📢 Political activity and non-profit status
In brief
A non-profit association may speak out on topics that concern its purpose under its articles. But exerting political influence is not a non-profit purpose in its own right.
According to the Bundesfinanzhof (judgment of 10 January 2019, V R 60/17), an association may act politically if this serves to achieve one of the purposes named in § 52 Abs. 2 AO. Political education requires "intellectual openness" and loses its recognition if it is used to push through one's own views.
The law also names the general promotion of the democratic state (§ 52 Abs. 2 Nr. 24 AO) and the promotion of civic engagement (Nr. 25).
Step by step
- Use the purpose in the articles as the yardstickEvery political statement should serve the purpose set out in the articles.
- Separate education from campaignsBalanced information and education remain less problematic than targeted demands on parties and legislators.
- Avoid party politicsMaintain and document neutrality towards political parties.
- Get advice early in borderline casesInvolve a tax adviser or specialist adviser before the campaign.
Deadlines
- Only the Attac decision (BFH V R 60/17) was checked directly. Other proceedings (for example on Campact) and possible changes in the law after 2019 were not checked against a primary source.
- The delimitation is made case by case by the tax office. This page does not replace advice.
- Calls for individual political demands (for example certain taxes or laws) can endanger non-profit status if they do not serve a § 52 purpose.
- Announced reforms on political activity are not presented here as applicable law.
In depth · legal basis, figures and practice – for advisers and professionals
Case law
In its judgment of 10 January 2019 (V R 60/17) the Bundesfinanzhof decided that exerting influence on political opinion-forming and shaping public opinion is not a non-profit purpose in its own right under § 52 AO. Political activity is permissible only if it serves to achieve one of the purposes expressly named in § 52 Abs. 2 AO. Political education takes place in intellectual openness; it loses its suitability if it is used to influence political opinion-forming according to one's own ideas. Campaigns on the financial transaction tax and the distribution of wealth were treated there as impermissible political activity.
Statutory purposes
§ 52 Abs. 2 Nr. 24 AO names the general promotion of the democratic state within the territory to which the AO applies (excluding efforts that pursue only individual interests or are limited to municipal areas). Nr. 25 names the promotion of civic engagement for the benefit of non-profit, charitable and religious purposes.
Open points
The scope in an individual case is decided by the tax office. Further case law and administrative instructions were not evaluated.
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