Did you make a donation? They might be deductible.
Did you donate money or goods to a charity or an institution? Or do you volunteer and you do not receive a reimbursement for the costs? Then you might be able to receive a deduction when filing your income tax return. In many cases, donations are deductible. It depends on the institution to which you make the donation and how you make the donation. Here, we explain when donations can give you a tax advantage.
Check the way you donate.
There are two ways to make a donation:
1. Ordinary donations
If you did not record to give more donations to the same institution, you speak of an ordinary donation. Gifts are deductible items, however, when doing ordinary donations you should take into account a threshold amount and a maximum deductible amount. For ordinary donations, 1% of your threshold income is the threshold amount, with a minimum of €60. What you have donated more, you may deduct from your income. There is also a maximum, which is 10% of your threshold income. The threshold income is the total of your income and deductible items in boxes 1, 2, and 3, but without your allowance.
2. Periodic donation
If you did record to give an annual donation to the institution, you speak of a periodic donation. There is no threshold amount and no maximum deductible amount for periodic donations.
Donate via bank transfers!
Unfortunately, donations in cash are no longer deductible.
Did you donate in cash in 2020 and do you have a receipt? In that case, this donation is still deductible in 2020.
Check the ANBI-status
In the table below, you can see whether your donations are deductible:
| Donation to: | Periodic Donation | Ordinary Donation |
|---|---|---|
| (Cultural) ANBI | Deductible | Deductible |
| Association | Deductible | Non-deductible |
| SBBI | Non-deductible | Deductible |
Donations are extra deductible at a cultural ANBI.
The cultural ANBI was mentioned earlier in this article. But what is it? A cultural ANBI is at least 90% active in the cultural field. Gifts to a cultural ANBI are extra deductible. You may then increase your gift by 25%, with a maximum of € 1,250. But please note: the threshold amount and the maximum still apply to ordinary gifts.
Did you donate items?
If you donated items instead of cash, this is deductible as well. It is important that you have a receipt that states the value of the items, and a signature.
Are you doing voluntary work?
Are you doing voluntary work for an ANBI or an SBBI? And do you receive compensation for this? In some cases, you can deduct this as a donation if you renounce the compensation.
- You are entitled to voluntary compensation, you have a voluntary statement and the organization is able and wants to pay the compensation. If you voluntarily renounce this compensation, you can deduct this amount as a donation in your tax return.
- You are entitled to compensation for the costs you made. If you voluntarily renounce this compensation, you can deduct this amount as a donation in your tax return.
- You do not receive compensation for the cost you made, but you would according to normal standards. In this case, you can deduct this amount as a donation in your tax return. Think of the use of your own car (19ct per km), photocopying, envelopes, etc.
We are happy to help you!
The TaxSavers is happy to help you get the most out of the deductible items with your annual tax return or provisional assessment. A provisional assessment ensures that you receive a monthly refund from the tax authorities.
Do you have questions regarding deductible gifts or other tax-related matters? Fill in our contact form or give us a call on +31 (0)20 – 2170120.