So donations should be tax deductible
Through tax breaks, the state encourages people to get involved and do something good. Therefore, monetary donations should always be tax deductible. In general, aid organizations can achieve the most with monetary donations, as these can be used more flexibly than, for example, donations in kind. If you now donate money (up to 300 euros) to social organizations, this can be proven with a simplified donation receipt for the tax return. A cash payment receipt or a booking confirmation from a bank is already sufficient as proof of donation. The only important thing is that the information on the name and account number of the client and the recipient, the amount of the donation, the booking date and the receipt of payment are evident from the proof, explains the press portal.
For donations of more than 300 euros, more detailed evidence is required, as wmn explains. This requires further information such as the address, the type and amount of the donation and a confirmation that the donation was made for a purpose that benefits the community. An exception are donations in disaster or crisis areas, such as in the case of Ukraine. A simplified proof of donation is sufficient for donations of more than 300 euros.
Not only monetary donations are deductible
In addition to monetary donations, there are other forms of donations that can be claimed for tax purposes, such as expense donations. Anyone who gets involved with a charitable association is usually not only working on a voluntary basis, but also has expenses to settle. If the helper does not compensate for the expenses, it is an expense donation. This can be deducted from your tax return using a donation receipt. However, the basic requirement for an expense donation is that the right to reimbursement of one’s own costs is included in the association’s statutes or has been recorded in writing in a contract.
Donations in kind are also tax deductible. If the items are used, such as worn clothes or used toys, the value of the donated items must be estimated. An estimate can be made by comparing the donations in kind to the selling prices of similar items in the classified ads in the newspaper or on the internet. Above all, the previous purchase price, the quality, the condition and the age of the item should be taken into account. In order to finally claim the donation, a donation receipt from the organization is required, which provides information about the exact description of the donated item, the age, the condition, the original purchase price and the value and the day on which the item was donated. In the case of donations of new items, the proof of purchase is sufficient for the evaluation of the item.
This is how you recognize reputable organizations
However, before you decide to donate, you should think carefully about which organization you want to donate to. In order to be sure that the chosen organization is a reputable one, it is advisable to use the Federal Office’s seal of approval as a guide. The DZI is the recognized testing authority that independently and competently evaluates the business conduct of aid organizations. Organizations that have been awarded the DZI seal of approval “are efficient, work transparently, operate economically, provide factual and truthful information and have effective control and supervisory structures. In this way, they ensure that the donations they receive fulfill the charitable purpose.” All aid organizations that have been awarded a seal are listed on the institute’s website. There is also a list with information on organizations that support those affected in Ukraine and people fleeing the war.
E. Schmal/Redaktion finanzen.net
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