More than 470 Belgian organisations warned in an open letter about the impacts of the government’s planned reduction of tax deductibility on donations from 45% to 30%.
People who donate at least €40 (to one organisation or institution) are eligible for a tax reduction. Larger donations or donations to multiple charities are also possible. The tax deduction amounts to 45% of the donation(s). However, according to the final version of the federal coalition agreement, this will drop to 30%.
NGOs responded to this news stating this would result in a large drop in donations. A coalition that includes 11.11.11, Kom op tegen Kanker, Amnesty International, and the King Baudouin Foundation has, in the letter, labelled the measure "an attack on generosity" that threatens thousands of initiatives.
Ecosystem of solidarity
The organisations highlighted that the measure would have far-reaching consequences for associations reliant on private donations, both large and small. Donations of at least €40 annually generate €362 million for 2,500 recognised associations and foundations, a figure which has doubled in the past decade.
The change will affect hundreds of charities, including major organisations like 11.11.11 and Oxfam, as well as smaller local non-profits. Universities, hospitals, certain museums, the Red Cross, and the King Baudouin Foundation are also recognised institutions.
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The coalition stressed that what seems to the government like a technical saving has real consequences for lives and social cohesion. More than a million Belgian households donate an average of over €350 per year to one or more of these 2,500 recognised organisations.
The organisations argue that the social damage starkly contrasts the annual saving of €40.26 million for the state treasury. "What we are at risk of losing is not an abstract system, but an ecosystem of solidarity," the letter states. The open letter urges the government to reconsider its decision. "Solidarity is not a luxury, but a sustainable investment in society," it concluded.
