Bill proposes bigger tax breaks for donations to nonprofits

Automatic summary, not yet reviewed

1. The bill would raise donation tax deductions: individuals would get a 100% income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. deduction for the first €150 donated, and companies could deduct 55% of what they give.
2. It would expand the list of nonprofits eligible for the special tax regime, including public consortia with general-interest purposes, and add private universities, regional research centers and technology centers as eligible recipients of donations.
3. It would allow tax deductions for donations of services, such as advice, consulting or advertising space, and update the list of business activities exempt from corporate tax for these entities.
4. It would create endowment funds: donations meant to build a fund that cannot be spent would not count as the entity's assets or income, except for the financial returns they generate.
5. It would simplify the public-utility declaration for associations: the report from the Ministry of Finance would no longer be binding, and the Ministry of the Interior or the regional authority would decide.
6. It would add deductions for dubbing films or translating software into official Spanish languages other than Castilian, and allow paying tax debts by handing over historic heritage assets or land with ecological value.

Who it affects

• Individual donors to nonprofits: They would get a bigger income tax deduction: 100% for the first €150 donated.
• Corporate donors: They could deduct 55% of donations and also donate services.
• Foundations, associations and NGOs: They would get more tax exemptions, more potential donors and simpler procedures to be declared of public utility.
• Private universities, research centers and technology centers: They would become eligible recipients of tax-deductible donations.
• Film distributors and software companies: They would get deductions for dubbing or translating their products into official Spanish languages other than Castilian.

Words worth knowing

Mecenazgo (patronage or philanthropic sponsorship)

Private support, usually financial, for general-interest activities such as culture, research or social action.

Deducción fiscal (tax deduction)

An amount subtracted from the tax you owe because you did something the law rewards, such as donating.

Entidad sin fines lucrativos (nonprofit entity)

An organization that does not distribute profits to its members and pursues a general-interest purpose, such as a foundation or an NGO.

Declaración de utilidad pública (declaration of public utility)

Official recognition that gives an association tax advantages and access to public aid.

Fondo patrimonial indisponible (non-spendable endowment fund)

Money donated to an entity that cannot be spent; only the interest or returns it generates can be used.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries