By definition, an activity is considered charitable if its effect selflessly serves the common good.
Non-profit corporations such as non-profit organizations, foundations or associations are considered special purpose entities and generally enjoy exemption from corporate income tax and possibly sales tax.
However, these benefits are linked by law to compliance with special requirements, the subsequent performance of which is often critically reviewed by the tax authorities.
If the requirements are met, the office issues a corresponding notice of exemption, which allows the issuance of donation receipts; if violations of the requirements of the non-profit status are found, this status can also be withdrawn retroactively.
Which activities of the non-profit organization are affected by the tax exemption and which, on the other hand, are excluded, is often not self-explanatory at first glance.
Our experts in non-profit law support you and your organization in all matters such as
- Examination of the non-profit status
- Review of the articles of incorporation or bylaws
- Restructuring to achieve non-profit status
- Audit preparations
Do you have questions about non-profit status, the associated requirements and compliance with them, possibly even before the foundation?
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