The organisations Charities in the Netherlands, The Netherlands: A Land of Philanthropy (NLFL) and the Central Fundraising Office (CBF) have entered into an agreement with the Tax and Customs Administration.
Self-regulation
This agreement is in line with the government’s objective of encouraging self-regulation within the charity sector. The sector has the quality mark Recognition introduced to strengthen public confidence. Once awarded, organisations are permitted to actively display the quality mark, including through the use of the accompanying logo.
To be eligible for Accreditation, an organisation must meet strict requirements. The CBF assesses compliance with these requirements when the quality mark is applied for, as well as in subsequent years.
Cooperation with the Tax and Customs Administration
It is well known that the Tax and Customs Administration has great difficulty in adequately monitoring the ANBIs registered with it. The checks are extremely labour-intensive. And there are, in fact, tens of thousands of such organisations, each with their own specific facts and circumstances.
The abbreviation ANBI stands for ‘Algemeen Nut Beogende Instelling’ (Public Benefit Organisation). Organisations that meet the conditions of the ANBI scheme are registered in the ANBI register. Donations to ANBIs are tax-deductible for the generous donor against income tax and corporation tax (please note: there are, of course, conditions). Donations to and from an ANBI are not subject to gift tax. Furthermore, ANBIs do not pay inheritance tax on sums they receive as heirs or legatees from estates.
Broadly speaking, the cooperation between the CBF and the Tax and Customs Administration, as set out in the agreement, means that an organisation bearing the Tax and Customs Administration’s ‘Recognition’ quality mark automatically also receives ANBI status. The Tax and Customs Administration then delegates the assessment of the conditions of the ANBI regime to the CBF. Naturally, prior to the conclusion of the agreement, the ANBI conditions were incorporated into the conditions for obtaining (and retaining) the ‘Recognition’ quality mark.
Not the other way round
Of course, the agreement does not work the other way round. Organisations that do not (yet) carry the ‘Erkenning’ quality mark can still apply for ANBI status from the Tax and Customs Administration. And those ANBIs are subject to assessment by the Tax and Customs Administration, not by the CBF. This simply follows from the legislation in force. The CBF and the other interest groups mentioned above are private initiatives, which organisations may choose to join on a voluntary basis. They do not override the law.