The deadline for filing Income Tax returns is May 31. Individuals can allocate up to 6% of the tax to social funds.

The deadline for filing Income Tax returns for individuals is approaching. Taxpayers have until May 31 to report to the Federal Revenue Service and stay in good standing with the “Lion.” This date coincides with the Corpus Christi long holiday weekend, so careful attention is required to avoid late submission and subsequent fines. What many people don’t know is that, in addition to staying up-to-date with the Federal Revenue Service, by declaring your Income Tax, you can also contribute to social projects and transform the lives of thousands of people. This process is simple, quick, and at no cost to the taxpayer.

According to Income Tax rules, taxpayers can donate up to 6% of the total tax amount throughout the year. If they choose to make the donation during the declaration period, the maximum allowable limit is reduced to 3%. In either case, the donated amounts are used as tax deductions, which means that instead of allocating this amount to the government, it will be directed to the chosen organization. This allocation is an opportunity for donors to decide where part of their money goes.

This allocation helps maintain projects such as “Meu Cordel” and “Isso é coisa de Criança,” conducted by the Ramacrisna Institute in Betim. These projects aim to promote reading among children throughout the city. “Through ‘Isso é Coisa de Criança,’ we deliver Reading Bags to daycare centers in the municipality, thus reaching a large number of beneficiaries in places where such materials usually do not arrive. The ‘Meu Cordel’ project is carried out here at the Institute and involves stimulating reading and creativity in children and adolescents through the combination of different knowledge areas using the poetic language of rhymes,” explains the Institution’s Vice President, Solange Bottaro.

Transparency
The president of the Municipal Council for the Rights of Children and Adolescents (CMDCA) of Betim, Washington Rodrigues, explains that the process is conducted with great responsibility and transparency. “The transfers are made by the taxpayer to the FDCA (Fund for the Rights of Children and Adolescents). When the taxpayer indicates which project and institution they want to allocate their tax to, this amount goes to the FDCA and is then transferred to the institution through a partnership with the municipality via a promotion agreement. It is worth noting that the transfer is only possible to institutions registered with the CMDCA and in compliance with their obligations. To be eligible for taxpayer allocations, institutions need to have projects endorsed by the CMDCA,” he points out.

He emphasizes that a simple allocation like this can contribute to transforming the lives of many people. “Through the allocation of Income Tax, it is possible to finance projects that aim at the comprehensive protection of our children and adolescents through a promotion agreement with the municipality. Often, these resources help entities supplement public policies aimed at this audience and provide financial relief to the institutions,” he concludes.

Embracing Partnerships
Some companies have embraced the cause by conducting internal campaigns among their employees to make these allocations. This is the case of the Companhia de Saneamento de Minas Gerais (COPASA). The company created the CONFIA EM 6% Program in 2005, which enables the implementation of the tax benefit granted by legislation, allowing employees who file their income tax return in the complete model and owe taxes to allocate up to 6% of this tax to the Fund for the Rights of Children and Adolescents (FDCA). The program has been so successful that, in 2023, 1,046 employees participated in the campaign.

The Ramacrisna Institute is one of the program’s partner institutions that receive these allocations. “We learned about Ramacrisna through the Municipal Council for the Rights of Children and Adolescents (CMDCA) of the municipality. This partnership is of fundamental importance to further strengthen this movement, expanding the possibilities of receiving more donations, making a difference in the lives of more and more people,” highlighted the Sustainable Development Service Unit team at COPASA.

How to Donate
To have the donation deducted from the tax payable, it is necessary to choose the complete taxation model. Simply access the Federal Revenue Service’s program, select which type of fund you want to allocate your donation to—in this case, select the “municipal” field, fill in the indicated fields, and issue the DARF payment slip. After making the payment, the taxpayer should send the receipt by email to the Betim Children’s and Adolescents’ Council (cmdcafiabetim@gmail.com) with a copy to Ramacrisna (ramacrisna@ramacrisna.org.br), also informing the name of the project to which they wish to allocate the donation. If this information is not complete, the transfer will not be made. On the Ramacrisna Institute’s website, you can find a full description of the projects and the step-by-step process to make your donation.

“It is important that our society understands this important tool for allocating resources through Income Tax. These resources, when allocated, truly reach the end, the city, the neighborhood, the project working with children, adolescents, and the elderly, in practical actions and many other purposes. That’s why it is important to allocate these resources, as it is always our population that benefits,” explains accountant Daniela Marra, Master in Public Administration, specialist in Corporate Finance, and controller at the Ramacrisna Institute.