Tax Deductable Donations and Government´s Matched Funding

Tax Deductable donations

Private individuals and estates can make tax-decuctible donations from 1 January 2016

Private individuals and estates can be eligible for tax deductions on donations of €850–500,000 made to a university. The deductions can only apply to income tax. The deductibility of donations is provided for in section 98a of the Income Tax Act and pertains to cash donations made to promote science or art. The donation must be made to a publicly funded university or institution of higher education in the European Economic Area, or to a university fund in conjunction with such an institution. The University discloses information on donations received to the tax authorities at the end of each tax year. The University requires a deed of donation with the donor's personal identity number in order to receive donations. Read more on the Finnish Tax Administration's website.

Organisations have been eligble for deductible donations since 2008

Communities and organisations are eligible for tax deductions on cash donations of €850–250,000 made to a state within the European Economic Area or a publicly funded university or institution of higher education or a university foundation operating in conjunction with such an institution within the European Economic Area to promote science, art or the preservation of the Finnish cultural heritage. Eligible organisations include listed companies, associations and foundations. Read the Income Tax Act (in Finnish).

Matched Funding Scheme

Government has decided as part of the General Government Fiscal Plan to capitalise the universities by triple the amount they acquire through private donations. This means the government will invest three euros per donated euro, and no more than 150 million euros overall to Finnish universities.

Private donations eligible for the government matched funding scheme must be collected 1.11.2014– 30.6.2017. The government decides on the distribution of the matched funding by the end of 2017.

Eligible to the matched funding scheme are donations made to the university without any restrictions as to the use of the donation. Donors donating EUR 10 000 or more can dictate for their gift to be allocated to an educational field of the university. The allocation needs to be indicated in the deed of donation.

Only gratuitous monetary gifts will be accepted in the matched funding scheme. Shares, properties or any other tangible objects as well as immaterial rights do not qualify for matching. Will endowments will not be matched.

 

Last updated: 2.6.2016