Question

Can an association issue a donation receipt for tax purposes or are there specific requirements in place for this?

Answer

An association is only permitted to issue receipts if the association is tax-exempt. This means that the association must have submitted a corresponding application to the canton in which it is based and must have a written document that confirms it enjoys tax-exempt status due to its charitable activities.

If the association is really tax-exempt, the form that the donation receipt takes plays no role. The association is under no obligation to issue a receipt.  Donors are happy, however, if they are able to directly enclose a donation receipt with their tax return. It is important that the organisation, the name of the donor and the relevant amount are stated on the confirmation.

Question

How can our association be exempted from tax?

Answer

As a rule, there is no "automatic" tax exemption for associations. Applications for tax-exemption based on the association's non-profit status must be submitted to the cantonal tax administrations. These will also provide information on the relevant conditions and accept written applications for tax-exemption. The articles of association, foundation protocol, annual financial statements and other documents concerning the association's activities must be enclosed with the application. The articles of association should provide information on the charitable, social, cultural, etc. purpose of the association. The association's purpose must not exclusively benefit its own members (no self-help organisations) and the committee members must, as a rule, perform their role on an unpaid basis.

Upon the dissolution of the association, the liquidation proceeds must go to another tax-exempt association. Tax-exemption does not rule out a possible obligation to pay VAT!

See the work aid "Tax exemption for associations".