Fewer people are donating money to charity and if the new coalition goes ahead with plans to cut tax relief on charitable donations, donations will decline substantially, according to research by ABN Amro.

Last month, 78% of the 1,300 people surveyed by the bank said they gave money to charity, down slightly on 2023 and 2022. Yet while the number of people donating money has gone down, more people are giving donations of at least €100, the bank’s researchers found.

Health and welfare-based good causes remain the most popular and six out of 10 donors said they focused on charities in the Netherlands rather than abroad.

However, the bank found that if the new coalition presses ahead with its plans to cut tax relief on charitable donations, the number of donations will go down by 2028.  

“We expect the new cabinet’s plans to have a substantial impact on people’s behaviour and therefore on the income of good causes,” said Frank Aalderinks, head of philanthropical advice at the bank. “We will be monitoring the situation carefully.”

Charitable donations of more than 1% of total income can be deducted from tax, up to a limit that also varies in line with income.