Non-profit: foundations and associations

Accountants voor stichtingen en verenigingen

Non-profit: foundations and associations

DRV has advisors with specific expertise in non profit foundations and associations. Foundation and association board members are increasingly being confronted with tighter laws and regulations and heightened transparency requirements. Adequate, efficient accounting is indispensable, with an outstanding knowledge of tax related matters and reporting being essential. In addition, because as much money as possible must remain for the ‘charities’, the supplemental duties and responsibilities have to be carried out at the lowest possible cost.

Effective and efficient

DRV Accountants & Adviseurs helps board members to set up the organization and financial reporting efficiently and effectively and to always be in compliance with the current statutory and regulatory requirements. Extensive knowledge about and experience with associations and foundations has been concentrated in a single accountancy team. In this team, our professionals work together combining their expertise in taxation, reporting and administrative organization. They assist the board members in gaining an understanding of and grip on the foundation’s or association’s assets and the underlying organization. We also maintain excellent contacts with an independent, specialized Foundations and Associations Family Office, which can perform the entire administration and asset management for charitable organizations' boards.

Accountancy for foundations and associations

DRV has lots of experience drawing up and auditing financial statements, including auditing such public benefit organizations as donor-advised funds, fundraising organizations and religious organizations. To conduct efficient, effective audits, DRV has developed a computerized tool specially tailored to this target group. The tool enables us to identify risks and potential shortcomings. Together with the board, we then examine the options for implementing the points for improvement revealed by this tool. In this way, you are able to accomplish your goals as optimally as possible with the available resources.

Tax advice for foundations and associations

Foundations and associations deal with a broad pallet of tax related questions, including with respect to income, gift and inheritance taxes, turnover taxes and corporation taxes. The amendment of the old Dutch Inheritance Tax Act [Successiewet] and the entry into force of the new Dutch Gift and Inheritance Tax Act [Geefwet] have completely changed the position of special purpose funds under the tax rules.

The old Inheritance Act was significantly amended, effective 1 January 2010. This law, which regulates, among other items, gift and inheritance taxes, is relevant to special purpose funds, including foundations and associations. Specifically, this amended law provides that foundations and associations are to be sub divided into one of the following categories:

  • public benefit organizations;
  • social benefit organizations; or
  • separated private assets.

This categorization affects the tax treatment of gifts and donations to foundations and associations. The new Gift and Inheritance Tax Act took effect on 1 January 2012, as a result of which tax benefits have been tightened up and expanded in certain respects. DRV provides insight and advice in this very complex area.