How can our club obtain a non-profit status?
March 22, 2024 | 60,00 EUR | answered by Günther Schmidt
Dear tax advisor,
My name is Leonie Jung and I am the chairwoman of a small local sports club. We are dedicated to promoting sports in our community and would like to obtain charitable status. Currently, we are registered as a non-profit organization, but we still lack recognition as a charitable organization by the tax office.
Our club is mainly funded through membership fees and donations, but we would like to benefit from tax advantages to improve our financial situation. Additionally, we would like to be able to issue donation receipts to allow our donors to deduct their contributions from taxes.
Our concern is that we do not know exactly how to obtain charitable status and whether we meet all the requirements. We would like to know what steps we need to take to be recognized as a charitable organization and what documents and evidence we need for this.
Could you please advise us on the best way to proceed in obtaining charitable status? What requirements do we need to meet and what documents do we need to submit to the tax office? We are very grateful for your support and expertise.
Sincerely,
Leonie Jung
Dear Mrs. Jung,
Thank you for your inquiry and your interest in being recognized as a non-profit organization. I am pleased that you are dedicated to promoting sports in your community and are seeking non-profit status to obtain tax benefits.
To be recognized as a non-profit organization, certain requirements must be met. In general, the purpose of the organization must be charitable, such as promoting sports, health care, youth and elderly assistance, or similar charitable purposes. Additionally, the organization must not operate any commercial businesses and its funds must be used exclusively for charitable purposes.
To obtain non-profit status, you must submit an application to the relevant tax office. In this application, you must clearly outline the purpose of the organization and demonstrate that all requirements are met. This includes providing the organization's statutes, details of past income and expenses, a list of planned projects and activities, and an overview of the membership structure.
Furthermore, it is important for the organization to maintain proper accounting practices and for its non-profit status to be regularly reviewed. You should ensure that all income and expenses are transparently documented and regularly produce a statement of accounts.
In order to issue donation receipts, you must also meet certain requirements. This includes accurately recording donations, complying with the formal requirements for donation certificates, and regularly reviewing donor lists.
I recommend contacting an experienced tax advisor who can assist you in applying for non-profit status. A tax advisor can help you review the requirements, compile the necessary documents, and submit the application to the tax office.
I hope this information is helpful and wish you success in obtaining recognition as a non-profit organization. If you have any further questions, please do not hesitate to contact me.
Best regards,
Günther Schmidt
