How can a club apply for and maintain its non-profit status?
January 20, 2022 | 40,00 EUR | answered by Emilia Vöss
Dear lawyer,
I am Otto Hausdorf and I am a board member of a non-profit organization that is dedicated to environmental protection and sustainability. We have heard that it is important to apply for and maintain the non-profit status of our organization in order to enjoy tax benefits and be able to issue donation receipts.
Our organization has been in existence for five years and has a solid membership base, regularly organizes events and projects to pursue our goals. We also have articles of association that clearly define the non-profit purposes of the organization.
However, we are unsure of how to apply for non-profit status and what requirements need to be met to maintain it. We want to ensure that we meet all legal requirements to avoid any issues with the tax authorities.
Therefore, my question is: How can an organization apply for and ensure the maintenance of its non-profit status? Are there specific forms or documents that we need to submit? Are there certain criteria that need to be met to maintain non-profit status?
I thank you in advance for your assistance and advice.
Sincerely,
Otto Hausdorf
Dear Mr. Hausdorf,
Thank you for your inquiry regarding the non-profit status of your association. It is indeed important to apply for and maintain non-profit status in order to enjoy tax benefits and be able to issue donation receipts. I will now explain in detail how you can apply for non-profit status and what requirements need to be met to maintain it.
To apply for the non-profit status of your association, you need to submit an informal application to the relevant tax office. In this application, you should outline the non-profit purposes of your association and demonstrate that they are in accordance with legal requirements. This also includes providing your articles of association, in which the non-profit purposes are clearly defined. It is important that your articles of association contain all the necessary provisions listed in § 52 of the Fiscal Code.
Requirements to maintain non-profit status include proper use of funds, compliance with statutory requirements, and the preparation of an annual report and financial statement. It is important that all income and expenses of your association are properly documented and used solely to achieve the non-profit purposes.
In addition, certain documents must be regularly submitted to the tax office, such as the annual report, financial statement, and activity report. These documents are used to verify the non-profit status of your association and ensure that all legal requirements are met.
There are no specific forms that you need to submit to apply for non-profit status. Generally, an informal application with the necessary documents is sufficient. If the tax office requires additional information, they will inform you accordingly.
Overall, it is important that you stay informed about current legal requirements and ensure that your association meets all the requirements to maintain non-profit status. If you have any questions or uncertainties, I am happy to assist you in applying for and maintaining the non-profit status of your association.
Sincerely,
Emilia Vöss, Attorney
