2023-10-12 09:47:13
Every donation from 2024 will be worth the same – NPOs and donors are delighted with the comprehensive charitable package that the government is sending for review today.
Vienna (OTS) – As the culmination of an intensive participation process between politics, the non-profit sector and science, the government is now putting its promise from the government program into practice and is submitting the most comprehensive non-profit package in Austrian history for review: From 2024, this will mean donations can be deducted for all non-profit purposes and less bureaucracy for NPOs, top conditions for charitable foundations and significant improvements for volunteer work. For Austria’s donors, support for education or sport will also be recognized for tax purposes for the first time.“After almost two years of exchanges and consultations with politicians and administration, there is great joy regarding a package of measures that creates truly first-class conditions for a strong culture of giving, from volunteering to the tax deductibility of donations to the foundation system – a milestone for the third sector Austria!”
brings Günther Lutschinger, Managing Director of the Fundraising Association Austriathe significance of the federal government’s non-profit package that has been submitted for legal review today.“This is the biggest package of reforms for the not-for-profit and voluntary sector in the last 30 years. The aid organizations and associations have recently proven, in a time of crisis and under the most difficult conditions, that we can rely on them in all areas of society. Thanks to the improved framework conditions, they can continue to be a strong support for all of us in Austria in the future,”
is glad Stefan Wallner, Managing Director of the Alliance for Non-Profits regarding the historic reform package. “The extension of the tax deductibility of donations to all charitable purposes, which has been demanded for decades, now also enables donors for education, culture, sport, animal welfare, democracy and human rights to receive equivalent tax advantages for their contribution to our common good.”
Every donation is worth the same!
The tax deductibility of donations was made possible in Austria for the first time in 1994 for individual purposes such as scientific associations and universities. The introduction on a broad level for the majority of the areas of activity of non-profit associations took place in 2009, a step that significantly increased the amount of donations for those favored causes. Since 2009, donations have almost tripled (2022: 900 million euros). However, important areas of assistance such as education, sport, animal protection and human rights have not yet been included in this benefit. For cultural associations, the deductibility of donations was only possible under the condition that the association also received federal or state funding. “As of January 1, 2024, the legislature will now create uniform and fair framework conditions for all charitable purposes. This means that every donation is worth the same according to the law.”
emphasizes Günther Lutschinger and adds: “Around one million donors will benefit from this.” The Fundraising Association Austria expects that significantly more than 10,000 institutions might receive the donation allowance in the next few years. According to an estimate by the Ministry of Finance, donations will almost double.
Volunteer allowance: More appreciation for volunteer work
In addition to monetary and material donations, voluntary commitment is the third major pillar of non-profit organization and the backbone of society. In recent years, however, volunteer organizations have sometimes had to cope with large reductions in their number of helpers. The comprehensive amendment to the Volunteer Act is intended to secure voluntary work for the future through a range of important measures. The key points are the expansion of volunteer centers in every federal state, the introduction of the state prize for voluntary commitment and the legal protection of social, environmental, peace and memorial services abroad. Voluntary organizations and their 2.3 million volunteers benefit directly from this. Volunteers are also looking forward to more appreciation in the form of the volunteer allowance, which has been increased to 1,000 euros per year, with which their commitment and effort can be compensated tax-free and unbureaucratically. In the future, volunteers in disaster relief, rescue services or the social sector will be awarded up to 3,000 euros. “The volunteers have done incredible things in all areas of society in recent years. The legal protection and increase in the volunteer allowance is an expression of appreciation for the work done and a good basis for future challenges.”
emphasizes Stefan Wallner.
Austrian foundation landscape: top conditions for charitable donations
Non-profit foundations have recently supported the common good in Austria with around 90 million euros annually, but in international comparison they might do much more. From the Global Philanthropy Environment Index (2022) by Indiana University, USA, Liechtenstein emerged as a leader in terms of framework conditions for charitable commitment. Germany and Switzerland also made it into the top five. Austria, on the other hand, was well behind the Western European average in the international ranking. The reason for this is the lack of tax and legal improvements so far. The non-profit reform now finally brings a permanent right to preferential donations, a lifting of the cap on tax-effective donations, the ability to carry forward the preferential treatment and flexibility in the use of funds depending on the need for assistance. “All in all, extremely attractive conditions for the Austrian foundation landscape. In the future, these will encourage significantly more committed individuals and companies to support charitable causes through foundations in Germany.”
Günther Lutschinger is convinced.
Simplifications for smaller clubs
The reform also provides for some improvements specifically for smaller clubs. In the future, you will no longer need a comprehensive audit to apply for tax deductibility of donations. Instead, an application through your tax advice will be sufficient and thus save valuable resources that can directly benefit the aid projects. In addition, the waiting time for newly founded clubs will be shortened from three years to one year.
Immediate positive effects for the education system
With the impending access to charitable donations for all charitable purposes, the Fundraising Association Austria expects a noticeable increase in donations in the areas that were previously excluded. This also includes the essential future topic of education, and with it the diverse funding projects in elementary education, school and extra-school education, training and further education as well as adult education. An ECOAustria study showed that in the area of education alone, at least an additional 30-40 million euros per year in donations can be expected in the short term due to the tax deductibility of donations. This means that 5,000 to 8,000 students who are behind in learning might receive additional support in Austria’s committed educational initiatives. In this sense, even more charity from the population can be expected when it comes to sports funding, which will be deductible for the first time in 2024 – the positive effects on physical health are obvious.
Correct signal for fundraising organizations in times of record inflation
The record inflation that began in the spring of last year put a massive strain on many people in the country. This also affects the donations received by non-profit organizations. “More and more local clubs are complaining regarding a significant decline in donations, while at the same time the running costs for their support services have risen massively. Important projects, from child welfare to environmental protection, are at risk as a result.”says Günther Lutschinger. The federal government’s comprehensive package of supportive measures for more non-profit activity comes just in time. Non-profit organizations benefit in the double-digit million range from relief measures such as digitalization and reduction in bureaucracy. Above all, the package gives all donors the same tax advantage for the first time, regardless of the cause they give to.
Figures and facts – the tax deductibility of donations works!
– Since the introduction of the donation allowance in 2009, donations in Austria have almost tripled
– 900 million euros were donated in Austria in 2022
– Around 6,000 facilities are currently benefiting, including around 4,500 volunteer fire departments
– In 2021, more than 1.3 million people claimed donations for tax purposes
The Alliance for Non-Profits and the Fundraising Verband Austria have participated intensively in the development and negotiations of this comprehensive reform as part of the legally established donation advisory board in the BMF.
Questions & Contact:
Fundraising Association Austria, press work
Dr. Andreas Anker, M: 06764214706, E: presse@fundraising.at
Alliance for Non-Profit, Communication: Judith Mehofer MA, M: 067764784787, E: judith.mehofer@gemeinnuetzig.at
1697104153
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