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Simplification of bequests to non-profit organisations

On August 3, 2017, the so-called law “Pot-Pourri V”[1] entered into force and amended in particular the law of June 27, 1921, regarding non-profit associations, foundations, European political parties and European political foundations (hereafter: “Law”). It results from the law “Pot-Pourri V a simplification of bequests to non-profit associations, international non-profit associations and foundations.

In the past, the Law provided that - except for hand-to-hand gifts - any inter vivos or testamentary donations in favour of an association/international association/foundation shall be duly authorised by the Ministry of Justice. Nevertheless, this authorisation was not required for the acceptance of donations having a value of maximum 100,000 euros. Consequently, to benefit from a donation, a non-profit association, international non-profit association and foundation had to request the authorisation from the Ministry of Justice, via the issuance of a ministerial decree, which was a cumbersome administrative procedure.

As of August 3, 2017, non-profit associations, international non-profit associations and foundations do not longer need to request such authorisation to benefit from testamentary donations. On the contrary, inter vivos donations will surprisingly still need to be duly authorised by the Ministry of Justice.

We could not agree more and genuinely hope that this will increase the number of testamentary donations in favour of non-profit associations, international non-profit associations and foundations. Moreover, we hope that this is a first step towards a global simplification of all kind of donations in favour of the non-profit sector.

Should you have any questions regarding bequests and donations to non-profit associations, international non-profit associations and foundations feel free to contact us.

 

Tax team

Non-Profit & Trade Associations team

 

[1] Law of July 6, 2017 regarding the simplification, the harmonisation, the computerisation and the modernisation of civil law and civil procedure provisions as well as notaries and providing for various measures regarding justice, published in the Belgian Official Gazette on July 24, 2017 (http://www.ejustice.just.fgov.be/eli/loi/2017/07/06/2017030652/moniteur).