The Union faction is demanding transparency regarding the political neutrality of NGOs involved in protests against far-right ideologies, questioning their state funding sources. They have raised over 550 inquiries to the federal government targeting organizations like Correctiv and BUND. Concerns arise over potential misuse of non-profit status and political activities that may compromise tax-exempt benefits. Instances of extremist influence on NGOs have been reported, highlighting the need for adherence to legal standards to maintain their non-profit qualifications.
Union Faction Seeks Clarity on NGO Neutrality
The Union faction is seeking transparency regarding the political neutrality of non-governmental organizations (NGOs) that recently participated in demonstrations against far-right ideologies. This inquiry raises important questions about the obligations of state-funded organizations in the political landscape.
The Union faction perceives the nationwide protests, which opposed their collaboration with the AfD party, as a deliberate attempt at party-political interference just ahead of the federal elections. Among the organizations involved in these protests are those that receive state funding, as well as non-profit entities that benefit from tax privileges due to their charitable status.
Questions Raised About NGO Funding
In light of these events, the Union faction has submitted an extensive list of 551 questions to the federal government, targeting organizations such as Correctiv, BUND, and ‘Grandmothers Against the Right.’ Queries include: ‘What proportion of the financial resources of the association Grandmothers Against the Right Germany is sourced from state funding programs?’ and ‘Does Correctiv GmbH allocate financial resources to support political protests or demonstrations?’ Similar inquiries have been directed at other organizations as well.
The Union’s probing into the financial backing of non-profit organizations has sparked significant controversy. State support for civil society entities can take various forms, such as funding programs that allow organizations to apply for grants. The Union faction is particularly interested in the ‘Live Democracy!’ funding initiative, which aims to bolster democracy while combating extremism, racism, anti-Semitism, and anti-Muslim sentiments.
Non-profit organizations enjoy tax benefits, allowing them to thrive through donations that are tax-deductible for contributors. Such incentives enhance the inclination to donate, ultimately benefiting these organizations. To qualify as non-profit, an organization must demonstrate that its activities are focused on selflessly advancing the public interest in various domains, as outlined in § 52 of the Tax Code. The local tax office assesses whether an organization meets these charitable objectives.
Recent investigations have revealed instances where the non-profit law is being misused by individuals with extremist views. Maintaining neutrality is vital for non-profit organizations, which may engage politically only within certain limits. Their political activities must align with their charitable goals. For instance, an animal protection association can advocate for stricter animal welfare laws but must base its arguments on factual information and maintain a stance of political neutrality.
It is prohibited for these organizations to engage in biased promotion of specific political parties, as this would undermine the intended purpose of their tax-exempt status. Additionally, political activities must remain a secondary focus compared to other organizational endeavors.
In several federal states, there have been reports of AfD representatives attempting to influence non-profit associations. Notably, the organization Attac has been deemed not to qualify as non-profit. This conclusion stems from rulings by the Federal Fiscal Court regarding Attac’s claimed promotion of political education, which must be conducted with ‘intellectual openness’ and should not preferentially sway public opinion.
The Court determined that Attac’s political activities overshadowed its charitable purposes, leading to revocation of its non-profit status in a 2019 ruling. The organization has since lodged a constitutional complaint against this decision, which remains pending.
Since the revocation, many organizations have expressed concerns about their own non-profit status. It is important to note that while occasional comments on political matters are permissible for associations, making politics the centerpiece of their activities could jeopardize their tax-exempt status. For instance, a sports club can advocate for climate action or against racism in response to current events, but must not let such political engagements dominate its mission.
If non-profit organizations fail to comply with legal standards, the relevant tax authority has the power to revoke their status, leading to the loss of tax advantages. Any disputes regarding the legitimacy of such revocations will be subject to review by tax courts.
This topic was covered by NDR Info on February 26, 2025, at 5:40 PM.