> What's a donation ?
> Must the donation be certified in any way ?
> Are there any tax benefits to making a donation ?

> DONATIONS FORM

_____________________________________________________________________________________________________________________________

What's a donation ?

A donor makes a donation when he/she part with property that he/she owns in order to transfer it, freely and during his/her lifetime, to one or more other individuals. A donation may be made as follows:
- In kind: personal or real property
- In specie: a cheque, bank transfer, mail transfer, etc…

Must the donation be certified in any way ?

Contrary to what might be thought, a donation is not a unilateral act, but an agreement. This means that every donation suggests that the donor and the recipient are in agreement with regard to the donation and its terms and conditions.

If the donation consists of real property, the agreement must be duly certified ; in other words, it must be a deed drawn up by a solicitor.
If the donation consists of personal property (sum of money, furniture, shares), no particular certification or other legal form is required.

Are there any tax benefits to making a donation ?

Yes. Donations given to state-approved institutions, such the Little Dreams Foundations, are tax-deductible :

Deductions from the income of natural persons

• Fribourg
Charitable donations made in specie (cash), for the share that is greater than 500 francs but does not exceed 5% of the person’s net taxable income (art. 34 al. 1 lit. i LICD FR).

• Geneva
Charitable donations, up to 5% of the person’s entire net taxable income (prior to the deduction of the donation) (art. 8 LIPP-V GE ; D 3 16).

• Neuchâtel
Donations made in specie (cash), up to 1% of the person’s net taxable income, as long as the donation given during the period for which the calculation applies amounts to at least 100 francs (art. 36 al. 1 lit. i LCdir NE).

• Vaud
Charitable donations made in specie (cash), up to 10% of the person’s net taxable income, as long as the donation given during the tax year amounts to at least 100 francs (art. 37, let. i, LIDC VD).

• Valais
Charitable donations, up to 10% of the person’s net income, are tax-deductible (art. 29 al. 1 lit. i Loi fiscale, VS).

• Swiss Confederation
Charitable donations made in specie (cash), up to 10% of the person’s net taxable income, are tax-deductable as long as the donation given during the tax year amounts to at least 100 francs (art. 33 al. 1 lit. i LIFD).

Deduction from the profits of legal entities

• Fribourg
Charitable donations, for the share that is greater than 500 francs but does not exceed 5% of the entity’s net profit, are tax-deductible (art. 101 al. 1 lit. c LIDC FR).

• Geneva
Charitable donations made in specie (cash) during a single year are considered to be business-related and are therefore tax-deductible if they do not exceed 10% of the net taxable profit (art. 13 lit. c LIPM, GE ; D 3 15).

• Neuchâtel
Charitable donations made in specie (cash) are considered to be business-related and are therefore tax-deductible if they do not exceed 10% of the net profit and their allocation is ensured in such a way that any other usage of said funds is impossible (art. 85 lit. c LCdir NE).

• Vaud
Charitable donations are considered to be business-related and are therefore tax deductible if they do not exceed 10% of the net profit (art. 95 lit. c LIDC VD).

• Valais
Charitable donations are considered to be business-related expenses and are therefore tax deductible if they do not exceed 10% of the net profit (art. 82 al. 1 lit. b Tax Law, VS).

• Swiss Confederation
Charitable donations made in specie (cash) are considered to be business-related and are therefore tax-deductible if they do not exceed 10% of the net taxable profit (art. 59 al. 1 lit. c LFID).

> DONATIONS FORM