The end !!
What do you call selfless management of an association?
Verified 04 avril 2019 - Directorate for Legal and Administrative Information (Prime Minister)
The selfless management of an association shall be established if all of the following conditions are met:
- the officers shall volunteering or within the limits prescribed by law,
- the association does not make any direct or indirect distribution of profit in any form,
- members of the association and their right holders do not hold any share whatsoever in the assets (i.e. the assets of the association), with the exception of the right to take over contributions (where the statutes provide that members who have provided the association with a part of its assets may recover it at the end of a certain period or at the time of its dissolution).
If the association does not meet these conditions, its management is interested, and it is necessarily subject to the said taxes
commercial (
VAT,
corporation tax and
territorial economic contribution).
Please note : the fact that an association has unselfish management does not prevent it from employing employees.
Can a non-profit organization have a commercial activity?
Verified 01 janvier 2020 - Directorate for Legal and Administrative Information (Prime Minister)
Yes, a non-profit organization may conduct a business, on a regular or occasional basis. But this can have fiscal consequences.
Indeed,
association act 1901 is a contract by which at least 2 persons, «
pool their knowledge or activity for purposes other than sharing profits ».. This definition means that the approach of these persons must be disinterested and that an association is not guided by the search for profit.
As a result, an association under the 1901 law is not in principle subject to taxes owed by persons engaged in a commercial activity (in particular the VAT, corporate tax and
territorial economic contribution).
The same applies to all
not-for-profit organizations (NPOs) ::
- Religious congregations
- Associations of Alsace-Moselle
- Recognized public utility foundations and corporate foundations
- Trade unions
- Endowment Fund
If an association decides to carry out a gainful activity, it may continue to be exempt from the said taxes
commercial, if it satisfies all of the following conditions:
Some non-profit organizations may organize 6 charitable or support events per year for their exclusive benefit. The revenue obtained during these events is exempt from commercial taxes, whatever their amount. The organizations concerned are social, educational, cultural, sporting, social or philanthropic. The exemption applies to events which, using the generosity of the public, provide the organizer with exceptional financial resources. The events may include:
- Balls, concerts, folk or variety shows,
- Cinema or theater sessions,
- Charitable or solidarity sales,
- Exhibitions,
- Kermesses, raffles, lotteries,
- Sports entertainment,
If the income (except those obtained during charitable events) represents a preponderant share of the association's resources, it is subject to
statement and taxation from 1to euro.
If the profit is marginal in the budget of the association, it is subject to
statement and taxation beyond €72,000..