A gift spread over a period of 5 years, in equal parts, offers optimal tax benefits. For this, you establish a (free to create) donation agreement. This gift is fully tax-deductible. In the agreement, you stipulate that you will donate the same amount with a certain regularity for at least five years. The advantage is that there is no minimum threshold of 1% of your income, and depending on your tax rate, you can receive up to 35.82% of your gift back.

What is your benefit?

Suppose you donate €100 per month. That is €1,200 per year. If you formalize this donation for a period of at least 5 years, under current legislation and with an income tax rate of 52%, it costs €576 per year net. The tax authorities pay the other €624.

How does it work?

You donate an amount to Sibusiso annually for a period of at least 5 years. Your gift is formally recorded in a donation agreement. This agreement is sufficient for the Tax Administration to make your donations fully deductible.

A standard gift agreement from the tax authorities can be found here:
Periodic gift in money agreement