How can we as an organization ensure that we fulfill all tax obligations correctly?
November 23, 2022 | 50,00 EUR | answered by Günther Schmidt
Dear tax advisor,
My name is Benjamin Hartmann and I am a board member of a non-profit organization. In recent years, we have undergone significant growth and our organization has now reached a considerable size. With this growth, our tax obligations have become more complex and we want to ensure that we fulfill all legal requirements correctly.
So far, we have been preparing our tax returns ourselves, but we are unsure if we are adhering to all relevant tax obligations and if we may have made mistakes. The question of tax-exempt status also concerns us, as we are uncertain if we meet all requirements and if our bylaws comply with legal standards.
Our main questions are therefore how we can ensure as an organization that we fulfill all tax obligations correctly and how we can secure our tax-exempt status. Are there specific documents we need to provide or specific steps we should take to ensure that we are acting in compliance with the law? Are there possibly tax benefits that we as a non-profit organization could benefit from?
We want to ensure that our organization is on the right track and does not take on any tax risks. We would greatly appreciate your support and expertise.
Thank you in advance for your help.
Sincerely,
Benjamin Hartmann
Dear Mr. Hartmann,
Thank you for your inquiry and your interest in my expertise in the field of club taxation and non-profit status. It is commendable that as a board member of a non-profit organization, you want to ensure that your organization fulfills all tax obligations correctly and maintains its non-profit status.
To ensure that your organization fulfills all tax duties correctly, it is important to first understand the various tax regulations and rules for non-profit organizations. This includes, for example, correctly preparing tax returns, recording and accounting for all income and expenses, as well as meeting deadlines and documentation requirements. It may be beneficial to consult a tax advisor who is familiar with providing tax advice to non-profit organizations and can assist you in fulfilling your tax obligations.
Regarding non-profit status, it is important that your organization meets the requirements for recognition as a non-profit. This includes pursuing a non-profit purpose, complying with the statutes, and using the organization's resources properly. It may be helpful to have your statutes reviewed by an expert to ensure that they meet legal requirements and contain all necessary information regarding non-profit status.
To ensure your non-profit status and potentially take advantage of tax benefits, it is important to carefully collect and retain all necessary documents and evidence. This includes, for example, donation receipts, income and expense records, as well as minutes of board meetings and member assemblies.
Overall, as a board member of a non-profit organization, it is important to regularly stay informed about current tax and legal regulations and seek professional advice in case of uncertainties. This is the only way to ensure that your organization is on the right path and does not take on any tax risks.
I am available to assist you in fulfilling your tax obligations and ensuring your non-profit status. Please do not hesitate to contact me for personal advice or further questions.
Best regards,
Günther Schmidt
Tax advisor
