Tax Incentives for Charities in the European Union: Integration or Segregation?

Because of their important role in civil society, charities are often granted a special status in national tax legislation. Many charities initiate activities abroad and come in the realm of EU law, for example, because of cross border investments, fundraising activities and competition with foreign charities. Tax legislation for charities is, however, not harmonized in the EU and varies widely. EU law is an integrating force for tax legislation applicable to charities. This chapter will discuss the European developments to answer the question whether we see an integration or a segregation regarding tax incentives for charities in the EU