Chinese Development Assistance Council, and How it Empowers the Chinese Community
In the early 1990s, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) and the Singapore Federation of Chinese Clan Associations (SFCCA) created a non-profit organisation to uplift and support the Chinese community. Since its establishment, this organisation, the Chinese Development Assistance Council (CDAC), has been pivotal in helping the Chinese community who face socioeconomic challenges. CDAC aims to promote upward social mobility and strengthen community cohesion through a diverse range of programs and support initiatives. To achieve this mission, CDAC provides a wide range of services, including:
Educational Assistance: CDAC provides bursaries and scholarships to help needy students from the Chinese community pursue their education.
Financial Assistance: CDAC provides financial assistance to low-income families in the Chinese community.
Employment Support: CDAC provides employment support services to help Chinese job seekers find and retain their jobs.
Social Services: CDAC provides various social services to help Chinese seniors, families, and children.
Up til 2020, CDAC has helped more than 18,000 lower-income households through its programs and services. The organisation’s work has significantly impacted the Chinese community in Singapore.
How is the Chinese Development Assistance Council Funded?
Monthly contributions are made by working Chinese Singapore Citizens and Permanent Residents, which are automatically deducted from their wages. The contribution rates vary based on individuals’ wage levels. These contributions ensure the sustainability and effectiveness of CDAC’s programs.
Since September 1, 1992, the Central Provident Fund Act mandates working Chinese Singapore Citizens and Permanent Residents to contribute to the CDAC Fund. Employers are responsible for deducting these contributions unless employees opt out voluntarily. However, it’s important to note that work pass holders and students in internship programs are exempted from this contribution requirement.
CDAC’s funding comes from a variety of sources, including:
- Government grants
- Individual donations
- CDAC’s own funds through investments and other activities
A board of directors governs CDAC. The board of directors comprises representatives from the SCCCI, the SFCCA, and the Chinese community.
The most recent rates effective from 1 January 2015 are as follows:
|Minimum Monthly Contribution to CDAC
|> $2,000 to $3,500
|> $3,500 to $5,000
|> $5,000 to $7,500
What Are CDAC’s Main Goals?
CDAC focuses on three key thrusts: social mobility, community ownership, and effective integration.
By promoting social mobility, it empowers individuals to break free from socioeconomic barriers. Similarly, it inspires to attain higher education, better job opportunities, and improved living conditions.
Community ownership encourages active participation and engagement within the Chinese community, fostering a sense of belonging and collective responsibility.
As an effective integrator, CDAC ensures that members of the Chinese community integrate well into the broader society, facilitating harmonious multicultural coexistence.
Wait – Are These Deductible by Tax?
CDAC has the status of an Institution of Public Character (IPC). This means that all donations made to the CDAC Fund from January 1, 2009, to December 31 2015, are eligible for a 2.5 times tax deduction. You can rest assured that the tax deduction will be automatically reflected in your IR8A statement, providing a valuable benefit for those contributing to CDAC.
The Future Outlook of CDAC
As Singapore’s society continues to evolve, the Chinese Development Assistance Council remains committed to adapting and addressing emerging challenges faced by the Chinese community. By continuously engaging with stakeholders, enhancing partnerships, and staying responsive to community needs, CDAC strives to create a stronger and more resilient Chinese community.
With its focus on social mobility, community ownership, and effective integration, CDAC is vital in fostering upward social mobility and empowering individuals to overcome barriers. By leveraging the CDAC Fund and promoting active engagement, CDAC continues to make a lasting impact and build a stronger, more inclusive Chinese community in Singapore.
What We Can Do for You
Managing payroll and ensuring timely salary payments is critical for all businesses. However, this task takes time and can get complex with additional components like benefits, allowances, deductions, and government remittances. Furthermore, the monthly auto deduction of the CDAC Fund adds another layer of complexity to payroll processing. Thus, it is not a big surprise when most SMEs outsource their payroll function to accounting firms.
That’s where we come in. At 3E Accounting, our payroll specialists are ready to assist you with efficient and accurate payroll services. By outsourcing your payroll function to us, you can save time and ensure that correct and compliant processing of your payroll. If you want to learn more, contact us today!