10 incentivized donation mistakes that cost you the deduction
Mistakes in incentivized income tax donations in Brazil: simplified return, exceeded limit, related donor, missing receipt. How to avoid each one.
This is how taxpayers in Brazil lose deductions they were entitled to; readers abroad do not pay tax in Brazil, but the list shows how the system works there. Most incentivized donations that the Receita Federal (Brazil’s federal revenue service) rejects fail because of simple mistakes: the wrong tax return model, an exceeded limit, an incomplete receipt or a project without valid approval. None of them has anything to do with the will to help; all of them have to do with details. This article lists the ten most common mistakes and what to do to avoid each one.
1. Using the simplified return
Law No. 9,250/1995, art. 10, says the simplified discount replaces all deductions. Did you donate and use the simplified return? The donation is valid for the project, but it does not reduce your tax. See full or simplified return to donate.
How to avoid it: compare both models in the Receita Federal program before submitting.
2. Calculating the limit on the wrong tax
The percentages apply to the imposto devido (tax due), not to the tax payable or the refund. Someone with R$ 10,000 in tax due can direct up to R$ 700 to sport (7%), even if they have a refund coming.
How to avoid it: use the tax due on the previous year’s return as your reference.
3. Exceeding the limit
LC 222/2025, art. 9, § 1, II, limits individuals to 7% “jointly” with children’s funds, elderly funds, the Lei Rouanet (culture incentive law) and audiovisual. IN RFB No. 2,299/2025 repeats this in art. 80 of IN 1,500/2014. Anything above it is not deducted and does not carry over to the following year.
How to avoid it: add up all the year’s donations before making the last one. See how much I can direct.
4. Donating to a project without valid approval
LC 222, art. 10, requires an official approval act with the title, the organization, the authorized amount and the fundraising period. A donation made outside that period or to an unapproved project does not generate a deduction.
How to avoid it: ask for the number and date of the approval act and check it on the Ministry of Sport website.
5. Donating to a project of a related person
LC 222, art. 5, prohibits the incentive when the proposer is related to the donor: the donor’s own company, spouse, relatives up to the third degree and affiliated legal entities. Decree No. 12,861/2026, art. 2, §§ 5 and 6, details the rule.
How to avoid it: if the project belongs to your brother’s association, donate without the incentive or choose another project.
6. Incomplete or missing receipt
Without a receipt containing the required details, the Receita Federal can disregard the donation. See the list of items in incentivized donation receipt.
How to avoid it: check the receipt on the spot and keep it with the bank receipt.
7. Treating the 3% on the return as an extra layer
A donation made within the return to the FIA (municipal children’s fund) or to the Fundo do Idoso (elderly fund) is capped at 3% and is within the 6% for the funds (ECA, Brazil’s Child and Adolescent Statute, art. 260-A, § 1). It is not an extra slice.
How to avoid it: if you already donated 6% during the year, the field on the return adds nothing.
8. Not paying the return’s DARF on time
The ECA, art. 260-A, § 3, requires the donation made on the return to be paid by the due date of the first tax installment. § 4 says an unpaid donation is disregarded. See donating directly on the tax return.
How to avoid it: pay the DARF (federal tax payment slip) on the same day you submit the return.
9. Donating in someone else’s name
The deduction belongs to whoever donates. A transfer made from your spouse’s or child’s account does not prove your donation, and the receipt will be issued in the wrong name.
How to avoid it: donate from your own account, under your own CPF (individual taxpayer ID).
10. Believing any sports project can receive income tax
Only a project with an approval act under the Sports Incentive Law generates a deduction. Projects supported by state laws, such as PIE/SC (Santa Catarina’s Sports Incentive Program), use ICMS (the state tax on goods and services) from companies, not income tax from individuals.
This is where the warning we repeat throughout the series comes in: the Projeto Campeões do Futuro (“Future Champions”), Mestre Paulo Ribeiro’s free project for children after school hours in Balneário Camboriú, and FECAMTT, the Santa Catarina Traditional Muaythai Federation, do not receive Imposto de Renda (income tax). Muaythai nas Escolas (“Muaythai in Schools”) is under PIE/SC, funded with ICMS from Santa Catarina companies: see Muaythai nas Escolas. For individuals, the real options are on the Support page.
How to avoid it: before donating, ask under which law the project is approved and request the act.
Quick checklist before transferring
- Will I use the full return?
- Do I know my tax due and have I calculated 7%?
- Have I added up what I already donated this year?
- Does the project have a valid approval act under the right law?
- Is the proposer neither a relative nor an affiliated company?
- Does the transfer come from my account, under my CPF?
- Will I receive a receipt with all the details?
What to do today
- Gather the receipts for donations made this year.
- Work out how much still fits within the 7% and the 6%.
- Choose the next destination and check the approval act.
- Donate and ask for the receipt on the spot.
This is how taxpayers in Brazil do it. If you live abroad, you do not pay tax in Brazil, but you can still support the project: want to understand what Campeões do Futuro really needs? Talk to the Mestre.
This content is for information only and does not replace advice from your accountant. Rules may change: always check the wording currently in force.
Frequently asked questions
What is the most common mistake in incentivized donations?
Using the simplified return. Art. 10 of Law No. 9,250/1995 says the simplified discount replaces all deductions, including the donation deduction.
If I donate more than the limit, do I lose the excess?
Yes. Anything above 7% of the tax due (individuals, including sport) or 6% (without sport) is neither deducted nor carried over to the following year.
Can I donate to a relative’s project?
Not with the incentive. LC 222/2025, art. 5, prohibits the benefit when the proposer is related to the donor: spouse, relatives up to the third degree and affiliated companies.
I donated in December, but the money arrived in January. Which year does it count for?
What counts is the date the amount reached the project’s or fund’s account. A transfer scheduled for the following year counts in the following year.
Sources
Want to support the project?
See how companies and people in Brazil support sport through their taxes, or talk directly to the Master.
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