The 2010 British budget has revealed provisions to extend the country’s ‘gift aid’ tax break to charities based in other EU countries. This is another major step towards facilitating the ease of crossborder giving in the region. The decrease in red tape means that British based philanthropists can contribute to charities outside Britain yet receive GiftAid tax relief as if they gave in the UK. This means that EU based oranisations no longer have to set up British based charities to receive the tax break. As a result Britain now adheres to EU regulations, which outline that tax policy provisions in EU member states should not be prejudiced against other member states. This will lessen their administrative and financial burden, and hopefully by extension support an increase in EU philanthropy. Read more about this in the Financial Times (You can register for free to view) as well as on the Cabinet Office for the Third Sector website. You can also read the National Council of Voluntary Organisations’s (NCVO’s) response to not only to the GiftAid provision but to the rest of the budget as it relates the UK’s voluntary and charitable sector.
April 12, 2010
December 7, 2009
by Keisha Taylor
National barriers and a complicated legal and fiscal framework provide few incentives for donors in most EU countries to give or donate in other European countries or further afield. Giving overseas is not free at all in many countries because income tax deductibility is not granted for donations made by individuals and corporate donors to foreign beneficiaries and cross-border donations and legacies are frequently taxed at the highest applicable gift and inheritance tax rates. The Stauffer Case and the more recent Hein Persche v Finanzamt Lüdenscheid case are legal milestones in the development of cross border giving. You can have a look at The Giving in Europe website which is a free and useful resource for donors, intermediaries, and beneficiaries that wish to give or receive a cross-border donation or legacy. The Academy of European Law is hosting a conference on Cross-border Philanthropy in Europe on the 9th December 2009 in Brussels, to discuss ways in which the existing hurdles to cross-border philanthropy in Europe can be overcome, particularly through the creation of a European Foundation Statute.