What are the benefits of being mean

Non-profit association & non-profit

5. Disqualification & waiver

Were the association when it was founded the charitable benefits (e.g. for taxes or donations), there is no guarantee that this status will be retained in the future. Because the Charitable status can be revoked at any timeif the tax office determines that the Requirements for a non-profit association are no longer available under association law. The loss of this legal form could mean that the tax returns for the period concerned are checked retrospectively and the association is now viewed differently in tax law.

A Waiver of non-profit status by the way, on the part of the general assembly or the board of directors not mandatory, since the threatened withdrawal would have the same effect for the corresponding years. Therefore, an association cannot officially waive its non-profit status - at least not through association law. Such a waiver is also not necessary because a non-profit association can at any time abandon its non-profit status by changing the statutes.

However, if the statutes are changed to the effect that Loss of charitable status comes, it can be expensive for the clubs, but also for the board of directors. Because according to association law, this leads to subsequent taxation - retrospectively for up to ten years. This concerns the reduced taxation in sales tax rate, the corporation and trade tax exemption, the donations to the associations, surpluses in special-purpose enterprises and asset management, as well as the sales exemption limit (35,000 euros) in taxable business operations. The association is now viewed as a different legal form.


Protection of legitimate expectations

If the association is recognized as non-profit based on its statutes (application procedure), it can do soCharitable status only withdrawn in the following calendar year if your articles of association do not meet the requirements for non-profit status in retrospect, but the tax office has not seen this.

However, tax law and association law provide that the funds received and tax relief can also be claimed retrospectively. The establishment and activity of non-profit organizations should therefore correspond to the legal form.