A donation is a voluntary contribution in the form of money, material assets, or time – without the expectation of anything in return. It serves a charitable, benevolent, or religious purpose and can, in many cases, be claimed for tax purposes.

Who can receive donations?

Donation recipients must be recognized as charitable by the tax office – such as registered associations (e. V.), charitable foundations, gGmbHs (charitable limited liability companies), or public law corporations. A requirement is a valid notice of exemption and, if applicable, an entry in the register of donation recipients.

How much can an individual donate?

Generally, there is no limit on the amount of a donation. For tax deductibility, the following applies:

Up to 20% of total annual income can be deducted as special expenses.

Any amounts exceeding this limit can be carried forward to subsequent years via the so-called donation carryforward.

What types of donations are there?

• Monetary donation – the most common form, e.g., via bank transfer, direct debit, or online payment

• In-kind donation – e.g., clothing, food, computers

• Time donation / Volunteering – also referred to as "unpaid work" for an organization

• Earmarked donation – for a specific project or initiative within the organization

• Occasion-based donation – e.g., for birthdays or funerals

• Legacy or inheritance donation – as part of an estate planning arrangement

• Donation as a gift – e.g., on behalf of another person