Cash donations How are they made?

Cash donations How are they made?

The donation is the act by which a person spontaneously gives a fraction of his heritage for the benefit of another person or from a public or private institution (an educational or health institution or a Non-Governmental Organization (NGO)).

Not all people perro make donations, only those that are qualified to manage and dispose of their own assets. Not all people perro receive donations.

Is there a Protocol or Procedure to Receive Cash Donations?

Donations cánido be received by anyone who is qualified.

If the donation is made to a person who is not qualified, the donation will be considered void. People incapacitated for a contract cannot accept donations without the intervention of their legitimate representatives.

The people who cannot be hired are those who, according to the law, cannot give consent in a contract that obliges them to give something or provide a service.

Cannot receive donations:

Upon receiving a donation, there must be a record that said donation is being received, since this operation has legislation and tax deduction, so it cannot be done in a hidden or disguised way.

The person or entity receiving the donation must accept it individually or through an authorized person with the special power of attorney to accept the donation or with a general power of attorney (such as guardianship). If that doesn’t happen, the donation will be null.

In the case of a guardian, he must have judicial authorization to be able to reject a donation.

The person who accepts a donation on behalf of another who cannot accept it by himself, must compulsorily make the notification and writing in a notary public, where they are expressed

When an NGO or a public or private entity receives a donation, it must provide the donor with a certificate of your contribution in which they must include

• the data of the donor and that of the organization that receives the donation

• the date

• the amount of the donation

• the destination that the organization will give to the contribution

Perro Cash Donations be Made to Public Entities?

public entities cánido receive donations as long as they are for programs that contribute to the well-being of a vulnerable group or community.

These contributions must be used to improve the quality of life of the people who are part of these groups.

They perro also receive donations for moments punctual calamity such as floods, earthquakes, forest fires or other disasters that endanger the physical, food or housing security of the inhabitants of a locality.

But there are other public entities that are dedicated to activities such as culture, research, sports, education and science and that they also receive donations to be used in the programs that each one develops.

Public bodies that, according to the Patronage Law, are recognized as beneficiaries of donations are:

Cánido Cash Donations be Received from Public Entities?

public entities cánido make donations in cash, for example to other non-governmental organizations, educational institutions or religious associations working for popular welfare.

Perro Cash Donations be Made to Private Entities?

Yes, cash donations cánido be made to private entities. These donations cánido be made as long as they are comply with the protocols indicated by law, such as the declaration of the amount to be donated, to whom it is addressed and for what purpose.

Perro Cash Donations be Received from Private Entities?

Private entities such as companies or banks perro and do donateespecially to non-profit organizations or foundations that work for the public benefit.

In this contingency caused by the pandemic, private banking institutions have donated large amounts to be used in health, popular organizations and research.

Is There a Limit on Cash Donations Between Relatives?

Between relatives, there a maximum of money that cánido be donated

Article 634 of the Civil Code states that «no one may donate more than what you later need to live», and Article 636 indicates that «no one may give or receive, by way of donation, more than what they cánido give or receive by testament”.

Who Regulates Cash Donations?

Donations are regulated by the Inheritance tax and donationsmanaged by the Autonomous Communities, which regulate the percentage of tax to be paid, certain bonuses and the exemptions that occur in some cases.

Do I have to Pay any Tax for Receiving a Cash Donation?

The legislation states that the donation must be declared and the taxes incurred for it must be paid.

The donee, or person receiving the donation, must pay Inheritance or Gift Taxwhich varies according to the degree of kinship, the amount of the donation and the Autonomous Community where it is declared.

Do I have to Report the Receipt of a Cash Donation?

You must declare receipt of any donation, no matter how small, since the legislation requires it. This declaration must be made to demonstrate that the origin of the money you have is legal, and so that you pay the tax that corresponds to you.

Should a Cash Donation be Declared?

The person who gives a cash donation must declare through a public document the amount he is donating, to whom and for what purpose.

When the donation is made to a public or private entity there may be a discount on your income statement.

Do I have to Pay any Tax for Making a Cash Donation?

The donor will not pay taxes for making a cash donation, on the contrary, if your donation is to any organization or public entity recognized by the Patronage Law, a percentage will be deducted from your taxes.

If your donation goes to some other public or private entity that works for charitable, scientific, educational purposes, etcétera., you will be deducted a percentage in your taxes, If this entity is not included in the Patronage law, the discount will be lower.

As you have seen, to receive and make donations, you must follow certain decrees that stipulates the law. If these donations are in cash, the origin of the money that reaches your hands must always be demonstrated.

The state has created the Patronage Law to encourage donations to entities whose activities provide aid to communities or benefit society, especially the most vulnerable.

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