Hofmann Klafsky & Fertig advises War Child pro bono on the tax recognition of donations made to organizations in third countries.
War Child is an international expert organization that operates in 18 countries worldwide and was born out of a vision: No child should be part of a war. Never. War Child is creating a global movement for a peaceful future for children affected by war and conflict.
The deductibility of donations is generally not possible if the donation is made to an organization in a third country. A domestic corporation can use the donations it raises abroad, either by becoming active abroad itself or by passing on funds to a foreign corporation (Section 58 No. 1 General Tax Code). This does not affect its domestic charitable status and the tax deduction of its donors if it uses the funds abroad in accordance with the German charitable purposes. Compared to a direct donation to a foreign corporation, this has the significant advantage that the foreign recipient corporation does not itself have to meet the formal and material requirements of German non-profit law and the donor does not have to prove this. This is permissible because the charitable purposes of Section 52 para. 2 Gerneral Tax Code are generally formulated openly, i.e. they do not require that the donor must realize the charitable purpose in Germany. Source: Steuerliche Anerkennung grenzüberschreitender Spendenzahlungen für deutsche Steuerzwecke, Deutscher Bundestag, WD 4 – 3000 – 107/21.