commit 75c1eaefb77fc047ee95de017fdd54ccfdf6b2f7
parent fabfc20240c3520ae63be39ba4810ae8441bd97e
Author: Tanja Lange <tanja@hyperelliptic.org>
Date: Wed, 22 Jan 2025 08:38:49 +0100
sorry, forgot to check this in
Diffstat:
1 file changed, 202 insertions(+), 0 deletions(-)
diff --git a/doc/usenix-security-2025/paper/appendix.tex b/doc/usenix-security-2025/paper/appendix.tex
@@ -0,0 +1,202 @@
+\section{Further information on donations}
+\label{app-back}
+
+\subsection{General background information}
+
+This section contains general background information pertaining donations.
+
+% FIXME: make this less EU-specific for USENIX???
+
+\subsubsection{General Regulatory Framework}
+
+European Union (EU) member states regulate donations through a blend
+of EU-wide directives and country-specific laws. While there is no
+uniform regulation that applies to all donations in Europe, certain EU
+directives and principles affect donation practices, particularly
+those related to transparency, anti-money laundering (AML), tax
+compliance, and donor data protection.
+
+\subsubsection{Transparency and Accountability}
+
+Transparency in charitable donations is crucial to maintain public
+trust and deter financial misuse. European countries typically require
+organizations that receive donations to adhere to transparency
+measures, including:
+
+\begin{itemize}
+\item {\bf Public Financial Reporting:} Most European countries
+ mandate that charities, nonprofits, and similar organizations
+ publish annual financial reports. These reports generally include
+ detailed breakdowns of income sources, donation amounts, and
+ expenditures.
+\item {\bf Disclosures for Large Donations:} In some countries, large
+ donations must be reported to regulatory authorities. This threshold
+ and the specific requirements vary by country. For example, Germany
+ requires registration for organizations receiving public donations,
+ while the UK mandates certain reporting for donations above a
+ particular threshold.
+\item {\bf Third-Party Audit Requirements:} To verify the financial
+ integrity of charitable organizations, many countries mandate
+ independent audits for organizations surpassing specific revenue
+ thresholds.
+\end{itemize}
+
+\subsubsection{Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF)}
+
+Given the potential for abuse of charitable donations for money
+laundering and financing illegal activities, EU-wide Anti-Money
+Laundering Directives (such as the AMLD5) require organizations to
+implement stringent controls.
+
+\begin{itemize}
+\item {\bf Know Your Donor (KYD):} Similar to the Know Your Customer
+ (KYC) practices in the financial sector, some countries require
+ organizations to verify the identity of donors making significant
+ contributions. This requirement is typically tied to AML laws.
+\item {\bf Transaction Monitoring and Reporting:} Charitable
+ organizations must monitor donation transactions and report any
+ suspicious activities to relevant national authorities.
+\item {\bf Registration with Financial Intelligence Units (FIUs):}
+ Nonprofits are encouraged, and sometimes required, to register with
+ FIUs in certain EU countries to facilitate AML compliance.
+\end{itemize}
+
+\subsubsection{Taxation and Deductibility}
+
+The tax treatment of donations varies across Europe, but many
+countries provide tax incentives to encourage charitable
+giving. Donations to qualifying nonprofit organizations are often
+tax-deductible, either partially or fully, depending on local laws.
+
+\begin{itemize}
+\item {\bf Eligibility of Donors and Organizations:} Both the donor
+ and the recipient organization usually need to meet specific
+ criteria. For instance, only donations to accredited charities
+ registered with national authorities are often eligible for tax
+ relief.
+\item {\bf Limits on Deductions:} Most countries place caps on
+ deductible donations, typically as a percentage of the donor’s
+ income. For example, France allows deductions up to 20\% of taxable
+ income, whereas Germany permits deductions up to 20\% of annual
+ income or corporate profits.
+\item {\bf Cross-Border Donations and Tax Relief:} The EU's ``Stauffer
+ doctrine'' principle requires member states to treat cross-border
+ donations similarly to domestic donations if the recipient
+ organization meets equivalent standards, which facilitates
+ cross-border charitable giving across the EU.
+\end{itemize}
+
+\subsubsection{Data Protection and Privacy (GDPR)}
+
+The General Data Protection Regulation (GDPR) is a significant EU law
+that affects how personal data is collected, stored, and managed,
+including for donations.
+
+\begin{itemize}
+\item {\bf Consent for Data Collection:} Donors must be informed of
+ how their personal data will be used, and organizations must obtain
+ explicit consent if data will be used for purposes beyond the
+ donation transaction itself, such as marketing.
+\item {\bf Data Minimization and Retention:} Organizations are
+ expected to collect only the data necessary for processing the
+ donation, retain it only as long as necessary, and ensure proper
+ data deletion practices.
+\item {\bf Right to Access and Erasure:} Donors have the right to
+ request access to their personal data held by an organization and
+ can request deletion or correction of their data under specific
+ circumstances.
+\end{itemize}
+
+\subsubsection{Corporate Donations and Sponsorships}
+
+Corporate donations are also regulated, particularly when related to
+tax deductibility, disclosures, and compliance requirements.
+
+\begin{itemize}
+\item {\bf Transparency in Corporate Sponsorships:} European countries
+ may require public disclosure of corporate donations or sponsorship
+ arrangements, especially when public funds are involved. Many
+ countries also enforce rules against donations that may appear to be
+ intended for influencing legislation or government actions.
+\item {\bf Limits on Corporate Donations:} Some countries impose caps
+ on corporate donations eligible for tax relief to prevent excessive
+ deductions and potential misuse.
+\end{itemize}
+
+\subsubsection{Cross-Border Giving and EU Philanthropy Initiatives}
+
+The European Union encourages philanthropy across borders within
+Europe, but the process is still complex due to varying national tax
+and legal frameworks.
+
+\begin{itemize}
+\item {\bf European Foundation Statute and the European Philanthropy
+ Manifesto:} These initiatives aim to harmonize cross-border
+ philanthropy regulations. The proposed European Foundation Statute,
+ for instance, would create a legal form of a foundation operating
+ across the EU.
+\item {\bf Transnational Requirements for Nonprofits:} Nonprofits must
+ navigate both the tax and regulatory requirements of each country in
+ which they operate or fundraise, including any special
+ registrations, tax filings, or documentation for cross-border
+ transactions.
+\end{itemize}
+
+\subsubsection{Ethical Standards and Codes of Conduct}
+
+Some countries have established or encouraged adoption of ethical
+standards or codes of conduct for fundraising activities. Examples
+include:
+
+\begin{itemize}
+\item {\bf Code of Conduct for Fundraising:} Many countries have
+ adopted codes of conduct, which may govern methods for soliciting
+ donations, advertising practices, and donor interaction
+ protocols. There are also private initiatives such as the Donor
+ Pledge from the Dutch foundation Donateursbelangen (``Donor Interest
+ Foundation'').
+\item {\bf Charity Commissions and Regulatory Bodies:} Several
+ European countries have independent regulatory bodies that oversee
+ charitable organizations, such as the Charity Commission in the UK,
+ to ensure compliance and ethical conduct in donations.
+\end{itemize}
+
+\subsection{Country-Specific Considerations}
+
+While EU-wide directives provide a framework, each country has unique
+laws. Here are a few examples:
+
+\begin{itemize}
+\item {\bf Germany:} Nonprofit organizations must register with local
+ authorities to receive tax exemptions, and donations exceeding
+ 10\,000 EUR must be reported.
+\item {\bf France:} Nonprofits must adhere to the ``Loi de 1901'' and
+ comply with annual reporting requirements to remain eligible for
+ public donations.
+\item {\bf Italy:} Nonprofits are eligible for tax incentives if they
+ register as ONLUS (Organizzazione Non Lucrativa di Utilità Sociale)
+ or a similar designation under Italian law.
+\end{itemize}
+
+
+\ifodd0
+Some bits of thoughts
+
+Article 56 TFEU guarantees free movement of services throughout the
+EU. In particular, this obliges each EU country to recognize the
+charitable organizations that are registered in other countries, as
+confirmed by the following decision of the Court of Justice of the
+European Union:
+
+\url{https://op.europa.eu/en/publication-detail/-/publication/d3892f27-39b1-4a26-98b3-451a7ffb101d/language-en}
+
+
+
+\subsection{Yearly Donation Limit}
+
+In some tax jurisdictions, the tax authority may set a limit on the
+total amount of donations that a charity may receive in a given tax
+year.
+%XXX ~\cite{?} A Donation Authority must enable tracking and enforcement of such a limit.
+
+\fi
