Under the Georgian Tax Code, charity is not only a social act but also a computational category: every step of the donor — a monetary donation, goods supplied free of charge or services rendered — carries a tax consequence. A correctly documented and planned donation gives the donor a deduction and the recipient exempt income. Donor advisory therefore means planning the tax positions of both sides together.
Deduction of Charitable Donations
Under Article 117 of the Tax Code, the amount given by an enterprise or entrepreneur natural person to a charitable organisation, together with the market price of goods supplied free of charge (other than immovable property) or services rendered and reflected in gross income, is deducted from gross income — but by no more than 10 percent of the amount remaining after the deductions provided by the Code other than this one. This ceiling is the central parameter of deduction planning: the aggregate of donations given during the year must not exceed the stated share of the base remaining after other deductions. The deduction is claimed through the declaration, so every transfer must be supported by a contract, receipt or act.