Philanthropic Grantmakers: Letter-of-Undertaking Conditions

Key steps and distinctions

The applicant undertakes to maintain its eligible registered-charity or approved-NPO status and put deductible donations intended for IPCs into a designated fund used only for IPC donations. It issues donor deduction receipts and distributes those donations within five years. The sample states a penalty formula of 0.4 × (A + B), where A is donations for which deduction was wrongly granted and B is deducted donations not distributed within the five-year period. On dissolution, residual designated-fund assets must be distributed to IPCs within one month. Proper procedures, donor identity, donation dates and amounts and receipt records must be kept for at least seven years. Annual details of donations received and disbursed follow IRAS’s prescribed format. The fund requires an annual external audit and audited accounts are submitted within one month of the audit report. This undertaking is a scheme-registration document, not evidence that every donation to any charity is deductible. Complete the organisation and authorised-signatory details and review the commitments before signing; the sample recipient names should not be treated as a current submission contact without checking.