How to deduct your Donation from Tax​

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Donations are a wonderful way to do good and enjoy tax benefits at the same time. In Germany, you can deduct your donations to charitable organisations from your taxes, which means you pay less tax. Here you can find out how you can deduct your donation from tax, what requirements must be met and what benefits you can enjoy.

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What does "tax-deductible donation" mean?
The term "tax deductible donation" means that you can deduct your donation from your taxable income. This reduces the amount of income on which tax has to be paid and thus lowers your tax burden. The aim is to encourage donors to support charitable projects by offering financial incentives from the state.

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Requirements for tax-deductible Donations

A number of conditions must be met for a donation to be tax-deductible:

Non-profit status of the organisation: your donation must go to an organisation that is recognised as a non-profit organisation. These organisations receive a certificate of non-profit status from the tax office.

Donation receipt: You must receive a donation receipt or donation confirmation from the organisation that received the donation. You will need this receipt for your tax return.

Purpose of the donation: The donation must be for a charitable, benevolent or ecclesiastical purpose. This includes many charitable, cultural and sporting organisations.

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Donation Tax Return: How to deduct your Donation

To claim your donation on your tax return, proceed as follows:

Collect proof: Keep all donation receipts carefully. For donations up to 300 euros, a simplified receipt, such as a bank statement, is often sufficient.

Special expenses annex: Enter your donations in the special expenses section of your tax return. Enter the total amount of the donations here.

Submit receipts: Enclose the donation receipts with your tax return. With the electronic tax return (ELSTER), you can also submit the receipts digitally.

Check by the tax office: The tax office checks your details and recognises the donations accordingly in your tax calculation.

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Advantages of the tax Deductibility of Donations
The tax deductibility of donations offers several advantages:

Tax savings: By deducting the donation, you reduce your taxable income, which results in a lower tax burden.

Promotion of charitable causes: You support important projects and organisations that have a positive impact on society.

Transparency and control: As donation receipts are required, transparency and control are ensured so that you know that your donation is really being received.
 

Conclusion
Deducting donations from tax is a simple and effective way to do good and reduce your tax burden at the same time. By collecting donation receipts and declaring your donations on your tax return, you can make significant savings. Use this opportunity to support charitable organisations and benefit yourself in the process.