Donation receipt

Associations that are exempt from tax due to their charitable status can issue donation receipts to their donors on their own initiative – or at their donors’ request – for the donor’s tax return. There are no regulations regarding their content and form. The important points to be specified are the receiving organisation, the name of the donor and the amount of the donation. The donation receipt may also be used for thanking the donors and for promoting member relations.
Of course, associations that are not tax-exempt can also express their gratitude for having received donations, but not in the form of a receipt for deductible donations.

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".

Donation receipt

Tax exemption: How does this work?

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Answer