IFS Finance Assists FSC in Achieving ANBI Status

ANBI stands for ‘Algemeen Nut Beogende Instelling’, which translates to Public Benefit Organization and is designated by the Dutch Tax Authority to foundations that commit at least 90% of their efforts to the public interest. This includes churches, charities, scientific, and cultural institutions. The ANBI status is coveted because it brings significant tax and purchasing advantages. IFS Finance has extensive experience in managing the financial administration of foundations with ANBI status, especially for those focused on the welfare of animals, nature, and the environment. This is why we are well aware that subsidy programs require a lot of administrative substantiation to meet accountability obligations. FSC enlisted IFS Finance to assist in applying for ANBI status, which was successful, although not without its challenges.

Benefits of ANBI Status

Foundations with ANBI status are exempt from paying inheritance and gift tax on inheritances and donations they receive. Moreover, when the foundation makes a donation for the general interest, the recipient is not required to pay gift tax. Additionally, foundations with ANBI status qualify for a refund on energy tax and donors can deduct their donations from their income and corporate tax. Donors to cultural ANBIs even qualify for an extra donation deduction. Finally, ANBI holders benefit from purchasing advantages with companies like Google. These financial benefits are very attractive to organizations, which is why the Tax Authority is stringent in enforcing ANBI criteria to prevent misuse.

Twice is a charm for FSC

About 10 years ago, FSC also attempted to obtain ANBI status but was rejected because it was not clear enough that FSC served the public interest by 90%. FSC has partners such as hardware stores and construction companies that contribute financially, but the partnership aims to promote more responsible forest management through the market for sustainable, certified wood. When Wyke Smit became Director of FSC Netherlands, achieving ANBI status was a key objective. Clearly, the application could not be submitted the same way as in 2013, as it would likely be rejected again.

Thorough Preparation Makes the Difference

IFS Finance’s application process was thorough. They attended webinars on the subject and their tax specialist, Wouter Dijkstra, extensively engaged with the digital ANBI portal of the Tax Authority. A dossier was compiled to accompany the application. Dijkstra also his research on ANBI using the statute books. Ultimately, all these efforts resulted in the approval of the ANBI application, marking a significant success of which we are proud.