.png)
Last updated: June 2026. This article was originally published in 2024 and has been revised to reflect the rules in effect for the 2026 tax year. The most significant changes since the first version are: the Danish annual limit has increased to DKK 20,000, Sweden has introduced a completely new tax relief for corporate donations, and the planned expansion in Finland has been postponed to 2027 and broadened. See the "What's Changing Next" section at the end for reforms that are still under discussion.
In the world of charitable giving, the Nordic countries – Denmark, Finland, Sweden, Norway, and Iceland – have much in common, but each pursues its own approach to fundraising and philanthropy. While they share a common basic logic regarding tax deductibility, each country has developed its own framework that reflects its particular social values and priorities.
Since we at BetterNow have always strived to support these tax deductibility models in every possible way – through individual reports as well as the secure recording and storage of personal identification numbers – this article is based on our research, which we would like to share with a wider public.
In this comparison, we highlight the differences and similarities between the tax models of the five countries. All emphasize a streamlined and efficient process – both for donors and for the organizations – but differ in individual rules, deduction limits, and the requirements for non-profit organizations.
Our analysis not only compares these Nordic models with each other, but also briefly contrasts them with the better-known systems in the United Kingdom and the USA.
In the Nordic countries – Denmark, Finland, Sweden, Norway and Iceland – the approach to the tax deductibility of donations differs somewhat from what many international readers may be familiar with, especially from the United Kingdom or the USA.
Under the Nordic model, when a private individual or company makes a donation, it is often the responsibility of the charitable organization, not the donor, to report the donation to the tax authorities. This system significantly reduces the administrative burden for donors and ensures a streamlined process with less room for fraud. The donor typically only needs to provide their personal identification number at the time of the donation so that the organization can report it correctly.
Each Nordic country has its own rules regarding the maximum deductible amount and which types of organizations qualify for these deductions. The requirements for recognized organizations typically include registration and accreditation with the respective tax authority and adherence to certain operational and financial standards. Below, we examine the specific model for each Nordic country in detail.
It is worthwhile to briefly compare this approach with the systems in the United Kingdom and the USA. In the United Kingdom, the gift aid model allows organizations to reclaim the tax on a donation from a taxable person, effectively increasing the value of the donation. The donor must agree to this but does not need to take any further tax-related action.
In the US, the process is more driven by the donor. Taxpayers who donate can claim a deduction on their income tax return. They must keep receipts for their donations and declare them on their tax return. It is the donor's responsibility to report the deductions and provide proof if required.
We will now go through each Nordic country and compare them. All the limits and amounts below reflect the most up-to-date figures we could find for the 2026 tax year.
Furthermore, it is important to note that companies can fully deduct donations to non-profit organizations if they can justify them as marketing expenses. The restrictions on deductibility for companies are therefore only relevant if the donation is not considered a marketing expense.
Denmark also has special rules for the tax deductibility of contractually agreed, recurring donations over a specific period. These are considerably more complicated and are used so rarely that they are hardly relevant here.
Specific rules regarding tax deductibility:
In Denmark, individuals and businesses can deduct donations from their taxable income. This deduction applies to donations to recognized non-profit organizations and certain charitable institutions. Donations can also be made in kind (such as goods or services), provided their value can be documented.
Deduction limits:
For individuals and businesses, the maximum annual deductible amount for all donations is DKK 20,000 in 2026 (compared to DKK 19,000 in 2025 and DKK 17,300 in 2023). The full donation amount is deductible, and this limit is adjusted annually. It is worth noting that there is no upper limit for donations to recognized research organizations – these are deductible even if they exceed DKK 20,000.
Requirements for organizations:
Non-profit organizations must be officially recognized by the Danish Tax Agency (Skattestyrelsen) to receive tax-deductible donations. The recognition process requires fulfilling certain criteria, such as a charitable purpose, non-profit status, and transparent financial management.
Some additional minimum criteria apply:
Organizations must not undermine democracy and human rights.
It is the organization responsible for reporting the donation to the tax authorities. Private individuals cannot report it themselves. The organizations record the donors' personal identification numbers and transmit the donation amount, linked to the respective identification number, once a year.
Sources and further information: Skat and Retsinformation
Specific rules regarding tax deductibility:
Private individuals and estates can deduct monetary donations of at least €850 and up to €500,000, provided they are for the promotion of science or art. The receiving institution must be a publicly funded university, college, or related fund within the European Economic Area. Companies can deduct donations of €850 to €250,000 that are for the promotion of science, art, or the preservation of Finnish cultural heritage.
Deduction limits:
For private individuals, donations under €850 or over €500,000 to a single recipient institution in a tax year are not tax-deductible. This limit applies per recipient institution, so the effective maximum amount is much higher – one could donate to several universities in the same year.
Requirements for organizations:
Recognized recipient institutions include publicly funded Finnish universities, colleges, and university funds. The deduction applies only to monetary donations. There is no formal recognition procedure – and one does not appear to be necessary.
As in the other Nordic countries, it is not the donor but the receiving institution that reports the donation.
Note that the Finnish model is undergoing a comprehensive reform, now scheduled for 2027 – see “What’s changing next” below.
Sources and further information: Vero
Specific rules regarding tax deductibility:
Donations from companies and individuals to certain institutions and organizations may be tax-deductible.
Deduction limits:
For individuals, donations in a single year must total at least 10,000 ISK to be tax-deductible, with a maximum deduction of 350,000 ISK (the deduction reduces the taxable income and is not transferable between spouses or partners). Businesses can deduct up to 1.5% of their revenue as donations.
Requirements for organizations:
To be eligible, the receiving institution must be registered on the recognized list (Almannaheillaskrá) maintained by the Tax Directorate, which includes humanitarian, cultural, educational, and scientific organizations. For registration, an organization must meet the following criteria:
Sources and more information: Skatturinn (private individuals) and Skatturinn (Organizations)
Specific rules for tax deductibility (private individuals):
Donors can receive a tax deduction for monetary donations to recognized organizations that promote social welfare or scientific research. Only donations of at least SEK 200 to the same recipient organization on a single occasion are eligible.
Deduction limits (private individuals):
The tax credit amounts to 25% of the donation, with a maximum credit of SEK 3,000, which corresponds to donations of SEK 12,000. Those who donate less than SEK 2,000 per year do not receive a credit. These limits for private individuals remain unchanged in 2026.
Requirements for organizations:
Non-profit organizations must be recognized by the Norwegian tax authorities. This includes Norwegian organizations and those based in the EEA. Recognition requires that the organization is registered, complies with Norwegian law, and operates in the public interest. It must also operate nationwide, not just regionally. Finally, if it is a foundation, it must receive public funding.
The organization reports the donation to the tax authorities, but the donor must also keep their own receipts. If the amount exceeds 10,000 NOK, the donation must be made by bank transfer.
Sources and further information: Skatteetaten (private individuals) and Skatteetaten (Organizations)
Specific rules for tax deductions:
Donors can receive a tax deduction for monetary donations to approved charities supporting social welfare or scientific research. Only donations larger than 200 SEK qualifies.
Limits on deductions:
The tax deduction is 25% of the donation amount with a maximum donation deduction of 3.000 SEK corresponding to 12.000 in donations. If the donor gives less than 2.000 SEK in donations a year no deduction is given.
New from 2026: a tax break for corporate donations:
The Swedish Parliament has approved a new tax model that will allow companies to receive a tax credit for donations to recognized organizations that promote scientific research or social welfare, starting in the 2026 calendar year. The credit amounts to 20.6% of the donation, based on a maximum of SEK 800,000 per year – resulting in a maximum credit of SEK 164,800 per year. The donation must be in cash and amount to at least SEK 2,000 for a single occasion. This brings Sweden closer to its Nordic neighbors, who already allow tax deductions for corporate donations.
Requirements for organizations:
Non-profit organizations must operate without profit motive and promote social welfare or scientific research. They must have an authorized or recognized auditing body, demonstrate transparency in the handling of donations, and meet certain legal requirements to be considered public interest organizations. These include:
The organization is responsible for reporting the donation to the tax authorities. Private individuals cannot report it themselves. Organizations are obligated to report donations once they have all the necessary information, and the donor cannot object.
Sources and further information: Skatteverket (donations from private individuals) and Skatteverket (non-profit clubs)
We have summarized the models of the five countries in the following table. The euro amounts are approximate conversions for mid-2026 (exchange rates fluctuate, therefore they should be understood as guidelines and not as exact figures).
Several conclusions stand out when comparing the five countries.
Iceland, Sweden, Norway, and Denmark have similar criteria for which organizations qualify for tax-deductible donations. In these countries, the focus is largely on non-profit organizations contributing to the public good and aligning themselves with national values, such as promoting democracy, human rights, social welfare, or scientific research. This consistency suggests a common Nordic approach that prioritizes societal benefit and ethical considerations when defining eligible organizations.
Regarding the deduction limits for private individuals, Iceland, Norway, and Denmark are in a similar range: Denmark allows deductions of up to approximately €2,680, Norway up to approximately €2,160, and Iceland up to approximately €2,415 (above a low minimum amount of 10,000 ISK). Sweden, on the other hand, stands out for private individuals due to a significantly lower effective benefit—a maximum allowance of approximately €270—and the peculiarity that only 25% of the donation is eligible for the allowance.
However, the new Swedish corporate model from 2026 is generous by Nordic standards and allows a discount of up to around 15,000 EUR, which reduces the gap in corporate donations.
Finland distinguishes itself in two major ways. Firstly, it sets a very high ceiling on the amount that can be deducted — up to EUR 500,000 for individuals — but also imposes a high minimum of EUR 850. Secondly, Finland's eligibility criteria are narrowly focused, with only publicly funded universities and similar educational institutions qualifying under the current scheme. This underscores Finland's specific commitment to supporting education and research through philanthropy, differing significantly from its Nordic neighbours in both scope and scale. As covered below, this is precisely the part of the Finnish system that is set to change.
Norway and Sweden have minimum amounts above which donations are tax-deductible. Finland has a minimum amount per individual recipient organization, while Iceland and Sweden require an annual minimum amount for all donations. Denmark, however, has no minimum amount. It would be interesting to see a scientific study on the impact of these different minimum requirements.
For a tax incentive to truly change donor behavior, donors must understand it. A deduction only motivates giving if the donor can grasp the benefit the moment they decide to donate—and if the organization can explain it in a single sentence on a donation page, in an email, or over the phone. Every additional threshold, percentage, and minimum amount is another thing donors have to think through, and another place where the message gets lost. Simplicity here isn't just cosmetic niceness; it determines whether the incentive has any effect at all.
The contrast between the Danish and Swedish models illustrates this point clearly. While both countries have comparable prerequisites and similar basic structures, the limits in place in Sweden—a percentage-based tax deduction, an annual minimum amount, and a maximum limit—make the system so complex that communication becomes a real challenge.
The Danish system, on the other hand, is the simplest for donors and allows organizations to communicate clearly: all donations are fully tax-deductible up to the maximum amount. This clarity is valuable in itself and should be considered whenever a model is designed or reformed.
Beyond the figures above, two of these countries are actively discussing further reforms. These are not yet in effect, but are relevant for any organization planning its fundraising for the coming years.
The Finnish tax deduction model was historically limited to universities and colleges. In its 2024 budget framework meeting, the government decided to extend it to donations to youth, cultural, and sports organizations, as well as certain qualified children's organizations. Originally planned for 2026, the reform has since been postponed: the current plan is to introduce a draft law as part of the budget legislation in autumn 2026, with the law coming into effect at the beginning of 2027. The scope has also been expanded to include social and healthcare organizations.
The proposal currently being prepared would make monetary donations of at least €500 tax-deductible if they go to associations or foundations designated by the tax authorities that promote science, art, the preservation of Finnish cultural heritage, youth work, exercise, sport or the welfare of children – with 30% of the eligible donation being tax-deductible.
The reform was welcomed by the Finnish fundraising sector as a step in the right direction, particularly as compensation for previous cuts in funding for non-profit organizations. At the same time, it was criticized as unequal: some of the causes most frequently supported in Finland—humanitarian aid, environmental and nature conservation, animal welfare, and disease prevention and treatment—remained excluded.
The industry association VaLa has long been calling for funding eligibility to be extended to all organizations with a fundraising permit (which in Finland is overseen by the National Police Authority).
In Norway, the maximum tax deduction was halved in 2022 from NOK 50,000 to NOK 25,000 and has remained unchanged since. Stakeholders in the voluntary sector, led by Frivillighet Norge, are advocating for raising the limit again to allow individuals and local businesses to contribute more; a dedicated report on the model's impact was published in 2026 to support this request. While an increase has not yet been decided, it is an actively discussed topic.
We hope you found this look at the tax deductibility of donations in the Nordic countries informative and helpful. By examining the specific frameworks in Denmark, Finland, Sweden, Norway, and Iceland – and the reforms now underway – we wanted to highlight the different approaches these countries take to philanthropy and tax incentives.
%20(1).PNG)