Donations are voluntary and unpaid contributions to charitable associations or corporations.
They can be made in the form of cash or in-kind donations. The recipients of donations must be recognised as tax-privileged and have an exemption notice confirming their non-profit status.
Donors can receive a donation receipt for donations, which they can use to claim the donation as a tax deduction. The donation receipt must contain certain information, such as the name and address of the donor, the amount and the date of the donation, and a note stating that it is a donation.
There is also the option of an expense donation, in which the donor incurs expenses for the association without remuneration, such as travel or telephone costs. These expense donations are also tax deductible, provided that there is a legal claim to reimbursement and that the donor voluntarily waives it.
It is important to note that donations can be earmarked. In this case, the association must ensure that the donations are used in accordance with the purpose specified by the donor. Otherwise, the donor can assert a claim for repayment.
The association and the issuer of the donation receipt bear a certain responsibility. The issuer is liable for the accuracy of the certificate and can be held accountable for errors or improper use of the donations. Violations of tax regulations can also jeopardise the status of non-profit status.
The boards of the associations are advised to carefully check whether all the requirements for issuing donation receipts have been met and whether the use of the donations complies with the legal requirements.
Please note that this is a summary based on the information provided and that it is advisable to consult a tax advisor or the tax office to clarify specific legal questions and obtain detailed information.
