Tax benefit: two examples
- The Van der Hoeven family has donated to the UF/e for years. Each year, the couple donates €75. This year, they decide to draft an agreement with the UF/e. For the next five years, the couple will make annual donations of €150, so twice the amount of their original donation. On the annual tax return, the couple falls into the 42% bracket for income taxes, and they receive an annual tax return of €42. Now they will pay only €12 more per year, net, while the UF/e receives an additional €75 of support.
- The Van de Biggenlaar family makes an annual donation of €100 to the UF/e. They also draft an agreement with the UF/e and agree to make annual donations of €200 for the next five years. The couple falls into the 52% bracket for income taxes. They now receive an annual tax return of €104. The Van de Biggenlaar family’s net donation is now €96 per year (less than before!), while the UF/e receives twice as much support.