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Cash donations no longer deductible

04-09-2019

Tax-friendly giving to charity is coming to an end.
If it is up to the Cabinet, cash gifts will soon be no longer tax-deductible. Secretary of State, Menno Snel (Finances, D66), writes to the House of Representatives that it is too difficult to verify whether those gifts have been done.

In the nearby future, only donations to charities that are included in the ‘smart fill-in form’ on the Tax Returns shall be tax-friendly. If the charity isn’t included in this report, no taxes are going to be deducted. This makes it easier to see whether their gift is eligible for tax deduction and also tax control becomes easier.

Nowadays, taxpayers can simply write down the name of their own chosen charity. This isn’t always done correctly and also encourages fraud.
More than 40,000 organisations in the Nederlands will be recognised as a Public Benefit Organisation.
Only tax-friendly donations to clubs with a ANBI status  will be allowed. Also sports clubs, churches and other organisations can be included.

Error sensitive
State Secretary Snel emphasises that the tax-deduction is of great importance for all charities in the Netherlands, and therefore wants to keep this system.
Though, evaluations show that improvement is ‘desirable and necessary’. According to the State Secretary: “Tax-deduction for gifts are too complex and prone to error for the citizen. This  can have a negative effect on his willingness to give.”

(This information is only relevant to the Netherlands) Source: AD