Donations to certain beneficiary institutions such as universities, fire brigades, aid organizations (e.g. Caritas) or animal shelters can be tax deducted. In concrete terms, financial donations from private individuals are deductible up to 10 percent of the total income per year. The government has now decided to extend the deductibility.
Not only will sports and educational institutions be added, but payments from organizations to volunteers must also be exempt from income tax. The fixed volunteer rate for small volunteers is a maximum of 30 euros per day or 1000 euros per year, while the large volunteer rate is a maximum of 50 euros per day or 3000 euros per year. The latter is possible in areas such as social services, health care, child and disabled care and disaster relief. The large fixed rate also applies to roles as a trainer or trainer.
Two million benefit
The government estimates that around two million people will benefit from this. Another change is that the use of funds for charitable foundations will be made more flexible in the first years. For example, for small clubs it used to be a burden that at least three years of activity were required before deductibility was recognized. This period is now reduced to one year.
The special contribution of donors, but also of the people who have registered voluntarily, cannot be appreciated highly enough. This deserves even greater fiscal recognition, Finance Minister Magnus Brunner (ÖVP) said in a press release. Non-profit organizations would strengthen cohesion and are an effective antidote to hatred and division, said Vice Chancellor Werner Kogler (Greens).
Praise from NGOs
In addition to politicians, praise also came from various NGOs. “The amendment to the Volunteer Act brings improvements for people who do volunteer work, such as increasing volunteer compensation. Volunteers form the basis of our daily work and they deserve this recognition,” said Red Cross Chairman Gerald Creator.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
