Singapore Budget 2024: Fostering a Culture of Giving Through Enhanced Charity Initiatives

The Singapore government has introduced pivotal changes in its 2024 budget to strengthen the spirit of philanthropy within the country. These changes aim to bolster collaboration among charities and incentivize overseas humanitarian assistance.

Charities Capability Fund Collaboration Grant Extension

In a strategic move to enhance the operational efficiency, governance, and capabilities of charities, the government has decided to extend the Charities Capability Fund Collaboration Grant. This extension, valid through the end of the financial year 2026, seeks to encourage charities to engage in collaborative projects, thereby better meeting the needs of their beneficiaries. This initiative underscores the government's commitment to fostering a robust charitable sector.

Overseas Humanitarian Assistance Tax Deduction Scheme (OHAS)

With a keen eye on global humanitarian needs, the Singapore government is set to introduce the OHAS. This scheme encourages Singaporeans to extend their generosity beyond borders by offering a 100% tax deduction on cash donations. These donations must be directed towards overseas emergency humanitarian causes through charities recognized and permitted by the Commissioner of Charities. Eligible incidents for such aid include natural disasters and sudden crises such as pandemics.

OHAS Scheme encourages Singaporeans to extend their generosity beyond borders by offering a 100% tax deduction on cash donations.

The scheme comes with a cap: tax deductions are limited to 40% of the donor's statutory income. Moreover, for donors participating in the Philanthropy Tax Incentive Scheme for Family Offices, deductions under both schemes will cumulatively adhere to this 40% cap. Scheduled to pilot from January 1, 2025, to December 31, 2028, the OHAS represents a significant step towards global solidarity. However, it's worth noting that unutilized tax deductions cannot be carried over into subsequent years.

These measures aim to address immediate charitable and humanitarian needs and cultivate a more profound culture of giving among Singaporeans. The response to recent global events, including relief efforts for natural disasters and crises, showcases the community's readiness to support those distressed. Through these initiatives, Singapore endeavours to become a more caring and gracious society, reinforcing the values of unity and generosity.