Did you know that in Slovakia, year after year, more and more taxpayers (employees, entrepreneurs, volunteers) donate 2% of their taxes to organizations eligible to receive them?
This sounds like good news, but on the other hand, there are hundreds of thousands of Slovaks (taxpayers) who do not take advantage of this right to donate, and that’s unfortunate.
Why do we struggle to donate 2% of our taxes?
Thousands of organizations, which we often don’t notice in our daily lives, silently and within their capacity replace many functions of the state. Every day, we witness challenges in social services, healthcare, sports, culture, and education—precisely the areas where these associations, foundations, clubs, and nonprofits are fighting on our behalf, with thousands of people across Slovakia voluntarily contributing to their operations.
As a result, millions of euros from people who either lack sufficient information or simply can’t be bothered flow back into the state budget. This creates a vicious cycle where things around us either don’t work or improve at a slow pace.
We often hear three arguments for not donating 2%:
- I don’t know how to do it.
- I don’t have time.
- I can’t afford it.
Here’s our response to each:
Donating 2% of your taxes involves five simple steps and takes no more than 15 minutes of your time. You will pay this money to the state regardless; it’s up to you to decide where a portion of it goes and whom you want to support.
Politicians aren’t helping
It’s frustrating to watch some politicians try to reduce the 2% or introduce laws that complicate the donation process. The tax burden in Slovakia is already one of the highest in the EU.
Some sports clubs, hobby groups, civic associations, and nonprofits exist solely because they can obtain funds from the 2% tax designation. Many children get the chance to engage in meaningful activities, and other programs benefit senior citizens. The state simply wouldn’t provide these services—it lacks the personnel, skills, and the funding would always go toward something deemed “more important.”
Therefore, instead of making the process harder, it would be more beneficial to think about increasing the percentage of taxes allocated and giving people in beneficial organizations more options to decide how to use these funds.
Who benefited from nearly 70 million euros in 2018?
As a nonprofit organization that fights the aforementioned battles every day, we can tell you that the majority of these donations go to the largest foundations, while thousands of smaller ones, which also do highly beneficial and charitable work, remain in the background. They don’t have the resources to invest in advertising like the big corporations.
This is evident from the yearly lists of tax share recipients published by the financial administration.
We don’t mean to suggest that these large organizations shouldn’t receive funds or that they do less valuable work. The issue is that it’s a completely different kind of support when your account receives 2 million euros versus 500 euros.
So, if you’re approached next time to donate 2% of your taxes, know that for that particular organization, your donation is crucial.
Debunking three myths about donating 2% of your taxes
Myth 1: “The organization’s owner will buy a house or car with the money.”
Legislation is clear: Recipients can only use the tax portion for purposes related to their mission, such as:
- Health protection and support; prevention, treatment, and rehabilitation of drug addicts in healthcare and social services.
- Support for sports involving children, youth, and disabled citizens.
- Providing social assistance.
- Preserving cultural values.
- Supporting education.
- Protecting human rights.
- Environmental protection and creation.
- Supporting physical culture
- and the development of science and research.
There’s very little room for misappropriation.
Myth 2: “Fraudsters are thriving, and the state doesn’t care about rules.”
Yes, there are people who exploit the system in Slovakia.
The rules for the 2% designation are strict:
- If an organization receives more than 3,320 euros from the 2% tax,
they are required to publish a detailed breakdown of how the funds were used in the Commercial Bulletin.
- If an organization receives more than 33,000 euros, they must create a special account solely for these funds.
If they don’t spend the funds by the end of the following year, they must return them.
Myth 3: “Organizations do nothing; they just take the money.”
Not all organizations are perfect. Before donating your 2%, take the time to review the organization’s activities.
Check their press releases, website, social media, etc., to ensure your donation will have a real impact and won’t be misused.
What to look for when choosing an organization to donate 2% of your taxes?
1. Active Organization:
An organization that is actively helping others and regularly informs the public about its activities through its website, social media, and press releases.
Our organization hosts an annual event for children and families called PIEROTT DAY, filled with a rich program and entertainment. We also launch various initiatives where we provide help at the start of the school year or during Christmas, and we regularly update our supporters about our activities through a printed newsletter.
You can find all our events on the Activities page.
2. References:
Check who is talking about the organization and whether it is supported publicly. Look for testimonials from people who know the organization personally.
Our efforts have been supported by several well-known personalities, such as hockey player Rasťo Staňa, TV host Binďo, and actors from the Radošinské Naive Theater.
We also collaborate with people in our community who know us personally and have experience with our work.
You can find their references on our website under the section Supporters.
3. Real Help to Real People:
Personal contact with beneficiaries allows us to better understand how to help effectively.
A good heart and willingness to help can be taken advantage of. That’s why we carefully verify requests for support. Personal contact allows us to better understand what kind of assistance will be most effective.
In our organization, Pierott, we primarily help children. You can follow the impact of our work on our blog, in who we help section, and facebook, youtube and other social media.
How to donate 2% of your taxes?
The process slightly differs based on whether you’re an individual or a company, but the basic steps are:
Choose an organization to donate to.
The nonprofit organization Pierott is officially registered in the notary registry.
Calculate the sum you can donate
(Tax Amount / 100) x 2.
Fill out the donation form.
Don’t forget for your personal details and those of the recipient.
Submit the form to the tax office.
Tax office in your place of residence or business.
After processing, the money is sent.
And you’ve done a good deed.
Have you made your decision?
A detailed guide on how to donate 2% of your taxes, whether you are an individual or a legal entity, can be found on our website.
If you’re considering where to donate your 2%, we would be grateful if you chose our organization PIEROTT.
We’ve already helped 400 children across 21 districts in Slovakia.
Our activities are transparent, efficient, and monitored.
With your support we can help even more.
Ďakujeme
