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Application for Extension of Donation Eligibility for Associations
Formal requirements must be met for donation eligibility of associations; in particular, an existing donation eligibility must be extended each year.
Donations play a central role in financing the activities of many charitable organisations. To be more attractive to potential supporters, it can be advantageous for an association to be recognised as a donation‑eligible entity. Only when an organisation is donation‑eligible can contributions to it be claimed as tax‑deductible by the donor.
The tax deductibility of donations for the donor requires that the recipient of the donation, e.g. an association, is entered in the list of eligible donation recipients. This entry is made on the basis of a decision by the Austrian tax office (Finanzamt Österreich), which confirms that the relevant entity belongs to the eligible recipient group. The granting of donation eligibility must be applied for by the eligible organisation using an official electronic form. For small organisations the application is to be submitted via FinanzOnline by a professional party representative (tax adviser).
Donation eligibility must be extended annually
The granting of donation eligibility must be extended each year, otherwise the tax office may revoke it. Under the Non‑Profit Reform Act 2023 (Gemeinnützigkeitsreformgesetz 2023) donation eligibility for organisations that were donation‑eligible as at 31 December 2023 was automatically extended for 2024. This automatic extension is no longer provided from 2025 onwards; instead, donation eligibility must be renewed each year within nine months after the end of the organisation’s financial year by a professional party representative via FinanzOnline. This also applies to organisations that were already on the list of donation‑eligible entities as at 31 December 2023. The renewal is therefore usually (financial year = calendar year) to be applied for by 30 September.
Association statutes, bylaws or articles of association must be attached
The application must be accompanied by the applicable legal basis, i.e. the association’s statutes, bylaws or the articles of association of the charitable corporation. It must be ensured that this legal basis complies with the current statutory provisions and contains all content required for donation eligibility. For corporations subject to a statutory or bylaws‑based audit by an auditor, the annual compliance with the requirements and the adherence to the applicable accounting standards must additionally be confirmed by a certified public accountant as part of an audit that meets the requirements of the Companies Act (Unternehmensgesetzbuch).
Note
If the conditions for the tax benefit cease to apply or if the timely filing is omitted, the Austrian tax office may revoke the donation eligibility. Therefore, early planning of the filing and coordination with us are essential. We also recommend a timely review and amendment of the statutes to avoid a remedial procedure by the tax office.
The tax deductibility of donations for the donor requires that the recipient of the donation, e.g. an association, is entered in the list of eligible donation recipients. This entry is made on the basis of a decision by the Austrian tax office (Finanzamt Österreich), which confirms that the relevant entity belongs to the eligible recipient group. The granting of donation eligibility must be applied for by the eligible organisation using an official electronic form. For small organisations the application is to be submitted via FinanzOnline by a professional party representative (tax adviser).
Donation eligibility must be extended annually
The granting of donation eligibility must be extended each year, otherwise the tax office may revoke it. Under the Non‑Profit Reform Act 2023 (Gemeinnützigkeitsreformgesetz 2023) donation eligibility for organisations that were donation‑eligible as at 31 December 2023 was automatically extended for 2024. This automatic extension is no longer provided from 2025 onwards; instead, donation eligibility must be renewed each year within nine months after the end of the organisation’s financial year by a professional party representative via FinanzOnline. This also applies to organisations that were already on the list of donation‑eligible entities as at 31 December 2023. The renewal is therefore usually (financial year = calendar year) to be applied for by 30 September.
Association statutes, bylaws or articles of association must be attached
The application must be accompanied by the applicable legal basis, i.e. the association’s statutes, bylaws or the articles of association of the charitable corporation. It must be ensured that this legal basis complies with the current statutory provisions and contains all content required for donation eligibility. For corporations subject to a statutory or bylaws‑based audit by an auditor, the annual compliance with the requirements and the adherence to the applicable accounting standards must additionally be confirmed by a certified public accountant as part of an audit that meets the requirements of the Companies Act (Unternehmensgesetzbuch).
Note
If the conditions for the tax benefit cease to apply or if the timely filing is omitted, the Austrian tax office may revoke the donation eligibility. Therefore, early planning of the filing and coordination with us are essential. We also recommend a timely review and amendment of the statutes to avoid a remedial procedure by the tax office.