1. What is the TGE?
In order to promote and facilitate transnational donations, major European foundations and associations have created the "Transnational Giving Europe" network (TGE). The network was created in 1999.
2. What are the benefits of the TGE?
This unique network represents the opportunity to safely give to officially recognised non-profit organisations based in another TGE country than the donor's country of residence, while benefitting from a tax deduction according to the dispositions of their domestic law. It is also a very simple way for non profit organisations to allow foreign donors to support them with tax benefits.
3. What countries take part in the TGE?
The TGE network is actually covering following 15 countries: Germany, Belgium, Bulgaria, France, Hungary, Ireland, Italy, the Netherlands, Poland, Romania, the United Kingdom, Slovakia, Slovenia, Luxembourg and Switzerland.
The network is trying to extend to new countries and will warmly welcome new members from not covered yet countries.
4. What are the advantages of TGE for a beneficiary?
By providing a secured and tax-effective cross-border giving framework, TGE throws a bridge between your organisation and prospective donors abroad. Receiving tax-free contributions from foreign donors, appealing to expatriates, approaching global partners such as multinational corporations, benefiting from borderless interest in your cause or capitalising on global exposure offered by Internet is within arm’s reach. The TGE network does not raise money on behalf of your organisation, but enables you to make the most of fundraising opportunities available to your organisation in as many as possible European countries.
As you understand, TGE is a very simple alternative to establishing a legal structure in each of the different European countries where donors from an organisation do reside.
5. How does the TGE work?
Two situations shall be distinguished:
(a) a donor wishes to make a donation to a European organisation based in another European country, or
(b) a European organisation having donors in different European countries wants to address them.
(a) How can I make a donation from one country to a European organisation based in another European country covered by the TGE network?
> Step 1: Contact the organisation
First and foremost, the donor has to contact the recipient non-profit organisation to make sure it is affiliated to the TGE network.
> Steps 2 and 3: Accession of the organisation to the TGE network
If the recipient organisation is not yet affiliated to the TGE, it has to follow the application process (see question 6).
> Step 4: Donation by bank transfer
The donor, contacts his national TGE partner in order to collect the necessary information to complete his/her/its donation by bank transfer.
The donor has to make sure that the order of transfer mentions (i) the donor's name, (ii) the donor's residence address (to receive the donation certificate required to benefit from the tax deduction), and (iii) the recipient organisation's name.
> Step 5: Donation transfer
Following the receipt of the donation and according to agreements between the different parties, the TGE partner carries out the transfer to the beneficiary, minus the operating costs.
> Step 6: Donation certificate
In February of the year following the donation (or sooner if the donor requests it), the donor receives a donation certificate which he/she/it can include in his/her/its tax filing in order to benefit from the tax deduction allowed under the laws of his/her/its canton of domicile.
(b) How can a European organisation receive tax deductible donations form donors based in different European countries covered by TGE?
> Step 1: Accession of the organisation to the TGE network
If the recipient organisation is not yet affiliated to the TGE, it has to follow the simple application process (see question 6).
> Steps 2 : Alerting the relevant other TGE members.
If the recipient organisation is accepted, contacts will be made with the relevant TGE members to inform them donations will/could come for the organisation. Relevant bank details will be given to the organisation for each country to allow them to start communication with their donors.
> Step 3: Donation transfer
Each TGE partner will transfer within agreed periods received donations minus the operating costs to the organisation together with a list of donors.
> Step 4: Donation certificate
The TGE partner foundation issues a donation certificate and sends it to the donors in accordance with the laws of its country.
6. How can an organisation benefit from the advantages of the TGE network?
Any organisation legally recognized of public interest (non-profit) and wishing to benefit from donations through the TGE network has to submit an application to its country's TGE partner foundation.
The organisation is asked to complete a questionnaire (the "Grant Eligibility Application" form or "GEA") and to attach several documents (the organisation's by-laws, the latest financial report, the latest financial audit, the proof of its tax exemption, etc.).
The documents submitted by the candidate organisation are analyzed by its country's TGE partner foundation. If the organisation is accepted, the TGE partner foundation passes on its file to the TGE partner foundations mentioned in the organisation's GEA in order to receive their approval. Overall, the procedure can last from two to four weeks.
7. What type of donations can be made through the TGE?
Currently, the TGE network deals exclusively with monetary donations. Donations in kind, including movable or immovable assets, are not accepted.
For other kinds of cross-border donations, national TGE partners will be happy to help.
8. What are the operational costs of the network?
Currently, the TGE network deals exclusively with monetary donations. Donations in kind, including movable or immovable assets, are not accepted. For other kinds of cross-border donations, national TGE partners will be happy to help.
The TGE network applies operational costs to cover its administrative costs.
The costs deducted from the donation amount is 5% up to 50,000 Euros (or the equivalent in another currency) and 1% above this amount.
The amount deducted is, however, capped at a maximum of 6,500 Euros, regardless of the amount of the donation.
Please note that these costs are also used to help the TGE network to find new partners to increase tax effective giving in all member states of the EU as well as to gather and provide relevant information to stakeholders on this important cross-border giving issue.
9. Is there a minimum amount for a donation?
In most countries, there is no minimum amount per donation. However, since some partners have to propose such a minimum and that this amount varies depending on the country, we would advise you to contact the relevant TGE partner directly.