Gov't to extend 250% tax deduction for family office donations to end-2026

But they must create a significant effort to drive awareness and support.

The Singaporean government planned to extend the 250% tax deduction rate for donations from family offices until the end of 2026.

In his speech during the debate on President's Address, Minister for Social and Family Development Masagos Zulkifli said that the government will also do more to help family offices maximise their philanthropic impact.

West Coast Member of Parliament Foo Mee Har supported the move but said a significant effort is needed to drive awareness and momentum to support family offices' local and regional causes, especially in conducting effective philanthropy, as they give back based on their values.

In her speech, Foo, a Chief Executive of the Wealth Management Institute, said that whilst their arrival is a relatively new concept, the country saw family offices grow instantly, including those with a long track record in philanthropy.

However, family offices, including new ones, struggled to navigate the country's fragmented and fast-changing landscape. 

"They share that they need to work hard to understand who the credible players are and what role the different ecosystem actors are," Foo said.

Foo emphasised that family offices need help understanding the local ecosystem to know their impact goals, the assets they could contribute, and how to leverage different giving structures. 

"They must be oriented to integrate with Singapore's social norms and have the right support networks so that they can ramp up their contributions in terms of impact," Foo said.

Foo added that the government must encourage sharing from family offices that already philanthropists to provide aspirational examples for others.