Non-profit status of an association – profit exclusion in the statutes

LBG Austria - Summary: Once again, the Federal Finance Court (Bundesfinanzgericht – BFG) had to deal with the question, whether the formal requirements in the statutes were met for the approval of a non-profit status of an association. Indeed a hot topic for every board of a non-profit association. In the specific case the Federal Finance Court concluded that for the approval of the non-profit status it is sufficient that the statutes show clearly and unambiguously that the association does not aim for profit. The exact literal passage “The association is not aiming for profit” is not mandatory. The Federal Finance Court made clear, that formal requirements have to be taken seriously regarding taxes and duties and that they were met in that particular case. We recommend board members to carefully check their own association statutes and actual association activities with regard to non-profit requirements.

Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.