IPC is a status accorded to a registered charity or an exempt charity for a period of time. In addition to the income tax and property tax benefits enjoyed by registered charities, IPCs are authorised to issue tax deduction receipts for qualifying donations received.

IPCs are required to conduct activities that exclusively benefit the local community and are not confined to sectional interests or groups of persons based on race, belief or religion. This means that IPCs are not allowed to conduct overseas activities that benefit the overseas community.