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Are crowdfunding donations tax deductible?
There are always times when you run into a good cause or another, and think: “I agree with this cause and I want to donate. This is important to me!”. Fine, of course. The recipient is very happy with it, you feel good and with a bit of luck the goal of the action is achieved. You transfer the money and that was it. Or maybe not? You have a chance that the money from the donation you made is deductible from the tax. That is, of course, beautiful!
Does that apply to all donations?
You get it already, there are quite a catches. In fact, it basically means that only the charities approved by the government are eligible for this.
How does that work?
The purpose for which you give your donation must be an association or affiliated with one of the following institutions:
- ANBI – Algemeen Nut Beogende Instellingen;
- Cultural ANBI – Public Benefit Institutions that are at least 90% active in the cultural field;
- Support Foundation SBBI – Foundation specially established to raise money to support an anniversary of an SBBI in the field of sports and music.
Ordinary donations, or periodic donations to the above institutions and associations are all deductible, with the exception of:
- Donations to associations (periodic donations);
- Periodic donations to SBBI Support Foundation (ordinary donations).
I think I qualify for tax deductions
If you have made a donation to a charity that meets the government’s requirements, you can therefore qualify for tax deductions. Giving as a business or a private person, of course makes a difference. On the website of the tax office you can see exactly what the exact conditions are for your situation.
The goal I want to give does not meet the requirements of the government
If you want to make a donation to a crowdfunding campaign, it is entirely possible that you can not deduct it from the tax. After all, it is often ordinary people like you and me, or starting entrepreneurs, who start such an action. Just people who need the help of the crowd. For them crowdfunding is often the only chance to get that much-needed medical treatment, or to be able to perform that fantastic performance, to develop that unique product, or otherwise realize their dream. Always worth it!
Individuals can receive donations via crowdfunding without having to pay tax on them if:
- The amount of individual donations does not exceed € 2,122.00;
- He or she after receiving the donations does not exceed the threshold for the wealth tax (Note: your own savings or other assets also count!).
I would like to support a good cause
It adorns man when he has something left for his fellow man! For an answer to all your practical questions about making donations, please visit the website of Whydonate.