Singapore legislation
Regulation 11
of Charities (Institutions of A Public Character) Regulations
Regulation 11
Use of donations
Subregulation 1
An institution of a public character shall use any donation received by it in accordance with this regulation.
Subregulation 2
Where the donor has specified an intention that the donation should be used for any specified lawful purpose, the donation shall be used for that purpose.
Subregulation 3
Where the donor has not specified such an intention, the donation shall be used according to the purpose communicated to the donor under regulation 8(1)(b)(ii).
Subregulation 4
Where no purpose mentioned in paragraph (2) or (3) has been specified or communicated (as the case may be), the donation may be used to fund any activity carried out by the institution of a public character.
Subregulation 5
Despite paragraphs (2), (3) and (4), the institution of a public character may use a donation for a purpose or activity only if —
the purpose or activity is within the objectives of the institution of a public character under its governing instruments; and
where a tax deduction receipt has been issued in respect of the donation, the donation satisfies the requirements of section 37(3C) of the Income Tax Act 1947 (including that provision as applied by section 37AB(6) of that Act).
Subregulation 6
An institution of a public character may invest any donation that is not immediately required for use for any purpose or activity mentioned in paragraph (2), (3) or (4) in such investments as are permitted by law.
Subregulation 7
Where a donation, or any part of it, cannot be used under paragraphs (2) to (5), the institution of a public character shall —
refund the amount to the donor within 4 years after the receipt of the donation; or
use the amount for such other purpose as may be approved by the Sector Administrator.
Subregulation 8
Where an institution of a public character refunds any tax deductible donation, or any part of it, to a donor under paragraph (7)(a), it shall immediately inform the Comptroller of Income Tax of that fact.