Statutory regulations as far as the eye can see – that's the challenge
Foundations and non-profit organisations as well as non-profit clubs or non-profit corporations have to comply with a variety of statutory guidelines to be recognised by the tax authorities as non-profit and, in the case of foundations, recognised by the foundation authorities as having legal capacity. Above all, the complex tax law topics in non-profits law and the rules in foundation law present a foundation’s organisation with far-reaching challenges.
For every change in statutory requirements, there is a risk of the non-profit status no longer being fulfilled, and being derecognised. There is an equally high risk of stumbling over formalities, such as the use of funds according to the articles of association, or the preservation of the foundation’s assets. Organisations can be prosecuted if there are mistakes, and can be personally liable. Legal security is therefore essential for all participants. Mastering this requires consultants who know this field well.