De Brauw model calculates tax effect of donations made to cultural organisations under new Donations Act
De Brauw has developed a spreadsheet model that indicates to potential donors and cultural organisations how the new Donations Act impacts on deductibility of donations. Cultural organisations are suffering from the government's introduction of extensive spending cuts, in particular an increase in VAT and a lowering of subsidies. To partially compensate for these cuts, the tax deductibility of donations will be expanded as of 1 January 2012.
Dick Hofland, partner at De Brauw: "Our model creates a simple way to make two types of calculation. Using the model, one type calculates the net "cost" to a donor of a gross donation as a result of tax deductibility. The other type, if the donor has a certain net amount in mind, calculates how much a net donation will "yield" to the cultural organisation. The model can help cultural organisations in fund-raising campaigns in the private sector."
Hofland refers to the Concertgebouw's successful share issue this year, which De Brauw advised on. The issue has so far raised EUR 4 million and will be even more attractive under the new Donations Act.
downloadPlease note that the spreadsheet model has to be saved before viewing.
Click here to download the spreadsheet model free of charge
De Brauw emphasises that the model is general in nature and should not be regarded as tax advice for any particular case.