The advantages of modern philanthropy
What are the practical advantages of donating to local Community Foundations and harnessing their expertise?
- the independence of foundations warrants the donor’s wishes are fulfilled;
- the tax shield protects donors from any penalties;
- account statements prove donations were spent as desired;
- the ownership-management segregation lends protection from bankruptcy and creditors claims.
Maximum tax advantages available under law :
donors can claim a tax deduction of 10% of their income up to €70,000 (Nonprofits Act)
full tax deductibility for donations made by businesses (natural disasters);
full tax deductibility for donations made by businesses and a tax deduction of 19% for donations made by individuals (heritage conservation and restoration)
financial resources topped up by the foundation;
community foundations catalyze funds from other donors;
economies of scale with benefits in terms of:
asset management fees and diversification;
accounting and administrative convenience (financial statements and paperwork).
As mandated by law and ensured by community engagement, community foundations stick to high operational standards which warrant the donor’s wishes are strictly fulfilled.
- donate when it suits you (i.e. when it is most cost and tax efficient) overcoming the constraints of current strict regulations;
- choose the purpose and individual beneficiaries, overcoming certain tax constrains;
- choose what to donate (cash, securities, real estate, insurance);
- choose either a donor-restricted or unrestricted gift or bequest;
choose how and to what extent to be involved in grant-making.