If you govern an association or foundation, there are a fair number of matters that have to be taken into account. And sometimes tax matters are forgotten. Clearly, this carries a risk. As the director, you may be held personally liable for unpaid taxes. Not something you want to happen. What should you look out for?
The fiscally beneficial status of a “Public Benefit Organisation” (Dutch: Algemeen Nut Beogende Instelling, ANBI) is not easily acquired. The institution has to work hard for it. It helps to get off to a good start, and we can help you do that. Once ANBI status has been obtained, there is still more to do. Because the ANBI must fulfil a continuous stream of formal and material requirements. The Tax and Customs Administration checks this carefully. Even minor errors in the articles of association and neglecting to publish on time the organisation’s details on the website, can cost you the ANBI status and the many benefits it carries.
Associations and foundations often work with volunteers. You are also liable for them. And, of course, volunteers have rights too. If you want to reward your volunteers, that can be done in a tax-efficient way. Naturally, rules apply.
And much more
As well as the above-mentioned, there are of course many more matters that as an association or foundation you have to take into account. Think of the exemption from energy tax and the possible duty to pay VAT on fundraising revenue. But think too of the statutory requirements pertaining to the annual accounts. And with the new qualification system for public benefit organisations, your organisation will demonstrate that it is in control and transparent. This will have good repercussions for the size and frequency of donations.
In short, associations and foundations have something ‘soft’ about them. But the legal and tax reality is hard. This means the areas to which you need to pay attention may be more numerous than you think. We can help you take stock of risks and limit them, and to take advantage of opportunities in the broad legal playing field.