(2022) What are donations and membership fees for the promotion of cultural purposes?

If you make donations or pay membership fees to organisations promoting cultural purposes, you can deduct these from your taxes. Your donations are deductible if they go to organisations or associations that support cultural institutions, as well as their supporting associations, e.g. theatres, museums, music schools.

However, you cannot deduct membership fees paid to clubs and institutions that promote cultural activities primarily for leisure purposes.

This includes singing, music, and theatre clubs, associations for local heritage and history, animal and plant breeding, clubs that maintain traditional customs including carnival, as well as amateur radio, model flying, and dog sports clubs.

Currently, the Cologne Fiscal Court has ruled that charitable music associations that do not provide training as a minor activity may issue donation receipts for membership fees paid, and the donor receives a tax reduction for this (FG Cologne of 25.2.2021, 10 K 1622/18, revision pending under X R 7/21).

 

Previously, the establishment of a free communication network and the management of servers, radio links, and lines were not considered charitable purposes, so Freifunk associations were not tax-privileged and donations were not deductible (e.g. LfSt. Bayern of 30.3.2017, S 0171.2.1-182/51 St31). However, since 1.1.2021, the promotion of Freifunk is considered a charitable purpose according to § 52 para. 2 no. 23 Fiscal Code.

As a result, Freifunk associations are now tax-privileged, and donations can be deducted as special expenses (introduced with the "Annual Tax Act 2020" of 21.12.2020). The situation is different for membership fees to Freifunk associations: Since these associations promote leisure-related charitable purposes "with self-interest", the membership fees are not recognised. The associations are not allowed to issue donation receipts for this (§ 10b para. 1 sentence 8 no. 4 EStG).