Donation possibilities company

How?

Regular donations are easily recorded in an agreement. UF/e has its own model agreement for regular donations, which makes it easy to conclude the agreement!

In the agreement you determine the amount that your company donates annually to UF/e and when the annual donation stops (no later than upon your death). You are free to decide whether to pay the annual amount in one or more instalments.

Advantages

• You will contribute to scientific education and research in the field of innovative technologies.
• Long-term contribution to UF/e objectives and ensuring continuity of education and research TU/e
• A (partial) tax deduction of the profit of your company is possible.
• UF/e does not have to pay any gift tax on your donation, so that your contribution will be utilized in full.
• Limited administrative burden if you use the regular donation agreement of UF/e

Calculation example if you are a taxpayer in the Netherlands

• Your operating profit amounts to € 10,000,000
• Your company makes an annual donation of € 120,000 for a period of 5 years (total: € 600,000).
  • If your gift serves the business interests of your company (e.g. in the context of corporate social responsibility), your annual gift is fully deductible from the profit each year. The total tax benefit amounts to € 130,860*. Your gift costs € 469,140 net.
  • If your donation does not serve the business interests of your company, your deduction will be a maximum of 50% of the taxable profit, with a maximum of € 100,000 per year. The total tax benefit of a non-business gift is then € 109,050* . Your gift costs € 490,950 net.

Regular donation agreement

* Assuming the highest current corporate tax rate of 25% in the Netherlands. The maximum rate of corporation tax will be reduced in the coming years to 20.50% in 2021. This has been taken into account in the calculation.

How?

A one-off donation is very simple because it is not subject to any regulations.

UF/e makes it easy for you. A one-time donation can already be made by means of:

• A donation via our online donation module; or
• The transfer of an amount to account number: NL93RABO0101061226 in the name of Stichting Universiteitsfonds Eindhoven.

Advantages

• Your company contributes to scientific education and research in the field of innovative technology
• A (partial) tax deduction of the profit of your company is possible.
• Your donation is fully utilized because UF/e does not have to pay gift tax.
• Simple and hardly any administrative burden

Calculation example

Your operating profit amounts to € 10,000,000

You make a gift of € 600,000. If your gift serves the business interest of your company (e.g. in the context of corporate social responsibility), your gift is fully deductible from the taxable profit. The tax benefit amounts to € 150,000*. Your gift costs € 450,000 net. o If your gift does not serve the business interest of your company, your deduction will be a maximum of 50% of the taxable profit, with a maximum of € 100,000 per year. The tax benefit of a non-business gift is then € 25,000*. Your gift costs € 575,000 net.

* Assuming the highest current corporate tax rate of 25% in the Netherlands. The maximum rate of corporation tax will be reduced in the coming years to 20.50% in 2021.

How?

Your company can set up a named fund. The named fund is a donation to the 'main fund' UF/e and has a specific objective. This objective must fit within the objective of UF/e. UF/e applies a lower limit of € 50,000 for registered funds.

Your company can determine a number of things:

• The name of the fund;
• The UF/e related objective;
• The qualification of the fund as an endowment or non-endowment fund (or an intermediate variant);
• The amount of money the fund spends.

UF/e then ensures that the money in the fund is spent in the name of the specific purpose and takes care of the financial administration. UF/e has a model agreement and a checklist to determine the terms and conditions of the fund.

Endowment vs. non-endowment

If your company prefers a named endowment fund, the donated capital of the named fund must be maintained. This is called seed capital. Under this variant, only the return on capital may be spent within the framework of the objective of UF/e.

In the case of a non-endowment named fund, both the capital and the return on it may be spent within the framework of UF/e.

Intermediate variants are also possible, e.g. a variant in which only part of the capital is classified as endowment capital. How this is arranged depends on the wishes of your company and is therefore fully flexible.

Advantages for the donor

• Your company contributes to scientific education and research in the field of innovative technology
• Your company offers structural financial support
• Your company can make targeted donations and has control over the use of your donation.
• The named fund is easy to set up
• The administrative and organizational burden is limited
• Your company will benefit from UF/e's knowledge and experience in the management and use of funds, for which only a very small fee is payable to the UF/e.
• A (partial) tax deduction of the profit of your company is possible.
• UF/e does not have to pay gift tax on your donation