European operations

[Guest]

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[dtatti]

I am an enthusiastic user of Kiva since a few months. I saw that Kiva is almost global for what concerns microcredit, but less so in other ways. For example, tax deductability is very US-centred.

I know that tax legislation is typically a matter that each State like to treat its own way. But I recently read that the European Court of Justice has stated that donations made by a citizen of one EU member State to an organisation in another EU member State is deductible as if it were made in the same (http://curia.europa.eu/en/actu/communiques/cp09/aff/cp090005en.pdf).

I am not an expert but it could be possible for Kiva to chose the most favorable EU country and establish some sort of European operation there and give all its European lenders the possibility to deduct their donations.
   
Daniel

[wthepoo]

Hi Daniel,

and welcome to KF.

Thank you for the link - I think the ECJ is correct (and even more, its judgment should be basically binding).

There might even be a "cheaper"/"simpler" way for Kiva by partnering up with a European charity collecting donations on behalf of Kiva (and possibly Kiva for them in the USA), though I'm not absolutely sure whether this could possibly cause problems with regard to deductibility (or the possibility to apply for Gift Aid in the UK etc.). Here's an earlier answer of mine briefly touching on that question: http://www.kivafriends.org/index.php/topic,3276.msg55254.html#msg55254

I fear Europe isn't very high on Kiva's priority list, though - they have mentioned once or twice that Canada will likely come first.

Best wishes,
Wolfgang.