Small donations: simplified proof of donation
For contributions of no more than €300 per individual payment, simplified evidence may replace a formal donation receipt under the conditions in § 50(4) EStDV. This applies in particular to payments to domestic public-law legal persons, domestic public bodies or appropriately tax-exempt bodies. Political parties are subject to the provision’s special requirements.
The scheme applies to monetary donations, not to in-kind donations or donations made by waiving reimbursement of expenses.
1. Permitted forms of simplified evidence
One of the following may be used as proof of payment. Additional recipient documents are explained in section 2.
a) Cash deposit slip
For cash deposited into the recipient’s account, the deposit slip may be used. Simply handing over cash without suitable evidence is insufficient. The evidence must document the payment clearly:
- donor’s name and account number,
- recipient’s name and account number,
- donation amount,
- deposit booking date.
b) Bank booking confirmation for a transfer
The booking confirmation must show the name and account number or another identifying feature of both payer and recipient, the amount, booking date and actual execution of the payment. It may, for example, contain:
- donor’s name and account number,
- recipient’s name and account number,
- donation amount,
- transfer booking date.
2. Additional required information
For a tax-exempt body within the meaning of § 5(1) no. 9 KStG, a document produced by the recipient must also be retained. Under § 50(4), sentence 1 no. 2(b) EStDV, it must state:
- the tax-privileged purpose for which the contribution will be used,
- details of the recipient’s exemption from corporation tax,
- whether the contribution is a donation or a membership contribution.
An appropriate document supplied by the recipient may, for example, be downloaded and retained. Simply referring to general information on a website does not replace the required recipient document.
3. No application to in-kind donations
The simplified scheme does not apply to:
- in-kind donations,
- donations made by waiving expense reimbursement,
- contributions for which there is no suitable payment evidence under § 50(4) EStDV.
For in-kind donations and donations made by waiving expense reimbursement, a proper donation receipt is generally required for tax deduction. In-kind donations must be valued under the statutory rules. Monetary payments from business funds are not excluded from simplified evidence merely because of their source.
4. Purpose of the scheme
The scheme reduces administrative work:
- for donors contributing small amounts of money,
- for charitable organisations, which need not issue a formal receipt for qualifying small payments.
Notice
This information is a general overview of tax law and does not replace individual tax advice. If in doubt, consult the competent tax office or a tax adviser.
