Do I need to declare my received donations to the Tax authorities?
In almost most cases, there are no tax consequences. Donations are gifts and as such are not taxed and in most cases there is no obligation to report them. Always check with the tax authorities in the country of declaration for the exact rules and conditions.
Great Britain
Further information: Government Digital Service
Netherlands
Anyone can receive a donation/gift without having to report it to the tax authorities provided the donation amount does not exceed €2,658 (this is the threshold for 2024 - the threshold was € 2,418 in 2023). This amount applies PER DONATOR and PER YEAR. This means that you can receive up to € 2,658 per year tax-free from different people - PER PERSON. So you can safely raise €100,000 for example with crowdfunding, without paying gift tax on it, as long as the individual donations stay below €2,658 per donor.
Parents may even gift €6,633 tax free to their child in 2024. By 'child' we also mean a foster child or a stepchild.
Someone may donate an amount higher than €2,658; in that case you can apply for remission of gift tax. The donation must be for for necessary living expenses or necessary medical assistance of the person for whom the donation is intended. An example is when money is collected for a necessary medical treatment abroad, which is not reimbursed by the health insurer and for which the donee does not have the own means to pay the costs. Whether this is the case is tested on a case-by-case basis. Such a request must be submitted to the State Secretary of Finance.
More information: Belastingdienst (1) en Belastingdienst (2)
Belgium
An indirect donation by bank transfer is a purely banking transaction whereby the donor transfers money from his bank account directly to the beneficiary's bank account. Donations by transfer are not subject to any registration requirement and therefore do not have to pay any gift tax.
More information: Federale Overheidsdienst Financiën (FOD)
Germany
If you collect money as a private person (§ 7 ErbStG), the tax-free amount of a donation for this purpose is € 20,000 (§ 16 ErbStG) per person within a period of 10 years, after which gift tax applies. This tax-free amount can be higher in case of a family tie between the donor and the recipient, depending on the degree of kinship.
If the same person makes several donations, they are added together. However, donations are not fixed in perpetuity. Instead, only donations made within a 10-year period play a role.
Further information: In Germany, one must consult - depending on where one lives - the tax authority of the respective state ("finanzämter"). The appropriate tax authority can be found via this umbrella site of the Bundeszentralamt für Steuern.
Austria
More information: Bundesministerium Finanzen
France
More information: Direction générale des Finances publiques
Other countries: Consult the local tax authorities.
Companies: fundraising for the benefit of a company > tax on donations
If a donation is made and no quid pro quo is expected in return, it is a donation. This is considered turnover for income tax purposes. This increases your profit on which you pay tax. Because there is no quid pro quo, you do not owe VAT on the turnover you have received in this way. In your accounting programme, you can therefore process this as income without VAT.
Tip: See also the following article on tax deductibility and this article for information on a certificate (attest) or proof of donation
Disclaimer
Information on tax matters is provided only by way of general information. The information provided is not intended as legally and/or fiscally binding advice and no rights can be derived from it. We always recommend to seek advice from an expert.
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