Singapore Reforms Empower Foundations with Greater Flexibility

The reforms are expected to encourage more proactive and multifaceted philanthropic activities

Singapore has relaxed regulations for private and community foundations in a significant policy shift, broadening their operational scope beyond traditional grantmaking. This change, effective from January 1, 2024, marks a substantial move towards fostering a more dynamic philanthropic environment in the region.

What's Changing?

Historically, foundations in Singapore were primarily restricted to grantmaking activities. However, under the new Guidance on Regulation of Grantmakers issued by the government, foundations can now engage directly in research, serve beneficiaries more comprehensively, and utilise innovative financial instruments such as loans and social impact bonds. This regulatory overhaul allows foundations to undertake up to 10% of their activities in non-grantmaking pursuits, provided these endeavours align with their philanthropic goals.

Why the Change?

The initiative aims to grant foundations more leeway in achieving their charitable objectives, thereby enhancing their impact on society. According to Edwin Tong, Singapore's Minister for Culture, Community and Youth, these changes are designed to promote good governance while offering operational flexibility and maintaining transparency and accountability as foundational principles.

Singapore's regulatory reforms open new avenues for foundations to drive societal change.

How Will This Impact the Sector?

These reforms are expected to encourage more proactive and multifaceted philanthropic activities. Foundations can now contribute more strategically to societal needs, employing a broader set of tools to address complex challenges such as environmental sustainability, healthcare, and education. This flexibility is particularly pertinent as Singapore positions itself as a hub for Asian philanthropy, attracting family offices and global philanthropists looking to invest in meaningful, impactful projects.

Who Benefits?

The relaxation of rules is set to benefit a wide range of stakeholders, including non-profit organisations, beneficiaries of philanthropic activities, and the foundations themselves. By allowing foundations to engage in direct services and research, the reforms aim to foster more innovative solutions to social issues tailored to the community's specific needs.

Community and Economic Implications

Lee Meng Tat, chairman of the Singapore Cancer Society, highlighted the potential for these new rules to enable grantmakers to innovate and provide sustained support over the years. For instance, the ability to issue bonds could unlock new funding streams for long-term projects, enhancing the scope and durability of philanthropic initiatives.

As Singapore continues to refine its philanthropic landscape, these regulatory adjustments are expected to enhance the city-state's attractiveness as a centre for impactful philanthropy, benefiting both local and international communities.