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Raising donations for a school in Kenya.

January 16, 2019 | 30,00 EUR | answered by Steuerberater Knut Christiansen

Hello,

I hope you can help me with the topic of donations.

At the turn of the year, I came across a school in Kenya that is led by a pastor and his family. He teaches over 450 orphans, feeds hungry children in his region, supports them medically, builds schools, kitchens, provides clothing, etc. I have requested all registrations, tax numbers, etc. from him to make sure everything is genuine. He also livestreams the children, school, etc. several times a day.

I would like to support him and start a fundraising campaign on the well-known international donation website gofundme.org, as his country is not allowed to generate donations through this website.

Now my question is, what do I need to do to not run into tax difficulties? I will transfer all donation funds I receive directly to the orphanage's account and will not generate any income. I will cover all fees for gofundme.org and the transfers. I plan to stay below €20,000 in donation income (a personal gift), which as described, I will immediately pass on 1:1 (via Paypal).

Do I need to report this to the tax office or fill out anything in next year's tax return?

I am doing this as a private individual (not a charity) and I am employed with secondary income and submit my tax return annually.

Thank you for your help.

Best regards,

Dana Cyrol

Steuerberater Knut Christiansen

Good evening,

basically, in this case, you are acting as a trustee for third-party funds (donations from others). It is important that the donors do not receive a donation receipt, not even through gofundme. This would require a non-profit organization to collect the donations and use them according to the statutes.

You do not generate taxable income through the collection, so there is no need to include anything in your tax return.

However, if the tax office still has questions, you should document all transactions as best as possible.

I hope this answers your question. If not, feel free to ask for further clarification at no cost.

Sincerely,

Knut Christiansen
Tax consultant