Can a club collect donations and what rules apply?
October 18, 2023 | 50,00 EUR | answered by Roberta Lahn
Dear lawyer specializing in association law,
I am Günther Zellmann and a member of a sports club that is financially supported by donations from members and external supporters. Lately, we have been conducting more donation campaigns to finance new projects and further develop our club. However, doubts have arisen in my circle about whether we are allowed to collect donations as a club and what rules must be followed.
Currently, we are unsure if we can simply accept donations or if there are specific regulations that we must adhere to. There is also concern that we could unintentionally violate laws and face legal consequences.
Therefore, I would like to ask for your expert opinion: Is it permissible for a club like ours to collect donations and what rules apply? Are there specific regulations that we must follow in order to legally accept donations? How can we ensure that we are doing everything correctly and avoid legal issues?
I thank you in advance for your support and hope for a clear and understandable response to legally secure our club activities.
Sincerely,
Günther Zellmann
Dear Mr. Zellmann,
Thank you for your inquiry regarding the legal aspects of fundraising campaigns in your sports club. It is commendable that you are considering the legal framework and want to ensure that your club complies with all regulations.
First and foremost, I would like to assure you that clubs are generally allowed to raise funds through donations. These donations are an important source of income for many clubs and allow them to finance their projects and achieve their goals. However, there are some rules and regulations that your club must adhere to in order to legally accept donations.
Firstly, you should ensure that your club is recognized as a non-profit organization. Only non-profit organizations are allowed to collect donations. In order to be recognized as non-profit, certain requirements must be met, such as promoting sports, education, or youth welfare. If your club is not yet recognized as non-profit, I recommend that you contact your local tax office to inquire about the requirements and process of recognition.
Furthermore, donations must be correctly recorded and documented. This means that your club must keep a list of donations, listing all donors and their donations. Additionally, you should issue donation receipts to provide donors with confirmation of their donation. These donation receipts are not only important for donors, but also for your club to be able to prove that the donations were used properly.
It is also important that your club communicates transparently about its fundraising campaigns. Inform your members and supporters about how the donations are intended to be used and, if necessary, specify a purpose for the donations. In this way, you will build trust and transparency, and demonstrate that you handle donations responsibly.
In summary, your club is generally allowed to raise funds through donations as long as it is recognized as non-profit and complies with legal regulations. By following the rules and recommendations mentioned above, you can ensure that your club is legally protected and avoid legal issues.
I hope that my response has been helpful to you and I am happy to assist you with any further questions.
Best regards,
Roberta Lahn
Attorney specializing in club law
