Donating wisely to make a real difference

Singaporeans are generous. Indeed, a 2016 National Volunteer & Philanthropy Centre (NVPC) survey showed that 76 per cent of the respondents donate to a charity. Whether you want to give to a school or help seniors or something else, you can maximise the good you do by choosing the beneficiary carefully or providing support even if you don’t have much money. 

When you are considering giving, the first steps are to choose causes that you care about and then do some research to make sure the organisations you give to will use your money well.

Social Venture Partners, a global philanthropic network, suggests preparing a giving mission statement and a personal giving plan to help ensure that you give to causes you care most about.

It’s easy to be tugged off-track by requests from friends or stories about people in need, so having a plan can help you channel funds to places that matter most to you.

Making donations throughout the year rather than in an end-of-year rush can help, too, since you will have more time to select charities you believe can best address causes that matter.

That planning helps you avoid less effective giving. As NVPC director Andy Sim noted recently, more charities are adopting the tactics of brand marketers by using influencer campaigns, social media, and gamified charity drives.

Individuals can also set up online campaigns more easily than ever.

While charities can harness these trends to grow their funds or source for donations, you can easily get pulled into supporting causes you care about less without realising it or — even worse — get scammed.

To make checking on charities easier, the Commissioner of Charities (CoC) recently launched “Your Guide to Safer Giving”, which provides suggestions on how to ask the right questions, conduct the right checks and give safely.

If you are not sure about the organisation to which you are donating you can always ask them for more information, too. 

MAXIMISE BENEFIT OF DONATING CASH

When you do give, you can maximise the benefit to you and the non-profit by checking whether it is an “Institute of Public Character” (IPC).

The Government extended the tax deduction of 250 per cent for qualifying donations through 2021. When you give S$100 to an IPC, for example, you can deduct S$250 from your income on your income tax return. If you pay a tax rate of 7 per cent, donating S$100 means you save S$17.50 on your taxes.

Along with getting a benefit for donating cash, you can get the same deduction for gifts such as shares or artefacts.

It is important to note, though, that not all registered charities are IPCs.

Donations made to a charity without IPC status are not tax-deductible. You can check whether an organisation is an IPC at the website www.charities.gov.sg.

When you make a donation and provide your national identity card number, the tax benefit is automated and you shouldn’t have to provide anything more to get a deduction. Errors do happen, though, so it’s best to keep a record in case you need it.

You can still give to an organisation without IPC status, of course. Many of them are very worthy causes. Religious institutions such as churches and temples are usually not IPCs, for example, and neither are some well-known organisations such as World Vision.

Your giving will still make a big difference — you just won’t get a tax deduction.

GIVING WHEN YOU DON’T HAVE MUCH

Even if you don’t have much money, you can still give.

One of the easiest ways is with mobile applications. The Happi app, for instance, helps people support causes they care about without spending money. Download the app, answer questions in a survey, and Happi will make a donation to a charity you select.

You can win prizes, too. Clients pay Happi for the survey responses, and Happi uses part of the funds to give to charities and to buy prizes.   

Another way is to start a campaign and raise money for other people. At Give.asia, for instance, you can decide on a cause, explain why you are raising money and upload videos or photos.

If you are fundraising for a personal cause, you will need to set up an account with online payment processor Stripe. Once your campaign is set up, you can let your friends and family know about it for them to start donating.

You may also donate things rather than money. The Salvation Army, for example, collects clothing, furniture, household goods, electronic devices, toys and books to help people in need.

One thing to be cautious about is how you help when there is a disaster. Indeed, the victims of disasters such as Typhoon Mangkhut or the recent earthquake in Indonesia tug at our heartstrings. Even the best-intentioned campaigns to send items such as food or clothes can overwhelm relief workers. It is better to send money for relief organisations to buy supplies they really need, which also helps businesses at the affected localities that may be struggling.

Whether you have a little money or a lot, you can make a big difference in the lives of others by giving. And while giving money may maximise the benefit for you, there are plenty of options beyond cash to give in a way that makes a difference.