Deduction of donations

🎁 Donation deduction: what you can really deduct from your tax in Switzerland

Making a donation is an act of solidarity... but it's also a legally recognised way of reducing your tax burden. In Switzerland, donations to certain organisations can be deducted from your taxable income, provided you meet strict criteria. Here's everything you need to know to take full advantage of this possibility.

✅ General conditions for deducting a donation

You can claim a tax deduction for your donations if the following conditions are met:

  1. The donation is made to a legal entity (organisation, foundation, association), not a natural person

  2. This entity must be tax-exempt because of its public utility or public service purpose

  3. The total amount of donations must be at least CHF 100 per tax year (federal threshold)

📉 Deduction limit

At federal level, you can deduct up to 20% of your net taxable income.
At cantonal level, this ceiling may vary. Some cantons limit the deduction to 10%, others adopt the federal threshold of 20%, or even set no ceiling at all

💡 Example: if your net taxable income is CHF 100,000 and you make a donation of CHF 5,000 to a recognised charitable foundation, you will in principle be able to deduct the entire donation at federal level, and probably also at cantonal level, depending on where you live

📌 What does "charitable purpose" mean?

The following are considered to have a public benefit purpose:

  • Humanitarian organisations

  • Cultural, social, environmental or educational foundations (if recognised by the authorities)

  • recognised charitable, sporting or medical associations

  • Tax-exempt religious institutions

❌ Non-deductible donations

Not all donations are eligible for a tax deduction, even if they are well-intentioned. Here's what's not deductible:

  • Donations made to individuals (friends, neighbours, family members)

  • Donations to associations that are not recognised as being in the public interest

  • Donations to cultural organisations without explicit tax exemption

  • Membership subscriptions, unless they are recognised as donations

  • Services or support ticket purchases (e.g. charity shows)

⚠️ Please note: donations to cultural organisations are only tax-deductible if they are explicitly tax-exempt for charitable purposes. A simple cultural activity is not enough

🧾 Evidence and supporting documents

To be accepted by the tax authorities, a donation must be supported by :

  • An official certificate from the beneficiary organisation stating the amount and date

  • Full details of the entity

  • Proof of payment (bank transfer, payment slip, etc.)

Cash donations are more difficult to prove and may be refused without formal proof.

🏘️ Cantonal differences

The cantons apply similar rules, but with some specific features

Vaud: 20% ceiling, in line with federal law; official recognition of the organisation is required
Geneva: accepts donations to international foundations if they have a branch in Switzerland and are tax-exempt
Fribourg: certain local social activities are favoured, particularly for local associations
Zurich: strict application of the legal framework, donations must be made to organisations expressly included in the list of recognised beneficiaries

📚 Concrete example

Marie, a resident of Lausanne, has a net taxable income of CHF 90,000. In 2024, she makes the following donations:

  • CHF 1,000 to the Swiss Red Cross (exempt)

  • CHF 500 to a local private art school (not recognised)

  • CHF 2,000 to a Swiss foundation for medical research (exempt)

Only donations to the Red Cross and the medical foundation are deductible, i.e. CHF 3,000. As the art school does not benefit from a recognised tax exemption, its donation is excluded from the deduction.

✅ Conclusion

Making donations not only helps to support important causes, but also reduces your tax burden, provided you comply with the legal criteria. The ceiling of 20% of net taxable income provides an attractive margin for committed taxpayers. To optimise your tax returns and avoid unpleasant surprises, make sure you keep all your supporting documents and check that the beneficiary organisation is indeed exempt from tax for charitable purposes.

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