As part of our Corporate Social Responsibilities (“CSR”) Programmes, we are assisting those who intend to set up charitable foundation, FOR FREE!
According to our findings, after talking to numerous representatives from Charity Organisations, most of the donations were on a one-off basis and it is highly affected by the economic condition. It is much easier for them to raise funds during good times as compared to bad times when everyone tends to tighten his/her belts.
Further, the current stringent guideline to obtain approval for tax-exempted under subsection 44(6) of Income Tax Act 1967 stipulates that at least 50% of the income and donation received must be spent yearly in carry out the objectives of the organisation. Failure to meet this condition may cause the relevant authority to withdraw the tax-exemption status. This scenario actually discourages the organisations to plan for management, operation and expansion of their organisations.
Thus, in order to benefit the society in a long run, it is necessary to provide a long term and continuous contribution or funding. Thus, the next level of CSR Program for any individual or company is to have his/its own Charitable Foundation.