(2023)
What is remuneration donation?
Many people volunteer in clubs and associations, organisations, and churches. This applies to board members, club members, sponsors, freelancers, and other service providers. However, unlike cash and material donations, there is no immediate tax benefit for personal work contributions.
This is because the tax authorities generally assume that volunteer members of a club work for the club without payment and provide their services without any claim for reimbursement of expenses.
However, this assumption can be rebutted, according to the Federal Ministry of Finance (BMF letter dated 25.11.2014). For this, a written agreement between the club and the donor must exist for contractual claims, made before the start of the activity. The work contribution is tax-deductible if you have a legally valid claim for remuneration and waive it. The donation is not the work itself, but the waiver of the agreed reimbursement claim.
The remuneration claim for the work you have done must be granted seriously and must not be agreed upon on the condition that you waive it. You must then waive this remuneration claim. The waiver must be unconditional and declared within three months for a one-off activity and within one year for regular activities.
The remuneration donation or repayment is a (shortened) cash donation. It is not the remuneration claim that is donated, but the corresponding amount of money. It is not necessary for money to flow between the donor and the club. The donation receipt does not need to specify the remuneration and work performed, only the amount of money. However, the club must document this in its records. The donation receipt must confirm a "cash donation".
