PART II | APPROVAL OF INSTITUTIONS OF A PUBLIC CHARACTER |
| Conditions for approval of institution of a public character |
3.—(1) An institution or fund may be approved as an institution of a public character if it satisfies the following conditions:| (a) | it is a registered charity or an exempt charity in Singapore; [S 122/2019 wef 01/03/2019] | | (b) | its governing instruments are approved by the Sector Administrator; | | (c) | its activities are exclusively beneficial to the community in Singapore as a whole and are not confined to sectional interests or groups of persons based on race, belief or religion; | | (d) | its activities meet its objectives under its governing instruments and the objectives of the Sector Administrator; | | (e) | its governing board satisfies the independence requirement in paragraph (4); [S 122/2019 wef 01/03/2019] | | (ea) | at least half of its governing board members are Singapore citizens; [S 122/2019 wef 01/03/2019] | | (f) | its governing board members are accountable for the management of donations received; [S 488/2011 wef 01/09/2011] | | (g) | the appointment of its auditor is approved by the Sector Administrator; [S 122/2019 wef 01/03/2019] | | (h) | the approval of the institution or fund as an institution of a public character is not contrary to the public interest. [S 122/2019 wef 01/03/2019] |
| (2) [Deleted by S 122/2019 wef 01/03/2019] |
| (3) [Deleted by S 122/2019 wef 01/03/2019] |
(4) For the purposes of paragraph (1)(e), the independence requirement is that at least half of the governing board members of the applicant must not be —| (a) | an employee of the applicant; | | (b) | related to any individual or entity (except the Government) that established the applicant, or be such an individual or entity; | | (c) | related to any individual who is involved in the general control and management of the administration of any entity (except the Government) that established the applicant; or | | (d) | one of a number of governing board members of the applicant who are related (directly or indirectly) to each other and who collectively constitute at least half of the total number of governing board members of the applicant. [S 122/2019 wef 01/03/2019] |
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(5) For the purposes of paragraph (4), an individual (called in this paragraph the first individual) is related to another individual if the other individual is the first individual’s —| (a) | child or grandchild; | | (b) | sibling; | | (c) | parent or grandparent; | | (d) | spouse; or | | (e) | spouse’s parent or sibling. [S 122/2019 wef 01/03/2019] |
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(6) For the purposes of paragraph (4), a governing board member of the applicant is related to an entity that established the applicant if the governing board member is —| (a) | a director or senior executive of —| (i) | the entity; or [S 122/2019 wef 01/03/2019] | | (ii) | a holding company or subsidiary of the entity, [S 122/2019 wef 01/03/2019] |
| where the entity is a company or corporation within the meaning of the Companies Act 1967; |
[S 488/2011 wef 01/09/2011] [S 122/2019 wef 01/03/2019] [S 16/2023 wef 31/12/2021] | | (b) | an officer of the entity, where the entity is a society registered under the Societies Act 1966; [S 122/2019 wef 01/03/2019] [S 16/2023 wef 31/12/2021] | | (c) | a trustee of the entity, where the entity is a trust; or [S 122/2019 wef 01/03/2019] | | (d) | involved in the general control and management of the administration of the entity, in any other case. [S 488/2011 wef 01/09/2011] [S 122/2019 wef 01/03/2019] [S 122/2019 wef 01/03/2019] |
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(7) For the purposes of paragraph (1)(ea), where the governing board member is a company, it shall be treated as a citizen of Singapore if at least half of the number of directors of the company are citizens of Singapore. | | The governing board of an applicant consists of A, B, C and D and 3 other members. A is B’s spouse. C is D’s spouse. A and C are siblings. B and D are regarded to be indirectly related through A and C. It follows that the independence requirement in regulation 3(4) is not satisfied because more than half of the total number of governing board members of the applicant are individuals to whom regulation 3(4)(d) applies. |
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[S 122/2019 wef 01/03/2019] |
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| Application for approval as institution of a public character |
4.—(1) An institution or fund may apply for approval as an institution of a public character by submitting an application form accompanied by such information and documents as the Sector Administrator may require.(2) Despite the applicant satisfying all of the applicable conditions in regulation 3, the Sector Administrator may refuse to approve an application under this regulation, taking into account any other consideration the Sector Administrator thinks fit, which may include the following:| (a) | the applicant has at any time failed to comply with the Act or any regulations made under the Act (whether or not as a registered charity or an exempt charity); | | (b) | there is or has been any mismanagement, misconduct, incompetence or negligence in the administration of the applicant; | | (c) | an audit report on the applicant has been qualified in any way, and whether appropriate action has been taken to address the concerns raised; | | (d) | whether the persons who are to perform the functions of governing board members of the applicant are likely to act independently and exercise proper control and management of the applicant as an institution of a public character; | | (e) | whether the governing instruments and policies and plans of the applicant are likely to ensure proper control and management of the administration of the applicant as an institution of a public character; | | (f) | whether the activities planned by the applicant are likely to further the charitable purposes of the applicant as an institution of a public character. [S 122/2019 wef 01/03/2019] |
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| (3) An approval if granted by the Sector Administrator is valid for such period, not exceeding 2 years, as may be specified in the approval. [S 122/2019 wef 01/03/2019] |
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| Extension of approval of institution of a public character |
| 5.—(1) An institution of a public character may apply for its approval as an institution of a public character to be extended by submitting an application form accompanied by such information and documents as the Sector Administrator may require. [S 122/2019 wef 01/03/2019] (2) Such application shall be made —| (a) | at least 2 months before the expiry of the current approval; or | | (b) | within such time as may be specified by the Sector Administrator. |
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(3) In deciding whether to approve an application under this regulation, the Sector Administrator may take into account any consideration the Sector Administrator thinks fit, which may include any of the following:| (a) | whether the institution of a public character meets the applicable conditions; | | (b) | whether the institution of a public character has at any time failed to comply with the Act or any regulations made under the Act (whether or not as an institution of a public character, a registered charity or an exempt charity); | | (c) | any of the considerations mentioned in regulation 4(2)(b) to (f); | | (d) | the amount of tax deductible donations received during the current period of approval; | | (e) | the activity level of the institution of a public character during the current period of approval. [S 122/2019 wef 01/03/2019] |
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| (4) An approval under this regulation is valid for such period, not exceeding 5 years, as may be specified in the approval. [S 122/2019 wef 01/03/2019] |
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| Continued compliance with, and waiver of, conditions |
5A.—(1) An institution of a public character must satisfy the conditions in regulation 3 throughout its period of approval.| (2) The Minister may, on the application of an institution or a fund (that is applying for approval as an institution of a public character) or of an institution of a public character, waive any condition in regulation 3(1)(c) or (ea), or both, as the case may be. |
| (3) The Commissioner may, on the application of an institution or a fund (that is applying for approval as an institution of a public character) or of an institution of a public character, waive the condition in regulation 3(1)(e). [S 122/2019 wef 01/03/2019] |
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| Suspension or revocation of approval of institution of a public character |
6.—(1) The Sector Administrator shall revoke the approval of an institution of a public character if it appears to the Sector Administrator that —| (a) | the institution of a public character has ceased to operate; or | | (b) | the institution of a public character no longer serves a purpose for the benefit of the community in Singapore. [S 122/2019 wef 01/03/2019] |
(2) The Sector Administrator may suspend (for such period, not exceeding 2 years, as the Sector Administrator may specify), or revoke, the approval of an institution of a public character if it appears to the Sector Administrator that —| (a) | the institution of a public character has failed to comply (whether or not as an institution of a public character, a registered charity or an exempt charity) with the Act or any regulations made under the Act at any time during its period of approval; | | (b) | there is or has been any mismanagement, misconduct, incompetence or negligence in the administration of the institution of a public character; or | | (c) | such action is necessary or desirable in the public interest. [S 122/2019 wef 01/03/2019] |
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(3) Where the approval of an institution of a public character has been suspended or revoked under this regulation —| (a) | any donation made to the institution of a public character during the period of the suspension, or after the revocation, does not qualify as a tax deductible donation; | | (b) | the Sector Administrator must take reasonable steps to inform the general public of the suspension or revocation, and of the matter specified in sub-paragraph (a); and | | (c) | any donation made to the institution of a public character, during the period of the suspension or after revocation, but before the general public has been informed of the suspension or revocation by the Sector Administrator, must (on the donor’s request) be refunded to the donor without any deduction. [S 122/2019 wef 01/03/2019] [S 122/2019 wef 01/03/2019] |
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| Amendment of governing instruments |
7.—(1) An institution of a public character shall not amend its governing instruments except with the approval of the Sector Administrator.| (2) [Deleted by S 122/2019 wef 01/03/2019] |
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