SINGAPORE: More arts groups in Singapore have been turning into Institutions of Public Character (IPCs) in recent years, which gives tax benefits to their donors.    Between 2019 and 2023, the number of arts groups doing so rose from 75 to 88 — a nearly 20 per cent increase, according to the Commissioner of Charities annual reports.   IPCs are required to conduct activities that exclusively benefit the local community. This not-for-profit status could spur more donations, said observers. 

INCREASE IN SUPPORT

The Siong Leng Musical Association, for example, applied for IPC status in 2022 after gaining more recognition over the years.    The arts group was established in 1941 to preserve and promote Nanyin, an ancient Southern Chinese music form.   Siong Leng’s donors can receive a 250 per cent tax deduction with its IPC status, making it more appealing to donate to the group.   Ms Lim Ming Yi, outreach manager and artist at Siong Leng, said “Through this, we hope that it opens more doors for us, more opportunities and also helps us establish better credibility and accountability, for existing and future organisations and individuals who may be more inclined to donate to us because of tax deduction benefits.”   Since then, the group has seen an estimated 50 per cent increase in support.   “We were able to pull more into our education and outreach initiatives locally and abroad, for overseas exchanges as well,” said Ms Lim.    “Other than that, I think being an IPC company also signals a level of transparency and governance, which can reassure existing and future stakeholders.”   But attaining this status is no easy feat.   Paper Monkey Theatre, a puppet theatre company, said it had to hire an accountant and a lawyer to meet compliance requirements.   These additional services cost around S$20,000 (US$15,500), but such expenses were covered by the Sustain the Arts (stART) Fund by the National Arts Council.    Mr Vincent Ong, general manager of the Paper Monkey Theatre, said the council encouraged the company to apply for the IPC status to rebrand itself.    “Before (that), our donation yearly actually came up to only about S$6,000,” he said.    “But ever since we got the status, there (has been) a 200 per cent jump in the donations,” he noted, adding that the IPC status has helped it to attract donations from more corporates.    “So we get probably about S$16,000 to S$18,000 a year of donations, and that has helped us a lot.”

GROWING THEIR CRAFT

One benefit of being an arts IPC is that organisations with the status can apply for the Cultural Matching Fund (CMF), which gives a dollar-for-dollar boost to receive donations.    This gives companies more means to improve and grow their craft, which also translates to more room for creativity.   Since 2014, more than S$400 million of the CMF has been disbursed.   Yet for the Paper Monkey Theatre, the funds raised may not be enough to sustain yearly programmes.   Its costs can go as high as five times its total donations, largely due to maintenance and professional fees.    Other IPCs such as Art Outreach Singapore, which focuses on the visual arts, have taken a different approach.    It has turned to other means of income such as more commercial projects. While the earnings are not viable for the CMF top-up, they ensure a diverse stream of revenue for its programmes.   “We can hire artists to help paint a mural, help with workshops, help with a brand activation,” said Ms Mae Anderson, chairman of Art Outreach Singapore.    “We get to help artists not just get the work, but help artists professionalise themselves,” she added.    “So I think this is something that is a lot more fruitful for the system where we get a little bit of fee, the artists get the work, and the corporates get to do more with art.”   Ms Anderson said she is looking forward to more collaboration and peer learning among arts groups, so they can share best practices and grow stronger together in their journey as IPCs.