2023-12-26 13:17:27
Christmas time is donation time. No other time of year is more money donated. But there are also numerous ways to support charitable, charitable or church activities beyond the classic bank transfer or donation in kind. This includes, for example, coaching activities in the local football club, lectures or repair services. But can this time and effort also be tax deductible as a donation?
Voluntary work – i.e. voluntary and unpaid – is not eligible for donations. The same applies to time itself. Nevertheless, expenditure and return donations, i.e. the waiver of reimbursement of expenses or other compensation claims, such as repair costs or trainer fees, are tax deductible under certain conditions as a donation or as a special expense for income tax purposes.
From a non-profit law perspective, there are several points to consider (BMF letter on expenditure and return donations dated November 25, 2014 and August 24, 2016). In order for the donation to be deductible, it must only go to non-profit organizations. These can be, for example, sports clubs or foundations.
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Furthermore, there is a need for a contractual regulation between the person carrying out the work and the organization or a regulation in the statutes that grants a claim to expenses or remuneration. This claim must be waived voluntarily, promptly, in writing and without compensation.
Any consideration, such as advertising by the association for a craftsman or a company, would be classified as sponsorship and is not eligible for donations.
However, due to the effort involved and the increased risk of error with this abbreviated donation, it is usually advisable to accept the intended remuneration from the non-profit organization and donate the money voluntarily.
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