TaxBenefits

Tax allowance or deduction: two alternatives for donations to non-profit organisations 

These are the rules governing tax benefits for private individuals who make donations to non-profit organisations using the 730 tax return form.

IRPEF (personal income tax) allowance of 30% of the donation, up to €30,000.00 (increased from the 26% limit established in the previous regulations)
Deduction from income up to 10% of the income declared, with no upper limit (previously set at €70,000 under the previous regulations)
The choice (allowance or deduction) depends on the level of income of the donor.
For incomes of over €29,000 (without taking account of the type of income and of many other variables), deduction is generally the more advisable of the two.

All donations are tax deductible 

Option 1
Deduction of cash donations from the income on which taxation is to be calculated, up to a maximum amount of €30,000, or 2% of the annual business income declared (art. 100, para. 2, lett. h of Presidential Decree no. 917/86)

Option 2
Deduction of donations, in cash or in kind, from the donor’s net total income, up to a maximum amount of 10% of the total income declared (art. 83, para. 2 of Legislative Decree no. 117/2017).