Posted on 14th May 2009
Donors in the UK and eleven other countries can now give to Italian charities tax efficiently.
And, Italian donors will be able to make tax efficient gifts to those countries, now that Italy has joined the Transnational Giving Europe (TGE) network.
Luxembourg is also expected to join the network soon. TGE allows donors in 13 countries across Europe, including the UK, to make tax-efficient gifts to any charities in any other member country, including France, Spain and Hungary. Partnering foundations in each country facilitate the international gifts.
The amount of money distributed through the TGE network grew from €900,000 (£810,000) in 2006 to €2m (£1.8m) in 2007 as the number of countries expanded from five to seven. By 2008 13 countries were part of the network and €3.2m (£2.9m) was distributed.
Ludwig Forrest, Philanthropy Advisor at the King Baudouin Foundation in Belgium and Chair of the TGE network, said the expansion was very welcome and that TGE planned to grow to other countries in Europe.
“The growing number of donors and beneficiaries that are aware of TGE is a vital part of the expansion of the network,” Forrest said. “TGE will show its full potential when extended to most of the EU member countries.”
The recent ruling in the case of Hein Persche v Finanzamt Lüdenscheid (C318/07) at the European Court of Justice brought the possibility of tax-efficient giving across borders in the EU closer.
Forrest said, “We welcome the judgement. It will be a good thing if followed by positive practical developments.”
Only Germany will have to amend its tax laws immediately although other countries, such as the UK, are in conflict with the EC Treaty, which means that the European Commission may now ask other EU countries to review their legislation.
However, TGE does offer a solution for tax-efficient cross border giving in Europe that is expanding. Forrest says, “I’m positive about the possibility of growth in 2009. Maybe the gifts will be smaller because of the financial crisis but there will be more donors and beneficiaries using TGE.”
More information is available on the new TGE website. The Charities Aid Foundation (CAF) is the UK member of the TGE network.
