Tax credit
Did you know that you get a tax deduction on your donation and only pay 62% out of pocket? Note that the minimum amount to activate the discount is 10,000 kr.
Do yourself a favor and get a tax deduction along the way.
The year 2022 was the first full tax year since tax incentives for supporting charitable organizations were introduced, see Act No. 32/2021. This law means that this year, individuals and companies will receive a discount on their donations to charitable organizations that will appear on their tax return.
Here are examples of what individuals can receive in tax deductions based on different amounts if a 38% tax rate is assumed:
A philanthropist who supports with 3,500 kroons per month actually pays 2,170 kroons and receives 1,330 kroons in tax deductions, or 15,960 kroons per year. For a philanthropist who supports with 5,000 kroons per month, the discount amounts to 1,900 kroons per month, or 22,800 kroons per year.
An individual who pays a one-time grant of 10 thousand krónur to the Red Cross will then receive a tax deduction of 3,800 krónur. We receive 10 thousand krónur for good deeds, but you actually pay 6,200 krónur.
An individual who pays a grant of 50 thousand krónur to the Red Cross will receive a tax deduction of 19 thousand krónur. We receive 50 thousand krónur for good deeds, but you actually pay 31 thousand krónur.
The grant amount must be a minimum of 10 thousand krónur per year and the maximum tax deduction is obtained for a donation of 350 thousand krónur per year. The maximum amount is double for a couple, i.e. 700 thousand krónur.
To take advantage of the tax deduction and make a difference, you can become a Philanthropist here. You don't have to do anything except decide to support the Red Cross. The tax and the Red Cross will then take care of the deduction.
Companies that worked with the Red Cross on sustainability or product partnerships, participated in emergency collections or supported the organization's projects in one way or another can also expect a discount on grants amounting to up to 1.5% of the income tax base. There are no rules about a maximum or minimum. If 20% tax is used, a discount on a 1,000,000 krónur donation can therefore amount to 200,000 krónur.
Companies can read more about corporate sponsorship opportunities here and are also welcome to join the Friends of Humanity group.
*Income tax rates vary. The tax rate here is assumed for average incomes. Amounts are shown in whole hundred krónur.