Making a donation to an association in Switzerland: what are the conditions for deducting it from taxes?

Making a donation to an association in Switzerland: what are the conditions for deducting it from taxes?

Under what conditions is a donation tax-deductible in Switzerland?

To be able to deduct a donation from taxable income, the main conditions are as follows:

•  The beneficiary must be an association, foundation or other organisation based in Switzerland. 
•  The organisation must pursue a public-benefit or public-service purpose. 
•  It must be tax-exempt because of this purpose. 
•  The donation must be made without anything in return. It must not entitle the donor to a product, service or equivalent benefit. 
•  The donation must be made during the relevant tax year. 
•  The donor must be able to provide proof of the payment, ideally with a certificate issued by the association. 
•  For direct federal tax, the total donations made during the year must amount to at least CHF 100. 
•  The federal deduction is limited to 20% of the donor’s net income. 
•  The rules applicable to cantonal and municipal taxes may differ depending on the canton. 

It is advisable to check the status of the association before making the donation. An association registered in the commercial register is not automatically recognised as being of public benefit. The ZEWO label can provide a useful indication, but the determining factor remains the organisation’s tax recognition.

Which donations are not tax-deductible?

The following are generally not tax-deductible:

•  donations to an association that is not tax-exempt 
•  membership fees that provide access to benefits 
•  the purchase of a product or ticket 
•  payment for a service 
•  time spent volunteering 
•  donations made directly to a private individual 
•  contributions for which the donor receives something in return 

Is a contribution made through Happy Pot tax-deductible?

A contribution made through a Happy Pot online money pot may be tax-deductible if the online money pot collects funds for an organisation that meets all the tax requirements.

Using an online money pot is not in itself sufficient to make the donation tax-deductible. The beneficiary association must be recognised as being of public benefit, be tax-exempt and be able to provide the donor with a certificate.

With Happy Pot, associations can create an online money pot, present their project, share the collection link and gather contributions from their community on a dedicated page.