Political commitment of non-profits: rights and limits in focus!

Political commitment of non-profits: rights and limits in focus!

In the current debate about the political activity of non-profit organizations, Dr. Ruben Rehr, MJur (Oxford), lawyer in Hamburg and lecturer in tax law at the Bucerius Law School, pointed out the complex framework conditions. In the latest episode of the “Fofftein” video series, he explains the conditions under which a non-profit organization can become politically active. The regulations on non-profit status and the requirements of the Party Financing Act are of overriding importance.

The Federal Finance Court (BFH) has made it clear that non-profit corporations that pursue political purposes do not fulfill a charitable purpose. This means that political activities are permitted, but must take place within a narrow legal framework. Non-profit organizations are allowed to engage in political activity if this serves a specific purpose, which is anchored in Section 52 (2) of the Tax Code (AO). Rehr emphasizes that the statutes of an association must clearly define what purposes it pursues in order not to endanger its non-profit status.

The subtleties of political activity

The legal distinction between political activity and non-profit activity is influenced by the party law. This requires identification of donors for amounts over 500 euros and specific reports for larger amounts. Non-profit corporations are required not to support direct party politics in order to comply with legal requirements and avoid possible withdrawal of non-profit status.

However, certain organizations are allowed to participate in political activities. The results of supreme court decisions show that non-profit environmental associations are allowed to take part in demonstrations and support political changes, for example, as long as they remain politically neutral. A sports club can also take part in an environmental demonstration without losing its non-profit status, as long as this remains an occasional activity.

Case law and its effects

The BFH's most recent case law shows clear limits, but also room for political engagement. Decisions like that of the Attac organization, which advocated concrete political goals such as the introduction of a financial transaction tax and the 30-hour week, illustrate the difficulty. Attac's non-profit status was revoked because the courts assumed that there was a specific political demand. These decisions suggest that civic education cannot easily be used to justify specific political positions.

In addition, the scope for political activity is closely linked to the organization's statutory goals. Political activities must be clearly anchored in the statutes. The tax courts cannot impose bans on political activities, but organizations often lose their tax privileges if their activities do not correspond to the statutory purposes.

In summary, it can be said that non-profit organizations can be politically active as long as these activities are consistent with their statutory purpose. However, the challenges and legal limits of these commitments are continually being illuminated by ongoing discussions in the non-profit scene, reinforced by the introduction of a lobby register and by current court rulings ( law-school.de, bundestag.de, skala-campus.org ).