In the summer of 2014, the Foundation looked into the conditions it had to meet to obtain an ANBI status for people giving donations. ANBI is a Dutch fiscal status which makes it possible to deduct your donation from your annual tax returns.
Advantages of an ANBI status:
– tax benefit for those who donate (in the Netherlands).
– no inheritance tax needs to be paid if someone leaves a legacy to the Foundation if it were to have this status.
In addition after doing online research, the Foundation consulted with three sponsors and adopters, sought advice from the accountant, a manager from a large Foundation, two notaries and the Dutch tax authorities.
This showed that the Dalèl Foundation:
– is too small-scale to afford the one-off costs as well as the recurrent annual costs.
The Foundation would have to amend its statutes and appoint an official board. This alone would cost the Foundation around 400 euros in notary costs.
Annual recurring costs:
1. For the mandatory meetings, the Foundation must compensate a minimum travel allowance to its board members.
2. In addition, the annual accounting costs would also become more expensive than the current costs the Foundation now pays per year.
Negligible tax benefit for the benefactors
The tax benefit for the benefactors is negligible: a donor/sponsor may add all donations that he / she donates to all charities per year, but must reach a threshold amount and percentage of the annual income. Should a donor reach that threshold, in most cases the tax advantage is around 10 to 20 euros, unless of course the donor donates a very large amount annually.
Transparency versus extra time & costs
– Since 2014 additional requirements are asked of charities with an ANBI status. The focus of these requirements is to provide more transparency on where donations are spent on. The conclusion is that the Dalèl Foundation as it now stands (as a one-woman Foundation and without ANBI status) is more transparent than when it has to create a board for the ANBI status.
– The extra annual time and costs necessary for the ANBI status, the Foundation would rather invest in its actual charity activities: the Camels and the contact with Sponsors/Donors & Adopters.