Would you like to donate part of your capital to charity? Are you looking for a type of donation that is both fiscally attractive and makes optimal use of your contribution?
Over the past few years, planned giving has become increasingly popular. After its introduction and success in the United States, the Netherlands has created a legal framework that offers similar options. This type of planned giving, which is also known as “gedeeld geven”, effectively splits your contribution in two. This allows you to collect interest on part of your total donation.
Are you at least 60 years old and do you have assets you wish to donate? Koppel Services is always happy to explain the benefits of planned giving.
Planning giving is an innovative way to donate cash to charity over the course of your life. The way it works in the Netherlands is straightforward: you transfer a sum of at least €250.000 to the Dutch Planned Giving Foundation and select one or more charities that have affiliated themselves with the foundation. Your donation is subsequently divided into two parts, one of which is immediately made available to your preferred charity. The remaining funds are used as a premium for a lifetime annualized return that will be paid out to you either annually or per quarter.
The annual return on this type of planned giving is at least 3% and is otherwise dependent on your wishes and personal circumstances. In addition, this type of charitable contribution has various tax benefits that make it a particularly attractive option.
Planned giving has a number of benefits compared to other forms of charitable donations. First of all, your donation will immediately benefit the charity of your choosing – unlike most bequests, which are only paid out posthumously. This means your contribution can be put to good use sooner. Furthermore, planned giving provides a mechanism to monitor what the charity does with your contribution, which means you’ll be able to see the results yourself.
In addition, planned giving can provide a substantial reduction on your income tax liability in the Netherlands. You can recoup a large portion of your donation from the Dutch Tax and Customs Administration in Box 1 and you also reduce your tax burden in Box 3.
Would you like to know more about planned giving? Contact us and arrange an appointment today.