European citizens are increasingly willing to donate beyond the borders of their home countries and support initiatives to address issues outside their countries or endorse foreign charitable initiatives. Unfortunately, most European countries do not provide an income tax deduction to donors who want to support foreign beneficiaries in another member state. This unequal treatment of national and cross-border philanthropy violates the fundamental freedoms guaranteed by the treaties of the European Union.
The European Commission is aware of this issue and has already requested some countries to adjust their legislation. However, it takes time!
While it may take time for national and European solutions to become effective, the private initiative Transnational Giving Europe (TGE) network is providing an efficient solution and a serious alternative in the coming years. On a European level, TGE is the only practical and secure solution for tax-efficient cross-border cash donations.
The TGE network covers 20 countries and allows donors, both corporations and individuals residing in one of the participating countries, to financially support nonprofit organizations in other member states, directly utilizing the tax relief opportunities provided by their country's regulations. The following countries are part of TGE: Austria, Croatia, France, Hungary, Malta, Romania, Spain, the United Kingdom, Belgium, Germany, Ireland, Poland, Slovakia, Bulgaria, the Swiss Confederation, Italy, Luxembourg, Portugal, Slovenia, and the Netherlands.
By providing a secure and efficient framework for tax relief in cross-border donations, TGE is particularly interesting for national organizations with potential donors abroad.
The TGE network enables organizations to expand their fundraising activities internationally without the need to establish a branch or sister organization exclusively for that purpose and without the need to navigate different national laws.
Two concrete examples of TGE users are museums with donors abroad and higher education institutions relying on donations from individuals and companies, with a significant number of alumni in other countries. Civil society organizations also extensively use cross-border donation services through the TGE network.
The Croatian member of the TGE network is the European Foundation for Philanthropy and Social Development, and all interested organizations and institutions in Croatia can contact them regarding cross-border donations.
Expressions of interest for cross-border donations can be submitted on the portal www.zadobrobit.hr or through the European Foundation at www.europskazaklada-filantropija.hr.
