Legally, our non-profit organization is considered a non-profit limited liability company (gGmbH). Everyone has heard of limited liability companies (GmbH). The GmbH is one of the most common corporate forms for corporations in Germany. But how does this fit with the nonprofit status? We will explain what is meant by the term gGmbH.

A limited liability company is only considered a non-profit organisation if it fulfils a purpose that is oriented towards the common good. As a non-profit organisation, we operate independently, directly and exclusively for this purpose. This means that we do not follow any commercial objectives of our own. Possible Profits will fully benefit our charitable purpose and may not be distributed to our shareholders. Remuneration of personnel is allowed only to a reasonable extent. Our employees even engage in purely voluntary work and forgo a salary so that the funding flows directly into the projects.

Our non-profit purpose is clearly defined in our articles of association and strictly audited by the tax office. All changes in the target tracking must be reported to the tax office for re-approval. Also, all regulations of the German Commercial Code (HGB) apply to us, such as accounting and balance sheet obligations.

The complexity of our charitable tasks requires this reasonable framework – and conditions for action. Consistent staffing in the management functions is essential for us to ensure consistent and efficient pursuit of our goals. The legal form of the gGmbH enables us to appoint a permanent management team, which is on the one hand closely linked to our non-profit organization and our mission and on the other hand capable of professionally managing all activities. In return, we are happy to comply with the strict requirements and commit ourselves to regular monitoring by independent auditors and the tax office.

Published On: 19. March 2018|Last Updated: 19. March 2018|Categories: non-profit organization|245 words|1.2 min read|