ANBI status: what does it mean for your association or foundation?
What is an ANBI?
An ANBI is an organisation that pursues the general public benefit in at least 90% of its activities. This can be a foundation, association, church or other fund. Think of community centres, socio-cultural centres, sport organisations with societal impact or cultural institutions. The Belastingdienst assesses applications and maintains a public register of recognised ANBIs.
What advantages does ANBI status offer?
ANBI status has three main fiscal advantages:
- Gift deduction for donors: People who donate to your organisation can deduct that gift from their income tax. This makes donations more attractive, and can significantly boost your organisation's income.
- No inheritance tax on bequests: If your ANBI receives an inheritance or donation, you do not pay inheritance or gift tax on it. Other organisations pay up to 40%.
- No gift tax on distributions: If your ANBI makes payments for the public benefit, no gift tax is due.
When do you qualify?
Your organisation must meet a set of conditions:
- At least 90% of activities must serve the general public interest (not the private interests of members or directors)
- Directors do not receive remuneration for their duties (expense reimbursements are allowed)
- The organisation must not operate for profit
- Upon dissolution, the assets go to another ANBI or a comparable purpose
- The organisation has an up-to-date policy plan
The difference between ANBI and SBBI
Many sports clubs and hobby associations do not qualify for ANBI because they primarily serve the interests of their own members. For them there is the SBBI status (Sociaal Belang Behartigende Instelling). SBBI offers more limited advantages, but it is possible to receive donations tax-free, provided the donation is made via a notarial deed.
How do you apply for ANBI status?
The application is processed through the secure section of the Belastingdienst website. You will need: the organisation's statutes, a policy plan and information about the board composition. After approval, the organisation is included in the ANBI register on the Belastingdienst website. The processing time is on average eight weeks.
Publication duty: what must you publish?
ANBIs are required to publish certain information on their own website or via a common website of the umbrella organisation:
- Name and RSIN number
- Contact details
- Objectives and policy
- Board composition and remuneration policy
- Current activity report
- Financial accountability (balance sheet and income and expenditure account)
If you fail to meet these requirements, the Belastingdienst can revoke the ANBI status. So keep the information up to date annually.
What if you have doubts?
Seek advice from a tax adviser or notary if you are unsure whether your organisation qualifies. The application is free and the benefits can be substantial, especially for organisations actively fundraising or expecting legacies.