Criteria for Application for Approval as an IPC
To apply as an IPC, your charity will first need to meet the following prerequisites:
- Your charity’s activities exclusively benefit the community in Singapore as a whole and are not confined to sectional interests or groups of persons based on race, belief or religion;
- The governing board fulfils the independence requirement in Regulation 3(4) of the Charities (Institutions of A Public Character) Regulations*;
- At least half of the governing board members are Singapore citizens;
*The following persons will not be deemed as independent governing board members under the Charities (Institutions of A Public Character) Regulations:
- Employee of the IPC;
- Founder of the IPC;
- Governing board member who is a
family member of the founder of the IPC;
- Governing board member who is related to entity that established the IPC;
- Governing board member who is a family member of an individual who is involved in the general control and management of the administration of any entity that established the IPC; and
- Governing board members of the IPC who are related (directly or indirectly) to each other and who collectively make up at least half of the governing board.
IPC-A Ltd is set up by BCD Private Limited. John is a director in both entities. Therefore, John is not deemed to be an independent governing board member as he is related to the entity (i.e. BCD Private Limited) that established the IPC.
Other Considerations for Approval as an IPC
The Commissioner of Charities will consider the following, amongst other factors, during the assessment of the Application for Approval as an IPC:
- Whether your charity has failed to comply with the Charities Act or any regulations made under the Act;
- Whether there is or has been any mismanagement, misconduct, incompetence or negligence in the administration of your charity;
- Whether the governing board members will be able to exercise proper administration of your charity;
- Whether your charity's policies and plans are sufficient to ensure its proper administration;
- Whether the activities planned by your charity are sufficient to further its charitable purposes; and
- Whether your charity has any qualified audit report and whether appropriate action has been taken to address the concerns raised.
If the charity fails to file its annual submissions for the past 2 financial years with the Commissioner of Charities without valid reasons, it would have breached the requirement under section 14(2) of the Charities Act. As such, it is unlikely that its Application for Approval as an IPC will be approved.