Any institution cannot survive if it has no means of subsistence. The Church and Parishes are no exception. In order to maintain their activity and continue to help the community in which they operate, Parishes need human and financial resources.

In this sense, the donations that parishes receive are often the only means that helps them to remain operational. Do not forget that, just as we have to pay water, electricity and gas bills at the end of the month, Parishes also have these costs and all the rest, such as maintenance of spaces, employees, etc.

It is also important to know that in some countries there is a tax benefit that is obtained from the IRS or IRC.

In the specific case of Portugal, the tax benefits for those who donate to the Church are as follows:

IRS tax deductions
(for natural persons)

The cash donation has a tax benefit deductible at 130 % of its amount, to the collection of IRS for natural persons.  The Law is identified in Article 63 of the Tax Benefits Statute (No. 1). It falls within the scope of donations granted to churches, religious institutions, non-profit legal persons belonging to religious denominations or instituted by them.

The amount of the benefit will correspond to 25% of the donation, up to the limit of 15% of the IRS collection (whether or not it is subject to any limitation).

There are some important rules to keep in mind:

  • the tax benefit can only be deducted from the IRS collection of the year in which it is granted
  • it is only valid for natural persons residing in national territory
  • in case the donation is granted by a person who earns Category B income (corporate and professional income) and has his income determined using the rules of organized accounting, he cannot deduct the tax benefit from the IRS collection (if he has enrolled granting the donation as a cost, under penalty of doubling the benefit).

You can consult the article on here.

IRC tax deductions
(for companies)

The cash donation has a tax deductible benefit of 150% on the company's IRC. The Law is identified in Article 62 of the Tax Benefits Statute (No. 5), approved by Decree-Law No. 215/89, of 1 July.

Donations are carried at costs or losses for the year, up to the limit of 8/1000 of the volume of sales or services provided, in an amount corresponding to 150% of the respective total. This is because they are intended for support, reception, social assistance and referral of children born in risk situations or victims of abandonment (nº 5 of the same article identified above).

You can consult the article on here.

It is important to know that in helping the Parishes or IPSS, in addition to enabling them to continue with their mission so important in today's society, we are at the same time having a tax benefit both at an individual and business level, when they are donations made by companies.

 

At Kyrios ChMS, issuing a Donation is very simple. To demonstrate, here are the steps to follow:

  1. First you must access the Treasury -> Documents module and click on
  2. The form for creating a new document will open. Here we must fill in according to the following indications:
    1. Type - you must select the type of document, which can be Receipt, Donation, Debt Note, ..., in this case we will select Donation;
    2. Description - we must add a description about the purpose of the donation. In this case, we put “Donation for works in the Parish”;
    3. Entity - we need to select the entity to whom to issue the Donation. If it already exists, we select it in the magnifying glass, otherwise we click on the + button and create a new entity. Please note that, for donations, it is mandatory to have the taxpayer number, otherwise the entity will not have the tax benefit;
    4. Emolument - finally you must select which emolument (you must select a donation type emolument or others) and then fill in the donation amount.
    5. In order to complete the form, click save.
  3. After the saving process is complete, the donation appears in editing mode and it is now that you have the pdf document available to be able to print or save and send by email to the entity that made the donation. To open the pdf, click on document:
  4. The donation document looks like this (must be delivered to the entity that made the donation):

As a concluding note, it is important to realize that the institutions that help the community and that are at their service need means of subsistence and at this point we all can and must help. And don't forget that, in helping, you will also benefit from a tax benefit, whether you are a natural person or a legal person.

 

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