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An IPC is a non-profit organisation. Most IPCs are charities, and the rest are sports associations.

An IPC’s activities must be beneficial to the community in Singapore as a whole, and not confined to sectional interests or group of persons based on race, creed, belief or religion, unless otherwise approved by the Commissioner of Charities.

Only those organisations which are conferred the approved IPC status are authorised to issue tax deduction receipts for tax deductible donations received (ie donors are given a tax deduction for donations made to these organisations).