Institutions of Public Character (IPC)

An Institution of Public Character (IPC) in Singapore is a special designation conferred by the Commissioner of Charities (COC) to registered charities that are dedicated to serving the needs of the community in Singapore.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

In simple terms, an IPC is a trusted, publicly-accountable charity to which donations are tax-deductible.

This is the most significant aspect of an IPC for the general public and donors.

• 250% Tax Deduction: When you make a qualifying cash donation to an approved IPC, you are entitled to a 250% tax deduction on the amount donated.
• Example: If you donate $100 to an IPC, you can deduct $250 ($100 x 250%) from your statutory income for that year, thereby reducing your taxable income and the amount of income tax you have to pay.
• Automatic Inclusion: To claim the deduction, you typically need to provide your NRIC/FIN/UEN to the IPC when you donate. The IPC will then transmit the details of your donation directly to the Inland Revenue Authority of Singapore (IRAS), and the deduction will be automatically included in your tax assessment.

It’s crucial to understand that not all charities are IPCs. An IPC is a specific subset of registered charities that meets stricter criteria.

To be granted IPC status, an organisation must:

1. First be a registered charity in Singapore.
2. Be established exclusively for the benefit of the community in Singapore as a whole, and not for sectional interests.
3. Be engaged in activities within specific charitable sectors, such as:
   • Health (e.g., hospitals, hospices)
   • Education
   • Community Welfare (e.g., family service centres, homes for the elderly)
   • Arts and Heritage
   • Sports
4. Maintain a high standard of governance, including having at least half of its board members as independent individuals who are not employees or family members of employees.

You can verify if a charity is an IPC through these methods:

• Charity Portal: The most reliable way is to search for the organisation on the official Charity Portal at www.charities.gov.sg. The portal will clearly state if the charity has IPC status and the validity period of that status.
• Official Materials: IPCs are required to state their name, registered charity number, and IPC status on their official stationery and fundraising materials.
• The IPC Logo: Many IPCs display the official IPC logo on their websites and materials as a mark of trust.

Many of Singapore’s most well-known non-profit organisations are IPCs, including:

• Community Chest of Singapore
• National Kidney Foundation (NKF)
• Singapore Red Cross Society
• The National University of Singapore (NUS) and Nanyang Technological University (NTU)
• Singapore Repertory Theatre
• Club-100 @ Children’s Society

In summary, the IPC status is a mark of regulatory approval and public trust. It signifies that a charity adheres to high standards of governance and is focused on serving Singapore, in return for the ability to incentivise donations through significant tax deductions for its supporters.