National Heart CentreSingapore Heart2Heart Fund

Healthcare‐Related Funds



• Foundations administered by politicalassociations

• Example: PAP Community Foundation

Politically‐Affiliated

Foundations

• Entities established under the purview ofvarious government ministries or statutoryboards to enhance the living standards ofSingapore

• Examples: Centre for Enabled Living, SingaporeLabour Foundation

Government‐Run Grant Making Entities



• Funds set up under the purview ofgovernment ministries and typicallyadministered at the grassroots level

• Examples: ComCare Fund, North East Live It Up Fund

Government‐Run Funds

• Funds set up to provide scholarships andgrants

• Examples: Dr Goh Keng Swee Scholarship Fund, Tay Eng Soon Scholarship Fund

Tertiary Education‐

Related Funds



• Funds established by special interest groupsto further their organisational goals

• Example: Mainly I Love Kids (MILK) Fund

Social Interest and Advocacy

Group


Additional Findings: Number Supporting Various Causes


Bibliography• Chua, V. C. H., & Wong, C. M. (1999). Tax incentives, individual characteristics and charitable giving in Singapore. International Journal of Social Economics, 26(12), 1492‐1504.

• Charities Aid Foundation. (2006). International comparisons of charitable giving. UK: Charities Aid Foundation.

• Teo, A. C. Y., Lee, A. Q‐. Y., Ng, K. S., Sim, E. T. H., Chang, C‐. J. W‐. Y., & Tan, K. L. H. (2011). Grantmaking entities in Singapore. Retrieved from http://www.worldfuturefound.org/research/GrantmakingEntitiesInSingaporeJanuary2011.pdf


Source: Asia Centre for Social Entrepreneurship and Philanthropy. Permission required for reproduction.

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Donations and grant making entities in Singapore (6 Dec 2011) and grant... · 2019-03-06 · Asia Centre for Social Entrepreneurship and Philanthropy Landscape Study on Donations