ANBI status: tax benefits for your charity and donors

ANBI status makes it even more attractive to make donations, gifts and bequests to charities. What requirements must an institution meet in order to obtain and retain this status? When is something considered to be of public benefit? What information must an ANBI publish?

ANBI status (Algemeen Nut Beogende Instelling, or Public Benefit Organisation) offers institutions such as foundations, associations and religious communities considerable tax benefits. Donors can deduct their donations from their income or corporation tax, while the institution itself is exempt from gift and inheritance tax. This makes it attractive for institutions to raise funds for social causes. However, behind this tax advantage lies a complex legal framework. Small errors in the application or implementation can have major consequences, including withdrawal of ANBI status and loss of tax benefits, possibly even with retroactive effect.

Requirements and application

To be eligible for ANBI status, a charity must meet the following conditions:

• Public benefit: 90% of the charity’s activities must serve the public interest, not the benefit of individuals.
• No profit motive: profits may not be distributed to directors or third parties.
• Management and remuneration: directors may not receive excessive remuneration; the remuneration structure must be transparent; and directors must act with integrity.
• Financial transparency: administration and annual reports must provide clear insight into the use of funds.
• Restrictions on assets: the charity’s reserves must be well substantiated and may only be used for the public benefit. The assets may not benefit individuals or external legal entities. For this reason, if the institution is dissolved, the remaining assets must be donated to another ANBI.
• Administrative obligations: the charity must have an up-to-date policy plan and publish relevant information online in an accessible manner.

The application for ANBI status must be submitted to the Tax and Customs Administration. The institution must submit its articles of association, policy plan, financial data and an overview of its directors. Careful substantiation of the objectives and activities is crucial, because ambiguities often lead to questions or even rejection of ANBI status in practice. Lawyers can provide support here by legally reviewing the articles of association and documents and checking whether the application is complete and convincing. They can also take care of the entire application process for you.

Public benefit

An institution is only eligible for ANBI status if it clearly and directly serves the public interest, which means that its primary purpose is not commercial and is not aimed at benefiting individuals or a specific group of people. Recent case law, such as a ruling by the Amsterdam Court of Appeal, shows how strictly these criteria are applied: although the institution in question was committed to raising awareness of time within society as a whole, it was denied ANBI status. Its actual activities mainly served the personal development of a specific group of people (its participants) and not the public interest. This emphasises that the formulation of the public benefit objectives as well as their actual implementation are crucial.

Board composition and financial transparency

The Tax Administration not only sets requirements for the objectives of an ANBI, but also for the composition of its board and financial transparency. Directors may not receive excessive remuneration and the annual reports must provide clear insight into the use of funds. The composition of the board must also meet strict requirements; for example, directors must be independent and there must be no conflicts of interest that could impede the functioning of the institution.

The so-called anti-hoarding policy also requires charities not to hoard their assets unnecessarily, but to use them for activities that promote the public interest. In their reports, ANBIs must indicate the purpose for which they hold reserves. Insufficient justification for reserves can lead to discussions with the Tax Administration or even withdrawal of ANBI status.

Publication requirements

Publication requirements are becoming increasingly stringent. ANBIs must publish their policy plans, management information and financial data annually, no later than six months after the end of the financial year, in a publicly accessible location, such as their own website. In the near future (around 2029/2030), this information will also be submitted via digital portals of the Tax Administration: a publication portal for the general public and a supervision portal for internal control. For charities, this means that their administration must be in order from the outset and that processes for timely and correct publication must be strictly organised.

Prior to the ANBI application

Applying for ANBI status requires careful legal preparation. Lawyers can play an important role in this by reviewing the articles of association and description of objectives, assessing the management structure and remuneration rules, and advising on the organisation of the administration, annual reporting and policy plan. Monitoring recent developments in legislation and case law is also essential. This allows for timely anticipation of new obligations, such as the Transparency of Social Organisations Act (Wet transparantie maatschappelijke organisaties; Wtmo), which the government wishes to introduce on 1 July 2026. This Act will ensure that information about donations received can be requested in cases where there is doubt about the activities or financing of an organisation.

Common pitfalls for charities include insufficient public benefit character, ambiguities about reserves, late or incomplete publication of annual reports, and an overly passive role in carrying out activities (e.g. by acting solely as a conduit and passing on money to third parties without any input of its own). Although donating funds may be one of the main activities of an ANBI institution, it must have its own policy on the allocation of donations.

In short, ANBI status offers charities significant advantages, but requires a proactive and meticulous approach. Risks can be limited by seeking legal advice at an early stage and setting up processes properly. Russell Advocaten can support you in the legal structuring of your institution, the application process and compliance with the rules. Doing this carefully increases the chance of sustainable ANBI status and prevents unpleasant surprises.

Charities lawyer

After reading this blog, do you need further clarification on one or more topics? Would you like to apply for ANBI status for your own organisation? Or do you have a dispute with the Tax Administration about this? Please contact the specialists at Russell Advocaten. We have extensive experience in setting up ANBIs and will be happy to help you.