Do we as an association need to have a specific legal form in order to be recognized as non-profit?
September 8, 2022 | 60,00 EUR | answered by Günther Schmidt
Dear Tax Advisor,
our association, "Help for Children e.V.", has been dedicated to supporting disadvantaged children for many years and pursues exclusively charitable purposes. We have recently learned that the recognition of charitable status depends not only on our statutory purpose, but also on our legal form.
Currently, we are organized as a registered association (e.V.), but we are wondering if this legal form is sufficient to be recognized as charitable. We are concerned that a different legal form may be required to maintain our tax benefits and continue issuing donation receipts.
Our main question is therefore: Do we need a specific legal form as an association to be recognized as charitable? If so, which legal forms would be suitable for us and what should we consider? Is there perhaps a way to retain our existing legal form and still be recognized as charitable?
We are grateful for your assistance and want to ensure that we meet all legal requirements to continue our important work for disadvantaged children.
Sincerely,
Christine Maier, Chairperson of the association "Help for Children e.V."
Dear Mrs. Maier,
Thank you for your inquiry regarding the legal form and charitable status of your association "Help for Children e.V.". It is admirable that you are advocating for disadvantaged children and want to ensure that your association continues to be recognized as charitable.
It is correct that the recognition of charitable status depends not only on the statutory purpose, but also on the legal form. In Germany, there are various legal forms that can pursue charitable purposes. In addition to the registered association (e.V.), the foundation and the charitable operations business also come into consideration. Each of these legal forms has its own advantages and disadvantages that should be considered when making a decision.
As a registered association (e.V.), you have already chosen the appropriate legal form to pursue charitable purposes. An e.V. can generally be recognized as charitable as long as the statutes clearly define the charitable purposes and there is no intention to make a profit. To ensure that your association continues to be recognized as charitable, you should regularly review your statutes and make any necessary adjustments to meet the current requirements of charitable law.
It is not necessarily required to assume a different legal form to be recognized as charitable. However, it is important that you consistently meet the requirements for charitable status, regardless of the legal form of your association. I am happy to assist you with any further questions and support you in successfully leading your association "Help for Children e.V.".
Best regards,
Günther Schmidt, tax advisor for association taxation / charitable status
