🏢 Can Italian companies deduct donations to animal welfare organizations?

Photo by Yunan Wang on Unsplash

🟢 Introduction

Many Italian companies wishing to align their brand with ethical values consider donating to animal sanctuaries such as Sotto la Panca. But are these donations truly advantageous from a tax perspective?

The answer is yes — provided certain requirements are met. In this article, we explain how Italian tax law treats corporate donations and how businesses can support animal welfare while obtaining concrete economic benefits.

🔵 How donations work for Italian companies

Under Italian tax law, companies can deduct donations made to recognized non-profit organizations — including animal sanctuaries — from their taxable income. The deductibility limit varies based on the legal and tax nature of the beneficiary entity.

1. Entities registered in the National Single Register of the Third Sector (RUNTS)

According to Article 83, paragraph 2 of Legislative Decree 117/2017 (Third Sector Code), companies that donate to non-commercial Third Sector entities registered with RUNTS can deduct up to 10% of their total declared income.

If the donated amount exceeds the 10% threshold, the excess can be carried forward and deducted in the subsequent four tax periods.

2. Other recognized non-profit entities (e.g., ONLUS not migrated to RUNTS)

Donations made to ONLUS or equivalent entities are still deductible under Article 100, paragraph 2 of the TUIR. In this case, deductibility is limited to 2% of the total declared income.

💳 Payment and documentation requirements

In both cases:

• Donations must be made using traceable payment methods (bank transfer, credit card, PayPal, etc.)
• It is necessary to keep the tax receipt or valid documentation to justify the deduction

Sotto la Panca meets all tax requirements and can issue suitable receipts for corporate accounting.

📏 What about the 5x1000?

The 5x1000 is a portion of IRPEF that private citizens can allocate to Third Sector entities, including animal sanctuaries.

Also, VAT-registered individuals, professionals, SNC, or SAS can donate the 5x1000 through their tax returns if subject to IRPEF.

Capital companies (e.g., S.r.l., S.p.A.) cannot participate in the 5x1000 because they are subject to IRES.

🔗 Official Guide – Agenzia delle Entrate

📣 Sponsorship: a tax-efficient alternative

For many Italian companies, sponsorship represents the most flexible solution.

A sponsorship with Sotto la Panca allows for combining ethical support with strategic brand visibility.

The advantages of sponsorship include:

• Presence of the company logo on our website and promotional materials
• Official mentions in the sanctuary's newsletters and social media channels
• Collaborations for ethical events and campaigns.
• Public alignment with a vegan and anti-speciesist sanctuary, consistent with sustainability values

Sponsorships are considered advertising expenses and are fully deductible, provided they are aimed at promoting the company's image or products.

📌 Learn more: Corporate Sponsorship

💡 How to support our mission

Supporting Sotto la Panca is easy, ethical, and fully compliant with Italian tax law.

You can:

• 💸 Make a tax-deductible donation (up to 10% of company income)
• 💼 Activate a corporate sponsorship with tax and reputational benefits

Every contribution is documented with receipts valid for tax purposes.

📍 Discover our options: Sponsorships | Donations

Sotto la Panca is a vegan and anti-speciesist sanctuary based in Sicily. We rescue farmed animals destined for slaughter.