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Solidarity Donations: Discover the Tax Benefits and How You Can Support Portugal's Social Innovation Projects through CSR with VIVA Lab Porto

In a world where the need for sustainable development and community support is ever-growing, the act of giving takes on new dimensions. Solidarity donations, beyond their intrinsic value of generosity, open up a realm of mutual benefits — for the donor, the recipient, and society at large. VIVA Lab Porto stands at the forefront of this movement, channeling contributions into impactful social innovation projects that foster community welfare and environmental sustainability. This blog dives into the essence of solidarity donations, their legal framework, fiscal incentives, and how contributing to causes like VIVA Lab Porto can create lasting change.

What Are Solidarity Donations?

Defined in Section XI, Chapter II of the Portuguese Civil Code, specifically in article 940, a donation is legally recognized as a contract where one person willingly disposes of something, a right, or assumes an obligation for the benefit of another without expecting anything in return. Donations can take various forms, including monetary contributions, goods, rights cession, among others, but cannot encompass future assets. For immovable property donations to be valid, a public deed or a certified private document is necessary.

Regarding the beneficiaries of a donation, the law is broad yet clear: anyone not legally prohibited can receive donations. However, the concept of solidarity donations is more specific, targeting contributions made to support social causes and initiatives.

Keeping Proof of Your Donation: A Must for Tax Benefits

An essential aspect of making solidarity donations is retaining proof of the donation if you wish to enjoy the associated tax benefits. The type of proof isn't always specific, but institutions receiving monetary donations should issue a receipt indicating the value received as a donation. For donations made through bank transfers, ATMs, or direct debits, keeping the payment slip or proof is sufficient.

Losing this proof and failing to secure a duplicate means missing out on the tax deduction opportunity in the next year's IRS (Income Tax Return).

Annual Solidarity Donations: What Tax Benefits Can You Expect?

Engaging in annual solidarity donations not only supports vital causes but also offers fiscal advantages. By keeping donation proofs, you can deduct 25% of the donated amount to social institutions, with a cap at 15% of the tax collection for entities outside the state sector. Donations to state entities are not subject to a maximum limit.

In practical terms, these deductions contribute to a higher IRS refund or a reduction in your tax liability, enabling more significant support to your chosen causes without burdening your finances.

How to Declare a Donation on Your IRS?

Declaring donations on your IRS is straightforward. These expenses should be reported in Annex H, box 6B of your tax return. It's crucial to consult the Annex H instructions to determine the appropriate code for your donation type.

Remember, donations made in a given year are deductible in the following year's tax return. For instance, a donation made in 2020 is deductible in the 2021 tax return.

VIVA Lab Porto: Amplifying the Impact of Your Solidarity Donations

VIVA Lab Porto embodies the spirit of social innovation, leveraging solidarity donations to tackle pressing community and environmental challenges. By supporting VIVA Lab, donors not only benefit from fiscal incentives but also contribute to a broader mission of fostering sustainable development, education, and social welfare.

Empowering Communities

Your donations help VIVA Lab implement projects that empower local communities, providing them with the tools and knowledge to improve their living conditions sustainably. From educational programs to initiatives aimed at improving the well-being, your support makes a tangible difference.

Championing Environmental Sustainability

VIVA Lab's commitment to the environment translates

into projects focusing on renewable energy, waste

reduction, and conservation. By contributing, you're

directly supporting efforts to combat climate change

and promote a healthier planet.

By supporting us you will be able to be closer to

achieve your target for ... Carbon credits...

How Your Support Helps

Every donation to VIVA Lab Porto not only enjoys the benefit of tax deductions but also contributes to a cycle of positive change. Here's how your support helps:

  • Innovation in Education: Funding goes into educational initiatives that equip young minds with the skills to lead sustainable futures.

  • Access to Digital Fabrication Tools: Projects aimed at improving access to the 21st century tools and promoting the use of innovative machines to solve local problems, especially in underserved communities.

  • Environmental Projects: Your donations support initiatives in renewable energy, waste management, and conservation efforts.

  • Creating solutions for local problems: Covid-19 PPE, Sensorial Table for people with cerebral palsy, empowerment and sustainability projects in suburban migrants communities with Aga Khan.

Joining Forces for a Better Tomorrow

VIVA Lab Porto invites you to be part of a transformative journey. Your solidarity donations, coupled with the fiscal benefits they offer, present an opportunity to contribute meaningfully to societal progress and environmental preservation. By supporting VIVA Lab, you're investing in a future where communities thrive in harmony with their environment. As we navigate the challenges of the present, the role of each contribution becomes ever more crucial in building a sustainable and equitable future. Join us in this mission, and let's create lasting impact together.


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