Calculation Donation Act
The government encourages donations by providing tax benefits for donors. Since the introduction of the Donation Act, a donation to the Pijpenkabinet Foundation may be mulitiplied by 125% for using as a personal deduction in income tax. The electronic tax return form from the Tax Authorities calculates this automatically when you fill in a donation and indicate that it concerns a cultural ANBI.
A threshold of 1% of the aggregate income applies to all donations from a person or married couple/registered partners. A maximum of 10% of the aggregate income also applies as the upper limit to qualify for the extra deduction (multiplier).
The maximum amount that is eligible for the multiplier is € 5,000. Donations up to this amount are deducted for 125%, so with a maximum deduction of € 6,500, above that for the normal 100%.
For the Foundation, donations are exempt from gift tax, so that 100% of the donation will be used to benefit the objectives of the museum.
You donate € 1,000 to the Pijpenkabinet Foundation.
In that case, you may deduct € 1,250 (thousand x 125%) from your income tax for that year under the Donation Act. This is the so-called multiplier.
From 2022, only two tax brackets will apply to income tax:
income up to € 69,398, the first bracket, is taxed at 37.07%
above € 69,398, income in the second bracket is taxed at 49.50%
If your income falls in the 1st bracket, your donation of € 1,000 means that you may deduct € 1,250 from your income. This gives you a tax benefit of € 463.
While our museum receives your full donation of € 1,000, you actually pay € 537,- (= 1,000 - 463).
If your income is in bracket 2, a donation will be even cheaper: the same donation of € 1,000 means that you may also deduct € 1,250 from your tax return. This gives you a tax benefit of € 619.
Our museum will receive your full donation of € 1,000, but in this case you actually only pay € 381 (= 1,000 - 619).
The tax benefit is usually greatest when a donation is spread over five calendar years; the donation is then fully deductible from income tax. In that case, the tax authorities do not take the threshold into account, and there is no maximum.
The condition is, however, that the same amount is transferred to the museum for five consecutive years. You can request a model agreement from the contact person below or download it yourself from the website of the Tax Authorities: https://download.belastingdienst.nl/belastingdienst/docs/overeenkomst_period_gift_in_geld_ib0802z4fol.pdf
Donations can be transferred to: IBAN NL07 INGB 0003 1040 88 in the name of Stichting Pijpenkabinet in Amsterdam.
Chamber of Commerce number 41168020.
For regular donations you need our RSIN no. 88.81.376.