Current legislation
Requesting donations from the general public is a licensed activity and is regulated in Finland by the Fundraising Act. In fundraising and other fundraising activities, non-profit organizations comply with, among other things, the Data Protection Act.
On taxation
Fundraising proceeds, or donations, are income for non-profit organizations, on which they do not pay tax. Organizations also do not pay inheritance tax on bequests. The Finnish Tax Administration provides instructions on the sales of products and services, or business activities, of organizations and the related tax consequences. The website vero.fi contains, among other things, taxation instructions for assessing the tax liability of non-profit organizations' income.
From the donor's perspective, the Tax Administration defines and provides instructions on tax deduction practices for donations. If the donation is over 850 euros, instructions can be found on the vero.fi website, including donation deductions in corporate or personal taxation. The website also provides instructions on deductibility if a company makes donations of less than 850 euros.
Necessary legislation (www.finlex.fi) and guidelines:
- Fundraising Act (Permit and notification matters www.poliisi.fi)
- lottery law
- data protection law
- consumer protection law
- association law
- Foundation Act
- different tax laws
- accounting law
Banking services and regular donations
A model mandate agreement form has been prepared with banks for fundraising organizations (in Finnish and Swedish). The mandate form is used for monthly donor payment agreements. For more information, contact your bank.