Danish people have reached a record milestone in charitable giving through inheritance, with over one billion kroner donated to nonprofit organizations in 2024 for the first time ever. This represents an 80 percent increase since 2020, when such figures were first tracked. The surge reflects not only an aging population and increased estate values but also a cultural shift in how Danes view legacy giving.
Record Breaking Charitable Donations
According to the latest figures from ISOBRO, the industry organization for fundraising groups, charitable organizations received 1.3 billion kroner through inheritance in 2024. This marks a significant jump from 740 million kroner in 2020.
Charlotte Gade, secretary general of Det Gode Testamente, a collaborative effort encouraging Danes to consider charitable giving in their wills, identifies two primary factors behind the increase. First, more elderly people have passed away. Second, the value of estates has grown substantially.
However, Gade believes something deeper is happening culturally. The taboo surrounding discussions of inheritance, money, and death is gradually fading. More people are taking active steps to determine what happens to their assets after they die.
A Cultural Shift Toward Personal Legacy
Surprisingly, more Danes are seeking self-determination in how their legacy is remembered. Gade notes that people are experiencing an “aha moment” where they realize their estate will only be distributed according to their wishes if they create a will.
Despite this shift toward charitable giving, family members remain the primary beneficiaries. Rather than choosing between family and charity, Danes are increasingly adopting a both/and approach. This allows them to provide for loved ones while also supporting causes they care about.
Where the Money Goes
When Danes choose to include charitable organizations in their wills, they typically select causes that reflect their personal values. For instance, someone passionate about environmental protection might donate to a nature conservation organization.
Det Gode Testamente categorizes charitable organizations into five groups. In 2024, donations were distributed as follows:
Health and Disability Organizations Lead
Organizations fighting disease and supporting people with disabilities received the largest share, approximately 612 million kroner. International aid organizations came second with around 325 million kroner. Nature, environmental, and animal welfare organizations received about 233 million kroner.
Meanwhile, national social and humanitarian organizations collected roughly 99 million kroner, while religious organizations received approximately 64 million kroner.
Interestingly, the range of organizations receiving donations has broadened. Previously, large well-known charities dominated inheritance giving. Now smaller organizations and local associations are increasingly included in wills.
Impact on Individual Organizations
For specific charities, inheritance donations have become increasingly crucial. Søren Ravn Jensen, who has served as director of Julemærkehjemmet for 15 years, has witnessed this transformation firsthand.
The organization has seen annual inheritance donations grow from 3 to 5 million kroner to over 20 million kroner. Jensen attributes this growth partly to more people creating wills, and when they do, they often include charitable causes.
Significant Financial Impact
The donations vary considerably from year to year, depending on the size of individual bequests and how many supporters who included the organization in their wills have passed away. For Julemærkehjemmet, which operates five homes, these donations are essential.
The organization needs to raise approximately 150 million kroner annually to operate its five facilities and manage its operations. With only 4 million kroner in government funding, it must independently raise the remaining 146 million kroner. Naturally, receiving 30 million kroner through inheritance rather than 3 million makes an enormous difference.
Practical Realities of Inheritance Donations
Julemærkehjemmet handles around 50 inheritance cases annually. These range widely in size, from 25,000 kroner to several million kroner. In some instances, the organization has even received property, vacation homes, or vehicles, which are then sold to fund operations.
These funds cover essential expenses including salaries for social workers, food for children in their care, and facility maintenance. As a result, inheritance giving has become a cornerstone of their financial sustainability.
Tax Benefits for Charitable Organizations
One factor encouraging charitable giving is that many nonprofit organizations are exempt from estate tax, also known as inheritance tax. This means the government does not claim a portion of donations left to qualifying organizations. Foreign residents should note that Denmark also offers special tax arrangements for certain professionals through the expatriate tax scheme.
Given that inheritance giving continues to rise, more Danes are discovering that thoughtful estate planning allows them to support both their families and causes they believe in. This trend shows no signs of slowing down.
Sources and References
The Danish Dream: What is the Expatriate Tax Scheme?
The Danish Dream: Best Inheritance Lawyers in Denmark for Foreigners
DR: Danskerne har været rekord-gavmilde gennem deres testamenter
