For organizations that protect against violence against women, establishing a professional fundraising program is particularly challenging due to limited resources. The information and tips compiled in this knowledge pool on fundraising and donation & sponsorship management for women's shelters and counseling centers are intended to encourage participants to try out fundraising measures and simplify donation management. Each organization must decide for itself which tips are feasible based on its specific circumstances.
Professional fundraising is a process that requires systematic planning and consistent management. Fundraising should be built on a long-term basis and supported by both the team leader, such as the board or management, and the team members. Fundraising is a team effort and ideally integrated into the organizational structure. It's also important to remember that fundraising requires initial investment in personnel and material costs before it generates the desired donation and sponsorship income for the nonprofit organization after a few years. As the saying goes, "Fundraising is a marathon, not a short race."
Women’s shelter coordination has compiled the material in the format of FAQs (Frequently Asked Questions) designed in two thematic blocks with concrete examples of women's shelters and counseling centers (as of August 2023).
In addition to information on fundraising and donation management, Women’s Shelter Coordination also has Sample templates These documents are created for mailings (donation letters), donation flyers, and sponsorship contracts, among other things. These can be used as templates and adapted to the women's shelter or counseling center.
Until the end of the project, project officer Dr. Charlotte Binder also offers advice on fundraising and donation management for women's shelters and counseling centers via email: spenden(at)frauenhauskoordinierung.de or call 0176 34600761.
“Fundraising is the gentle art of teaching the joy of giving.” Henry A. Rosso, 1997
The American term "fundraising" is composed of the noun "fund" (money, capital) and the verb "to raise." In German, fundraising can be translated as "fundraising." However, fundraising is more than just raising private or public funds.
Fundraising expert Prof. Michael Urselmann defines fundraising as the systematic analysis, planning, implementation, and monitoring of all activities of a non-profit organization aimed at raising all resources (financial, in-kind, and services) required to fulfill its statutory purpose. This is done by consistently focusing on the needs of those who provide these resources without receiving market-adequate material compensation.
This means that the whole Fundraising process – analysis, planning, implementation and control – is considered and strategically developed by women's shelters and counseling centers. In addition to financial support within the assistance system, donated goods and services are also important for fulfilling the protective and counseling mission of a violence protection facility.
A women's shelter or counseling center may not offer donors any monetary compensation during fundraising. While business is about exchanging money for goods, fundraising is all about the exchange of sentimental and intangible assets. The goal is to inform potential supporters about the women's shelter or counseling center and convince them of the important work the center does. The public relations and communications strategy of a violence protection center therefore play a key role in successful fundraising.
Fundraising has the Supporters in focus and places them at the center of strategic considerations. The art of fundraising lies in building and maintaining relationships between a non-profit organization and its supporters. Fundraising should be viewed as a Form of participation By donating money, goods, or services, donors can support women affected by violence and their children in the support system. Your own attitude toward fundraising is crucial: It's not about begging for money for the support system's facilities, but about asking for support in a friendly and confident manner, thus enabling donors to participate in the effort to combat violence against women.
TIP: Develop coordinated strategies for public relations and fundraising in the field of violence protection and focus on donors when raising funds!
Even though the Women's Shelter Coordination Office hopes for sustainable, full funding of the support system through the measures planned in the federal government's 2021-2025 coalition agreement, it is currently unclear how and when the proposed measures will be implemented. Consequently, there will initially continue to be unmet needs and special requirements in the support system's facilities, especially since public funding is likely to be even more limited due to the multiple crises. Fundraising, according to fundraising expert Dr. Marita Haibach, is therefore primarily about acquiring funds that are not allocated according to clear funding criteria and are not distributed regularly. Fundraising is therefore an opportunity for women's shelters and counseling centers to effectively utilize the high level of support for women's protection against violence that has existed since the coronavirus pandemic among private individuals, as well as companies and foundations.
TIP: Respond to the willingness of private individuals, companies, and foundations to donate to underfunded causes in the field of violence protection against women with fundraising measures!
In addition to government agencies providing public funding (federal, state, and local governments), there are essentially three other relevant donor markets for the protection against violence against women:
1. Private individuals:
According to the German Fundraising Council, €2022 billion was donated in Germany in 5,7, most of which went to humanitarian aid such as child and youth welfare or emergency/disaster relief. 28% of the German population donated in 2022. More women donate than men, mostly with a university degree or high school diploma, with higher incomes, and the majority living in western Germany. The 70+ generation donates most frequently. In contrast to the past, fewer people donate today, but the amounts donated are larger: In 2022, the average donation was €47, and the average number of donations per donor was seven. It is estimated that around 7% of the funds flowing to non-profit organizations in Germany come from private donors.
A 2021 survey on fundraising for women's violence protection conducted by Claudia Preuß shows that six out of seven surveyed institutions in the support system also receive donations. For private donors, the following motives are often relevant for their donation to a women's shelter or counseling center: compassion, willingness to help, personal concern, a guilty conscience, feminist values and principles, trust in and solidarity with the women's (shelter) movement. It is difficult to determine the typical donor for women's violence protection. Consider focusing on older women with a higher educational and income background as the target group for fundraising measures.
2. Company:
In Germany, approximately 87% of companies donate occasionally or regularly to charitable organizations. In doing so, companies want to publicly demonstrate social responsibility and retain or attract employees and customers to their company. Companies often want to donate not only money, but also contribute their expertise to the cooperation and raise awareness among their employees about the issue. Some organizations that protect against violence against women already actively cooperate with companies and banks. Companies request support from counseling centers, for example, by providing specialist lectures or consultations on violence against women in their companies. Company employees jog for a good cause with the goal of social sponsorship for shelters. IT companies donate hardware and software to support women's shelters or provide assistance with free IT administration, for example. Women's shelters or counseling centers can review the Corporate Social Responsibility (CSR) strategies of large companies in their region or contact the CSR, marketing, or human resources departments. This can clarify whether it is possible to support local protection against violence against women through donations or sponsorship from a company.
3. Foundations & Co:
Germany boasts a diverse foundation landscape with over 20.000 foundations. Unfortunately, there are hardly any grant-making foundations with an explicit focus on protecting against violence against women. Suitable local foundations can be researched, for example, in the foundation directories of regional councils. www.stiftungssuche.de Search results can be obtained using keyword searches such as "gender equality," "women," or "women's health" as the foundation's purpose (also with regional restrictions). Institutions can subscribe to newsletters from relevant foundations so that they regularly receive information about calls for proposals from foundations.
German lotteries provide approximately €3 billion annually for charitable purposes in the form of grants, donations, and grants. Funding can be applied for, particularly for social lotteries organized by non-profit organizations. The profits generated—the difference between gross gaming revenue and administrative costs plus taxes—are used for charitable purposes. www.blog-foerdermittel.de/2023/04/soziallotterien-fernsehlotterien-sparlotterien-und-umweltlotterien/ The four major social lotteries – Aktion Mensch, Deutsche Fernsehlotterie, Glückspirale and Deutsche Postcode Lotterie – and their funding priorities are presented.
Women's shelters and counseling centers are often supported by so-called service clubs, such as Lions, Soroptimist, or Zonta. Here, too, it is recommended to contact the charitable clubs with regional ties to the women's shelter or counseling center. Information and links to the most well-known service clubs can be found at www.service-clubs.com can be found. Funding from foundations and other organizations is usually required to have a detailed project outline with a timeline and financial plan. Both the application process and the maintenance of relationships with staff at the funding institutions are relatively time-consuming. However, a successful application is often associated with a large amount of funding for the protection against violence against women.
TIP: Decide strategically which donors could support the women's violence protection center and get in touch!
For strategic fundraising, the donation pyramid model, which divides donors into different categories, is helpful. This helps determine the appropriate amount of time for each donor group and should be planned accordingly. The model shows the ideal structure of an organization's donor base.
In the model, donors are divided into interested parties, first-time donors, repeat or regular donors, major donors, and testamentary donors. Once the first donation has been made, the important task of relationship-oriented fundraising begins. Communication with donors, either "mass" or "individual" approaches, aims to move donors into a higher category, known as upgrading. This could, for example, turn a first-time donor into a repeat donor for a counseling center, or a private individual into a women's shelter in their will after having supported the shelter as a regular donor for years. This means: careful and regular communication and maintaining contact increase the chances that interested parties will become donors and that small donations will turn into larger or regular donations.
The model is presented as a pyramid because the fewest people are at the top, while the average donation amount increases with each level. For many nonprofit organizations, the major donation threshold is around €1.000. Investing in individual support for major donors requires a relatively large amount of resources, but it ultimately pays off: On average, major donations are ten times higher than the previous fundraising costs.
TIP: Provide personal and appreciative support to major donors and testamentary donors!
Young donors, in particular, tend not to commit to a specific nonprofit organization, but rather frequently change their donation targets. Targeted communication can help tie donors to the women's shelter or counseling center. The donor loyalty cycle model is helpful for donor retention.
In addition to public relations work on violence against women and information about the women's violence protection facility, interested parties should be asked directly for donations to the women's shelter or counseling center, for example, via social media channels or a newsletter. It is important to thank donors as promptly and personally as possible after receiving the donation. Depending on the amount of the donation, a digital thank you note, a thank you letter by mail, a phone call, or even an invitation to the facility or to an event hosted by the facility is appropriate. If possible, the donation confirmation (donation receipt) should also be sent promptly and together with a personalized thank you letter. Donors can be informed about the facility's activities, for example, via an annual report or regular newsletter. The facilities can send these reports to donors both by mail and digitally. Convinced donors also act as multipliers by publicly sharing their commitment on their social media channels or by launching their own fundraising campaign for the women's shelter in their city for a birthday, for example. Through its communication work, especially the thank you and reporting system, the violence protection organization can motivate donors to develop a long-term relationship with its organization.
TIP: Thank donors promptly and personally for their support!
When it comes to fundraising—especially for the protection against violence against women—ethical considerations should always be taken into account when planning and implementing fundraising activities. Independence, authenticity, and integrity are central to nonprofit organizations, and these must be maintained toward clients, employees, and donors. Therefore, it is recommended to develop an internal donation policy, which can also be communicated externally, for example, on the organization's website. The donation policy serves internally as a guide for evaluating donation offers and externally as a means of transparency toward the public to build trust.
The donation guidelines, for example, stipulate that donations from private individuals, companies, and foundations are evaluated according to the following criteria: source of the money (industry/sector/country); donor behavior; donor's public image; and donor's motives and expectations. These criteria should be aligned with the mission and expertise of the organization itself. For example, donations should be rejected if they originate from areas that contradict the core mission of the women's shelter, counseling center, or the sponsoring organization. If a donation is earmarked for a specific project at a women's violence protection organization, the associated costs of the donor's expectations for the organization itself should also be examined.
For larger donation offers, individual decisions are usually necessary, which should be made and documented in a transparent, comprehensible, reasoned, consistent, and proportionate manner. It is recommended to divide the decision-making process into the following steps:
A donation policy can also regulate the granting of communication rights to sponsors if they wish to use the name and logo of the women's shelter or counseling center for their public relations work.
When raising donations and sponsorships, a transparent approach is recommended, for example, by naming major donors on the organization's website or by becoming a member of the Transparent Civil Society Initiative. For fair dealings with donors and sponsors, the 2012 Guidelines published by the German Fundraising Association can be used. Charter of Donor Rights serve.
TIP: Develop a donation policy for the women's shelter or counseling center and apply it to larger donation offers and to review corporate partnerships!
To develop a suitable fundraising campaign for a violence protection facility, the facility's brand, target audience, and mission must be determined. A workshop is ideal for this, in which management and the team discuss and answer the following questions together—for example, for a women's shelter:
The brand, target audience, and cause must be clearly defined and aligned. Then, a decision can be made as to which measures are suitable for fundraising.
Since donations generally peak during the Christmas season, and the International Day for the Elimination of Violence against Women on November 25.11th also generates media coverage on the topic of violence against women, the fourth quarter of the year is particularly suitable for fundraising campaigns for the support system. A so-called shopping list for communicating with donors is also recommended. A short catalog with donation examples can be used to specifically demonstrate what the €4, €50, or €100 donations are used for in the work of women's shelters. For example, money can be collected for the personal contribution of women affected by violence who, due to their socially insecure circumstances, cannot afford to pay for a stay in a women's shelter for themselves and their children.
After the fundraising campaign has been completed, an evaluation is recommended. SMART goals for the planned fundraising should be formulated before the campaign even begins. For example, a counseling center's campaign should generate 150 supporters (specific) with donations of €4.000 (measurable) within two months (timed). These goals fit the counseling center's requirements (realistic) and are supported by the entire team (accepted).
When deciding on appropriate measures, the requirements of the institution, such as human resources, level of awareness or budget for fundraising measures, must always be taken into account.
TIP: Try different fundraising measures for women's violence protection organizations!
A selection of fundraising measures suitable for women's shelters and counseling centers, which can also be combined within a fundraising campaign, can be found here:
Many non-profit organizations continue to successfully use the Donation request by letter for fundraising, maintaining relationships with donors and thus building a reliable donor base.
When formulating the appeal for donations, the following questions should be answered as specifically as possible with reference to the donor: Why? Why now? What for? Why this organization? The problem and the solution should be easy to understand in the cover letter. It must also be clear that the solution costs money and that the supporter can contribute to the solution with their donation. A remittance slip should be enclosed with the cover letter, as this serves as an incentive to donate – even if it is not used. Giveaways, such as a flyer or a gift related to the violence protection facility, also increase the response rate. This means that a mailing with enclosed gifts will be responded to with more and larger donations. Attention should also be paid to an attractive layout of the cover letter and envelope.
It should be noted that the response rate for acquiring new donors is below 1%, meaning that, for example, sending donation appeals to 1.000 addresses will only trigger an average of 10 donations. Furthermore, postal addresses for mass mailings must be purchased from providers of private addresses, as unsolicited contacting of private individuals for the purpose of raising donations is generally prohibited. Therefore, a so-called Cold calling Not necessarily recommended for women's shelters and counseling centers due to high costs and effort.
More interesting, however, is the so-called Warm acquisition, i.e., re-contacting people who have already supported the women's violence protection organization with a donation. Mailings can motivate existing supporters to make a repeat donation or to become a regular donor. Sending a donation letter is a good idea, not only during the Christmas season but also on special occasions such as November 25th (International Day for the Elimination of Violence against Women) or March 8th (International Women's Day). However, mailings should be avoided during the summer holiday season due to the low likelihood of success.
A mailing is one of the most personal fundraising measures, yet it can reach many people simultaneously and entice them to donate to the women's violence protection organization. A personal sender, the leaflet in their hand, the envelope in their mailbox, and the more complex delivery method make it more personal from the recipient's perspective than, for example, an email.
Online fundraising describes communication via the internet (website, social media, newsletter, email, etc.) with the goal of attracting interested parties and supporters to make (further) donations. Since online fundraising represents the largest growth market in fundraising and average donations are higher online than offline, violence protection organizations should also consider this fundraising measure.
A donation page on the website is recommended, listing the donation account details and, for example, a scannable QR code that redirects to a PayPal donation account. Making a donation is even easier via a donation form integrated into the website. These forms are offered, for example, by banks or fundraising service providers. The form should offer a selection of payment methods, provide the option for recurring donations, and provide information on data protection and data security. As a general rule, only as little personal data as necessary should be collected.
Donation buttons can be integrated into social media channels such as Twitter, Facebook, or Instagram, or even into newsletters. Alternatively, donors can be directed directly to the website's donation form. Donation appeals, such as the Donation flyer a counseling center, can be distributed free of charge over the Internet with a wide reach.
If, for example, a women's shelter does not have its own website or sufficient personnel resources to manage donations, donation platforms such as www.gofundme.com or www.betterplace.org A good alternative for raising donations for women's shelter projects. Donation projects can be easily created on betterplace, Germany's largest donation platform, which also operates on a non-profit basis. There are no usage fees, but a small percentage of donations remains with betterplace to cover the platform's costs. Donation projects can be shared with supporters on the women's shelter's social media channels or via email. A large network, and thus access to the target group of the fundraiser, is a necessary prerequisite for a successful fundraising campaign on betterplace. Betterplace also sends donation receipts to donors. Once the donors have given their consent, the donor data can also be downloaded from betterplace as a CSV file and imported into your own donation database.
More and more people are foregoing gifts for special occasions like birthdays or weddings because they already have enough material resources. Instead, they ask their guests to donate the equivalent value of the gift to a charitable organization of their choice as a special donation.
Occasional donations are an easy-to-implement fundraising measure for organizations that protect against violence against women. For example, a counseling center might not ask people in their circle of friends or family directly for a donation, but rather ask them to conduct fundraising for the counseling center themselves. For a special occasion, such as a milestone birthday, retirement, or a charity run, multipliers can collect donations for the counseling center from their personal circle of friends, such as relatives, friends, or colleagues. For this private fundraising, a donation box for cash donations at the celebration, providing the counseling center's bank details to invited guests, or even holding a fundraising campaign for the counseling center via a digital donation platform are ideal options. Donations for a memorial service also count as occasional donations. For example, on the occasion of a funeral, the obituary might ask people not to bring flowers or wreaths. Instead, the donation should go to a charitable organization with which the deceased felt a connection during their lifetime.
In addition to private individuals, companies can also request donations from their stakeholders for a women's violence protection organization on special corporate occasions, such as an anniversary. Women's violence protection organizations can indicate on their website or by email that they welcome donations to support women affected by violence and their children.
Funds can also be raised for women's violence protection organizations at charity events. Possible event formats include a street festival, a flea market, a concert, or even a fundraising gala to mark the organization's anniversary. A successful event, for example, can make the work of a counseling center known to a new target audience. However, events primarily serve as a means of communication, not fundraising. Organizing an event always involves a lot of effort and expense. It is therefore conceivable to organize an event in support of a women's shelter or counseling center in cooperation with a charitable organization or foundation, which could then take over event management. Local media outlets can be informed about the charity event via a press release to increase the event's reach. The advantage is that the violence protection organization is thus presented to the public as "reliant on donations."
Fines are monetary payments that private individuals or companies are required to make by court order or by agreement with the public prosecutor's office. The judge decides independently whether these funds should be paid into the state treasury or donated to charitable organizations, and which organization should receive the benefit. Depending on the federal state, there are different contact points for expressing interest in the fines. You can inquire at the local district court who the appropriate contact person is so that a women's shelter or counseling center can have itself added to the list of recipients of fines at the responsible higher regional court. Registration and approval by the president of the responsible institution is usually required.
The following documents are usually required for registration: extract from the register of associations, articles of association, exemption certificate, confirmation of non-profit status, details of an account for financial contributions, consent to the release of the tax office from the obligation to maintain tax secrecy.
The list of fines often already contains several hundred other non-profit organizations. It is also necessary to check regularly whether the violence protection organization is still included in the list. Direct contact with judges, prosecutors, public prosecutors, or lay judges is recommended, and these can also be invited to a women's shelter or counseling center. Given the fierce competition, violence protection organizations must make themselves known to the court and maintain their contacts, for example, through thank-you notes, in order to receive regular donations. Small organizations that operate regionally, in particular, have an opportunity to generate additional income, as courts are happy to support local organizations. It is also advantageous if the organization's work has a connection to criminal offenses, which is true for violence protection organizations.
It should be noted that donation receipts cannot be issued for fines received. However, the receipt of fines must be reported promptly to the court in a separate fines account. The court should also be regularly informed of any missed payments. If the relevant Higher Regional Court's register contains a large number of non-profit organizations with relatively low fines in a financially weak region, women's violence protection organizations should avoid fine marketing due to the high costs involved and instead opt for more appropriate fundraising measures.
More and more people are choosing to leave part or all of their assets to a non-profit organization. The total amount of inherited assets in Germany has increased significantly in recent decades and, according to studies, will continue to rise into the 2020s. Estate or inheritance fundraising involves the systematic planning and implementation of activities to raise funds through estates. A distinction must be made between inheritances and bequests (also known as legacies). In the case of an inheritance, the non-profit organization becomes the legal successor of the testator – with all rights and obligations. This can include, for example, being required or permitted to take care of real estate, business operations, debts, or animals. In the case of a bequest, the heirs are obligated in the will to leave a defined share of the inheritance to the non-profit organization. It may happen that a bequest must be enforced against the heirs.
Estate fundraising is considered the "supreme discipline" in fundraising and requires a great deal of expertise and a very strong donor loyalty to a non-profit organization. To inform people about the possibility of making a testamentary donation, informational materials such as brochures on wills and informational events with experts on inheritance law should be created. The most important aspect of estate fundraising, however, is personal contact: Regular telephone conversations are held or potential testators are visited in their homes to develop a personal and trusting relationship. Many people are grateful when someone supports them in doing something meaningful and good with their assets after their death. This is especially true for people who have no direct heirs.
Due to the high costs involved, it's unlikely that a women's shelter or counseling center will strategically implement inheritance fundraising on its own. However, wills, estates, and inheritances can unexpectedly become an issue for women's violence protection organizations. Therefore, it's advisable to develop a standard procedure, designate responsible persons, and compile a list of contact details for relevant contacts (e.g., funeral directors, tax advisors, legal counsel) to be prepared for such a donation.
The German Fundraising Association's website offers a free, eight-part training series that provides a good introduction to fundraising. In the approximately one-hour webinars, renowned fundraising experts provide information on topics such as major donation fundraising: www.dfrv.de/services/fundraising-einstieg/.
Free online courses, for example, on attracting regular donors or online fundraising, can be found on the betterplace Academy website: www.betterplace-academy.org/online-kurse.
The Fundraising Academy offers part-time training courses and degree programs, day seminars and online seminars on the topic: www.fundraisingakademie.de/akademie/programmuebersicht/.
An overview of various fundraising measures can be found on the website of the Federal Agency for Civic Education: www.bpb.de/die-bpb/foerderung/akquisos/504193/fundraising-instrumente/.
The Federal Agency for Civic Education also offers a glossary that clearly explains fundraising terms: www.bpb.de/die-bpb/foerderung/akquisos/222394/fundraising-glossar/.
A knowledge pool on fundraising in a church context with helpful tips and checklists can be found here: www.fundraising-evangelisch.de/.
A wide range of information on fundraising can be found in the Fundraising Magazine: www.gutes-wissen.org/.
The digital learning and exchange platform for civil society, Skala Campus, offers information on fundraising and donation management: www.skala-campus.org/thema/fundraising-spenden/.
Thorsten Schmotz shares his expert knowledge on funding: www.blog-foerdermittel.de/.
The highly recommended practical handbook on online fundraising, published in 2015 with a further focus on public relations, can be downloaded free of charge as a PDF here: www.transcript-verlag.de/978-3-8376-3310-8/praxishandbuch-online-fundraising/?number=978-3-8394-3310-2.
Find here an Donation For tax purposes, this is a voluntary and unpaid expenditure to support a non-profit, charitable, or religious purpose. This means, firstly, that private individuals or companies may not be compelled to donate, either legally or out of social obligation. For example, joining fees for non-profit organizations are not considered donations, as these are not voluntary but are a prerequisite for membership. Due to the obligation, income from fines also does not count as donations to women's violence protection organizations. Secondly, the donation may not be tied to the provision of services by the women's shelter or counseling center. It is important to note that the violence protection organization is not permitted to advertise for the supporting company. Only the mere mention of the donor is permitted, for example, by renaming rooms and objects, a reference on event flyers, or a thank you note on the website. A link to the company website and, if applicable, the use of the company logo on the violence protection organization's website are already considered advertising and are therefore not permitted.
If donations are made to a women's shelter without a specific earmark, the shelter can use the donation freely within the scope of its statutory purpose of "protection from violence for women and affected children." Earmarked donations, on the other hand, must be used for the stated purpose, e.g., for a counseling center project on the topic of "counseling after sexual violence" that has been previously communicated to the donor.
As Sponsoring On the other hand, sponsorship refers to the support of a non-profit organization by a commercially oriented company in the form of money, goods, and services, which is based on a specific consideration. This usually includes the prominent mention of the sponsor with the aim of increasing its awareness and enhancing its public image. Service and consideration are not equal in this case. The company's intention to support is more important than the exact measurement of the advertising performance of a women's violence protection organization. From the company's perspective, sponsorship in the non-profit sector therefore has an idealistic component. In contrast, the non-profit organization leaves its so-called idealistic purpose operation within the framework of sponsorship. It sells a service, and the income is henceforth considered a commercial business with all the tax implications. Corporate income tax and trade tax are payable as soon as all income (including sales tax) combined exceeds €45.000 per year. Depending on whether the sponsorship is classified as active or passive, this has different tax implications for the women's shelter or counseling center. At a minimum, VAT on sponsorship income must be paid to the tax office at a reduced rate of 7% or the full rate of 19%.
While donations are more tax-efficient for women's shelters and counseling centers, sponsorship offers the advantage of acting as a "partner on equal terms." The feeling of being able to offer the company something can make it easier to raise funds for women's violence protection organizations.
TIP: Note the difference between donations and sponsorships as well as the tax implications for women's violence protection organizations!
The violence protection organization can make its name and logo available to companies for public relations purposes in exchange for a donation of money, goods, or services. However, this is considered sponsorship, as the transfer of the name and logo constitutes the transfer of a right in the area of non-taxable asset management. The organization must therefore pay 7% of the service amount as sales tax to its tax office and is not permitted to issue a donation receipt to the company.
The sponsoring company can claim the additional 7% VAT paid as input tax from the tax office in the following month as part of its own VAT return. This is done via advance VAT returns and is a routine process for businesses. However, this only applies if the sponsoring company itself provides VAT-liable services. For professional sectors whose services are exempt from VAT, such as banks, doctors, or insurance companies, there is no right to input tax deduction.
An example: A counseling center receives €10.000 in cash from a company. The company wishes to highlight this payment by using the counseling center's name and logo on its website for image-building and advertising purposes. The counseling center issues the company an invoice for the sponsorship in the amount of €10.000 plus 7%, for a total of €10.700. The counseling center must remit the collected sales tax of €700 to its responsible tax office.
It is recommended to have a written Agreement on communication rights which also mentions the relevant tax regulations in a way that is easy for the tax office to understand.
TIP: Conclude a communication rights agreement between the women's violence protection agency and the sponsor!
Non-profit organizations can issue donation receipts—also called donation certificates or donation receipts—to donors of money, goods, or services. However, donation receipts may not be issued for admission fees, membership levies, fines, or sponsorship income. Donation receipts for membership fees may only be issued if this is explicitly stated on the non-profit organization's tax exemption certificate.
Currently applies: For donations up to 300 euros, a simplified donation receipt is sufficient, meaning that donors can prove their donation to the tax office even without a donation receipt. The donation can be declared with a deposit receipt (e.g., a bank statement). In addition, a receipt with the required information about the non-profit organization must be submitted to the tax office. A Form for simplified donation receipt to be made available for download on the facility's website. Donors can print this form and attach it to their tax documents along with the bank statement for the donation. This approach is recommended if the women's shelter or counseling center lacks resources for donation management.
For donations over 300 euros, the donor must provide a donation receipt to their tax office in order to be able to deduct the donation from their taxes. Sample donation receipt templates can be found on the Website of the Federal Tax Office in jpeg format To avoid problems with the tax authorities, it is recommended to copy the official templates exactly and not make any changes to them. A sample template for a Donation receipt (cash donation), which clubs are allowed to issue, can be found at Appendix 3 – Confirmation of financial contributions/membership feesIf a women’s violence protection organisation receives several donations per year from a private individual or a company, a Collective donation confirmation be created (Appendix 14 – Collective confirmation of financial donations/membership fees).
To receive the donation confirmation, a contact address, either by email or mail, is required. If the donor's address is available, the donation confirmation should be sent no later than the first quarter of the year following receipt of the donation.
Non-profit organizations are required to document every donation and retain the supporting documents for at least ten years. Electronic donation receipts must be retained for seven years. Approval for issuing electronic donation receipts can be obtained from the tax office. The donation receipt may only be signed by individuals who represent the organization externally. This could be, for example, the association's board of directors, management, or treasurer. A handwritten signature is not mandatory; a scanned signature may also be used.
Women's shelters, in particular, often receive donations in kind, such as clothing or furniture, in addition to monetary donations. The donation receipt must list the value of the donation and provide information on the valuation. For donations in kind that are in new condition, this can be verified using the purchase receipt. For used donations in kind, the organization must estimate the current market value, taking into account the age, purchase price, and wear and tear, according to donation law. The prerequisite for issuing a donation receipt is that the donated items still have a certain market value. This means that a donation receipt should not be issued for used clothing. A sample template for a Donation receipt (in-kind donation) can also be downloaded from the website of the Federal Ministry of Finance (Appendix 4 – Confirmation of donations in kind).
With an expense donation or return donation, the donor donates their expenses, so that they do not claim the compensation to which they are entitled, for example, for their salary or travel expenses, from the non-profit organization. The payment is therefore donated back by the invoice issuer. To shorten this process, the donor and the non-profit organization waive any cash flow. An expense donation is therefore a special form of monetary donation, in which the non-profit organization's waiver of payment is treated as a donation. The prerequisite for this is that the so-called reimbursement claim was seriously granted, for example, through a contract or a board resolution – and that this was before the activity began. The non-profit organization would also have to be financially able to cover the owed expenses – despite a later waiver. The following template can also be used as a template: Appendix 3 – Confirmation of financial contributions/membership fees of the Federal Ministry of Finance. Expenses or return donation the sentence “This is a waiver of reimbursement of expenses” must then be confirmed.
Further useful information on issuing donation receipts for associations can be found here: https://deutsches-ehrenamt.de/steuern-im-verein/spendenbescheinigungen-verein/.
TIP: Only issue postal donation receipts for donations of 300 euros or more to save resources for the women's violence protection organization!
If a company wants to support a women’s shelter or counseling center through sponsorship, the conclusion of a Sponsorship contract Recommended. The contract clearly defines the monetary, material, or service contribution, as well as the consideration to be provided by the non-profit organization. The contract serves to avoid misunderstandings with the sponsor and is also relevant for tax audits. It is also important to note that the service and consideration must correspond as closely as possible to standard market conditions. If the relationship is too skewed, this can lead to the payment being disallowed as a business expense for the company and to improperly tied up funds due to unpaid services for the non-profit organization. Under no circumstances should a donation made in addition to the sponsorship be recorded in the contract. The sponsorship contract should also stipulate the communication rights of both parties. It is advisable to have the sponsorship contract reviewed by a tax advisor or legal counselor. If there are any uncertainties regarding tax or non-profit law, information should be obtained beforehand from the tax office responsible for the women's shelter or counseling center.
TIP: Sign a sponsorship agreement with your company to avoid misunderstandings and prepare for tax audits!
When women's shelters and counseling centers raise donations and sponsorships, they are accountable to the tax office. The funds raised may only be used for the statutory purposes of the violence protection organization. Furthermore, they must be spent no later than the year after receipt to avoid misappropriation of funds. For example, donations made in 2023 should be largely spent by the end of 2025. Improperly accumulating funds generally threatens the loss of non-profit status. However, the tax office usually sets a reasonable deadline for the funds to be used in accordance with the statutes. Obligation to use funds in a timely manner does not apply to non-profit organizations with cumulative annual revenues of less than €45.000. Donations may also not be used for commercial business operations, for example, in a counseling center's café. If donations are used, for example, to purchase an anniversary gift for a board member of a women's shelter or to finance catering at the counseling center's New Year's reception, the so-called application decree to the tax code applies: "Incidents" are permissible as long as they are "generally customary" in the context of member support and "appropriate according to general commercial understanding." The tax office has not set a general limit.
In order to reward tax honesty and prevent abuse, the legislator has introduced Donation liability Improper issuance of donation receipts may result in the denial of non-profit status.
If a donation receipt is issued incorrectly (e.g., entering an incorrect donation amount), there is a risk of "exhibitor liability." A liability case also arises, for example, if a donation receipt for sponsorship income is incorrectly issued. In the case of exhibitor liability, the association is liable as long as the board has not acted intentionally or with gross negligence.
If funds are misused, there is a risk of "initiator's liability." If a donation is used incorrectly within the association, i.e., not as specified by the donor or not for the statutory purpose, the board is liable. In this case, the women's shelter or counseling center must reimburse the tax office for the donor's lost tax (a flat rate of 30% of the donation).
Please also note the correct Accounting for donations and sponsorship income a violence protection organization in its financial accounting, as well as the distinction from government funding. Government funding providers may need to be regularly informed about donations and sponsorships. It is recommended to set up a separate donations account for the violence protection organization to keep track of donations received and expenses for fundraising projects.
TIP: Correctly document and use income from donations and sponsorships to prevent misuse of donations and thus donation liability!
There is no maximum amount for personnel costs, rent, office and communication costs, travel expenses, and advertising expenses for donor acquisition and support in professional fundraising. However, case law requires that such administrative costs of a nonprofit organization remain permanently below 50%. Exceptions are made during the fundraising start-up phase and for short-term deviations, for example, resulting from expensive investments.
The German Central Institute for Social Issues (DZI) only awards the Donation Seal to organizations whose advertising and administrative costs are below 30%. The DZI considers advertising and administrative costs below 10% to be low, and up to 20% to be reasonable. Many fundraising organizations that have been conducting fundraising professionally for years have advertising and administrative costs just below 20%.
For women's shelters and counseling centers, it is necessary to consider how much money can realistically be used for fundraising and donation management.
TIP: Plan to spend around 20% of revenue on advertising and administrative costs for fundraising organizations!
It is important that the women's shelter or counseling center stores the personal data of private individuals, companies, and foundations in a practical and data protection-compliant manner. For organizations with a manageable number of donors, address management via an email program or even Excel lists is sufficient.
However, for large data volumes and successful fundraising, the use of fundraising software is recommended. In addition to the donation database, some software programs also offer online donation forms and automated delivery of thank you notes and donation receipts. Ideally, there is also an interface to the accounting department and the option to customize the software to the needs of the organization. Since professional fundraising is particularly based on maintaining relationships with donors, a donation database is very helpful for customer relationship management (CRM). The donation database organizes the data of donors and supporters, as well as their contact history. It is important that the data is well maintained and that all withdrawals, new additions, name changes, moves, and important information from conversations are recorded in the database. Filtering options in the database allow donors to be targeted specifically for each campaign.
However, to comply with data minimization rules, careful consideration should be given to which information about donors and supporters is relevant to the organization and should be collected in a database. In a small women's shelter, for example, all employees may be in contact with individual donors and therefore have a wealth of information about each individual. In a large sponsoring organization with multiple fundraising departments, however, it is important that not all employees are informed about donors' personal details. If you have any concerns about data protection and data security issues, you should contact the data protection officer of the women's shelter, counseling center, or sponsoring organization.
The German Fundraising Association has compiled and evaluated a selection of fundraising software: https://www.dfrv.de/services/fundraising-software/.
TIP: Store personal data of donors and sponsors of a women's violence protection organization in a practical and data protection-compliant manner!
The German Central Institute for Social Issues (DZI) informs the public about the credibility of fundraising organizations by awarding the DZI Donation Seal. The fee for the annual Donation Seal audit includes a basic fee of €500 plus VAT, plus an additional fee of 0,035% of total annual income (0,025% for organizations whose total annual income consists of less than 10% donations). The initial application for the Donation Seal will incur an additional fee of €1.000.
Due to these high costs and the high regular expenditure for the DZI donation seal, membership in the Initiative for a Transparent Civil Society (ITZ)In 2010, at the initiative of Transparency International Germany, numerous actors from civil society and academia defined ten fundamental points that every civil society organization should make publicly available. These include, among other things, the statutes, the names of key decision-makers, and information on the source and use of funds, as well as personnel structure. Membership in ITZ is free, involves relatively little effort, and can be verified by displaying the logo on the violence protection organization's website.
Alternatively, membership in the German Fundraising Association (DFRV) be applied for in order to use the DFRV Ethics Seal. German Fundraising Council verifies its members and awards a donation certificate. Credibility and trust in nonprofit organizations increases the willingness of individuals and companies to donate.
TIP: Apply for membership in the Transparent Civil Society Initiative to build trust in your women's shelter or counseling center!
The sample sponsorship agreement was legally reviewed by attorney Thomas Krüger, Schomerus & Partner mbB.
The following federal associations are members of the Women’s Shelter Coordination Association
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