Budget cuts to the philanthropy sector signal tough years ahead for fundraising in Belgium. But despite the uncertainty, expats are still encouraged to give back to causes they believe in. It is also an example of shrewd accounting, as donating leads to a tax reduction.
Much has been made about Belgium's deficit, with Finance Minister Jan Jambon (N-VA) telling Parliament on 13 March that the previous government, De Croo's "Vivaldi" coalition, "left the finances of this country in a catastrophic state: with a [fiscal] hole of €23 billion!" To remedy this, Jambon plans a tax reform of more than €6 billion, which "aims to increase purchasing power and strengthen our competitiveness."
The philanthropy sector has not been spared. The government agreement retroactively reduced tax breaks on donations of over €40 from 45% to 30% from 1 January 2025. The tax deduction is considered a crucial incentive for individuals to invest in philanthropic projects.
An open letter signed by over 470 organisations labelled the cuts "an attack on generosity", saying that "What appears to be a technical saving for the government has real consequences for human lives and social cohesion."
Affected organisations are projecting a decrease of between 10 and 20% in donations. In 2o24, 2.5 million donations amounted to over €350 million. There are around 4,100 bodies in Belgium through which individuals can benefit from tax deductions when they give back to any social cause they care about: refugee assistance, the environment, civic participation, disaster assistance and more.
Queen Mathilde of Belgium and King Philippe of Belgium at the award ceremony of the KBF Africa Prize in June 2024. Credit: Belga / Nicolas Maeterlinck
Despite the changes, Belgium continues to encourage philanthropy. The King Baudouin Foundation (KBF) offers expats a range of services to help them give back to the causes they believe in.
"KBF can help expats to identify causes in their own countries and facilitate giving back to them," KBF Chief Programme Officer Stefan Schäfers told The Brussels Times last year. "And for people who want to give back in Brussels, we have a lot of funds here too. The ultimate aim is to get rid of the obstacles that prevent people from giving."
Leave a legacy
KBF was originally gifted by King Baudouin to the people of Belgium in 1976 and is now a public utility foundation managed by an independent board.
Prospective donors who wish to alleviate poverty, fight for social justice, safeguard democracy or protect the environment can set up a fund in their name and receive support in executing their philanthropic goals.
Individual donor profiles vary, with modestly wealthy people without children often signing up. Another common profile is an entrepreneur who has sold a business and wants to contribute to society in other ways.
Anyone interested in setting up their own fund first meets with advisors who helps them to determine their goal. Once the fund is set up the new philanthropist stays involved with their project and with the wider organisation if they wish.
If a donor without inheritors passes away, KBF sells the inherited assets and invests them into a specifically created fund often carrying the name of the donor. Many see this route as a way to leave a legacy behind, governed by a foundation with the means and the expertise to keep the good deed alive.
How does it work?
Credit: Belga / Hatim Kaghat
Setting up a fund requires a start capital of €75,000 but there is also the "in-out" fund option which requires an annual investment of €10,000.
Smaller commitments are also possible, and what's more, they include tax incentives. Nor do you have to create your own fund: you can donate to one of KBF's almost 500 available "friends" funds, which go towards individual organisations or 350 "local project accounts" and benefit from a tax break when gifting sums of at least €40. In Belgium, 45% (formerly 30%) of the donation amount is deducted from tax – not from taxable income.
The Transnational Giving Europe (TGE) network allows donors in Belgium to contribute to projects in countries across Europe and still benefit from a tax receipt at home. The Myriad alliance facilitates cross-border giving all over the world.
