Institution of a Public Character (IPC) Status Application (COC) in Singapore
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- Jul 28
- 8 min read
Singapore IPC Status Application Guide
Institution of a Public Character (IPC) Status Application (COC) in Singapore
In Singapore, the "Institution of a Public Character (IPC) Status Application" refers to the process by which a registered charity applies to be granted IPC status by the Commissioner of Charities (COC). This status is highly sought after due to the significant benefits it offers.
Here's a breakdown of key aspects:
What is an IPC?
An IPC is a registered charity or an exempt charity that has been authorized to issue tax-deductible receipts for qualifying donations. This means that donors who contribute to an IPC can claim tax deductions on their assessable income.
Key Requirements for IPC Status:
To qualify for IPC status, an organization must generally meet the following criteria:
Registered Charity: It must already be a registered charity or an exempt charity in Singapore.
Public Benefit: Its activities must exclusively benefit the community in Singapore as a whole, and not be confined to sectional interests or groups of persons based on race, belief, or religion (unless a waiver is granted by the Minister). This means overseas activities benefiting the overseas community are generally not allowed for IPCs.
Approved Governing Instruments: Its governing instruments must be approved by the Sector Administrator.
Aligned Activities: Its activities must meet the IPC's objectives under its governing instruments and the objectives of its Sector Administrator.
Independent Governing Board: The governing board must fulfill independence requirements, and at least half of its members must be Singapore Citizens.
Accountability: Governing board members must be accountable for the management of donations received.
Approved Auditor: Its auditor must be approved by the Sector Administrator.
Audited Financial Statements: IPCs are required to have their financial statements audited by a public accountant whose appointment has been approved by the Sector Administrator. There are also rules regarding the rotation of auditors.
Benefits of IPC Status:
The primary benefit of having IPC status is the ability to offer tax deductions to donors. This significantly encourages charitable giving. Other benefits include:
Increased Donations: The tax-deductible status makes the organization more attractive to potential donors, leading to increased funding.
Enhanced Credibility: IPC status signifies a higher standard of regulatory compliance and governance, which enhances the organization's credibility with the public and other stakeholders.
Income Tax Exemption: As a registered charity, the organization already enjoys automatic income tax exemption. IPC status adds the benefit of tax-deductibility for donors.
Application Process:
Be a Registered Charity: Ensure your organization is already registered as a charity or is an exempt charity in Singapore.
Submit Application: A registered charity can submit an "Application for Approval as an IPC" via the Charity Portal.
Extension: For existing IPCs, an "Application for Extension as an IPC" needs to be submitted upon expiry of the validity period.
Processing Time: The processing time for an IPC application is typically around two months.
Ongoing Obligations:
IPCs have higher standards of transparency and accountability. They are required to:
Issue Tax Deduction Receipts to donors.
Maintain detailed Donation Records.
Post financial and non-financial information online.
Submit audited financial statements.
Submit an annual return of donations.
Submit an annual report detailing the use of donation money and proposed future plans.
If you are looking to apply for IPC status, the Charity Portal (www.charities.gov.sg) is the official platform for submitting your application and finding detailed information, guides, and templates.
Fees for Applying for IPC Status
IPC Status Application: There is no direct government application fee for applying for or extending IPC status. The application is submitted through the Charity Portal.
While there are no direct application fees, you may incur other costs in the process, such as:
Professional Fees: You might engage professionals to assist with:
Drafting your governing instruments (Memorandum & Articles of Association for CLGs, Constitution for Societies, Trust Deed for Charitable Trusts).
Ensuring compliance with all legal and regulatory requirements.
Preparing your financial statements and other necessary documents for the applications.
Auditing your financial statements (a requirement for IPCs and often for larger charities).
Ongoing Compliance Costs: Once you become an IPC, there are ongoing costs associated with compliance, such as:
Annual audit fees.
Fees for filing annual returns with ACRA (if applicable) and the Commissioner of Charities.
Costs associated with maintaining proper records and systems for donation tracking and receipt issuance.
Professional Fees
Professional fees are the real costs involved in setting up and maintaining a charity with IPC status in Singapore. While the government doesn't charge for the IPC application itself, the need for professional expertise is significant.
Here's a breakdown of the professional fees you might encounter:
1. IPC Application Consultancy Fees:
While the IPC application itself is free, the process can be complex. Many organizations engage consultants to ensure compliance and a smooth application.
Consultancy Services: These services involve:
Reviewing your organization's objectives and activities to ensure they meet charity and IPC criteria.
Advising on governance structures and policies to meet regulatory requirements (e.g., independence of governing board).
Assisting with the preparation and submission of the IPC application forms through the Charity Portal.
Helping to draft required documents like the IPC's constitution or amendments to existing ones.
Fees: These can vary widely based on the complexity of your organization and the extent of assistance required. Bestar quotes a fixed fee for the IPC application process (S$1,200 to S$3,000+).
3. Ongoing Compliance Fees:
Once your organization is an IPC, there are recurring professional fees.
Company Secretary Fees: Mandatory for CLGs.
Fees: S$280 to S$900 per annum, depending on the scope.
Registered Office Address: If you don't have a physical office.
Fees: Around S$110 to S$420 per annum.
Bookkeeping/Accounting Services:
Fees: From S$250 to S$2,500 per month depending on transaction volume and complexity. This covers maintaining financial records, preparing financial statements, etc.
Annual Audit Fees (Mandatory for IPCs): All IPCs are required to have their financial statements audited by an approved public accountant.
Fees: Start from around S$3,000 per audit for smaller IPCs and can go much higher for larger, more complex organizations. Factors influencing audit fees include:
Revenue and expenditure of the charity.
Complexity of financial transactions.
Quality of internal controls and record-keeping.
Tax Filing Services: While charities are generally exempt from income tax, they still have filing obligations. If your charity engages in taxable activities (e.g., certain business activities), GST registration might be required.
Fees: S$350 to S$500 per filing for corporate tax.
4. Ad-Hoc Legal and Advisory Fees:
You might need professional advice for specific situations, such as:
Drafting or reviewing contracts.
Advising on fundraising activities.
Compliance with specific regulations related to your sector.
Changes to your constitution or governing board.
Charities Capability Fund (CCF) Grants:
It's worth noting that the Singapore government, through the Charities Capability Fund (CCF), offers grants to help charities enhance their governance, internal controls, and capabilities. These grants can cover a portion of professional fees for certain approved projects, including consultancy services for governance and management. You can check the Charity Portal for details on eligibility and application.
In summary:
Although the Commissioner of Charities (COC) in Singapore does not levy a fee for the IPC status application, organizations should budget for substantial professional fees. These primarily cover the establishment of your legal entity, ensuring ongoing compliance (particularly annual audits), and engaging advisory services during the application process.
How Bestar can Help
While the IPC application itself is free, the complexity of regulatory compliance and governance in Singapore makes professional assistance highly valuable, if not essential, for many organizations. Bestar plays roles in helping charities navigate the journey to IPC status and beyond.
Here's how Bestar can help:
A corporate secretary is mandatory for Companies Limited by Guarantee (CLGs) in Singapore, which is the most common legal structure for charities seeking IPC status. Our role is primarily administrative and compliance-focused.
Lawyers provide critical legal advice, ensuring your charity's structure and operations are legally sound and compliant with all relevant laws, particularly the Charities Act and other sector-specific legislation.
Consultants, particularly those with expertise in the non-profit sector and IPC applications, offer strategic and practical guidance to streamline the entire process. They bridge the gap between legal compliance and operational readiness.
How we help:
Incorporation of the Legal Entity:
Company Name Reservation: Handling the application to ACRA (Accounting and Corporate Regulatory Authority) to reserve your charity's name.
Drafting/Reviewing Constitution (Memorandum & Articles of Association): Ensuring the governing document aligns with the requirements of both ACRA and the Commissioner of Charities (COC), especially regarding charitable objects, dissolution clauses, and governance structures.
Filing with ACRA: Managing all necessary filings for the incorporation of your CLG.
Compliance with Companies Act:
Maintaining Statutory Registers: Keeping accurate records of directors, members, company charges, and other statutory information.
Filing Annual Returns with ACRA: Ensuring timely submission of financial statements and other required documents to ACRA.
Resolutions and Minutes: Preparing and circulating board resolutions and minutes of meetings (Board and Annual General Meetings), ensuring proper corporate governance.
Advising on Compliance: Providing guidance on adherence to the Companies Act and other relevant regulations.
IPC-Specific Support:
Our expertise ensures the underlying legal entity is compliant and well-governed, which is a prerequisite for IPC status. A well-maintained corporate secretarial record facilitates the COC's review.
Legal Structuring Advice:
Choosing the Right Entity: Advising on the most suitable legal structure for your charitable objectives (e.g., Company Limited by Guarantee, Society, or Charitable Trust) and explaining the implications of each.
Governing Instruments: Drafting or reviewing your charity's Constitution/Trust Deed/Rules to ensure it meets legal requirements for charity registration and IPC status. This includes clauses on charitable purposes, public benefit, non-profit distribution, and dissolution.
Charity Registration Application:
Compliance Review: Ensuring your application for charity registration (and subsequent IPC status) adheres to the Charities Act, Charities (Registration of Charities) Regulations, and other guidelines.
Addressing Legal Nuances: Providing legal interpretations on complex issues, such as defining "public benefit" or ensuring activities fall within charitable purposes.
Representing in Queries: Handling any legal queries or requests for clarification from the Commissioner of Charities.
IPC Status Specifics:
Meeting IPC Criteria: Advising on specific legal requirements for IPC status, such as the independence of the governing board, Singapore citizen representation, and restrictions on overseas activities.
Fundraising Compliance: Ensuring fundraising activities comply with the Charities Act and the Code of Practice for Charities and IPCs on Fundraising.
Donation Agreements: Drafting or reviewing agreements related to significant donations, endowments, or partnerships.
General Legal Advisory:
Contracts: Drafting and reviewing contracts with vendors, partners, or employees.
Risk Management: Identifying and mitigating legal risks related to your charity's operations.
IPC Application Strategy and Management:
Holistic Assessment: Reviewing your organization's current structure, governance, activities, and financial practices against IPC requirements.
Gap Analysis: Identifying areas where your organization needs to make adjustments to qualify for IPC status.
Application Preparation: Guiding you through the completion of the IPC application forms on the Charity Portal, ensuring all required documentation is accurately prepared and submitted. This includes detailed plans of activities, financial projections, and governance checklists.
Liaison with Regulators: Acting as a point of contact with the Commissioner of Charities or your Sector Administrator, managing queries and follow-ups.
Governance and Internal Controls:
Code of Governance Compliance: Advising on implementing the Code of Governance for Charities and IPCs, which covers areas like board effectiveness, financial management, and transparency.
Policy Development: Helping to develop internal policies and procedures for donations, financial controls, conflict of interest, and volunteer management.
Risk Management Frameworks: Assisting in establishing robust risk management and internal control frameworks, which are crucial for IPCs.
Financial Management Advice:
Financial Reporting Standards: Guiding on adherence to relevant accounting standards for charities (e.g., FRS 107 for charities).
Donation Management: Setting up systems for tracking tax-deductible donations and issuing proper receipts.
Budgeting and Sustainability: Providing advice on financial planning to ensure the charity's long-term sustainability.
Capability Building:
Training: Offering training to board members and staff on governance, compliance, and best practices.
Strategic Planning: Assisting in developing strategic plans that align with your charitable mission and IPC obligations.
In essence Bestar:
Ensures your legal entity is compliant with company law and maintains proper corporate records.
Provides the foundational legal framework, ensuring your charity's setup and activities are legally sound and meet regulatory requirements.
Offers practical guidance, strategic planning, and hands-on support to navigate the IPC application process and build the necessary governance and operational capabilities.
Bestar offers integrated services covering aspects of all three, especially for non-profit clients, providing a comprehensive solution for charities seeking IPC status.
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