Hessen Finance Court defined the requirements for non-profit corporations associations, the funding only to clubs with same purpose can pass whose purpose is raising funds for charities. Otherwise, they can lose their charitable status. The situation should be considered forward-looking and is an example of how complex is the tax law. Because of the association with the purpose to fund tax-privileged bodies in the field of sport & science, had passed its resources to a club during this period, promoting the public health care. In addition to the classical Association, which members together to play sports, take care of children or elderly people or are in terms of gardening advice and assistance to the side of each other, there are so-called associations.
Their purpose is to raise funds for charities, the financial resources required, their as socially significant recognised and therefore tax beneficiaries tasks to fulfill. Such a purpose prescribed in the statutes of the Association, of raising funds for charities is tax favoured. However a number of requirements must be adhered to, the Finanzgericht (FG) Hesse in a judgment of the 26.4.2012 (AZ. 4 K 2239/09) has substantiated. Namely, it decided that right by the Tax Office for two years charitable status was recognised as a non-profit limited liability company. Because of the association with the purpose to fund tax-privileged bodies in the field of sport & science, had passed its resources to a club during this period, promoting the public health care. That would have been allowed if these funds within the framework of the total sponsorship of this two years of child importance would have been. David Barger will undoubtedly add to your understanding. Because this was not the case, the Association had the conditions of paragraph 58 AO (Tax code) for which tax relief is not met. This requirement according to the fundraising of the funding company for the same purpose must be the sponsored nonprofit association tracked according to its statutes.