Non-profit and donation law

Current legal changes (non-profit reform)

• Information on the reform of non-profit law through the JStG 2024 and the Tax Development Act (SteFeG)

Non-profit statutory purposes

• Definition, cases of doubt and opening clause.

Requirements for implementation

• Selflessness, exclusivity, directness (auxiliary person, "holding company" and funding bodies).

Statutory requirements

• Implementation of the statutory model articles of association in association statutes, foundation constitution and articles of association - exceptions and typical problem areas.

Taxable business operations

• Practical cases for differentiation from tax-exempt asset management, e.g. in the case of letting, pro rata allocation of overheads in the determination of profits, possibilities for flat-rate profit allocation, risk to non-profit status through losses or the business itself ("risk of imprinting"?) as well as requirements of the e-balance sheet.

Special purpose entities

• Requirements for the various "catalog special-purpose operations", scope of the special-purpose operation, new declaration and documentation obligations for the "overall charitable sphere".

Pitfalls of sales tax law

• Requirements for tax exemptions and reduced VAT rate, pro rata input tax deduction from overhead costs, requirements for a consolidated tax group.

Property tax

• Relevant property tax exemptions for non-profit corporations.
• Notification obligations in the event of changed circumstances.

Donations, sponsoring and fundraising

• Differentiation between tax-exempt donations and taxable sponsoring (advertising), e.g. differentiation between "acknowledgement" and "special emphasis", requirements of a donation, sponsoring decrees of the tax authorities, admissibility of small considerations, risk of donation liability, documentation requirements, e.g. for donations in kind, "crowdfunding".

Use of funds and creation of reserves

• Principle of timely use of funds, permissible scope of administrative costs, use of funds by passing them on (promotion) and endowment, possibilities for building up reserves and assets, proof of use of funds for domestic and foreign activities, requirements for an account of the use of funds.

Problem area: spin-offs, "groups" and cooperations

• Transfer of assets and services to subsidiaries, admissibility of the use of funds for capitalization, income tax, VAT and non-profit law pitfalls (including risks due to allocations, splitting of operations, lack of immediacy at the holding company).

News from national and European case law

News from the financial administration