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> So when German non-profits want to hand out merch in exchange for a specific donation amount, non-profit has to pay for-profit taxes on that? I don't know ab
by southerntofu 5y ago
> So when German non-profits want to hand out merch in exchange for a specific donation amount, non-profit has to pay for-profit taxes on that?
I don't know about german regulations specifically, but based on my experience in other legal systems and my understanding of the announcement, i believe it means that because "patreon and our custom sponsorship platform" aim to reward individuals, they cannot be considered donations for the non-profit.
A non-profit may employ/contract people for specific tasks aligned with its goals, but rewarding people outside of such specific contract is closer to a "shareholder" model and incompatible with non-profit regulations. Of course, contributors to a non-profit may setup donation systems to pay their own bills, but that must not be advertised as donations "to the non-profit" (because that would be a lie), and they have to declare/pay taxes on that.