Donation receipt (donation receipt)

Donations to tax-privileged organisations (e.g. association or foundation) or a legal entity under public law (e.g. municipality, state, federal government) to promote tax-privileged purposes within the meaning of Sections 52-54 of the German Fiscal Code (AO) can be deducted from the donor's income for income tax purposes, subject to certain maximum rates (20 percent of the total amount of income or 4 percent of the total turnover and wages and salaries spent in the calendar year). This requires a donation receipt issued by the beneficiary organisation in accordance with the officially prescribed form (donation receipt), which the donor must present at the request of the relevant tax office.

Tax-privileged donations include donations and, under certain conditions, membership fees including levies and admission fees.

Donations are voluntary contributions in cash or in kind that are made without any legal obligation and do not constitute payment for a service in return.
Tax-privileged donations do not include services or the provision of utilisation options. Unpaid labour services for an association or the free provision of premises or vehicles are not donations.

Tax-privileged purposes according to the tax code are

• charitable purposes (§ 52 AO),
• charitable purposes (§ 53 AO) and
• ecclesiastical purposes (§ 54 AO).

Non-profit purposes are, for example

• the promotion of science and research, education and training, art and culture, religion, international understanding, development aid, protection of the environment, climate, landscape and monuments, and the idea of home,
• the promotion of youth welfare, assistance for the elderly, public health, welfare and sport; chess is considered a sport,
• the general promotion of the democratic state in the Federal Republic of Germany,
• the promotion of animal breeding, plant breeding, allotment gardening, traditional customs including carnival, carnival and fancy dress, support for soldiers and reservists, amateur radio, free radio, model flying and dog sports.

For donations of up to €300.00 (until 31 December 2019: €200.00; so-called small donations), however, a simplified donation receipt is sufficient. In this case, the cash payment receipt or the booking confirmation from the bank (e.g. account statement, direct debit receipt or PC printout for online banking) is sufficient as proof for the tax office. In addition, however, a receipt produced by the beneficiary organisation itself (e.g. a copy of the transfer form or a section attached to the transfer form or a receipt made available for download) must contain the following information:

• the tax-privileged purpose,
• Information on the organisation's exemption from corporation tax,
• Details of whether it is a donation or a membership fee.

The booking confirmation must contain the following:

• Name and account number or other means of identification of the ordering party and the recipient,
• the amount,
• the booking date and
• the actual realisation of the payment.

• Tax guide for non-profit organisations