Next, we will delve into some concepts that will allow you to better understand how it works.
One of the mechanisms that organizations have to finance themselves is through companies, through a donation law. This means that the organization is subject to a donation law, in order to be able to grant tax benefits to donors, in this case the company.
What is a donation?
A donation is an act by which a person, who may be natural or legal, transfers a portion of his or her assets free of charge and irrevocably to another person who accepts it . This means that the natural or legal person who is donating does not expect anything in return and, in turn, that the person who is donating does not have the right or should not request this donation back, for it to effectively be a donation. Natural or legal persons, as well as Chileans and foreigners, can donate. In other words, any person who pays taxes is subject to donation and can donate.
Donation laws arise as a mechanism that encourages private investment in projects in various areas that respond to the needs of society. The idea of donation laws is to encourage, promote and incentivize them. An organization of any nature can be covered by a certain donation law if it meets certain requirements. To give you an idea, there are many donation laws and each one of them has certain characteristics. Just because your organization is covered by a donation law does not mean you will receive money immediately. You have to go out and look for it or request it! The positive thing about donation laws is that they allow you to give a tax benefit to the person who is donating to you.
How to obtain a donation certificate?
This will depend on the law that I can adhere to as an organization, for example:
Law No. 19,885:
The standard document for the Donation Certificate under Law No. 19,885 can be found on the australia number for whatsapp Ministry of Social Development 's website . This document must be printed in carbon copy format and pre-filled (if there is more than one project covered by the Law, it is not recommended to pre-fill it). The certificates must be stamped at the Internal Revenue Service (SII), bearing the approval resolution granted by the Ministry of Social Development that was obtained at the time of entering the Donor Registry. When filling them out with the specific information for each donor, you must ensure that all the information written is legible on the 4 copies of the Certificate.
Law 3.063:
This law does not require a specific format for the Certificate, however, the Donee must propose a certificate that contains basic information about the donation such as the date, donor information (donor name, RUT, telephone number, address, business, legal representative and RUT), donation amount and donation destination. This document must be printed in carbon copy format and pre-filled.
The certificates must be stamped at the SII, carrying the approval resolution granted by the Municipality that was obtained at the time of requesting said exemption.
When filling them out with the specific information for each donor, make sure that all the information you write is legible on the 3 copies of the Certificate.