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SINGAPORE: The Commissioner of Charities has revised the way the '30/70' rule is computed to make it easier for charities to raise funds.
The 30/70 fund-raising efficiency ratio is a rule to ensure that the costs of fundraising do not exceed 30 percent of total funds raised.
Under the new rules, sponsorship refers to cash and in-kind sponsorships where tax deduction receipts are issued.
For example, non-tax deductible in-kind sponsorship of jewellery donated for a charity auction need not be included, although this should still be disclosed in the charity's financial statement.
And for fundraising through sale of merchandise, the cost of merchandise need not be included as part of fundraising expenses.
This is so that charities will not have to raise the price of their merchandise to an unrealistic level in order to meet the 30/70 rule.
The Office of the Commissioner of Charities said these changes will facilitate fundraising efforts, without compromising the 30/70 principle.
- CNA/so
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