Question

Hi Kieran,

 

Just being non-profit does not in itself incur any special tax status.

 

Registered charities, i.e. non-profits who have registered with Revenue for tax exemptions as a charitable organisation, can get certain tax breaks. Also, a subset of those bodies (known as eligible charities) can also get exemptions on donations over €250 and can claim the tax back.

 

You can find details of both schemes here:

 

 

Aside from having a CHY number, what obligations you have will depend on how your organisation is structured. E.g. if you're a company, then you'll have to follow the rules set down by the CRO/ODCE and do annual returns and whatnot. Companies pay corporation tax on their profits, but presumably as we're talking about non-profits, there aren't any to tax.

 

If your organisation is an unincorporated association it has no legal status. It cannot hold a bank account or own property in its own name, so it comes down to the personal responsiblity and liability of the committee members.  So then it's all about transparency and accountability.

 

For example, if you take donations for the busses campaign you'd need to:

 

Committee members are essentially trustees of any donated money. Donors expect and trust that the money will go to the cause to which they donated. If you happen to have money left over at the end of a year, it is reasonable to keep some in reserve, but you must have a written reserves policy.

 

Basically, though, an organisation without a CHY number is obliged to pay any taxes just the same as any commercial organisation operating under normal tax laws. When all is said and done, you'd do well to contact Revenue directly and ask them what your tax liabilities are and who, if anyone, should make returns. The Charities Section operate out of Nenagh. http://www.revenue.ie/en/contact/collector-generals-division.html