Effect of Downward Revision to Enhanced Fundraising Programme's Fund Matching on Charities' Donation Revenues, Operating Budgets and Staffing Plans
Ministry of FinanceSpeakers
Summary
This question concerns the impact of tapering the Tote Board's Enhanced Fundraising Programme (EFR) on charity revenues and sustainability as raised by Ms Elysa Chen. Minister of State Jeffrey Siow clarified that the EFR was a temporary pandemic measure and noted that total donations reached $3.7 billion in FY2024, exceeding pre-pandemic highs. He stated that matching support will gradually return to pre-pandemic levels while the Government continues providing 250% tax deductions and grants like the new $50 million SG Partnerships Fund. Support also remains available through the Community Silver Trust and Community Chest, which distributed $74.1 million to over 300 social service programmes in FY2024. Consequently, the Government does not expect the tapering to significantly affect the programming, staffing, or operations of social service agencies.
Transcript
35 Ms Elysa Chen asked the Prime Minister and Minister for Finance with the change in Tote Board's Enhanced Fundraising Programme (EFR) to step-down fund matching (a) what is the projected impact of the reduced EFR funding ratio on total donations received by charities; and (b) what is the assessment of the impact on the sustainability of charities’ programmes especially those by smaller community-based social service agencies.
36 Ms Elysa Chen asked the Prime Minister and Minister for Finance whether quantitative assessment has been conducted on how the downward funding adjustments to Tote Board's Enhanced Fundraising Programme (EFR) across the next three financial years will affect the operating budgets, staffing plans and service coverage of social service agencies that receive EFR funding.
Mr Jeffrey Siow:
The Enhanced Fund-Raising (EFR) Programme was launched in response to the disruptions in charity sector fundraising caused by the COVID-19 pandemic. To assist charities during this challenging time, the Government partnered with Tote Board to boost support by increasing matching funds for donations. The programme was intended as a temporary and extraordinary solution for an unprecedented situation.
Since then, charitable donations have rebounded. In charities' Financial Year (FY) ending 2024, total donations reached $3.7 billion, surpassing both the low point of $2.8 billion in FY ending 2021 and the pre-pandemic high of $3.2 billion from FY ending 2019. While data for the FY ending 2025 is still being verified, charitable donations are expected to stay above the pre-COVID peak. At Budget 2025, we announced that matching support for the EFR will gradually return to pre-pandemic levels, consistent with how other COVID-era assistance measures are winding down.
Notwithstanding this, the Government continues to provide support for charities and Social Service Agencies (SSAs) in multiple ways, including:
a. Direct grants for programming and operations, such as the new $50 million SG Partnerships Fund. This is available to Singapore-registered organisations including charities and SSAs;
b. A 250% tax deduction for qualifying donations to Institutions of a Public Character (IPCs), which was extended for a further three years; and
c. Matching grant schemes, such as the Community Silver Trust.
In addition, the Community Chest (ComChest) rallies the community to raise funds for services that serve critical and unmet social needs. In FY2024, ComChest channelled $74.1 million to more than 300 programmes and projects helping individuals, families and communities. IPCs can also continue to apply to the President's Challenge for funding to grow impactful projects that uplift lives and strengthen our community.
In view of the trends in charitable giving and the Government's support measures, we do not expect the donations received, programming and operations of charities and SSAs to be significantly affected by the tapering of the EFR.