FAQ for Sponsoring Members of "Freude spenden e.V."

1. What is the purpose of "Freude spenden e.V."?
   The association exclusively and directly pursues charitable and benevolent purposes. The main goals are the promotion of animal protection, development cooperation, and support for people in need.

2. What is a sponsoring membership?
   A sponsoring membership is aimed at individuals, companies, and organizations that wish to support the charitable goals of the association without needing to actively participate in the regular activities of the association.

3. What rights and obligations do I have as a sponsoring member?

   Rights:

   • Participation in the annual general meeting with an advisory vote, but without voting rights.
   • Regular updates on the association’s activities and projects, including an annual report.
   • Invitations to special events and activities organized specifically for sponsoring members.
   • Use of the sponsoring membership status for personal public relations and to promote social engagement.

   Obligations:

   • Payment of an annual sponsoring membership fee.
   • Support of the association’s goals and purposes.
   • Compliance with the association’s statutes and regulations.

4. How can I become a sponsoring member?
   Interested individuals, companies, or organizations can submit a written application for sponsoring membership to the board. The application can be submitted in paper form or online and must include the name, address, contact details, and a brief explanation of the interest in sponsoring membership. The board will decide on the application and notify the applicant of the decision in writing.

5. How much is the annual sponsoring membership fee?
   The amount of the annual sponsoring membership fee is determined by the general meeting. Sponsoring members can provide additional financial support beyond their membership fee if they wish.

6. How can I pay my sponsoring membership fee?
   The sponsoring membership fee can be paid by bank transfer to the association’s account. The bank details and further payment information will be provided upon acceptance as a sponsoring member.

7. What projects does the association support with the contributions from sponsoring members?
   The association supports projects in the areas of animal protection, development cooperation, and aid for people in need. This includes infrastructural measures such as building schools abroad, supporting animal shelters, and direct assistance to people in need.

8. Can I participate in association decisions as a sponsoring member?
   Sponsoring members have the right to participate in the annual general meeting with an advisory vote, but without voting rights. They can express their opinions and suggestions but do not have voting rights.

9. How can I cancel my sponsoring membership?
   The sponsoring membership can be canceled in writing to the board. Cancellation is only permitted at the end of a calendar year, observing a notice period of three months.

10. How can I further support the association?
    In addition to financial support through the sponsoring membership fee, you can support the association through donations, participation in association events, and by promoting the association’s goals publicly.

11. Who can I contact for further questions?
    For further questions, the board members are available to help. You can contact the association via email at This email address is being protected from spambots. You need JavaScript enabled to view it. or schedule an appointment for a personal meeting.

These FAQs are intended to help you better understand sponsoring membership and the work of "Freude spenden e.V." We thank you for your support and commitment!

Why is the Legal Definition of Donations Important?

The importance of the legal definition of donations lies in tax law. Donations to charitable organizations offer tax benefits to both donors and non-profits.

Tax Benefits for Donors and Non-Profits

• Tax Benefits for Donors: Donors can deduct the donated amount or value from their taxable income, up to 20 percent. This applies to both individuals (§ 10b EStG) and companies (§ 9 Abs.1 Nr. 2 KStG). Requirement: The donation must comply with tax law requirements.
• Tax Benefits for Non-Profits: Charitable organizations do not have to pay income tax, corporate tax, or VAT on received donations. Requirement: The organization must be recognized as charitable by the tax office, and the donations must be used for charitable purposes.

Tax Law: When is a Donation Considered a Donation?

For a contribution to be recognized as a donation, the following requirements must be met:

• No Consideration: The donation must be a gratuitous contribution without any consideration in return. Otherwise, it is not recognized as a donation.
• Voluntariness: The donation must be made voluntarily. Mandatory donations, such as those required as a condition of an inheritance, are not recognized.
• Tax-Privileged Purpose: The donation must be used for a tax-privileged purpose, such as charitable, benevolent, or religious purposes.

Typical Pitfalls

• Sponsorship

Sponsorship and donations are often confused. For example, a company provides a venue and money to an association for an event in return for advertising space. This is sponsorship, not a donation, and must be taxed accordingly.

• Obligatory Donations

A "donation surcharge" on tickets is not a donation because it is not voluntary. Mandatory donations as a condition for inheritances or gifts are also not recognized.

• Misuse of Funds

Donations must be used for charitable purposes. Use for other purposes, such as wellness weekends for volunteers, is not tax-deductible. Donations must also be used promptly and not be hoarded long-term unless expressly authorized by the donor.

What Can Be Donated – and What Cannot?

• Monetary Donations

Monetary donations are the simplest form of donations and are easily tax-deductible.

• In-Kind Donations

In-kind donations are also possible, but there are specific regulations:

• VAT Liability: In-kind donations from a company are considered "gratuitous value contributions" and are subject to VAT if the refunded VAT from the purchase is not accounted for.

• Advantageous Alternatives: Companies can sell in-kind donations at a low price and declare the remaining amount as a monetary donation to save VAT.

• Labor and Services

Direct donations of labor are not tax-deductible. However, expense donations and re-donations are allowed, where compensation is waived and the amount is donated.

The Donation Receipt

For the tax deductibility of donations, the donor needs a donation receipt:

• Small Donations (under 300 Euros): A simplified donation receipt, consisting of a booking confirmation or a bank deposit slip, is sufficient.
• Larger Donations: Official forms from the Federal Ministry of Finance are required. These must meet official requirements and can only be issued by authorized persons.

Conclusion

Proper handling of donations according to tax law requirements is crucial for tax benefits for both donors and charitable organizations. Ensure compliance with legal requirements and avoid typical pitfalls to benefit from tax advantages.

Liability for Donations

If a non-profit organization improperly certifies a donation and the tax office grants a tax deduction to the donor, the organization can be held liable. In such a case, the non-profit organization must compensate the tax office for the lost tax amount.

• Amount of Liability

  • Flat Rate: The lost tax is calculated at a flat rate of 30 percent of the donation.
  • Independent of Use: The organization is liable even if the incorrect donation receipt was not actually used to save taxes.

• Reasons for Liability

  • **The actual donation was lower or no contribution was made.
  • **It was sponsorship instead of a donation.
  • **Another requirement for tax recognition was not met.
  • **The donation was not used for charitable purposes.

  The prerequisite for liability is that the incorrect receipt was issued negligently or intentionally.

Personal Liability of Responsible Parties

In case of donation liability, the responsible persons of the non-profit organization can be personally held liable, which can have significant financial consequences.

• Claim for Damages
  • Errors by Responsible Parties: In case of intentional or grossly negligent errors, non-profit organizations have a claim for damages from the responsible parties.
  • Enforcement Obligation: The organization must enforce this claim to avoid jeopardizing its charitable status. Failure to do so means that a claim, and thus assets, are not used for charitable purposes.

Conclusion

Careful and correct issuance of donation receipts is crucial to avoid liability and personal recourse claims. Responsible parties should ensure that all legal requirements are met and that donations are properly used for charitable purposes.