Non-profit: foundations
and associations

Moore DRV has advisors with specific expertise in non profit foundations and associations. Foundation and association board members are increasingly being confronted with tighter laws and regulations and heightened transparency requirements. Adequate, efficient accounting is indispensable, with an outstanding knowledge of tax related matters and reporting being essential. In addition, because as much money as possible must remain for the ‘charities’, the supplemental duties and responsibilities have to be carried out at the lowest possible cost.

Effective and efficient

Moore DRV helps board members to set up the organization and financial reporting efficiently and effectively and to always be in compliance with the current statutory and regulatory requirements. Extensive knowledge about and experience with associations and foundations has been concentrated in a single accountancy team. In this team, our professionals work together combining their expertise in taxation, reporting and administrative organization. They assist the board members in gaining an understanding of and grip on the foundation’s or association’s assets and the underlying organization. We also maintain excellent contacts with an independent, specialized Foundations and Associations Family Office, which can perform the entire administration and asset management for charitable organizations’ boards.

Accountancy for foundations and associations

Moore DRV has lots of experience drawing up and auditing financial statements, including auditing such public benefit organizations as donor-advised funds, fundraising organizations and religious organizations. To conduct efficient, effective audits, Moore DRV has developed a computerized tool specially tailored to this target group. The tool enables us to identify risks and potential shortcomings. Together with the board, we then examine the options for implementing the points for improvement revealed by this tool. In this way, you are able to accomplish your goals as optimally as possible with the available resources.

Tax advice for foundations and associations

Foundations and associations deal with a broad pallet of tax related questions, including with respect to income, gift and inheritance taxes, turnover taxes and corporation taxes. The amendment of the old Dutch Inheritance Tax Act [Successiewet] and the entry into force of the new Dutch Gift and Inheritance Tax Act [Geefwet] have completely changed the position of special purpose funds under the tax rules.

The old Inheritance Act was significantly amended, effective 1 January 2010. This law, which regulates, among other items, gift and inheritance taxes, is relevant to special purpose funds, including foundations and associations. Specifically, this amended law provides that foundations and associations are to be sub divided into one of the following categories:

• public benefit organizations;
• social benefit organizations; or
• separated private assets.

This categorization affects the tax treatment of gifts and donations to foundations and associations. The new Gift and Inheritance Tax Act took effect on 1 January 2012, as a result of which tax benefits have been tightened up and expanded in certain respects. Moore DRV provides insight and advice in this very complex area.

Growing demand for transparency

The demand for transparency keeps growing in our society. For foundations and associations, too, the need to communicate clearly about activities, expenditures and policies has increased. As a board member, you are also encountering more stringent regulation. Since 1 January 2014, for example, public benefit organizations have been required to make their financial reporting, a current policy plan and the composition of their board available online. Hence, it is crucial for your administrative organization and reporting to be correct, with the lowest possible costs.

Efficient and effective manner of financial reporting

Moore DRV’s team primarily assists public benefit organizations, known in the vernacular as ‘charities’. Moore DRV helps these foundations and associations gain insight into and a grip on their assets and the underlying organization. ICT innovations have enabled boards to set up the organization and financial reporting efficiently and effectively and to always be in compliance with the specific statutory and regulatory requirements for foundations and associations. A certified public accountant then checks the reliability of these figures and identifies the risks.