Lithuanian 2% for charity

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Lithuanian 2 for charity

• Latest developments
• by Vaidotas Ilgius, NISC

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Little history on Lithuanian 2 for charity

• Year 2004 first year when Lithuanian private
  income tax payers might designate up to 2 of
  their paid tax to their chosen public benefit
  institution
• This is possible to do along with private income
  declaration that takes place January 1 May 1
  every year
• Tax payers might choose either supporting NGO or
  governmental agency (e.g., school, hospital,
  theatre)
• Exact number of potential recipients is unknown
• Preliminary sympathies where as follows (2003)

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How the 2 campaign went

• There was confusion about Charity number
• After 1 July all NGOs must obtain status of
  charitable organisation to receive donation and
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• This rule is not applicable to churches and
  governmental agencies
• Main form of marketing distribution of
  exemplary form indicating organisations data to
  clients and friends
• Only few NGOs used media advertisement (Caritas,
  UNICEF, SOS-kindergardens, few youth
  organisations, regional NGO centres)

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How the 2 campaign went

• NGOs have no privilege to receive 2
• There were complains regarding unequal
  competition, employers pressure on employees and
  on clients
• No results to judge the efficiency of chosen
  method
• There was good deal of information about 2
  thanks to tax authorities, philanthropy portal,
  posters, and media interest

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2 forecast (February 2004)

• Opinion poll on 2 results showed
• 58,2 said they no nothing about 2 possibility
• 15,5 said they will give their 2
• 23,9 said they will not
• 2,4 hadnt made their minds yet.
• Respondents who planed to support earn average
  and higher salaries
• 33 of supporters earn 232-290 a month and
• 39 - above 290
• National average is app. 319 gross monthly
  salary.

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2 forecast (February 2004)

• 27,9 will choose supporting public schools,
• 9,3 - high schools, universities,
• 9,1 - kindergartens,
• 6,5 - other governmental agencies.
• 16,3 will support foundations,
• 12,9 - associations,
• 6,5 - churches and religious groups.
• Governmental sector vs private non profit sector
  
• 52,8 35,7

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2 results for 2004

• 380 000 individuals declared their incomes
• 227 000 individuals designated their 2 (20,6 of
  those who had such right) -
• Official announcement made at June 2004
• (September 2004) this figure raised up to 310 000
  (?)
• Equivalent of 28 of all
• 2 were given closely to deadline (96 000 income
  declarations by April 21)
• E-declaration proofed to be useful
• Estimated amount is 20 million LTL ( 5.8
  million)
• Estimated forecast varied - 14-15.4 million

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2 campaign-2004 - final remarks

• Lithuania doesnt have private donors regular
  income tax deduction
• 2 for charity recipients shall receive their
  share before November 15th, 2004
• There is some promise to produce special official
  report of 2
• 2 impact of tax incentives for NGOs and overall
  NGO development policies will be clear only at
  year 2006 (elections, late statistic
  calculations)
• ready to take your questions and comments
• www.nisc.lt and www.labdara-parama.lt

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Thank you for your attention!

• ilgius_at_delfi.lt
• ?