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The Cost of Generosity: How New Regulations Threaten Philanthropy in the Netherlands Back

The Cost of Generosity: How New Regulations Threaten Philanthropy in the Netherlands

15 Jan 2025

Philanthropy has long played a vital role in supporting civil society, from funding mental health initiatives to fostering cultural development. But new Dutch regulations may stifle this lifeline. As highlighted by Rien van Gendt—former board member of the European Cultural Foundation and author of Philanthropy Back to the Drawing Board— in Het Financieele Dagblad, a 31% tax on corporate donations over €100,000 could dramatically reduce the flow of much-needed funding to social causes.

Imagine a company wanting to donate €2 million to support youth mental health. Under these rules, €620,000 must first go to taxes, leaving far less for the intended cause. Such policies could deter businesses from contributing, creating a ripple effect of reduced funding for critical initiatives. The result? Increased inequality, fewer innovative projects like Patagonia’s “well-steward ownership,” and a weakened civil society.

Van Gendt emphasises that these “fines” undermine the philanthropic sector and the broader public interest. With corporate donations contributing €1.8 billion to social causes in 2022 alone, the potential loss is staggering. Alarmingly, the Netherlands now ranks as the least donor-friendly country in Europe, according to Philea, a leading umbrella organisation for European foundations.

Read Rien van Gendt’s original, full analysis (in Dutch) on this critical issue here.

Photo by Marcel Strauß on Unsplash

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