Media release
More Help For NSAs To build Their Organisational Capabilities
28 October 2009
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More Help For NSAs To build Their Organisational Capabilities
NSAs Which Register as Charities Will Be Able to Tap On Additional Funding and Benefits to Raise Their Professional Capabilities Singapore, 28 October 2009 - As part of Singapore Sports Council's (SSC) continuous efforts to build capabilities across the sports sector, the SSC today engaged the National Sports Associations (NSA) in a Charity Registration for Sports briefing session. The session was held to educate the NSAs on the benefits of gaining charity status as well as to explain the requirements and procedures on charity registration. The session also helped the NSAs to understand how charity status will provide more assistance to increase their professional capabilities.
Said Dr Vivian Balakrishnan, Minister for Community Development, Youth and Sports, "NSAs are key pillars of Singapore sports. They need to elevate their professional competence in talent development, strategic planning and event organisation. This also entails high standards of governance that will help build up public confidence in their leadership. Achieving charity status will enhance their relationships with all stakeholders and position them well for the future. MCYS looks forward to helping the NSAs make this transition."
Benefits of Charity Status
Once registered as charities, the NSAs will gain access to the VWOs-Charities Capability Fund (VCF), which is made available to all charities until 31 March 2012. The NSAs can use the VCF to apply for grants in the areas of training, consultancy, infocommunication technology, and finance and accounting shared services.
The charity status also enables all NSAs to have a consistent and concise Code of Governance. This will bolster NSAs' fund-raising efforts and enhance public and corporate confidence in them.
With charity status, the NSAs will enjoy automatic income and property tax exemptions for premises used exclusively for charitable purposes. These tax incentives will enable the NSAs to optimise their resources to deliver better sports programmes.
Said SSC Chairman Mr Alex Chan, "Obtaining charity status can help the NSAs develop a more rounded funding system and potentially generate multiple income streams for their sport in the longer run. The NSAs should grab this opportunity to bring their associations' capabilities to the next level as they face a more dynamic sports scene in years to come. The Singapore Sports Council as the sector administrator for sports will work closely with the NSAs to facilitate the charity registration process."
Conditions and Procedures for Charity Registration
The NSAs do not need to amend their objects of sports promotion in their respective constitution as the advancement of sports is recognised as a charitable object, where the sport advances health through both physical skill and exertion.
However, the NSAs will have to include the required provisions (refer to Appendix A below) relating to charities in their constitution in order to qualify for charity registration.
New Institution of a Public Character (IPC) requirement
From 1 January 2011, the SSC requires every NSA to be a registered charity before being conferred IPC status. This is consistent with the requirement for the granting of IPC status in other sectors such as health, social services and the arts. An existing NSA, which is an approved IPC will be required to apply for charity registration by 31 December 2010.
One of the main difference between Charity and IPC status is that as a charity, its surplus will be exempted from income tax. The charity will also be entitled to property tax exemption for premises used exclusively for charitable purposes. This will enable charities to optimise their resources to develop better programmes and activities.
As an IPC, any outright or naming donations received will entitle the donor to tax deduction of 2.5 times the amount donated in 2009.
Currently, there are 64 NSAs in Singapore with 26 NSAs already attained charity or IPC status.
Appendix A
REQUIRED AMENDMENTS TO NSA'S CONSTITUTION FOR CHARITY REGISTRATION UNDER THE CHARITIES ACT
1. Term Limit
The term limit for the Treasurer position is 4 consecutive years. Further reappointment to the position can be considered after a lapse of at least one year.
2. Change of Trustees
Any change of charity trustees must be notified to the Registrar of Societies and the Commissioner of Charities within 2 weeks of the change.
3. Amendments to Constitution
Any amendment to the constitution must be approved by the Registrar of Societies and the Commissioner of Charities.
4. Dissolution
Upon dissolution, any remaining funds and assets (after settling all debts and liabilities) are to be distributed to other charities or Institutions of a Public Character (IPCs). Notice of the dissolution must be given to the Registrar of Societies and the Commissioner of Charities within 7 days of the dissolution.
For media enquiries, please contact:
S. Parameswaran
Senior Manager, Corporate Communications & Relations
Singapore Sports Council
DID: 65005236
Email: parames_seenivasagam@ssc.gov.sg
About Singapore Sports Council
The Singapore Sports Council (SSC) is Singapore's lead agency tasked with developing sports in Singapore. Our vision is to create a Sporting Singapore where sport is a way of life. SSC aims to develop sports champions and create enjoyable sporting experiences for Singapore through the three strategic thrusts of cultivating a sporting culture, achieving sports excellence and creating a vibrant sports industry. Formed on 1 October 1973, SSC is a statutory board under the purview of the Ministry of Community Development, Youth and Sports. SSC's address on the World Wide Web: www.ssc.gov.sg