Budget 2025: The S$600 million push to supercharge philanthropy in Singapore

Shaped by government-led initiatives and changing donor behaviours, Singapore’s philanthropic landscape has transformed in recent years. Singapore is ranked 3^rd on the 2024 World Giving Index[1] - the nation's highest ranking to date[2]. It is clear that Singapore's efforts to promote itself as an international philanthropic centre have borne fruit. 

Table: Charities Aid Foundation – 2024 World Giving Index Rankings

The 2024 World Giving Index Report concluded that: 'by looking at Singapore, we can see how government efforts may be helping to increase charitable activity. The country has significantly increased its rates of volunteering and giving, rising 19 places to third place in this year’s index. Recent government initiatives include new schemes to encourage deeper partnerships between charities and businesses on volunteering, as well as tax relief and government matching on charitable donations.'

With Budget 2025, the government continues to encourage more philanthropic activity in Singapore, certainly in anticipation of more substantial donations to celebrate Singapore’s 60th year of independence.  

A decade ago, Singapore announced a generous 300% tax deduction for funds donated in her Golden Jubilee Year. Total tax-deductible donations made in the Jubilee year skyrocketed by more than 24% to S$1.36 billion[3].

Evolving Philanthropic Scene in Singapore: Giving From Singapore and not just Giving Within Singapore  

In recent years, Singapore has moved away from a more inward-looking approach to philanthropy. While donors continue to benefit from generous tax deductions (of 250%) for donations made to qualifying charities that exclusively benefit the Singapore community, tax deductions (of 100%) are now also available for certain donations made to overseas charities and charitable initiatives[4]. 

This outward-facing approach makes it attractive for donors, particularly international family offices and family foundation donors in Singapore, to use Singapore as their philanthropic hub[5]. It also encourages global non-profits and philanthropic organisations to establish their regional / international hub to coordinate headquarter services and possibly fund-raising efforts.  

Trends on Philanthropic Giving From Singapore

The 2023 National Giving Study[6] reflects a stable donation rate in Singapore (being the percentage of giving by individuals in Singapore) of around 62%[7]. 

Despite the median donation amount per individual in Singapore dropping from S$200 in 2021 to S$100 in 2023, the total sum of donations has increased over the same period. Based on the Commissioner of Charities ('COC') Annual Reports[8], the total donations received in Singapore in FY2023 was S$3.55 billion, 20% more than the S$2.95 billion recorded in FY2021.

The information in Soristic's Singapore's Biggest Philanthropic Organisations 2024 report[9] ('Soristic 2024 Report') suggests that significant donations from family foundations and other institutional donors have gone beyond closing the funding gap otherwise resulting from the smaller donations made by individuals. 

The Soristic 2024 Report identified:

• a total of 117 private philanthropic organisations, with total giving surging to S$431 million – representing a 96% increase from the previous report at S$220 million; and 
• the top 10 philanthropic organisations (by annual grants disbursed in the last financial year) in Singapore, which includes:
• The Low Tuck Kwong Foundation (#1 at S$127.6 million);
• The Moh Family Foundation (#5 at S$23.6 million); and 
• The Tanoto Foundation (#9 at S$11.2 million).   

These newer family foundations are coming into a space which was previously occupied by older foundations bearing the names of prominent founding families familiar to Singaporeans.

This development shows that there is capacity and willingness for newer foundations established in Singapore to gift more from Singapore. Some of the donations made may benefit local charities and some, to foreign charities. It is important to recognise that, besides measuring their contributions to Singapore through the exact dollars benefitting local charities, the growth of philanthropic foundations, charities, and non-profits in Singapore will also create more interesting jobs in the philanthropic sector and for the service providers supporting these philanthropic endeavours. It would also help to make the philanthropic ecosystem in Singapore a more vibrant and robust one.  More events and conversations amongst donors and advisors here may spark more collaborative and sustainable giving, and also further innovations in philanthropy, social impact grants and investments.  Singapore, being the host country for these philanthropic funds, talents and initiatives, will certainly benefit from this important sector.

Key Measures in Budget 2025 to promote Philanthropy within Singapore

To strengthen the spirit of giving within Singapore, PM Lawrence Wong has announced more than S$600 million in matching funds. The S$600 million funding will take the form of 3 initiatives set out below.

(1) SG Gives Matching Grant 

The SG Gives Matching Grant is a new S$250 million initiative that would see the government providing matching donations to national social and community programmes supported by any of the 3 channels:

• The Community Chest – which supports five key causes in Singapore: 
• seniors in need;
• persons with mental health conditions;
• families in need of assistance;
• persons with disabilities; and 
• children with special needs and youth-at-risk. 

The Community Chest channels 100% of the donations it raises directly to over 200 critical social service programmes. All donations to the Community Chest are eligible for matching. In 2023, the Community Chest raised and disbursed over S$69 million, benefitting more than 82,000 service users.

• President's Challenge – an annual campaign launched by then-President S R Nathan in 2000 to rally Singaporeans to build a caring and cohesive society. In 2024, President Tharman Shanmugaratnam broadened the scope of the President's Challenge to go beyond that of addressing immediate needs, including nurturing sports and arts talents. Over the years, the President's Challenge has supported various causes in Singapore including, but not limited to:

• less privileged children and families;
• seniors in need;
• persons with disabilities;
• ex-offenders; and
• nurturing sports and arts talents.

In 2023, the President's Challenge saw more than S$14 million of funds raised, which would in turn support 86 social service organisations. More than 23,000 individuals and families have benefitted from fund-raising and volunteering efforts under the President's Challenge 2023. 

• The Collective for a Stronger Society ('The Collective') – The Collective is a fresh initiative launched in 2024 by the Community Foundation of Singapore in partnership with the Ministry of Social and Family Development and the Community Chest. It aims to bring together philanthropists, non-profits and governmental agencies to address the following objectives: 
• empowering donors for social change;
• building a caring community;
• providing support to those who need it; and
• foster collaboration for a stronger society[10].

The SG Gives Matching Grant features a two-tiered matching structure for donations made to the three channels above in support of national social and community programmes:

• 1 : 1 matching for donations made in 2025.
• 1.5 : 1 matching for committed giving of ≥S$250,000 per year over 3 years (i.e. totalling at least S$750,000). 

In other words, if a donor is committed to gift S$750,000 (i.e. S$250,000 per year over 3 years) to eligible programmes through the above 3 channels, the government will match it with S$1,125,000, resulting in aggregate combined donations of S$1,875,000. 

The enhanced higher tier dollar matching of 1.5 : 1 is aimed at encouraging the growing UNHWIs population[11] and their family foundations in Singapore to consider a more sustained giving within Singapore to support exclusively Singapore charitable causes. This enhanced higher tier matching hopes to get the attention of potential donors who would otherwise donate elsewhere – as even donors would like to get a good deal and better value for their donations. Getting their attention would be the first step to sparking conversations on what are the areas of need in the Singaporean society. 

Some examples of the programmes that can benefit from the SG Gives Matching Grant include: 

Examples of programmes supported by the Community Chest:

• ComLink+: ComLink+ is part of Singapore's broader strategy to reduce income inequality. ComLink+ aims to assist less privileged families with children in breaking out of the poverty cycle by promoting stability (provision of basic needs such as food, shelter, education and employment), self-reliance and social mobility. As of March 2024, ComLink+ serves around 10,000 families in public rental housing and it is set to be extended to 3,000 more lower-income families that are not in public rental housing[12]. 
• Hi-Job!: Hi-Job! is a job placement and job support scheme launched by MINDS to assist special needs individuals to obtain and maintain gainful employment in their adulthood. The programme aims to match these individuals with suitable jobs based on their interests and abilities with disability-inclusive employers and provide ongoing support to ensure job retention. In FY2023/2024, Hi-Job! engaged with 77 individuals with special needs to assist them with their job searches[13]. 
• The Eden School: The Eden School was established by the Autism Association (Singapore) to prepare students on the autism spectrum for independence in their adulthood. It adopts an autism-focused curriculum to meaningfully enrich the lives of children and youth on the autism spectrum, ensuring that they are able to assimilate well into society by securing gainful employment and life skills. 

Other Programmes:

• KidSTART (supported by The Collective): KidSTART is a national programme that supports pregnant women and children (age 0-6) from low-income families towards building strong family relations and encourages positive child developmental outcomes. It ensures that these children receive educational opportunities, social and medical support by working with a range of professionals such as doctors and social workers. Since 2016, KidSTART has supported close to 10,000 children. 
• Tak Takut Kids Club (supported by The Collective): The Tak Takut Kids Club is a community-driven initiative that provides vulnerable children with safe spaces, creative learning opportunities and emotional support. As of 2023, the Club has supported 400 vulnerable children[14]. 
• New Life Stories’ Family Strengthening Programme (supported by The Collective and the President's Challenge): The programme was launched in 2014, employing a "whole family" approach to support inmates and also their children and families to break the cycle of incarceration. Over 50,000 befriending sessions with children of inmates and former offenders and support to over 650 families were provided in 2024[15].

(2) Cultural Matching Fund Top-Up 

The Cultural Matching Fund was launched in 2013, with the government providing a 1:1 matching grant for private cash donations to arts and heritage charities. Budget 2025 announced a S$100 million top-up to the Cultural Matching Fund and extended its life to FY2029. This brings the total amount of funding from the government since the inception of the Cultural Matching Fund to S$600 million[16]. 

As of FY2022, the Cultural Matching Fund had matched over S$348 million of private cash donations to arts and heritage charities[17]. The Cultural Matching Fund itself does not accept donations. Instead, it is intended to boost funding in the arts and heritage sector by matching private donations successfully raised by arts and heritage charities. 

The arts, culture and heritage sectors are undeniably important to enrich souls, foster creativity, and connect communities. They provide a platform for diverse expressions, ultimately shaping the human bond and spirit. However, this sector has been relatively less successful in raising funds in the past. In 2023, arts and heritage charities received a mere 3.5% of all tax-deductible donations in Singapore[18]. It is, however, encouraging to see an upward trend in the growth in the number of private donors whose donations were matched by the Cultural Matching Fund, from 2000 in FY2014, to 8000 in FY2023[19]. 

Under the Cultural Matching Fund, the first S$300,000 of matching funds can be used to support the stated objects of arts and heritage charities, as well as some operating costs (e.g. governance regulation) of these charities. Beyond the first S$300,000, the funds may be used to support initiatives that align with the priorities of the culture sector, such as promoting a greater sense of shared identity as Singaporeans. 

The Cultural Matching Fund therefore remains a crucial initiative in strengthening the arts ecosystem. For charities, it rewards organisations that excel in their core missions and in securing private funding. For donors, it ensures that every contribution made has a greater impact. 

Ms. Usha Chandradas, a nominated member of the Parliament of Singapore and the co-founder of Plural Art Mag, commented that coupled with the introduction of the SG Culture Pass, a S$100 credit for every Singaporean aged 18 and above to redeem at ticketed arts events, Budget 2025 demonstrates a strong commitment to developing both consumer appreciation for the arts and sustained philanthropic engagement with the sector. Patrons looking to support arts and heritage charities in Singapore can be well-assured that holistic support is being delivered to the sector.

In order to benefit from the Cultural Matching Fund, eligible charities (i.e. charities in the principal sector of arts and heritage) must apply for the fund. Beneficiaries of the Cultural Matching Fund include organisations such as Wild Rice, The Substation, The Teng Company, the Singapore Art Museum (which utilised the Cultural Matching Fund for its revamp in 2017) and the Nanyang Academy of Fine Arts. Ivan Heng, the Founding Artistic Director of Wild Rice, commented that Wild Rice has experienced a significant increase in private donations since the launch of the Cultural Matching Fund, expanding Wild Rice's financial support base and fostering sustainability. "The Cultural Matching Fund has enabled us to stage our homegrown productions, support operational costs, and further our artistic mission without solely relying solely on ticketing revenue, grants and sponsorship," said Ivan, whose lifelong career has been dedicated to the arts. 

(3) Tote Board's Enhanced Fund-Raising Programme Top-Up

Tote Board's Enhanced Fund-Raising Programme will also receive a S$270 million top-up. The Programme provides a 1:1 dollar matching, capped at S$250,000 per registered charity in 2025, for fund-raising projects for local charitable causes that are aligned with the Tote Board's defined strategic outcomes: 

• Healthy lives and well-being; 
• Empowered communities; 
• Caring, cohesive and resilient society; and 
• Sustainable and liveable home  

The Enhanced Fund-Raising Programme operates on an application basis: i.e. an eligible charity that intends to fund raise must make an application to the Tote Board to qualify for the Enhanced Fund-Raising Programme. Should its application be granted, then all cash donations (subject to the S$250,000 cap in 2025) received from private donors would be matched at a 1 : 1 ratio under the Enhanced Fund-Raising Programme. 

The matching formula and cap will be reduced gradually by 2027 to allow charities to adjust to the tapering off of the exceptional COVID-19-era support provided by the government to charities. The Enhanced Fund-Raising Programme now benefits around 400 charities that support a varied range of causes in Singapore, including Pro Bono SG, which aims to facilitate access to justice for all, Care for the Elderly Foundation (Singapore), and Society for the Prevention of Cruelty to Animals.

Some Food For Thought: Donating the Community Development Council ('CDC') Vouchers 

As announced in Budget 2025, some 1.3 million Singaporean households will each receive S$800 in the form of CDC Vouchers. This works out to approximately over S$1 billion in CDC Voucher value. The CDC vouchers can be used at hawker stalls, heartland merchants, and supermarkets that are participants of the CDC Voucher scheme. 

For households who feel that it may be more meaningful for them to re-direct their CDC Vouchers as donations to charities, the CDC Vouchers Donation Scheme allows them to pay it forward to support charitable causes. 

Since 2021, Singaporean households have been able to donate their unused CDC Vouchers to participating Institutions of Public Character ('IPCs') supporting causes ranging from animal welfare to children and youth initiatives. The CDC Vouchers Donation Scheme allows donors to pledge their CDC Vouchers to any participating IPC of their choice, while still being able to utilise their CDC Vouchers till the date of expiry. Post expiry, the remaining sum of CDC Vouchers would then be converted into cash value and disbursed to the chosen IPC. Such donations to IPCs would also attract a 250% tax deduction for the donor. 

Assuming that the CDC Vouchers Donation Scheme continues to be available for 2025 CDC Vouchers, if 13,000 high-income Singaporean households (representing the top 1% of Singaporean households) each donated their S$800 CDC Vouchers, that would equate to more than S$10 million in additional donations to Singapore IPCs. 

In line with Singapore's 60^th birthday, Budget 2025 also saw the announcement of at least S$600 in SG60 Vouchers to each Singaporean adult. These vouchers are to be used at CDC merchants. It remains to be seen whether the government will allow these SG60 Vouchers to be donated as well. If permitted, this could unlock yet another avenue for Singaporeans to contribute to meaningful causes without direct cash outlays.

Although the CDC Vouchers Donation Scheme was launched in 2021, the amount of donations from CDC Vouchers is relatively low, clocking in at just S$1.19 million in 2022[20]. This could possibly be due to a lack of awareness and understanding of the donation process. In actuality, the process of donating the CDC Vouchers is straightforward: simply login via SingPass to access a form (with personal details already pre-populated) and pledge to donate the balance of your household's CDC vouchers to your chosen participating IPC. In 2024, the list of participating IPCs was close to 400, and it remains to be seen which IPCs will participate in the 2025 CDC Vouchers donation scheme should it continue. 

CDC Vouchers broadly serve a dual purpose: helping Singaporeans manage the cost of living while supporting heartland merchants and hawkers. However, not all businesses automatically qualify, as the scheme primarily includes hawkers and businesses providing daily necessities and services[21]. While this uplifts certain businesses, the CDC Voucher scheme may not extend to all sectors or organisations in need of support. For instance, income-generating ventures run by charities may be excluded from the CDC Voucher scheme on the basis that they do not provide daily necessities and services. At the same time, not all households will utilise their full voucher allocation. Hence, donating CDC Vouchers provides a simple yet impactful way to support charitable causes, effectively extending the CDC Voucher scheme's benefits beyond participating businesses.

Doing Good Within and Beyond Singapore  

In line with Singapore's ambition to refresh its social compact, Budget 2025's measures continue to encourage the growth of philanthropy within Singapore. While it is natural to see enhanced benefits from the government to encourage more donations to Singapore-based charities, Singapore must maintain the core message that it continues to welcome and encourage doing good from Singapore, and not just within Singapore. The government's clear signal on this would be critical in attracting global philanthropists and philanthropic funds to Singapore. Every dollar counts if it is collected and directed to a meaningful cause in an impactful way under thoughtful leadership – whether or not such dollars will directly benefit the Singapore community or otherwise.

As Singapore charts her way forward to tackle other global challenges and pressing needs that transcend borders such as climate change, policies that promote funding from not just charities and the public sector but also from the private sector will be vital in making a sustainable impact in these areas. Climate change and environmental protection are causes which require large amounts of capital; the public sector alone may not be able to move the needle fast enough to address them in a timely manner. It is thus imperative for the government to consider engaging more UNHWIs and family offices to contribute to the climate landscape and potentially consider government-matched donations towards climate causes.  

Further, allowing charities and endowment funds to be able to invest alongside the private sector would also spur investments in the climate space, enabling more sustainable investment in innovation that matters. However, the charities regulatory framework surrounding the use of charitable funds for social impact investments in Singapore is not as clear as it can be. While organisations with a more international and/or social impact mandate could operate within non-registered charities frameworks (for example the Non-Profit Organisation Tax Incentive scheme administered by the Economic Development Board's International Organisations Programme Office), more could be done within the existing charitable regulatory framework. With other jurisdictions such as the UK being the first in the world to effect a charities regulatory framework in this space almost a decade ago[22], Singapore would benefit from a refreshed look at and further enhancement to its existing legal regime so that it could have a more stable foundation to support its growth and aspiration to be a key global player in the social investment space.  

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