Donating Your Assets To Charity In Singapore: 7 Legal Ways

You’ve worked hard to build your assets, but figuring out what happens to them after you’re gone can feel overwhelming. It’s not just about writing a will. It’s about making sure your money supports the causes that matter to you.

For many, the challenge isn’t desire but direction. Legal questions, donation structures, and tax implications can all get in the way. That’s where this guide comes in.

If you’re considering donating your assets to charity, this article will walk you through seven clear, legally sound ways to do it in Singapore. By the end, you’ll know how to give meaningfully, and with confidence.

1. Set Up A Charitable Organisation Or Non-Profit

The first way of donating to charity is by setting up your own charitable organisation or non-profit in Singapore. This gives you control over how your assets are used to support causes you care about.

You must register your entity with the Commissioner of Charities if it meets the criteria under the Charities Act 1994.

Registering With The Commissioner Of Charities

A charitable organisation must be registered with the Commissioner of Charities unless it is an exempt charity. Registration ensures compliance with the Charities Act and provides public trust.

To register, your organisation must:

• Be set up exclusively for charitable purposes
• Operate in Singapore or plan to do so
• Have objectives aligned with the four charitable purposes:
  • Relief of poverty
  • Advancement of education
  • Advancement of religion
  • Other purposes beneficial to the community

These criteria are outlined in Section 2(1) of the Charities Act.

You may register your charity under one of the following legal structures:

Each structure has different compliance requirements, so choose the one that best suits your goals.

Naming Your Charity

The name should reflect your objectives and must not be misleading. Avoid names already in use or those that resemble registered charities.

Drafting Your Governing Instrument

Your charity must have a formal constitution or governing instrument. This document outlines the charity’s purpose, governance structure, trustee duties, and asset management.

Application Checklist

Before applying, prepare:

• Governing instrument (signed and dated)
• Details of governing board members
• Proposed charity name and objectives
• Financial plan or budget
• Declaration of compliance with the Charities Act

Refer to the official checklist for complete requirements.

Registering a charitable organisation is one of the most direct methods of donating assets to charity in Singapore. It also provides long-term control and accountability.

Is IPC Status Necessary?

IPC status is not mandatory to be a registered charity in Singapore. However, only Institutions of a Public Character (IPCs) can offer donors tax deductions.

Key Differences Between a Charity and an IPC

IPC status is granted by the Commissioner of Charities to charities that serve the wider community in Singapore.

2. Donate Through A Foundation

You can donate to charity by creating a private foundation or contributing assets to an existing one. Foundations allow you to structure your giving while maintaining oversight over how the funds are used.

Another option is to leave instructions in your will for your assets to be transferred to a foundation. The foundation will then disburse your funds across various charitable organisations in line with community needs. This option can be more cost-effective than setting up your own charity.

For example, the Community Foundation of Singapore (CFS) helps connect donors with charities that need funding, based on shared causes or priorities. To maximise the impact of your donations, it is advisable to consult the foundation beforehand. This ensures that your funds can be directed to areas where they are most needed after your passing.

Asset Disbursement Strategies

Foundations must have a clear plan on how assets will be used. This is typically outlined in the governing instrument or constitution.

Some common disbursement methods include:

• Annual grants to specific charitable organisations
• Funding scholarships or bursaries
• Running programs or services directly
• Holding assets in trust and distributing returns

You may also specify that your assets be disbursed by the foundation only after your death, especially if the foundation is named as a beneficiary in your will. This allows your assets to be used for long-term charitable purposes in line with your intentions.

Each approach should support the foundation’s declared objectives and mission. Regular reporting to the Commissioner of Charities is required to ensure transparency.

Pros And Cons Of Donating Through A Foundation

Donating through a foundation is suitable for those who want their contributions to meet evolving needs in the community. It ensures that charitable donations are used efficiently and meaningfully, even after one’s lifetime.

3. Leave Charitable Gifts In Your Will

Including a charitable gift in your will lets you set aside part of your estate for a charity of your choice after you pass away.

In Singapore, these gifts are typically made through specific bequests or residuary clauses. They can be a fixed sum, a percentage of your estate, or a specific asset such as property or shares.

Making such gifts can support causes you care about and may help reduce estate taxes, although Singapore does not currently impose inheritance tax.

Appointing Executors

Appoint someone reliable to manage your estate and oversee the execution of your will, including the transfer of any assets meant for charitable giving.

It is common to appoint a family member, lawyer, or a trust company. You may also appoint more than one executor.

Drafting A Valid Will

Your will must meet the requirements under the Wills Act. It should:

• Be in writing
• Be signed by you at the end of the document
• Be witnessed by two people who are not beneficiaries

You should also clearly name the charity and specify the nature of the gift to avoid ambiguity.

Protecting Your Charity Donations From Contest

To reduce the risk of legal challenges, explain your decisions to your family members in advance. You can also include a clause stating your intention to support the charity. For example:

“I give the sum of SGD 20,000 to [Full Name of Charity], a registered charity in Singapore with Unique Entity Number (UEN) [XXXXXX], to be used for its general charitable purposes.”

You may also include specific instructions if the donation is for a particular programme or fund.

Use precise legal language and consult a lawyer to ensure your will complies with the law. Consider setting up a testamentary trust if your charitable donations are large or complex.

4. Donate Real Estate Or Property

You can donate real estate or property to a registered charity in Singapore by transferring legal ownership during your lifetime or through your will.

The donation must comply with Singapore property laws and relevant tax regulations. Only charities registered under the Charities Act are eligible to receive such gifts.

Legal Transfer Process

The process usually involves:

• Executing a Deed of Gift or Sale
• Transferring the title with the Singapore Land Authority (SLA)
• Notifying the Inland Revenue Authority of Singapore (IRAS) for stamp duty matters

The receiving charity may also be required to provide a resolution accepting the gift.

If the property is held in joint names, all owners must agree to the donation. If the gift is made via a will, it must clearly identify the property and the beneficiary charity.

Valuation and Stamp Duty

The property must be professionally valued. The fair market value will determine both the stamp duty and the allowable tax deduction, if applicable.

Stamp duty may apply, depending on how the donation is structured. In some cases, full or partial relief may be granted if the charity is an approved Institution of a Public Character (IPC).

Tax Deductibility

Donations of property to IPCs may qualify for a 2.5 times tax deduction under Section 37(3)(c) of the Income Tax Act. Valuation documents and legal proof of transfer must be submitted to IRAS to claim the deduction.

Always consult a legal or tax advisor to ensure compliance with the law and to maximise potential tax benefits when donating real estate to charity.

Giving property can create a lasting impact for charitable organisations while offering potential financial advantages for donors.

5. Give Shares Or Investments

You can donate shares, securities, or unit trusts to a registered charity in Singapore. This is a recognised form of charitable donation under the Income Tax Act.

Such gifts must be made to an approved Institution of a Public Character (IPC) to qualify for tax deductions.

Types Of Eligible Investments

Donations may include:

• Publicly traded shares
• Government securities
• Unit trusts
• Bonds and other marketable securities

The investments must be legally transferred to the charity’s name. This can be done through your broker, the Central Depository (CDP), or directly with the investment platform.

Valuation And Tax Relief

IRAS requires the donation to be valued at the open market price on the date of transfer. The charity must issue a donation receipt based on this amount.

Donors can claim a tax deduction of 2.5 times the value of the donated shares under Section 37(3)(c) of the Income Tax Act.

Required Documentation

To claim tax relief, submit:

• The donation receipt from the IPC
• A transfer statement or confirmation letter from the broker or CDP
• Supporting documents showing the market value at the time of transfer

The donation must be completed within the relevant year of assessment to qualify for tax deduction.

Donating shares or investments offers a flexible way to support charities while potentially reducing your tax bill. It is suitable for donors looking to give beyond cash or property.

6. Make CPF Nominations To Charities

You can nominate a charitable organisation to receive your CPF savings when you pass away. This ensures your CPF savings go directly to a cause you care about.

The nomination must meet the conditions set out in the Central Provident Fund Act. It is a practical option for individuals who wish to give without altering other parts of their estate.

CPF Nomination To Charities

Only registered charities in Singapore can be nominated. The charity must have a valid Unique Entity Number (UEN) and be listed in the CPF system.

You need the charity’s full name, UEN, and the percentage of savings to allocate.

Nominations can be made from your Ordinary, Special, MediSave, and Retirement Accounts.

Irrevocability And Legal Conditions

Once you pass away, the CPF nomination is final and cannot be changed. Your CPF savings are not covered under a will, so CPF nominations take precedence.

The CPF Board will release the funds directly to the nominated organisation. There is no need for probate or letters of administration.

This is provided under Section 25 of the CPF Act.

How To Make A CPF Nomination

You can submit your nomination online via the CPF website using Singpass. Alternatively, you may do it in person at a CPF Service Centre.

Here are the steps:

1. Log in to the CPF website with Singpass
2. Select “Make a CPF Nomination”
3. Enter the charity’s details
4. Confirm and submit the nomination with two witnesses present

Making a CPF nomination to a charity allows you to support social causes directly with your retirement savings. It is a straightforward and legally binding way to contribute to a charitable organisation in Singapore.

7. Support Muslim Charity Organisations

You can support Muslim charity organisations in Singapore through religious giving such as zakat, wakaf, and fidyah. These are managed by the Islamic Religious Council of Singapore (MUIS) and follow Islamic principles.

Zakat is given by Muslims who meet specific wealth thresholds and is distributed to those in need. Wakaf involves donating property or assets for religious or charitable purposes. Fidyah is a contribution made when fasting during Ramadan is not possible for valid reasons.

Donations can be made online via MUIS or at authorised mosques. For wakaf contributions, it is best to speak with MUIS to plan accordingly. These options help fulfil religious duties and benefit the wider community.

Conclusion About Donating Your Assets To Charity In Singapore

Donating your assets to charity in Singapore offers more than just tax benefits—it empowers you to leave a legacy aligned with your values. From setting up charitable organisations and foundations to including gifts in your will or CPF nominations, there are several meaningful and legal ways to give.

With deep experience in estate and charity law, Tembusu Law is here to support your philanthropic journey. We provide clear legal advice so you can make impactful decisions with confidence and peace of mind.

Contact us for a free consultation with us today to start making a difference.

Frequently Asked Questions About Donating Your Assets To Charity In Singapore

Can I Donate My Property To A Charity In Singapore?

Yes, you can donate real estate to a registered charity through a legal transfer or your will.

Are There Tax Benefits For Donating Assets To Charity?

Yes, donations to approved IPCs may qualify for a 2.5 times tax deduction under the Income Tax Act.

Can I Include A Charity In My Will?

Yes, you can name a registered charity as a beneficiary and specify the gift in your will.

Is It Better To Set Up A Foundation Or Donate Directly?

It depends on your goals. A foundation offers more control, while direct donations are simpler.

Can I Use My CPF Savings To Support A Charity?

Yes, you can nominate a registered charity to receive your CPF savings when you pass away.

What Is The Difference Between A Charity And An IPC?

All IPCs are charities, but only IPCs can issue tax-deductible receipts to donors.

Can Muslims Donate Through Zakat Or Wakaf In Singapore?

Yes, Muslim donors can contribute through MUIS-approved zakat, wakaf, or fidyah channels.

Do I Need A Lawyer To Donate Assets To Charity?

While not always required, legal advice helps ensure your donation is valid and meets all legal requirements.