Cross-Border Charitable and Other Pro Bono Contributions: The Situation in Europe and the US

The number and relevance of non-profit organizations (NPO) are growing significantly. This is true for many European Member States as well as for the US. With regard to their activities, an increasing number of cross-border situations arise. Income is generated in different countries by fundraising in by pursuing economic aims. Likewise, income is spent in several countries to support public benefit. As many countries grant tax privileges to NPO and tax incentives to donors, the question of the way in which income of non-resident NPO should be taxed has to be answered. In addition, the tax deductibility of contributions to such foreign NPO has to be discussed. The annual congress of the International Fiscal Association (IFA) 2012 in Boston presented a suspenseful seminar on this topic offering the opportunity for intensive debates.(1) This article compares the basics of the tax treatment of NPO in Europe and the US in due consideration of these discussions as well as of the lessons learned by the research project recently completed by the European Association of Tax Law Professors (EATLP).