A donation to Mlambe Foundation may not have to cost you anything!
Mlambe Foundation is by the Dutch tax authorities recognized as a charitable organization. The Foundation holds the ANBI status and is thus exempt from donations tax. Moreover, donations by commercial enterprises may be (partially) deductable from corporate income tax. Private donors might qualify for deduction from income tax. But note that a periodical gift may be fully deductable! What constitutes a considerable donation for the Foundation does thus not need to cost you much.
Deduction of donations from income tax
A donation made by you to Mlambe Foundation is, under certain circumstances, deductable from your income tax. There are two kinds of donations, a periodic donation and an occasional donation.
A periodic donation is a donation laid down in a notarial deed in which you agree to annually donate a certain amount to Mlambe Foundation during a period of at least five consecutive years. The annually donated amount is fully eligible for deduction. In consultation, Mlambe Foundation can arrange for the notarial execution.
Occasional donations are all donations that are not periodic. The deductability of occasional donations is limited under Dutch law. These donations are only deductable in as far as they exceed 1% of your collective income (the threshold). The collective income is your total income out of box I, II and III without taking deductables into account. The deduction regulation has, apart from a threshold, also a ceiling. This means that the deductability is limited to a maximum amount equal to 10% of the abovementioned collective income.
Your collective income is € 30,000 per annum. You donate € 500 to Mlambe Foundation. The threshold, 1% of € 30,000, is € 300. The ceiling is € 3,000. This means € 200 of your donation is eligible for deduction from your income tax. If you donate € 500 in the form of a periodic donation - you annually donate € 100– then the full € 100 is annually eligible for income tax deduction.