Tax relief for donations may be reduced - what does this mean for your organisation?

Tax relief for donations may be reduced - what does this mean for your organisation?

Less good news from political quarters: in the federal coalition agreement, there is an intention to reduce the donation tax credit from 45% to 30%. A change that, if implemented, would significantly weaken the tax incentive for donors.

For many charities and non-profit organisations, this could have a direct impact on revenues. After all, the smaller the tax benefit, the greater the threshold for donors to give generously.

Nothing is final yet

Important to note: this measure is not currently in force. There is strong opposition within the NGO sector, and we too hope that the new government will reconsider this intention.

What can you do now?

Although it remains a policy intention for now, it is wise to remain vigilant. Keep your communication with donors warm and transparent. Reinforce trust, show the impact of their support and stress the importance of structural contributions.

DSC follows it closely

At DSC, we like to think with you about how to future-proof your fundraising - even in a changing fiscal landscape. We continue to monitor political developments closely and keep you informed of concrete decisions.

Do you have questions or want to look at possible scenarios together? Don't hesitate to contact with us. We are ready for your organisation - today and tomorrow.