In Singapore’s Budget 2023, the government announced the extension of the 250% tax deduction for qualifying donations to Institutions of a Public Character (IPCs) and eligible institutions until the end of 2026. This move aims to foster and sustain a spirit of giving among Singaporeans, who have demonstrated generosity even during economic downturns, with donations through platforms like Giving.sg remaining around $100 million over the past three years. Deputy Prime Minister and Finance Minister Lawrence Wong noted that while the current tax deduction rate is high compared to other jurisdictions, it will be reviewed after 2026 to determine a sustainable level for the longer term.

Additionally, the government plans to enhance the existing Business and IPC Partnership Scheme into a broader Corporate Volunteer Scheme, extending it for three more years to December 31, 2026. Starting January 1, 2024, the scope of qualifying volunteering activities will expand to include virtual engagements and activities conducted outside IPC premises. The qualifying per-IPC cap will also double to $100,000 per calendar year to encourage deeper partnerships between businesses and IPCs. These measures are part of a broader effort to strengthen the capabilities of charities, social service agencies, and community organizations that play critical roles in supporting vulnerable populations in Singapore.