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A COMMUNITY foundation to pool together donations from wealthy individuals is being set up to encourage philanthropy.
Initiated by the National Volunteer and Philanthropy Centre (NVPC), the Community Foundation of Singapore (CFS) is targeted at philanthropists who do not want to set up their own foundations, but still want some say over which needy causes their money goes to.
The Government will help kick-start the foundation by providing the start-up and administration costs of up to $10 million.
Announcing this initiative on Wednesday, the Ministry of Community Development, Youth and Sports (MCYS), said the foundation will engage wealth management institutions experienced in private banking and philanthropy services to invest and manage the donations.
It aims to provide 'a simple, yet powerful and highly personalised approach' to giving, especially for those who want to make significant donations but lack the time and resources to manage sustained philanthropic giving.
Where feasible, the foundation will help pool funds from multiple donors.
'With such an arrangement, the costs incurred by donors will potentially be lower than if they were to set up their own foundations,' said MCYS in a statement.
'The Community Foundation will enable sustained giving and in the longer term, serve as an incubator of new foundations, where donors who are not ready to start their own foundations, can learn about grant-making... before they decide to start their own foundations,' said MCYS.
Donor can direct their donations - which can be by way of an endowment or draw-down arrangement - to their preferred causes.
For a start, donations to the foundation must be above $1 million.
Those who donate this amount or more can have the fund named after them to establish their legacy.
The foundation will closely monitor the grants disbursed, and provide professional advice and periodic reports to the donors.
It will be set up as an independent company limited by guarantee with its own board of trustees, and will apply for an Institution of Public Character (IPC) status.
NVPC chairman Stanley Tan said: "The Community Foundation aims to develop philanthropy by encouraging existing givers to donate in a more strategic, sustained and substantial manner. It is also aimed at attracting new faces to the philanthropic scene."
Added Mrs Tan Chee Koon, NVPC CEO said the foundation will complement the philanthropy of established donors and will not compete with initiatives such as the Community Chest.
MCYS said the foundation will start giving grants when it has secured its first $50 million.
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