To qualify as a Public Benefit Organization (ANBI), an organization must continuously meet the necessary conditions. Please refer to our previous article for an overview of all ANBI conditions.
One of these conditions concerns the level of remuneration of the policymakers of an ANBI. This condition is intended to ensure that funds actually benefit the general interest that the ANBI aims to achieve. In this article we look more closely at this condition and the risks involved in non-compliance.
Who are policymakers?
Policymakers are natural persons or bodies within the institution who are responsible for the policy without actually being subordinate to other persons or bodies of that institution. In an ANBI with a Board of Trustees model, for example, these are the members of the Supervisory Board.
Not excessive fees and expenses
Attendance fees are the compensation a member of the governing body receives for attending and preparing for meetings. The so-called Gifts Decree[1], issued by the State Secretary for Finance, specifies when these attendance fees are considered not excessive. This is the case if the compensation per member per meeting does not exceed €360.63 (from July 1, 2024, through December 31, 2025). This amount corresponds to 3% of the maximum salary for Scale 18 civil servants. Chairs may receive up to 130% of this amount, or €468.82 per meeting (from July 1, 2024, through December 31, 2025); see the table of maximum attendance fee amounts on the Tax and Customs Administration’s website.
An expense allowance is a reimbursement for reasonable expenses incurred by policymakers in the context of their function for the ANBI.
Room for higher fees?
In certain exceptional situations, a higher fee can be justified, without automatically being considered excessive. Whether a fee should be considered excessive depends on the specific circumstances. Each situation requires a tailored assessment.
Factors that may be important here include the size and complexity of the organization and the social position of the board member in question.
A fixed fee that is separate from the actual attendance and preparation of meetings, does in principle not qualify as an attendance fee. Nevertheless, in practice, such a fixed fee can be considered appropriate under certain conditions. This is the case when the fee is based on a reasonable estimate of the number of hours to be spent on preparation and participation in meetings, and does not exceed the level considered not excessive.
Transparency and publication obligation
Every ANBI is required, among other things, to disclose the amount of compensation paid to policymakers, as this is part of the ANBI’s annual mandatory disclosure. We would like to refer you to our previous article on the disclosure requirements for ANBIs.
What are the consequences in case of non-compliance?
Failure to meet the obligation regarding the remuneration of policy makers can lead to loss of ANBI status, as well as the associated tax facilities. Withdrawal of the ANBI-status by the Tax Authorities can in principle be retroactive, as a result of which the fiscal facilities also have to be corrected retroactively and additional taxes can be levied.
In conclusion
Make sure that the remuneration policy of your policymakers within your ANBI is in line with the applicable conditions as described above. Periodically check whether the remuneration is in line with the regulations, and ensure complete and timely publication.
Do you have questions about the remuneration of policymakers within your ANBI institution or do you doubt whether your remuneration structure meets the requirements? Please feel free to contact us via your account manager, via our contact form on the website or on our general phone number 040 - 2504 504.
[1] https://zoek.officielebekendmakingen.nl/stcrt-2009-20091.html