‘Harmful’ change to tax deductions will be reversed by Dutch Government

Goede Doelen Nederland (GDN) has welcomed a proposed 500% increase in the amount of donations by individual donors eligible for tax relief.

As reported by Fundraising Europe in late 2022, the country’s previous Government created a €250,000 limit for donations eligible for tax deductions in any one year, which came into law on 1 January 2023. There had until then been no such ceiling.

A letter to the Government from 21 charities, co-ordinated by GDN, said that the change would “have harmful consequences for the work of charities”.

GDN then ran a ‘Red de giftenaftrek’ (‘Save the gift deduction’) campaigns, which it said received significant support.

On 15 November, GDN reported that a proposal by three members of the Tweede Kamer (the lower house of parliament), to increase that limit to €1.5m per household per year, had been accepted. It is yet to be formally put into law, but GDN nonetheless welcomed the decision as “very good news”.

However, GDN notes that the amendment would not impact the restrictions on tax deductions for corporate donations, which it says should be lifted to encourage further giving.

In addition, GDN and the interfaith group CIO have commissioned a committee of experts, chaired by former politician Alexander Rinnooy Kan, to provide advice on potential changes to the gift deduction system. Its final publication is expected later this year.

Picture by the Tweede Kamer, used under CC-BY-NC 4.0 license for non-commercial use