Certified? Oh yes! Part III

We strive for an ANBI status!

A public benefit institution (ANBI) is an institution with certain tax advantages in the Netherlands. Since 2008, a domestic or foreign organization can be considered an ANBI by the Dutch State. This has benefits for us as well as for you.

You may deduct donations that you make under certain conditions in your income tax return or corporation tax return.

In addition, you do not pay a gift or inheritance tax on your donation or inheritance. For ANBIs, an overall exemption has been included.

To get ANBI status we have to meet certain conditions.

An institution can only be an ANBI if at least 90% of the expenditure serves the public benefit.

An ANBI is not allowed to make a profit with all its generally useful activities. An institution that requests commercial rates for these activities cannot be an ANBI.

An institution can only be an ANBI if the institution and the people directly involved in it meet the integrity requirements.

Directors and policymakers should therefore not have a majority control over the assets of the institution. This is done, for example, by a board of at least 3 people who each have the same number of voting rights. It is therefore not allowed that one of the board members has a decisive vote or a veto.

An ANBI may not hold more capital than is reasonably necessary for the work for the purpose of the ANBI. This is called the ‘spending criterion’. The spending criterion prevents non-reasonable power generation (potting of power).

Directors or members of the Board may only receive a fee for expenses incurred. They may also receive an attendance fee that is not excessive.

An ANBI must have a current policy plan. This plan provides insight into the way in which the ANBI achieves its objective. The plan may be a multi-year policy plan.

The management costs must be in reasonable proportion to the expenditures. What is ‘reasonable’ depends (among other things) on the nature of the ANBI. For example, an institution that raises funds often has other costs than an institution that manages assets.

The statutes of an ANBI must show that money that remains after the termination of the ANBI – the so-called positive liquidation balance – is spent on an ANBI with a similar purpose.

Finally, an ANBI must have an administration. For example, these records must show:

  • What amounts per director are paid for expense allowance and attendance fees.
  • What costs the institution has incurred.
  • The nature and extent of the income and assets of the institution.

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