There are several ways in which governments can actively foster an enabling environment for philanthropy. Providing tax benefits for donations to CSOs is one of them. Tax incentives for donations to CSOs convey an important message – governments recognize the role of CSOs in addressing societal needs. Research has shown that even though the existence of tax benefits is not the main incentive for donors to give, it may still influence the decision to donate and the amount given.
ECNL's new analysis reviews the existing mechanisms to stimulate philanthropy in Bulgaria, Croatia, Czechia, Germany, Hungary, Netherlands and Poland. These countries represent a wide variety of approaches across the EU member states and therefore provide good examples of the tax benefits provided to donors and what they entail for both individuals and corporations. The analysis also looks at criteria and procedures to obtain tax benefits, and whether there are any special reporting requirements related to donations.
With the paper we seek to support the discussion around the development of an appropriate regulatory framework for tax benefits for donations in Ukraine.