Dutch Taxpayers Benefit From Charitable Giving to CAF American Donor Fund

Dec 08, 2010, 14:20 ET from CAFAmerica, Alexandria, VA

Gifts Now Through CADF Recognized as Tax Deductible by Both US and Dutch Tax Services; New 5-Year Giving Contract Allows for More Flexibility with Personal Philanthropic Goals

ALEXANDRIA, Va., Dec. 8, 2010 /PRNewswire-USNewswire/ -- CAFAmerica announced today that Dutch taxpayers -- including Dutch workers in the US, current and former Dutch attendees of US college and institutions, and dual Dutch/US citizens -- can now make tax deductible gifts through the CAF American Donor Fund (CADF), which is recognized as a ANBI (Algemeen Nut Beogende Instelling) by Dutch tax authorities.

CADF operates as a charity in the US, the UK and Holland and gifts made to it are simultaneously tax deductible in all three countries.  Therefore, a Dutch or Dutch/US donor who pays tax in either or both the US and Holland may make a gift to CADF that will be permitted by both US and Dutch tax authorities.  CADF was recognized as an ANBI in 2009 but the service was only launched by CAFAmerica in 2010. 

This service primarily benefits Dutch taxpayer donors, which includes the Dutch expat working in the US as well as the US expat working in Holland.  However, it can also assist Dutch-only taxpayer donors who want to make a donation to a charity that is not itself an ANBI. 

Ken Poege, chartered accountant and manager of CAF American Donor Fund, said: "We are very pleased to be able to aid Dutch taxpayers. CADF is a proven cross-border grantmaking organization with a track record of more than 12 years.  We were the first organization and still the market leader in providing a workable solution for US/UK dual registered taxpayer donors.  As a member of the international CAF Group, CADF commands impressive resources and support, yet we still take a special interest to provide a personalized service to each individual donor and assist donors that have an awkward tax position to make tax effective donations to charities.  It adds value to the life of the donor and it benefits the charities we can support in their name."

CAFAmerica CEO Susan Saxon-Harrold said:  "CAFAmerica is already seeing enormous interest in the CADF Dutch service among American universities that already deal with CADF on behalf of their UK alumni, and that are knowledgeable about its ANBI status.  CADF is eager to promote the service to alumni from colleges in the US now living and working in Holland.   Our organization is poised to make these connections on behalf of interested parties."  

In addition to single gifts, Dutch taxpayer donors may also enter into a five-year giving contract with CADF, which as of 2010 operates donor advised funds allowing donors to make periodic gifts to the fund.   CADF accepts grant suggestions from its donors and then uses funds to make cash grants to approved charities around the world.  

By entering into a five-year giving contract, the Dutch taxpayer's charitable giving tax deduction is not limited to just 10 percent of taxable income.  The donor is also able to support a variety of different charities without needing to enter into a five-year giving contract with each charity, and may change from one charity to another from time to time, or build a fund without disbursing the whole or any part of it for the time being, without affecting the Dutch tax deduction.

Poege added:  "Dutch taxpayers are obliged, like US taxpayers, to make a Dutch tax return including their worldwide income.  Thus a Dutch expat working in the US may make a donation to a US 501(c) foundation and receive US tax relief.  The gift however will be disallowed for Dutch tax purposes unless the US foundation also happens to be on the ANBI list.  As Dutch tax rates are much higher than US tax rates, it is more important that the US/Dutch taxpayer donor secures the Dutch tax relief than the other way round.   A US/Dutch dual registered taxpayer donor could make gifts via CADF to ensure their giving is tax effective, and to protect and preserve a pattern of charitable giving, in both countries.   Most tax advisors agree that establishing and maintaining a pattern of behavior, even if there is no immediate tax benefit, is good practice.  It avoids difficult questions, worse yet investigations, if significant donations are only claimed sporadically."

CADF also provides solutions for US expats living and working in Holland. CAFAmerica representatives said that Europe as a whole is opening up to cross-European tax effective donations and that CADF is currently well-placed to assist US nationals working in Europe as the rules are relaxed in each country.

CADF, a member of the Charities Aid Foundation Group, is regulated by the Financial Services Authority in the UK and does not offer or give tax advice.


Charities Aid Foundation America (CAFAmerica) was founded in 1992, and is a member organization of the United Kingdom based Charities Aid Foundation international network of offices, which provides charitable financial services to individuals, global corporations, charities, and foundations.  CAFAmerica is dedicated to expanding borderless charitable giving by providing guidance and international grant making solutions for donors and charities. Together with its UK subsidiary for dual US/UK taxpayers, the CAF American Donor Fund, CAFAmerica makes over $40 million in grants a year to charities in 76 countries around the world.  CAFAmerica's range of charitable solutions include: Donor Advised Gifts, Donor Advised Funds, Matching Donor Advised Funds, Designated Funds, bequest planning and 'Friends of' Charity Funds.

SOURCE CAFAmerica, Alexandria, VA