What tax obligations do I have as the chairman of a club?
August 30, 2023 | 40,00 EUR | answered by Lilli Reuter
Dear tax lawyer,
My name is Ammelie Ehrig and I have a question regarding my tax obligations as a board member of a nonprofit organization. I have been a board member of a nonprofit organization for some time now and recently realized that I may not be fully compliant with all tax regulations.
Current situation: Our organization is recognized as a nonprofit and does not charge sales tax on its membership fees and donations. We regularly hold events and manage funds, but I am unsure of the extent to which I, as a board member, am responsible for tax matters and what specific obligations I must adhere to.
My concerns are that I may unknowingly violate tax regulations and could be held personally liable. It is very important to me to comply with tax regulations correctly and not risk any legal issues.
So my question to you is: What tax obligations do I, as a board member of a nonprofit organization, need to consider? Are there specific regulations for nonprofit organizations that I should be aware of? What steps can I take to ensure that our organization is fully compliant with tax laws?
Thank you in advance for your help and guidance.
Sincerely,
Ammelie Ehrig
Dear Ms. Ehrig,
Thank you for your inquiry regarding your tax obligations as the board member of a nonprofit organization. It is very important to be aware of the tax regulations that apply in this context in order to avoid potential legal issues.
As a board member of a nonprofit organization, you have certain tax obligations to fulfill. Firstly, it is important to mention that nonprofit organizations in Germany enjoy certain tax privileges, such as exemption from corporate tax and value-added tax, provided that the requirements are met.
Regarding your specific duties as a board member, it is important that you properly manage and document the financial transactions of the organization. This includes keeping books and records of income and expenses, as well as preparing financial statements. You are responsible for ensuring that the organization's tax obligations are met, and may be personally liable if they are not.
As a board member, you should also familiarize yourself with the tax regulations for donations. Donations to nonprofit organizations may be tax deductible under certain conditions, both for the donor and the organization itself. It is important to ensure that all donations are properly recorded and documented in order to take advantage of any tax benefits.
To ensure that your organization is acting in compliance with tax laws, I recommend working regularly with a tax advisor or a tax lawyer. An expert can help you understand and comply with the organization's tax obligations, as well as inform you about potential tax benefits.
In summary, it is important for you as a board member to have a thorough understanding of the tax regulations for nonprofit organizations and to ensure that your organization complies with these regulations. Through proper bookkeeping and collaboration with experts, you can minimize tax risks and avoid legal issues.
I hope that this information has been helpful to you. If you have any further questions or need assistance, please do not hesitate to contact me.
Sincerely,
Lilli Reuter
Tax Lawyer
