Can donations to a non-profit organization be deducted from taxes?
May 13, 2023 | 65,00 EUR | answered by Siegfried Eckstein
Dear tax advisor,
I am a member of a non-profit organization and am considering whether donations to the organization are tax deductible. Over the past few years, I have regularly made donations to the organization to support various projects and activities. Now I am wondering if I can include these donations in my tax return and deduct them from my taxes.
I am unsure because I have not received any donation receipts or confirmations from the organization so far. I am worried that my donations may not be tax-deductible and that I may lose money as a result. Therefore, it is important for me to know if and how I can claim the donations to the non-profit organization on my taxes.
Can you please explain to me what requirements must be met in order for donations to a non-profit organization to be tax deductible? Are there specific maximum limits or formal requirements that I need to be aware of? How can I obtain donation receipts or confirmations from the organization in order to claim my donations for tax purposes?
Thank you in advance for your support and clarification on this matter.
Sincerely,
Lina Evers
Dear Mrs. Evers,
Thank you for your question regarding donations to charitable organizations and their tax deductibility. As a tax advisor specializing in association taxation and charitable status, I am happy to assist you.
Generally, donations to charitable organizations are tax-deductible. However, in order for your donations to be tax-deductible, certain conditions must be met. Firstly, the organization to which you donated must be recognized as charitable. This means that the organization must pursue specific charitable purposes that are outlined in its articles of association. These purposes can include, for example, education, welfare, environmental protection, or arts and culture.
It is also important that you receive a donation receipt or certificate from the organization. This receipt must contain specific information, such as the donor's name and address, the amount of the donation, the date of the donation, and a confirmation that the donation was made without consideration. Only with such a certificate can you claim your donations on your tax return.
In Germany, the maximum deductible donation limit is 20% of the total income amount. Donations exceeding this limit can be carried forward to the following years. There are also special rules for large donations or donations for particularly deserving purposes.
If you have not received donation receipts before, you can request them retrospectively from the organization. Most organizations are obligated to issue donation receipts. If the organization does not comply with your request, you can also prove your donations in other ways, such as through bank statements or transfer receipts.
I hope this information was helpful to you. If you have any further questions or need assistance with the tax deduction of your donations, please feel free to contact me.
Best regards,
Siegfried Eckstein
