Hundreds of non-profit organisations have joined a social media campaign against the Arizona government's plans to cut tax benefits for donations.
The philanthropy sector is facing cuts as part of Prime Minister Bart De Wever's government's determination to tackle the Belgian deficit. ImpactCoalition, an alliance representing hundreds of non-profit organisations, is using the hashtag #supportgenerosity to raise awareness about the impact of lowering tax benefits for donations from 45% to 30%.
"This reduction is very harsh for the sector," said Erik Todts, co-founder and chairman of Ethical Fundraising. "We are shocked and outraged by the proposed legislation, especially as it will be retroactive from 1 January 2025."
10% drop in donations
Todts explains that the cuts mean that "organisations will have to adjust their budgets significantly. We estimate a 10% drop in donations this year, increasing to 15-20% in future years."
He calls on other philanthropic organisations to be vocal about the impact of the legislation on their operations.
"We see effects on three levels: services, employment and the economy. The government aims to save €40 million, but there will be a significant economic impact due to reduced purchases and lower employment rates."
The ImpactCoalition hopes their campaign will bring widespread attention to the planned law and pressure the government to abandon its plans.
An open letter condemning the cuts as "an attack on generosity" has garnered signatures from nearly 500 organisations.
