Donation law & donation receipt in the association simply explained
In addition to membership fees and sponsorship money, many clubs and associations live from donations. But what is the right way for a club to handle donations? In this article, you will find out everything that sports clubs and associations need to know about donation law and donation receipts - because there are a few pitfalls waiting for you here that you can easily overcome with a little know-how.
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What types of donations are there?
Depending on the type of donation, the procedure varies slightly – which is why a few definitions are needed first. German donation law distinguishes between four types of donations for non-profit organisations: monetary donations, in-kind donations, expense donations and remuneration donations.
- A monetary donation is, as the name suggests, a transfer of money or the handing over of cash.
- An in-kind donation refers to the donation of tangible goods, such as equipment, clothing, or furniture. In sports clubs, this can of course also include jerseys. Donating a set of kits does not mean that the club (or team) cannot choose the design themselves. In our configurator, you can get creative and design your own kit – the donor simply covers the costs afterwards. If needed, the donor’s name or logo can also be easily integrated.
- A remuneration donation refers to a donation in the form of working time provided to the club, which the working person effectively “gives away.” They waive their salary compensation and can claim this in their tax return with a donation receipt issued by the club. However, this requires that a reasonable remuneration has been contractually agreed in advance with the club and that the person only waives the payment afterwards.
- An expense donation occurs when the donor waives reimbursement for expenses incurred on behalf of the club. This may include, for example, travel by car for club purposes, telephone costs, entry or registration fees for competitions, postage, or purchasing office supplies for the club.
For an expense donation to be eligible for a donation receipt issued by the club and thus tax-deductible, the following conditions must be met:
- The donation receipt must clearly state the waiver of reimbursement for an existing claim.
- A legal entitlement to reimbursement must exist. This is either covered by the club’s statutes or agreed in a separate contract between the club and the donor.
- The waiver of reimbursement must not have been agreed in advance.
- The club must have sufficient financial resources to reimburse the expenses.
- The donor must declare the waiver in writing, voluntarily, and within three months.
Important: An expense donation requires that the entitlement to reimbursement has been legally established beforehand – for example through a board resolution or a provision in the statutes. Anyone who wants to understand which tax-free allowances apply to volunteers can find the relevant basics in the article on the Volunteer Allowance 2026 – because only those who have a verifiable claim can legally waive it and donate it afterwards.
What is the difference between small and large donations?
How should a donation receipt be recognised?
Under what conditions may the organisation issue a donation receipt?
As a non-profit organisation, you are entitled to issue your donors with a so-called donation receipt as proof of their donation. This is also known as a donation receipt or donation receipt. As a donor, you need this receipt to be able to deduct the donation from your income tax return.- Non-profit status: The association must be able to prove its non-profit status. This is done with the so-called notice of exemption, which is issued by the tax office after it has successfully checked the non-profit status. This notice of exemption must be renewed every five years.
- Correct use: The donations are used for the charitable purpose of the organisation. Exception: A donor expressly wishes their donation to be used to build up assets - in which case this is also permissible.
- Voluntariness: The donation is made without any kind of consideration from the organisation and is voluntary.
Are there any specifications as to what a donation receipt should look like?
Quite clearly: Yes! The finance ministries of the federal states provide sample templates depending on the type of donation and donor, which you must use when issuing a donation receipt. Just fill in the correct data such as the name and address of the donor, the date of the donation, the amount or value of the donation (in numbers and letters) and the reference number and date of your exemption notice.Who is liable for incorrectly used donations and incorrectly issued donation receipts?
This brings us to the last and very important question of liability. Section 10 b (4) 2nd sentence of the EStG will help you here:- Obviously, of course, the additional tax payment with a flat rate of 30 per cent of the donation amount, which was shown in the incorrect donation receipt
- possibly even the withdrawal of non-profit status
- as well as possible claims for damages and other legal consequences