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Charity Begins With True Honesty, With A Pinch Of Transparent Auditing
Non-profit charities are organisations that operate for the benefit of the public. They are set up exclusively for charitable purposes. Most charities acquire their funding through donations from the public or private sector. The donations received are spent on activities or providing for the needy as well as day-to-day operations. As such, these charities would also require audit services to ensure their financial records are well governed. Charity audit services are provided by audit firms, which adhere to the best practices in accounting and finance.
Charity Begins With Kindness
There are plenty of people out there that need help and assistance and charities are established for the purpose of doing good and helping those in need. Many more people are blessed with a golden heart and are willing to give and help make a difference. However, in recent years, many people have been deceived with fraud charities. Hence, charities and Institutions of Public Character (IPC) in Singapore must be registered with the Commission of Charities under the Charities Act. Registered charities and IPCs enable the public to donate with confidence, knowing the funds will be managed according to regulatory requirements and accounted for through a legal framework.
Donating Equals Tax Exemption
All registered charities and IPCs enjoy automatic tax exemption. Moreover, should a property is used for charitable purposes, the property tax may be exempted in full or partially during application. The Comptroller of Property Tax reviews this. Donors can also get tax exemption receipts when donating to registered IPCs. Donors can use the receipts to claim for tax relief in their tax assessment. As such, IPCs maintain higher standards in terms of regulatory compliance as well as governance.
Auditing Of Charities
Similar to any other registered organisation, charities and IPCs are required to have their accounts audited to ensure compliance with the recommendations of the Inter-Ministry Committee (IMC) on the Regulation of Charities and Institutions of a Public Character (IPCs). The recommendations require IPCs to comply with Financial Reporting Standards (FRS) and Recommended Account Practices (RAP) 6 as issued by the Institute of Certified Public Accountants of Singapore. An audit of these charity bodies is to further recommend best accounting practices. When managing public funds, the donors reserve the right to know how the funds are utilised to meet its objectives. The probability for charities to misuse these funds are high, hence; charity audit services are offered to charities and IPCs to increase transparency and accountability as well as exercise strict control over financial matters of the charity.
Conclusion
A charity may be a form of kindness. As elders used to say, and a charitable gesture is best if it remains unknown. But when money is involved, every penny counts and the higher the accountability becomes. Prudent charitable spending is essential, just as transparency and maintaining the credibility of the charity organisation. Charity audit services are available for charities needing the extra pair of eyes to look through every single accounting and financial expenditure. Get in touch with us, and our affiliated audit firm will effectively provide such service with the utmost professionalism. Our pricing is reasonable and you can be rest assured that everything will be taken care of.
For enquiry or further details, please email us at **@3e***.sg