Tax-News | Business-News

NPO grant for Austrian associations, fire departments, churches, outsourced legal entities

The Corona crisis has led to economic impairment and loss of income for many non-profit organizations - the costs still run. So that nonprofit organizations (NPO) can continue to perform their important social services, an application for a tax-free, non-repayable NPO grant is possible from July 8, 2020.

Up to 100% of the costs in accordance with the NPO guideline, which were generated between 1st April and 30th September 2020, as well as a lump sum "structural security contribution" amounting to 7% of the 2019 generated income, are fundable. If the subsidy calculated in this way exceeds € 3,000, the subsidy is limited to the loss of income in the 1st to 3rd quarter of 2019 compared to 2020. Overall, the NPO grant per applicant is capped at € 2.4 million.

Non-profit organizations (§§ 34 -47 BAO), often in the legal form of associations, from all areas of life (e.g. sport, leisure, social affairs, rescue services, education, science, upbringing, climate, environmental and animal protection, art, culture, health care, homeland and customs, development cooperation, youth, senior citizens, women, remembrance work, monument preservation and much more), voluntary fire brigades, legally recognized churches, religious communities and institutions that have legal personality due to religious law provisions under national law and also all legal entities in which the named organizations have a direct or indirect holding of at least more than 50% are eligible to apply.

Under certain conditions, the application must be confirmed by a tax advisor or auditor; this is also possible and useful voluntarily. Appropriate costs incurred for this are taken into account within the scope of the NPO grant. The application period runs from 8th  July 2020 to 31st December 2020. LBG has a wide range of experience in providing business and tax advice to associations, non-profit organizations, churches, religious communities, outsourced legal entities and non-profit limited liability companies. We carry out accounting and payroll accounting, prepare statement of accounts, income-expenditure accounts and annual financial statements and carry out audits. Rely on our advice and services.

July 6th, 2020 I LBG I Heinz Harb

Contact & Advice: This information naturally shows basic aspects of the topic - for completeness and correctness no guarantee can be given despite careful preparation. LBG will gladly advise you in your individual situation. Please contact one of our 31 Austria-wide locations (www.lbg.at) or welcome@lbg.at - we will gladly bring you together with one of our experts, who is very familiar with your request.