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Up to $480 million fund to strengthen the social service sector

1   The Ministry of Social and Family Development (MSF) and the National Council of Social Service (NCSS) are setting up a new fund to better drive capability- and capacity-building within the social service sector. Recognising that demand for social services is set to increase in both scale and complexity, the new Community Capability Trust (CCT) will be dedicated to developing stronger social service agencies that can make use of resources more sustainably and deliver better service outcomes, amidst demographic changes and resource and manpower challenges. Through the CCT, MSF and NCSS will also work towards raising awareness on the importance of a strong social service sector and encouraging donors to support social service agencies in their capability- and capacity-building efforts, in addition to supporting their social service programmes.

Community Capability Trust (CCT)

$230 million in initial capital from Government, Tote Board and ComChest

2   Unlike existing capability- and capacity-building funds, the CCT will provide a long-term source of funding support for social service agencies from FY2022 to end- FY2031. As a signal of our commitment to building up the sector’s capabilities and capacities, the Government and Tote Board will provide an initial $150 million and $50 million in capital respectively for the CCT in FY2020. This will be supplemented by $30 million from the reserves of the Community Chest (ComChest), the fundraising and engagement arm of NCSS.

3   In addition to the initial capital, ComChest, with its mission of fundraising for the social service sector, will spearhead fundraising initiatives for the CCT. It will actively seek to bring in community support for agencies’ capability- and capacity-building efforts, which have typically been less attractive areas for donors, compared to social service programmes. Through this fundraising effort, we hope to bring about greater awareness and understanding of social service agencies’ capability and capacity needs.

2:1 matching for donations to the CCT from FY2020 to FY2024

4   To encourage community support for the CCT, the Government will provide dollar-for-dollar matching on donations raised by ComChest for the CCT, capped at $100 million, throughout the duration of fundraising from FY2020 to end FY2029. Tote Board will also be providing an additional dollar-for-dollar matching on donations raised by ComChest for the CCT, capped at $50 million, during the first 5 years of fundraising (from FY2020 to end-FY2024). This means that each dollar donated to ComChest for the CCT for the first five years will be matched with two dollars, and each dollar donated for the next five years will be matched dollar-for-dollar.

5   The CCT will support capability- and capacity-building projects that: 

  • Strengthen social service agencies’ organisational capabilities, such as in HR, innovation, financial management, strategy and governance;
  • Improve productivity and optimise manpower, such as assisting social service agencies in the adoption of technology so as to improve the productivity of their professionals and their services; and
  • Enhance infrastructure of social service agencies to serve growing client and service needs.

6   Social service agencies can start applying for the CCT from FY2022 onwards. Further details on the fund’s parameters and application processes will be announced closer to FY2022.

Likely Asked Questions

1   Which agencies are eligible for the CCT?

All NCSS members and MSF-funded social service agencies will be eligible for the CCT.

2   What are the desired outcomes of the CCT?

With increasing complexity of social issues and evolving needs of service users, it is important that the sector is adequately equipped to deliver quality services effectively and efficiently. Through the introduction of the CCT, MSF and NCSS are working towards developing the capability and capacity of social service agencies in adapting to manpower and resource constraints, while continuing to expand social services effectively to deliver better service outcomes.

3   Who will manage the CCT?

The CCT will be set up as a trust fund managed by NCSS. The trust fund will hold funds from the Government and Tote Board, as well as donation monies from the community and the matching grants.

4   Will donors get a tax deduction for donations to the CCT?

Up till 31 December 2021, donors are entitled to a 250% tax deduction for all eligible donations to ComChest, including those earmarked for the CCT.

5   How much can agencies receive from the CCT?

If need be, can agencies seek another funding source for the same project? The CCT will follow the prevailing Government funding principles for the sector, which encourages agencies to co-fund projects together with the Government. The proportion of costs supported by the CCT will be determined based on the nature and parameters of the project.

ISSUED BY MINISTRY OF SOCIAL AND FAMILY DEVELOPMENT (MSF)

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