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Tax Benefits

Understanding Tax Deductions for Charitable Giving

Donations to qualified charitable organizations may provide tax benefits. This document explains how tax deductibility works when donating through Amply.

Consult a Professional

This is general information, not tax advice. Tax treatment varies by jurisdiction and individual circumstances. Consult a qualified tax professional for your specific situation.

Who Provides Your Tax Receipt

The organization you donate to—not Amply.

Amply is the technology platform that enables transparent giving. When you donate through Amply, your money goes directly to the organization via Stripe. The organization is the charity; Amply is the infrastructure.

This means:

  • Tax deductibility depends on the organization's status in your country
  • Tax receipts are issued by the organization, not Amply
  • Amply provides transaction records and summaries for your reference, but these are not official tax receipts

For example:

  • US donor → US 501(c)(3) org → Tax-deductible (org provides receipt)
  • German donor → German gGmbH org → Tax-deductible (org provides Zuwendungsbestätigung)
  • Any donor → Org without tax-exempt status in donor's country → Not deductible

Before donating, check the organization's tax status on their Amply profile.

How Organizations Generate Receipts

Many organizations on Amply use our receipt generation tool to create compliant tax receipts. When you donate:

  1. Your donation is recorded on Amply's ledger
  2. The organization generates a receipt using their verified details (name, tax ID, DGR status)
  3. The receipt is delivered to you (email or download)
  4. You can verify the donation on the public ledger

The receipt comes from the organization—Amply provides the infrastructure that makes it easy for them to issue compliant receipts.

How Tax Deductions Work

General Principle

In many jurisdictions, donations to registered charities reduce your taxable income:

  1. You donate to a qualified organization
  2. You receive documentation of the gift
  3. You claim the deduction on your tax return
  4. Your taxable income is reduced
  5. You pay less tax

Qualifying Donations

For a donation to be deductible:

  • Recipient must be a qualified charitable organization
  • Donation must be genuinely charitable (no goods/services received in exchange)
  • Proper documentation required
  • Filed within applicable deadlines

What Amply Provides (Transaction Records)

Amply provides transaction records to help you track your giving. These support your records but are not a substitute for official tax receipts from organizations.

For Each Donation

Transaction Confirmation

  • Donation amount
  • Organization name
  • Date of donation
  • Transaction reference
  • Organization's tax ID/registration number (where available)
  • Amply transaction ID for ledger verification

Annual Summaries

For your personal records and to support tax filing:

Consolidated Report

  • Total donations for the year
  • Breakdown by organization
  • Each organization's tax status
  • Month-by-month summary

Downloadable Formats:

  • PDF for records
  • CSV for import

Official Tax Receipts

For official tax documentation, contact the organizations directly:

  • Most organizations provide annual acknowledgment letters
  • Required for donations over certain thresholds (e.g., $250+ in US)
  • Request through Amply or directly from the organization
  • Organizations are responsible for issuing compliant tax receipts

Jurisdiction-Specific Information

United States

Qualified Organizations:

  • 501(c)(3) organizations
  • Churches and religious organizations
  • Government entities
  • Some other 501(c) organizations

Deduction Limits:

  • Generally up to 60% of adjusted gross income (AGI) for cash donations
  • Lower limits for certain types of gifts
  • Excess can be carried forward

Documentation Requirements:

  • Under $250: Receipt or bank record
  • $250+: Written acknowledgment from organization
  • $500+: Additional IRS form
  • $5,000+: Qualified appraisal (for non-cash)

Germany

Qualified Organizations:

  • Organizations with Gemeinnützigkeit status
  • Registered at a German Finanzamt

Deduction Limits:

  • Generally up to 20% of income
  • Or up to 4‰ of revenues + wages paid (for businesses)

Documentation:

  • Zuwendungsbestätigung from organization
  • Simplified receipt for donations under €300

United Kingdom

Gift Aid:

  • Increases donation value by 25%
  • Charity claims the tax back from HMRC
  • Donor can claim further relief if higher-rate taxpayer

Requirements:

  • Donor must pay UK income or capital gains tax
  • Complete Gift Aid declaration
  • Keep records of donations

European Union (General)

  • Treatment varies by member state
  • Cross-border deductions may be limited
  • Check specific country rules
  • May require organization to be registered locally

What Affects Deductibility

Deductible

  • Cash donations to qualified charities
  • The value of your gift (not fees)
  • Donor-advised fund contributions
  • Appreciated securities (special rules)

Not Deductible

  • Donations to individuals
  • Donations to non-qualifying organizations
  • Value of your time or services
  • Raffle ticket purchases
  • Donations where you received something in return (except de minimis)

Partial Deductibility

If you received something in return:

  • Event tickets where portion is donation
  • Charity auctions (fair market value portion)
  • Gifts above certain thresholds

Only the donation portion is deductible.

Maximizing Tax Benefits

Timing

  • Donations are deductible in the year made
  • Year-end giving deadline usually December 31
  • Payment processing time may affect timing

Bunching Donations

In some jurisdictions:

  • Combine multiple years' donations into one year
  • Exceed itemized deduction threshold
  • Alternate with standard deduction years

Appreciated Assets

Instead of cash:

  • Donate appreciated securities
  • Avoid capital gains tax
  • Deduct full market value
  • Organization receives full value

(Check specific rules and limitations)

Donor-Advised Funds

Use a DAF for:

  • Immediate tax deduction
  • Grants to charities over time
  • Investment growth
  • Simplified record-keeping

Record Keeping

What to Keep

  • All donation receipts
  • Bank statements showing transactions
  • Organization acknowledgment letters
  • Annual summary from Amply
  • Verification of organization's tax status

How Long

  • Generally: Length of statute of limitations (typically 3-7 years)
  • Indefinitely: For carryforward situations
  • Check your jurisdiction's specific requirements

Amply's Record Access

Your giving history on Amply:

  • Available anytime you're logged in
  • Downloadable for permanent records
  • Verification links remain active
  • Export before closing account

Common Questions

Is my Amply donation deductible?

Donations through Amply go to verified charitable organizations. Whether your specific donation is deductible depends on:

  • The organization's tax status in your jurisdiction
  • Your personal tax situation
  • Applicable limits and rules

What if I covered the processing fees?

The deductible amount is your donation, not the fees. If you donated $100 and covered ~$3 in fees:

  • You paid ~$103 total
  • Your deductible amount is $100
  • The fee coverage is not a separate donation

What about international donations?

Cross-border giving is complex:

  • Many countries limit deductions to domestic charities
  • Some treaties allow cross-border deductions
  • Organization may need local registration
  • Consult a tax professional

What if I donate anonymously?

Anonymous donations are still:

  • Recorded on your Amply account
  • Documented with receipts
  • Available for tax purposes
  • Just not publicly attributed to you

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