In most cases donations are received tax-free, but there are situations where tax is due. The amount received and your relationship with the donor are what determine this.
WhyDonate does not withhold or report tax on your behalf, and cannot tell you what you owe. Every country has its own tax rules, so contact your national tax authority about your own situation.
What WhyDonate provides
Your organizer dashboard shows a breakdown of each transaction, including processing costs, under the donations tab. That is the record to bring to your tax authority or accountant, and you can download it as a CSV file.
If you live in the Netherlands
The Dutch tax authority, the Belastingdienst, treats every donation you receive through crowdfunding as a separate gift. Gift tax is due only when the total you receive from one person in a year is more than the annual exemption.
Two rules decide what counts as one person:
- gifts from people who are partners are added together, and the Belastingdienst explains who counts as a partner;
- gifts from your parents are added together, even if they are divorced.
The Belastingdienst also requires a record of each gift, kept by the platform or by you. Its page on crowdfunding and gift tax gives the current exemption and the details.
Note: these are the rules of one country, and they change. If you are unsure whether tax is due on the donations you receive, contact your tax authority or an accountant.