Reinier advises national and international companies
reinier.russell@russell.nl +31 20 301 55 55Niek is an expert in corporate and financial law
niek.vandergraaf@russell.nl +31 20 301 55 55The Transparency and Countering Undermining by Civil Society Organisations Act (Wtmo) imposes a number of new obligations on charities in the Netherlands. What are these? What measures should non-profit organisations take as a result?
Foundations, associations and other civil society organisations are indispensable to Dutch society. They make valuable contributions to culture, education, healthcare and community spirit, but can also be unwittingly misused for activities that undermine the democratic constitutional state. To prevent this, the legislator has developed the Transparency and Countering Undermining by Civil Society Organisations Act (Wet transparantie en tegengaan ondermijning door maatschappelijke organisaties; Wtmo). This Act, which was passed by the House of Representatives on 1 April 2025, is expected to come into force on 1 July 2026.
The purpose of the Wtmo is to promote transparency about the financing of civil society organisations and to prevent undesirable foreign influence or undermining of the rule of law, so that the foundations of Dutch society are protected.
The Wtmo does not apply to all organisations, but only to those where there are serious doubts about their activities or finances. The aim is therefore not to impose heavy administrative burdens on all well-meaning organisations, but only to be able to intervene in specific cases. The Act enables targeted measures to be taken in cases where there is a threat to public order or the integrity of the democratic rule of law.
The Wtmo provides tools for the Public Prosecution Service (OM) and the mayor to take action in cases where civil society organisations disrupt public order or act in violation of the law or their statutes. Under the Wtmo, they will soon be able to request information about donations to these organisations. However, there are clear safeguards in place: (1) the infringement must be substantial and (2) the powers of the Public Prosecution Service and the mayor can only be used in specific cases.
The Wtmo entails a number of important obligations and burdens for civil society organisations. These can be divided into three main points:
The Act introduces an organisation-oriented approach, whereby information about donations received can only be requested in specific cases. A request for information can be made by the mayor, the Public Prosecution Service (OM) or other specifically designated government agencies (such as Justis, and the general and military intelligence and security services AIVD and MIVD). Requests are permitted:
The mayor and the Public Prosecution Service may request information about the origin, purpose and size of the donation(s).
Information can only be requested about donations with a value of EUR 15,000 or more. This includes both monetary contributions and gifts in kind or benefits from loans on favourable terms. The threshold value means that smaller organisations or charities with limited foreign funding do not have to take on unnecessary administrative burdens.
If an organisation fails to cooperate, a penalty may be imposed and the organisation will also be guilty of an economic offence. Directors who refuse to cooperate may face a ban from holding a directorship for up to five years.
In order to comply with requests for information, social organisations must retain an overview of donations received that exceed the threshold value for five years.
Social organisations were already required to prepare a balance sheet and a statement of income and expenditure. The Wtmo introduces the obligation for foundations to also file these documents with the Trade Register. This obligation does not apply if they already have to publish them elsewhere, as is the case, for example, with healthcare foundations, which must file their documents with the CIBG. This filing requirement provides an additional safeguard against financial and economic abuse, such as money laundering or terrorist financing. Government supervisory and enforcement authorities will have access to the filed documents, enabling effective supervision and enforcement.
Under the Wtmo, the Public Prosecution Service can request the court to take measures against civil society organisations that undermine or threaten to undermine the democratic constitutional state or public authority. The court may impose an order for a maximum of two years to cease certain activities, supplemented by measures such as a penalty payment, freezing of assets, a ban on donations, a reporting obligation or access to financial records.
Prior to or during the proceedings, the court may also impose provisional measures, such as the provision of information, disclosure of books or seizure of funds. Tailor-made measures are possible by combining different measures. Government agencies can provide information to the Public Prosecution Service in support of such a request.
The Wtmo provides a system that, although aimed at transparency, also takes into account the practical burdens for civil society organisations. The aim is to strike a balance between the necessary control and limiting the administrative burdens for well-intentioned organisations. Whether this will actually work out remains to be seen.
It is essential for civil society organisations to be aware of the new requirements and to prepare for the implementation of the law so that they are well prepared when the Wtmo comes into force in 2026. You can take the following steps:
Do you have any questions or need advice about the implications of the Wtmo for your organisation? Would you like us to check whether your procedures comply with the new rules? Or do you have other questions about the governance and management of your foundation or association? Please contact the specialists at Russell Advocaten. We will be glad to help you:
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