Less than a quarter of the companies in Romania use donation tax facility

Less than a quarter of the profitable companies in Romania used the “20% fiscal facility”, which allows them to donate 20% of the tax on profit to the non-governmental sector. More companies donated to churches than to schools, a study shows. Close to 35,000 companies of more than 150,000 that made profits in 2015 donated money to non-governmental organizations (NGOs), according to a study presented by local charity Hospice Casa Sperantei, EY Romania, and the Association for Community Relations (ARC). The number was higher than in 2014, when only 28,500 profitable companies made donations. The donations totaled almost EUR 157 million, up by 26% compared to 2014. However, the sum represents only 42% of the total sum that profitable companies could have redirected to NGOs, which is estimated at some EUR 375 million. Some 35% of the companies that used the “20% fiscal facility” last year donated money to NGOs and 24% made donations to individuals. About 16% of the companies donated money to churches while 14% donated to schools. The most supported NGOs were those working in social services, followed by those active in the health area, and those working in the education and research field. The average value of a donation was some EUR 3,600. The study was carried out by the Association for Community Relations (ARC) on 526 companies with more than ten employees that can direct 20% of the tax on profit to non-governmental organizations, in the limit of 0.5% of their turnover. Romanian Orthodox Church records profit of EUR 3.7 mln Irina Popescu, irina.popescu@romania-insider.com