Tax Continuing Development Act: Meaning for non -profit - our statement

Tax Continuing Development Act: Meaning for non -profit - our statement

Fact-Based News Article: Tax Continued Development Act-Effects on the right of charity

The Federal Cabinet has decided to draft government of the tax continuing development law (Stefeg), which is also known as the annual tax law 2024 (JStG 2024 II). However, the content of the regulation presented for the modernization of the non -profit law does not yet meet the goals specified in the coalition agreement.

The government draft contains only two essential aspects as a minimum compromise:

• The clarification that non -profit organizations can occasionally comment on current political issues outside of their statutory purposes without endangering their non -profitness.
• The eligible abolition of the obligation to use a timely use of funds, including the abolition of the provisions for reserves and assets as well as for the established usage period.

The Federal Association of German Foundations expresses its disappointment with the government draft. Friederike v. Bünau, General Secretary of the Federal Association of German Foundations, emphasizes that the Federal Government is neglecting civil society and appeals to the responsible departments and parliamentarians: Interior, actively participating in the addition of these projects.

effects on the right of charitable law

A positive development in the government draft is the clarification that tax -privileged organizations can now occasionally comment on current political issues without risking their non -profit nature. However, the legal clarification for political activity within the purpose of the statutes, as agreed in the coalition agreement.

It looks very different when it comes to replacement of the obligation to use a timely use of funds. This is a surprising paradigm shift that ignores consequences for the good governance of non -profit organizations. The leading Federal Ministry of Finance underestimates the effects on the charitable status and the justification of the state tax waiver.

The Federal Association of German Foundations indicates that a comprehensive exchange of technical exchange with the umbrella organizations and the financial management is necessary before such drastic changes come into force. Prof. Dr. Sebastian Unger, board member of the Federal Association of German Foundations and Expert for Law and Taxes, warns of this rash step and advocates more legal certainty and less bureaucracy.

urgent need for action in the parliamentary procedure

The government coalition had set itself the goal of strengthening civil society during this legislative period. In addition to clarification for political activity, the volunteering of bureaucracy should also be relieved, sales tax hurdles for donations in kind should also be removed and cross -border cooperation is facilitated.

The Federal Association of German Foundations urgently calls for further reforms for a modern right of charity. Practical proposals for simplification and improvement have already been presented. The association will work intensively in the parliamentary procedure for implementing these points in order to adequately appreciate the importance of the right of non -profit law for civil society.

The Federal Association of German Foundations is the largest and oldest foundation association in Europe and represents the interests of German foundations towards politics and society. With over 4,300 members and another 9,800 connected foundations, foundations are involved in at least 5.4 billion euros for the common good.

contact

 Michael Jung
Personal speaker of the Secretary General
Board office 
 Federal Association of German Foundations e.v.
Karl-Liebknecht-Straße 34 | 10178 Berlin
Telephone: 030 89 79 47-55
Email: press@stiftungen.org 
 www.stiftungen.org