Donations to ANBI deductible by 125%
Donating to an ANBI is advantageous. Have you made a gift to a cultural institution? You can deduct this gift in principle at 125%.
Since 1 January 2012 it has become even more attractive to donate to ANBIs such as the Concertgebouw and Rijksmuseum. As of 2012 you can enjoy an extra tax benefit because donations are increased by 25%.
Donate to ANBI, more tax benefits
As of 1 January 2012, the so-called new Giving Act came into effect. This involves a number of changes to the tax laws that give donors to cultural institutions 25% more tax advantages than before. This means that your donation is not 100% tax deductible, but 125%. In other words, donors can donate more for the same - or less - money.
New Giving Act stimulates giving to culture
The Ministry of Finance wants to encourage private individuals and companies to donate to culture through the new Giving Act for a period of five years. The increased deduction of donations applies until 2016. An important condition for the increased deduction is that the institution to which you donate is a cultural ANBI (general benefit organization).
The most striking tax measure of this Giving Act is the increase of your donations to culture by 25%. The tax authorities will therefore accept that you deduct 25% more than you actually donated. However, this extra deduction applies to a maximum donation of € 5,000 per year. This additional deduction of 25% may therefore not exceed € 1,250 per year. If you donate more than € 5,000 per year to cultural institutions, that amount is still tax deductible, but the 25% increase may not be applied to the amount above € 5,000.
Your one-off donations are only partly deductible. Only the portion of your total annual donations exceeding 1% (up to a maximum of 10%) of your aggregate income is eligible for deduction. The increase of 25% only applies to donations to cultural ANBIs.
Periodic gifts are always and completely income tax deductible. And up to € 5,000 the increase of 25% applies.