Background
In 2003, Norway implemented a scheme where private individuals could receive tax relief for monetary donations to approved voluntary and non-profit organisations. The aim was to create incentives for private financial support to the voluntary sector by reducing the cost of donating through tax deductions. Existing research suggests that tax deductions have a marginal effect and are more significant for the wealthy than for the average taxpayer. Preliminary findings indicate that the effect of tax deduction schemes is socially differentiated, with high-income individuals more likely to donate and give larger amounts. It is uncertain whether increased limits for tax deductions actually lead to higher donation revenues for organisations. There are many different tax deduction schemes for monetary donations in various countries, and these vary in the size of deductions that can be claimed and the amount of tax reduction provided. The project will also explore the extent to which the institutional context influences monetary donations. Some organisations receive a large portion of their income from monetary donations, but little is known about how the incentive effects of tax deductions vary for different types of organisations.
Project Approach
The project will link register data on monetary donations, tax deductions, deduction amounts, and social background variables. The analyses will focus on changes in the threshold for tax deductions to measure the effects of the scheme on donors and donation amounts, as well as analyse distribution effects in the population and between organisational categories. The research questions include:
- Who in the population makes monetary donations, how much they donate, and for which purposes, as well as changes over time.
- The extent to which Norwegian households' and individuals' monetary donations vary by social class and socio-economic characteristics.
- The effect of tax deductions on monetary donations to voluntary organisations, including whether individuals donate and how much they donate when the threshold changes.
The project will culminate in a report to be delivered in 2027, as well as an international journal article and dissemination of findings in Norwegian in a chapter in a report or book.
Privacy Policy Guidance
This project utilizes personal data from individuals who are difficult to contact for the purpose of providing individual information. The data is processed for research purposes, and the legal basis for the processing is the public interest. The project involves the use of ordinary personal data and special categories of personal data, including data revealing religious beliefs and trade union membership. The data is obtained from the following sources: Statistics Norway (SSB). In collaborative research projects, datasets may also be shared with external project participants and their affiliated institutions.
The legality and privacy implications of the personal data processing have been assessed prior to the commencement of the project, which adheres to ethical guidelines for research. The Institute for Social Research is the data controller for the project.
Individuals who can be identified in the dataset have rights and may lodge complaints regarding the processing. Please feel free to contact our Data Protection Officer, the project manager, or the Norwegian Institute for Social Research if you have any questions or require guidance.
