Tax incentives for philanthropy in the Czech Republic

This thesis is focused on tax incentive on philanthropic giving by individuals in the Czech Republic in the form of deduction pursuant to § 15 para. 1 of Act no. 586/1992, Sb. The goal of the thesis is to analyze an influence of this tax incentive on the philanthropic giving by individuals in the Czech Republic. This analysis is based on primary data from my survey conducted. Approximately 45 % from the group of donors who had the opportunity to use the tax incentive in 2020 applied this deduction from the personal income tax base. Most donors are not influenced by the tax incentive in their decision making whether provide a gift or not, and in the value of the gift either. In my analysis, I have used a chi-square test for proving the dependence between the use of tax deduction and the value of the gift (strength of dependence 42,82 %), respectively stated frequency of giving (strength of dependence 27,74 %). Based on the analysis conducted, it can be assumed that the possibility of deducting a gift from the tax base does not significantly affect taxpayers and individuals are rather driven, in the case of donation, by altruistic motives. However due to the deduction in my survey, one third of respondents increased the amount donated. Conversely increasing of the upper limit does not seem to have an influence for individuals, in my sample, to raise the value of the gift. Instead of increasing the upper limit, should the tax support for individual donation lead to supporting long-term and regular donations.