Campaign group Critiques Taxpayers' Association Non-profit Status
In 2019, advocacy organization Campact found itself in hot water, losing its non-profit status due to its political activism. Now, Campact is pointing fingers at the German Taxpayers' Association, arguing that the group should also lose its non-profit status for similar reasons.
Campact has lodged complaints with the tax authorities against six state associations of the Taxpayers' Association, alleging that they are unfairly granted non-profit status due to their political involvement. The organization claims that its primary goal is to spark a broader discussion on non-profit status, which is granted to organizations engaging in activities that benefit the general public.
Campact and its globalization-critical affiliate Attac lost their non-profit status a few years ago following a ruling by the Federal Fiscal Court. This ruling meant that donors could no longer deduct their donations from their taxes, a significant blow for the organizations that rely heavily on donations.
According to Campact, the German Taxpayers' Association regularly takes a public stance on political decisions to advocate for its own positions and demands. As an example, the association vehemently opposed the introduction of a wealth tax before the last federal election. This political involvement, according to Campact, makes the association ineligible for non-profit status.
"We're demonstrating the imbalance"
Campact argues that the six regional associations of the Taxpayers' Association in Rhineland-Palatinate, Hesse, Thuringia, Schleswig-Holstein, Bremen/Lower Saxony, and Saxony-Anhalt should all lose their non-profit status. The organization bases this argument on a legal opinion it commissioned, which concludes that the activities of the Taxpayers' Association are not in line with non-profit principles.
Campact is quick to clarify that it has no intention of undermining the Taxpayers' Association. Instead, it wants to use the association as an example to highlight the inconsistency in the interpretation of non-profit law. The organization argues that politically active civil society organizations are often treated unfairly, and the non-profit law needs to be revised to address this imbalance.
Campact expects a draft bill for non-profit law revisions by early 2024 and is calling for a clear recognition of activities promoting fundamental and human rights, democracy, anti-discrimination, social justice, and peace as eligible for non-profit status. For instance, sports clubs advocating for demonstrations against racism should not be penalized for doing so.
Further Reading
Campact has voiced its concerns about the Taxpayers' Association and its non-profit status, citing its political involvement as a reason for the group's ineligibility for tax-exempt status. The organization has filed complaints against six state associations of the Taxpayers' Association, alleging that they are wrongly granted non-profit status due to their involvement in politics.
The Taxpayers' Association has yet to respond to the claims made by Campact, and it remains to be seen whether the group will face any scrutiny or penalties for its political activities. However, the case highlights the ongoing debate over the role of non-profit organizations in politics and the potential consequences for organizations that exceed the boundaries of acceptable political involvement.
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