Consulting of Non-Profit Institutions
Charitable Organizations are regularly confronted with various tax related questions and problems. The underlying principles for the tax treatment of charitbale organizations is defined in the German Fiscal Law (Abgabenordnung, AO). These principles are subject to interpretation to a large extent. Deviations from the defined principles can have significant implications and can result in a requalification from a Non-Profit, Charitable Status to a Commercial, Profit oriented Status with significant tax consequences.
The consequences can be dramatic and ultimately result in a retrospective denial of the beneficial tax status. Significant tax obligations can arise, regularly accompanied by a negative impact to the image of the Organisation.
A preventive Consulting can help to avoid such negative Impacts. We have focused our Consulting Approach on specifically adressing the underlying risks of such a requalification and help our clients in implementing measures and processes to ensure that the requirements of the German Tax Law for charitable organisations are upheld.
Consulting of Companies in relation to Contributions to Non-Profit / Charitable Institutions
There are numerous issues where private companies relate to charitable organisations. Due to the changing legal and tax Environment of the previous years this has significantly increased. Numerous companies have recognized the Advantages of charitable organisations and the relating tax benefits. Particularly the aspect of sponsorship has also served as a catalyst for the growing interest in charitable organisations.
One of the main challenges in this respect ist the coordination and resolution of the commonly contrary tax interests of Sponsors and charitable organisations. It is essential to coordinate and align these interests and to optimize the structure in relation to Taxation.
Consultation to Individuals and Companies due to non-profit / charitable Engagements
In addition to the personal involvement as well as the active engagement of individuals in charitable organisations the contribution of Money and Assets to the Organisation plays a vital role in the existence of the organisation.
By specifically utilizing the Statutory Framework it can be possible to optimize the tax benefit of the contribution.
The possibilities of private engagement are numerous. Aside from ongoing donations other contributions are of significance such as by means of inheritance or life-time contributions of assets to charitable foundations or endowments.
Implementing charitable foundations in relation to Corporate or Busines Succession various goals can be achieved. Such as securing the Continuation of the respective Company, especially if no appropriate successor is available. In addition a long-term promotion of charitable causes by contributing appropriated profits from the company. By utilizing individual Foundation or Endowment structures assets can be contributed in a targeted manner for the benefit of heirs .
Our Services in the field of Non-Profit / Charity
» General Consulting Services in the field of Non-Profit / Charity
- Tax Advise in relation to structuring of Sponsorships
- Corporate and Private Succession Planning by means of Non-Profit / Charitable Foundations and Family Foundations / Endowments
- Ongoing and case-related Consultancy in all related tax issues of Non-Profit and Charity Tax Law
- Support in relation to debats with the fiscal authorities on various tax issues, e.g. due to tax Audits or also representation at fiscal court
- Prepatory coordination in relation to issues in doubt and issues for interpretation with the Fiscal Authorities; Issue of Binding Assessment
- Tax-optimized Structuring of Donations, Gifts and Foundations / Endowments
- Ongoing Tax Advise of Non-Profit and Charitable Associations and Foundations / Endowments including Filing and Accounting
- Volunteer and Statutory Audit of Non-Profit / Charitable Institutions
- Monitoring and Review for upholding statuory and legal preconditions for Non-Profit and Charitable Causes
Interdisciplinary Consulting Approach
Complex Structures, such as Company succession by means of Foundation or Endowment or by Setting up a charitable foundation, regularly result in verious and numerous corporate, tax and legal issues that need to be addressed.
As required on a case-by-base basis and in Close coordination with our clietns we consult experienced Specialists from our Netzwerk (Foundation Center Munich /Stiftungszentrum München, Lawyers, Notaries, Real Estate Experts) with whom we closely cooperate on a regular and ongoing basis, ensuring an efficient and coordinated work process.