Besides the fact that you are supporting an approved charity with your donation, your contribution to the Twent University Fund is tax deductible subject to certain conditions. On 1 January 2008, the Twente University Fund was allocated charity status. The tax authorities consider the Twente University Fund to be an Institution Aimed at the Common Good. This means that:
The Twente University Fund does not need to pay any inheritance tax or gift tax on inheritances and donations it receives in the context of the common good. Payments the Fund makes for the common good are exempt from gift tax. Fund donors can deduct their contribution from income or corporation tax subject to certain applicable conditions.
You can deduct standard donations to the Twente University Fund if you satisfy the following conditions:
You can demonstrate that you have actually made the donation with written evidence, such as bank statements. Your total amount of donations were higher than a certain amount, the threshold. Only the amount above the threshold may be deducted up to a certain maximum. The donation did not involve any services in return.
The deductible threshold for standard donations is 1% of your threshold income, with a minimum of €60. You may deduct a maximum of 10% from your threshold income in standard donations. Your threshold income is the total of your income and deductibles in Boxes 1, 2 and 3, but without your personal allowance. If you had a tax partner the entire year you must also count your tax partner's threshold income.
The tax rules for a Named Fund do not differ from those that apply to a regular donation. A one-off donation is tax deductible if the amount is between 1 and 10% of the threshold income. A periodic donation is always tax deductible.
No threshold or maximum apply to periodic donations. A donation is considered to be a periodic donation if:
You have established the donation in an agreement with the Twente University Fund. You make the donation in the form of fixed and equal, periodic payments that end at the latest upon your death. You make these donations for at least five consecutive years. The donation does not involve any services in return.
For more information about periodic donations please visit this page.
Parties subject to corporation tax can deduct a donation to the University Fund from their profits. For more information please visit this page. You can obtain more information about deducting donations from the Tax Information Line (0800-0543) or on the website of the Tax and Customs Administration (www.belastingdienst.nl).