Civil society lost around 200,000 donors in the 1% tax scheme – we explored the reasons

20/10/2022

This year, the number of taxpayers who named an NGO to receive 1% of their income tax dropped by more than 200 000 compared to the previous year. What is a good strategy for reaching potential donors?

Every year, you can decide to which NGO the tax authority (NAV) will transfer 1% of your income tax paid. The proportion of those who name an NGO is higher among high-income people, but on average only one in three taxpayers makes use of this option. Since 2011, high-income taxpayers have been paying much less personal income tax than before, saving at least half a million forints for those earning over 8 million gross per year.

Why has the number of donors fallen this year? What can NGOs do? What is a good strategy to reach potential donors? Ágota Scharle explored the reasons and remedies with experts of the NIOK Foundation in their podcast (in Hungarian) of October 2022.