Donations to associations and foundations continue to fall

The latest data show that in 2019 the amount of donations to the civil society sector continued to fall. If in 2017 the statistical data showed that the volume of donations is growing every year, then in 2018 the sector experienced a sharp decline in the volume of donations - 23.5 million EUR. The latest data from the State Revenue Service show that in 2019 the volume of donations continued to fall. In 2017, before the tax policy reform, associations and foundations presented gifts and donations to the amount of 87.6 million (public benefit organisations (PBOs) - 63.2 million EUR), but the data of 2019 show that the organisations have received 61.3 million EUR of donations (PBOs - 40.1 million euros). However, there is also a positive trend, namely, a moderate increase in donations from individuals (residents): from 9 million in 2017 to 10.9 million EUR.

It is important to see not only the amount of donations, but also the number of people who make donations. Looking at the information submitted by associations and foundations, as well as companies in the annual reports, it can be concluded that:

1. The number of legal entities that made donations decreased by 56% in 2018, but in 2019 there is a slight increase in donors - in the annual reports of BN in 2019 it is indicated that 4608 legal entities have made donations (only 1191 companies appear in CIT declarations);

2. In addition, the number of recipients of donations and gifts is very small - out of the active 17 633 organizations, only 1704 received gifts and donations in 2019;

3. According to the data provided by the State Revenue Service, the most frequently used tax rebate model in Riga city, Riga region and Latgale was 5% of profit, while in Kurzeme, Zemgale and Vidzeme - 2% of the wage and salaries fund, where, despite the fact that more businessmen having chosen this model, the donation amount of 5% of the profit in the model was higher than from other models(here).