Can end-of-year donations be deductible from income tax in 2026? Find out how to allocate part of your taxes to social projects

The legislation allows people who file using the full model to allocate part of the tax due to funds and initiatives aimed at social causes, without additional costs and without increasing the amount paid to the Federal Revenue Service.

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According to the current rule, it is possible to allocate up to 6% of tax to incentive social funds and projects. This percentage is calculated on the tax due, and not on income, and must respect the criteria defined by legislation.

According to the Federal Revenue Service, for specific projects, such as cultural, sports or social projects, the award must take place before December 31 of the calendar year. The taxpayer makes his donation before the end of this month and can deduct it from the tax payable next year (with the base year 2025), provided that it is limited to 6% of the amount.

In the case of the Funds for the Rights of Children and Adolescents and the Funds for the Elderly, the amount can be remitted directly to the Federal Revenue Program, when completing the declaration, until the submission deadline.

For financial planner Luciana Pantaroto, coordinator of the Planejar Certification Committee, the main obstacle to expanding the use of the mechanism is the lack of information.

— Many people think they will pay more taxes, when in reality they are simply choosing where some of the tax that would already be paid goes. Despite the term “deduction”, it is not an expense that falls to the taxpayer, but an allowance with a social purpose provided for by law, he specifies.

For institutions, resources make a concrete difference. Pequeno Príncipe Hospital, the largest pediatric hospital in Brazil and a benchmark for highly complex care across the SUS, says incentive donations help support areas that are not fully covered by public funding. “This type of resource is crucial for maintaining complex treatments and ensuring continued care for thousands of children and adolescents,” the institution said in a press release.

The Beit Lubavitch Cultural and Charitable Association, which operates in the fields of social assistance, education and culture, highlights the impact of donations in planning activities.

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— The allocation of the tax provides predictability and makes it possible to extend assistance to families in vulnerable situations — explains Liliane Liquornik, director of the project’s culture department.

The Bolshoi Theater School in Brazil, based in Joinville (SC), highlights the role of tax incentives in social projects coordinated by the institution.

— These resources allow full scholarships and guarantee the continuity of educational and artistic activities, broadening the access of children and young people to dance training — informed Célia Campos, administrative director of the institution.

Find out how to allocate part of the IR to social projects:

• Check the declaration template: allocation is only possible for those who opt for the full model (legal deductions).
• Calculate the tax due: Donation limits are set on tax due and not on taxable income.
• Make the destination: For the Children, Adolescents and Elderly Funds, the revenue system itself calculates the maximum amount allowed and generates the DARF, Federal Revenue Collection Document, the guide used to pay taxes, fees and contributions to the Union. For other projects, the donation must be made throughout the calendar year.
• Pay the DARF on time: Payment is essential to guarantee the service. Without this, the destination is not validated.
• Keep receipts: they can be requested by the Federal Tax Service in the event of an audit.