How to donate to a foundation and deduct taxes in Colombia

When you do a tax-deductible donation In Colombia, you don't just help a family: the government refunds 251% of the donated amount on your tax return. Yes, you read that right. If you donate 1,000,000 to an authorized foundation, you can deduct 250,000 from the tax you were going to pay. Your money goes double.

We'll explain how the discount works, what you need to claim it, and the difference between individual and corporate donations. One clarification before we begin: this is general information, not tax advice. Every case is different, so verify the figures with your accountant before filing your taxes.

How a tax-deductible donation works

The discount comes from article 257 of the Tax Code: a tax-deductible donation Donating to a non-profit entity under the Special Tax Regime (RTE) entitles you to a 25% discount on the donated value, directly on income tax.

Pay attention to the word "discount." It's not the same as a deduction that lowers the taxable base. A discount reduces the final tax amount by one peso. That's why the benefit is so significant: for every million donated, the 25% becomes less tax to pay. You can read the full regulation in the Tax Statute art. 257.

What do you need to claim the benefit?

You need three specific things, and the first one doesn't depend on you but on the foundation.

• That the entity is in the RTE. Not all foundations qualify for the discount. It must be a non-profit organization registered under the Special Tax Regime with the DIAN (Colombian Tax Authority). If you have questions about how to verify this, see our guide for choosing a reliable foundation to donate to.
• The donation certificate. The entity must issue you a certificate signed by its legal representative and auditor or accountant, stating the amount and date. Without this document, the discount is invalid.
• Report it on your tax return. The discount isn't applied automatically. It goes in the corresponding box of your tax return, with the certificate as supporting documentation in case the DIAN (Colombian Tax Authority) requests it later.

Individual donor: how it applies to you

If you file your income tax return as an individual, a tax-deductible donation You reduce your tax liability for the year you donated. The 25% discount has a combined limit with other tax discounts, equivalent to the 25% income tax for the period.

In simpler terms: the benefit is real, but it won't eliminate your tax liability. That's why it's best to plan ahead. If you're thinking of donating this year, tell your accountant before December so the certificate is included in the correct tax return.

corporate donor: there is also a benefit

A company that makes a donation receives the same 25% discount on its corporate income tax. For a profitable company, this transforms part of its tax burden into measurable social impact, complete with certification and accounting documentation.

Furthermore, a well-documented corporate donation is genuine material for sustainability reports. It's not just window dressing: it's money that built a home and, on top of that, provided tax relief. Many companies in Antioquia already donate this way to RTE foundations; more just need to learn that the benefit is enshrined in law.

How to donate to Hepacom and request your certificate

At the Hechos Para la Comunidad Foundation (Hepacom), we build and improve decent housing for vulnerable families and issue donation certificates so you can claim your tax benefit. We are a non-profit organization with Tax ID 900.841.914-1, registration number S0001780, headquartered in Itagüí, and serving the entire country.

The step is simple: go to our page of donate and choose the amount. If you want to see first what each peso is used for, check out our transparency Before you decide. Once your contribution is registered, we will send the certificate to your email.

The housing deficit in Colombia affects 25.61% of households, some 4.8 million families according to DANE (National Administrative Department of Statistics), and 75.1% is a qualitative deficit: houses that exist but lack decent floors, roofs, or water. That's where your donation comes in.

Requirements for your donation to receive a tax benefit

Before filing your tax return, it's important to be clear about the list of requirements and what depends on you versus what depends on the foundation or your accountant. This is general information: the exact calculations and limits will be confirmed by your accountant or the DIAN (Colombian Tax Authority), depending on your situation.

Requirement	Who does it depend on?	Why it matters
Entity in the Special Tax Regime	From the foundation	Only in this way does the donation enable the benefit.
Signed donation certificate	From the foundation	It is the proof of your contribution to the DIAN (Colombian Tax Authority).
Report it on your tax return	From you	The benefit does not apply only
Exact calculations and limits	From your accountant or the DIAN (Colombian Tax Authority)	Each case is different and it's advisable to validate it.

This guide is for informational purposes only, not tax advice; confirm your case with an accountant or with the DIAN (Colombian Tax Authority).

Common mistakes when seeking tax benefits

• Assuming any donation applies: Only those made to entities qualified under the Special Tax Regime qualify for the benefit.
• Do not save the certificate: Without that signed support, there is no way to back up the donation if the DIAN requests it.
• Leaving the donation until the last minute: It is advisable to coordinate it in advance so that the certificate is included in the correct declaration.

Frequently Asked Questions

Is any donation to a foundation tax-deductible?

No. Only donations to non-profit entities registered under the DIAN's Special Tax Regime entitle the donor to the 25% discount of article 257. Therefore, it is advisable to confirm that the foundation is registered under the Special Tax Regime before donating.

Is the donation a discount or a deduction?

It's a tax credit, which is deducted directly from the income tax payable, not from the taxable base. It's equivalent to 251% of the donated value, with a combined limit compared to other credits. Your accountant can calculate the exact effect in your case.

What document do I need to claim the benefit?

The donation certificate issued by the organization, including the amount, date, and signature of the legal representative and the auditor or accountant. Keep it as supporting documentation for your tax return in case the Colombian Tax Authority (DIAN) requests it.

Do companies also receive the benefit?

Yes. A company that donates to a non-profit organization registered with the RTE (Special Tax Regime) receives the same 25% discount on its income tax, with the corresponding certificate. This applies to both individuals and legal entities.

If you want your money to do double the work (build a home and lower your taxes), donate today at hepacom.org/donate And ask for your certificate. A family and your tax return will thank you for it.

This guide is part of our Complete guide to decent housing in Colombia, where we bring together how to access housing and how to help another family have their own.