Like many other foundations, the Bovelander Foundation is dependent on the government, corporates and donations from donors. Without their help, we cannot do what we are doing now. We are therefore very grateful for the help we have received so far. Our newly acquired Public Benefit Organisation (Algemeen Nut Beogende Instelling – ANBI) status makes it possible for us to spend more money on the underprivileged children and young adults in India. But not only we benefit from the ANBI status, you as a donor might too.
Retroactively the Bovelander Foundation has been classified by the Tax Authorities as a Public Benefit Organisation, per 3 July 2020. This means that we do not have to pay tax on our donations received. As a donor you can also take advantage of tax benefits. But what exactly is ANBI status and how does it work? We are happy to explain.
What is an ANBI?
The Tax and Customs Administration can grant ANBI status to institutions that contribute at least 90% of their efforts to the public benefit, for example to health care, development cooperation or education. ANBI institutions are, for example, charities or cultural organisations.
What conditions must an ANBI meet?
In order to be designated as an ANBI, you must meet a number of conditions in addition to contributing to public benefit. It is important that the institution has no profit motive in any case. The institutions must also make, for example, the contact details, financial data, policy plan and current activities publicly available. This makes it possible for everyone to have insight into the functioning of an ANBI institution.
What is the advantage of an ANBI status?
An ANBI status entails tax benefits and is therefore beneficial for donors. This applies to both individual and periodic donations. Donors to an ANBI may, under certain conditions, deduct their donations from income or corporate tax.
The Bovelander Foundation does not have to pay tax on the gifts and inheritances received. This way we can use the donated money 100% for our intended purposes.