The details of donors who give €15,000 or more in a year are to be made public shortly. This applies to all donations made from the date on which the The Civil Society Organisations (Transparency) Act.
Consultation
This is set out in a bill submitted by the Government to consultation has been tabled. This means that the draft bill and the explanatory memorandum have been made public. Anyone may comment on them, and these comments may then be taken into account in the final bill. The final bill must, of course, be passed by Parliament.
Civil society organisations
The obligation is imposed on civil society organisations. These include foundations, associations and (sub-units of) religious communities. Foreign legal entities that operate on a long-term basis in the Netherlands must also disclose this information. It is possible that exceptions may still be drawn up for certain (categories of) civil society organisations.
In the Netherlands, third-party funding of civil society organisations is regarded as highly desirable. However, care must be taken to ensure that a civil society organisation does not become dependent on a particular funder. Furthermore, the disclosure requirement should help to make financial flows more transparent.
Publication
The organisation receiving the donation(s) must, within 6 months of the end of a financial year, submit a donation summary disclose. The following information must be made public by means of this overview:
- the name and place of residence (or registered office) of the donor;
- the amount of the donation;
- the date on which the donation was received.
Where there are multiple donations totalling €15,000 or more in a calendar year, the aforementioned details must be included in the donation summary for each donation.
The donation statement must be dated on the date on which it was drawn up. It must be published within 8 days of this date. It must be signed by the organisation’s board. If there is a supervisory body, the members of that body must also sign the donation statement.
Only where there is a specific threat to the donor’s safety may the Minister be asked to grant an exemption from the obligation to publish.
When publishing the donation summary, the charity can choose from:
- a website accessible to everyone (for example, the organisation’s own website, with a link on the homepage to the donation overview);
- via the commercial register at the Chamber of Commerce.
Failure to publish the donation statement, or failure to do so in a timely manner, results in a economic offence . This offence is punishable by imprisonment for a maximum of 6 months, community service or a fine.
Donation
A donation is: any contribution, whether in cash (or otherwise) or in kind. A grant is not regarded as a donation. The same applies to interest or returns received on the social organisation’s own capital. Membership fees are also not regarded as donations.
A contribution in kind is an item or a service that can be valued in monetary terms, for which no consideration, or no commensurate consideration, is provided in return. An example is the provision, free of charge, of a space where activities can be carried out. Personal labour or activities carried out by members of the community organisation are not regarded as a donation.
Donations may take the form of a gift, but they may also be a bequest under a will.
Balance Sheet and Statement of Income and Expenditure
Foundations are also required to publish their balance sheet and statement of income and expenditure annually. Certain categories of foundations may still be exempt from this requirement.
At present, the obligation to publish financial statements applies only to foundations that operate a business. The balance sheet and the statement of income and expenditure must be filed with the Chamber of Commerce within 8 days of being signed by the foundation’s board. The balance sheet and the statement of income and expenditure must be adopted by the board within 6 months of the end of the financial year.