Charity Status Application
- a22162
- Jul 28
- 9 min read
Singapore Charity Status Application Guide
Applying for charity status in Singapore involves a structured process overseen by the Commissioner of Charities (COC) under the Ministry of Culture, Community and Youth (MCCY). Here's a breakdown of the key aspects:
1. What is a Charity in Singapore?
A charity in Singapore is an organization established for exclusively charitable purposes and subject to the control of the High Court. To be registered as a charity, your organization must:
Have purposes that are exclusively charitable. These are generally defined under common law and include:
Relief of poverty
Advancement of education
Advancement of religion
Other purposes beneficial to the community (e.g., promotion of health, advancement of arts, heritage, science, environmental protection, animal welfare, advancement of sport that promotes health).
Conduct activities in furtherance of its charitable purposes that benefit the public, wholly or substantially in Singapore.
Have at least 3 governing board members, of whom at least 2 must be Singapore citizens or permanent residents.
The governing board members must meet certain eligibility criteria (e.g., at least 18 years old, not an undischarged bankrupt, not convicted of certain offenses).
2. Legal Structures for Charities:
Before applying for charity status, your organization must first be established as a legal entity. The common legal structures for charities in Singapore are:
Company Limited by Guarantee (CLG) under the Accounting and Corporate Regulatory Authority (ACRA)
Society under the Registry of Societies (ROS)
Charitable Trust
The choice of legal structure impacts how your organization will operate and its compliance requirements.
3. Application Process:
The application for registration as a charity is submitted through the Charity Portal. You should apply within 3 months of your organization's establishment.
The application typically requires:
A signed copy of your organization's governing instrument (e.g., Memorandum and Articles of Association for a CLG, Constitution for a Society, Trust Instrument for a Charitable Trust).
Signed copies of financial statements for the last 3 financial years (if applicable).
A 2-year activities and fund disbursement plan.
Other documents and information as required by the COC.
You can find a detailed checklist and guide on the Charity Portal.
4. Benefits of Charity Status:
Registered charities in Singapore enjoy several benefits:
Automatic income tax exemption on income used for charitable purposes.
Potential for full or partial property tax exemption for properties used exclusively for charitable purposes, upon application and review by the Comptroller of Property Tax.
Enhanced credibility and public trust, which can aid in fundraising and attracting support.
5. Institution of a Public Character (IPC) Status:
While not mandatory for all charities, many registered charities also apply for Institution of a Public Character (IPC) status. IPC status allows the charity to:
Issue tax-deductible receipts for qualifying donations received. This means donors can claim a 2.5 times tax deduction on their donations.
Engage in public fundraising with more privileges.
To qualify for IPC status, a charity must meet additional criteria, primarily that its activities must exclusively benefit the local community in Singapore and not be confined to sectional interests (unless a waiver is granted).
6. Ongoing Obligations:
Once registered, charities have ongoing obligations to ensure good governance and transparency. These include:
Submitting annual reports and financial statements to the COC.
Maintaining proper financial controls and record-keeping.
Adhering to the Code of Governance for Charities and IPCs.
It's highly recommended to refer to the official Charity Portal (www.charities.gov.sg) for the most up-to-date and accurate information, guides, and application forms. You may also consider seeking professional advice from legal or accounting firms specializing in non-profit organizations to ensure proper setup and compliance.
Professional Services for the Application for Charity Status with the Commissioner of Charities (COC)
While the application process for charity status itself is streamlined through the Charity Portal and designed to be user-friendly, many organizations, especially those without in-house legal or compliance expertise, choose to engage professional services for various reasons:
Why Engage Professional Services for Charity Status Application?
Ensuring Compliance from the Outset: The COC has specific criteria for what constitutes "exclusively charitable purposes" and how activities must benefit the community. Professionals can:
Review your governing instrument (Constitution, M&AA, Trust Deed) to ensure it aligns with charity regulations and common law definitions of charity.
Help refine your stated objects and clauses to avoid potential rejections or delays.
Advise on any clauses that might be problematic (e.g., private benefit clauses).
Structuring the Application Correctly:
2-year activities and fund disbursement plan: This is a crucial document. Professionals can help you articulate a clear and compelling plan that demonstrates your organization's viability and commitment to its charitable purposes, in line with COC's expectations.
Financial statements: If your organization has been established for some time, they can help ensure your financial statements are prepared and presented in a way that meets COC requirements.
Gathering supporting documents: They can guide you on the necessary supporting documents and ensure they are properly collated and submitted.
Navigating the Charity Portal: While the portal is intuitive, professional service providers are familiar with its functionalities, common pitfalls, and the specific information points required, which can expedite the submission process.
Addressing Specific Queries/Challenges:
If your organization has unique or complex activities, or if there are specific concerns about meeting the "wholly or substantially in Singapore" benefit criteria, a professional can provide tailored advice.
They can act as a liaison with the COC if there are queries or requests for clarification during the application review.
IPC Status Application (Often Concurrent): Many organizations apply for IPC status alongside charity status. Professionals can guide you through the additional requirements for IPC, particularly around the "benefit to the community as a whole, not confined to sectional interests" criterion.
Long-Term Governance and Compliance: Engaging professionals at the application stage can also lead to a longer-term relationship where they assist with ongoing compliance (annual reporting, governance best practices, risk management, etc.), which is crucial for maintaining charity status.
Recommendation:
It is highly advisable to consult with a professional, especially if:
Your organization's activities are complex or unique.
You are unsure about meeting the "exclusively charitable purposes" or "public benefit" criteria.
Your governing board members lack prior experience with charity regulations in Singapore.
You plan to apply for IPC status.
Starting right with professional guidance can save significant time, effort, and potential issues down the line.
Bestar Professional Services:
This firm offers comprehensive professional advice, ensuring your governing documents are robust, your purposes are charitable, and you meet all statutory requirements. They are particularly valuable for complex structures or unique charitable objectives.
Bestar offers services for non-profit entities, including the initial incorporation (CLG or Society) and then assisting with the charity registration application. They are good for managing the administrative and filing aspects.
Bestar specifically caters to the non-profit sector, offering end-to-end services from initial conceptualization to charity registration and ongoing governance support.
While not solely focused on the application, Bestar can be invaluable for preparing financial statements and advising on financial governance relevant to charity status.
Cost of Professional Services For Charity Status Application (to COC)
This covers the service of reviewing your existing legal structure's documents, advising on the charitable purposes, assisting with the 2-year activity and fund disbursement plan, completing the application form on the Charity Portal, and managing communication with the COC.
It's important to note that these can vary significantly based on:
Complexity of your organization: If your charitable purposes are unique, or your activities have international components, it might require more in-depth consultation.
Completeness of your documentation: If you have most of the required information and a clear plan, the fees will be lower.
Basic Review & Submission: S$1,000 − S$3,000
This includes a review of your constitution/M&AA, advice on the charitable objects, preparation of the application form, and submission through the Charity Portal.
Comprehensive Advisory & Application: S$3,000 − S$8,000+
This would include more in-depth consultation, drafting or significant amendment of clauses in your governing instrument to ensure compliance, detailed assistance with the 2-year plan, strategic advice on governance, and more extensive engagement with the COC if queries arise. This range might also apply if you are applying for IPC status concurrently and require assistance with those specific criteria.
Getting a Quote:
When contacting Bestar, be prepared to provide the following information to get an accurate quote:
Your organization's legal structure: (e.g., Company Limited by Guarantee, Society, Charitable Trust)
A copy of your governing instrument: (e.g., Constitution, Memorandum & Articles of Association, Trust Deed)
A brief description of your charitable purposes and planned activities.
Whether you intend to apply for IPC status concurrently.
If your organization has already been operating, provide recent financial statements.
By providing this information, you'll enable Bestar to assess the scope of work and provide a more precise fee proposal.
How Bestar can Help
You're right to explore how Bestar can assist in the charity status application process and beyond. Bestar brings specific expertise to the table:
How we help:
Legal Structure & Governing Instruments: This is our core strength. We advise on the most suitable legal structure (CLG, Society, Charitable Trust) for your specific charitable objectives and help draft or review your constitution, Memorandum & Articles of Association, or Trust Deed to ensure it fully complies with the Charities Act, Societies Act, or Companies Act. We make sure your purposes are exclusively charitable under common law, which is a fundamental requirement.
Charitable Purposes Definition: We have in-depth knowledge of what qualifies as a "charitable purpose" in Singapore (relief of poverty, advancement of education, religion, or other purposes beneficial to the community) and how to articulate these clearly in your documents to meet the COC's requirements.
Public Benefit Test: We guide you on demonstrating that your activities provide a "wholly or substantially in Singapore" public benefit, which is critical for charity registration and especially for IPC status.
Compliance with Charities Act: We ensure your proposed operations and governance framework align with all provisions of the Charities Act and subsidiary legislation.
Advisory on Specific Legal Issues: If your charity involves complex legal arrangements (e.g., cross-border activities, specific types of fundraising, endowment funds, or unique beneficiary groups), Bestar can provide tailored professional advice.
Entity Incorporation: We handle the initial setup of your legal entity (Company Limited by Guarantee with ACRA or Society with ROS), preparing and filing all necessary documents.
Charity Status Application Administration: Once the legal entity is established, we can assist with the administrative aspects of the charity status application to the COC. This includes:
Completing the application forms on the Charity Portal.
Ensuring all required supporting documents (e.g., governing instrument, board member details, 2-year activity plan) are properly prepared and submitted.
Liaising with the COC on procedural matters or requests for additional information.
Ongoing Compliance (Non-Charity Specific): For CLGs, we fulfill the mandatory role of company secretary, ensuring compliance with ACRA regulations (e.g., annual return filings, maintaining statutory registers, preparing board resolutions). For Societies, they can assist with ROS filing requirements.
Registered Office Services: Bestar offers a registered office address in Singapore.
Strategic Planning & Program Design: We can help you define your charitable mission, vision, and values, and develop a robust 2-year activities and fund disbursement plan that aligns with your strategic goals and the COC's expectations.
Governance Best Practices: We advise on implementing strong governance frameworks, board development, and adherence to the Code of Governance for Charities and IPCs, which is crucial for long-term sustainability and public trust.
Fundraising Strategy: We can assist in developing sustainable fundraising strategies and ensure your fundraising activities comply with regulations.
Impact Measurement: We can help design frameworks to measure the social impact of your programs, which can be valuable for reporting to donors and the COC.
Operational Efficiency: We can review your internal processes and recommend improvements to enhance efficiency and accountability.
Capacity Building: Bestar also offers workshops and training for charity staff and board members on various aspects of non-profit management.
Financial Reporting & Systems Setup: We advise on setting up proper accounting systems and internal controls tailored for non-profits, ensuring compliance with the Charities Accounting Standard (CAS) or Singapore Financial Reporting Standards (SFRS).
Preparation of Financial Statements: We prepare accurate financial statements (Statement of Financial Activities, Balance Sheet) required for the charity application and ongoing annual reporting.
Audit Services: For charities, an annual audit is mandatory. Bestar provides audit services, which are critical for demonstrating financial accountability and transparency to the COC, donors, and the public.
Tax Advisory & Filing: We provide advice on income tax exemptions for charities and help with the preparation and filing of annual tax returns with the Inland Revenue Authority of Singapore (IRAS). We can also advise on Goods and Services Tax (GST) implications if applicable.
Budgeting & Financial Planning: We can assist with developing robust budgets and financial projections, including the 2-year fund disbursement plan required for the charity application.
Grant Reporting: We can help ensure compliance with financial reporting requirements for grants received from various funders.
Best for:
Ensuring a legally sound foundation, complex charitable structures, or situations requiring detailed legal interpretation and risk mitigation.
Streamlining the incorporation process and handling the administrative and statutory compliance aspects of both the legal entity and the charity application.
Developing a strong strategic foundation, ensuring effective program delivery, and building internal capacity for good governance and impact.
Ensuring financial compliance, transparent financial reporting, efficient financial management, and fulfilling audit requirements.
In summary, a comprehensive approach often involves engaging Bestar, depending on your organization's needs and internal capabilities. Bestar might set up the legal structure and ensure compliance, handles ongoing statutory filings, helps with strategy and governance, and manages your finances and audits.
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