Comparative legal analysis of associations laws and regimes in the EU. Country Report: Denmark
According to the recent study Volunteering infrastructure in Europe (2020): “In Denmark, there is a long tradition of forming associations, and freedom of association is of such great importance that there has never been any law that defines or regulates third sector organisations and associations. On the contrary, freedom of association is secured by §78 of Grundloven (the Danish Constitution)”1.
In addition to the previous typology, additional distinction is to be made between the associations on the basis of their non-profit or for profit orientation: non-profit association aims to work for the benefit of the public - as opposed to commercial benefit, ie to create financial profit for a person or a group of people.2
In Denmark, there is therefore no law that regulates the legal regime of association and no specific legal act that stipulates a list of requirements that an association must meet in order to be declared legal formed.
The following five types of associations exist, however not all associations are obliged to be registered in the respective register kept by the authorities: The following two types of associations must be registered: associations with limited liability (fmba); cooperative housing associations. The following three types of associations can register but it is not compulsory: Voluntary associations; Ordinary associations; Special associations.3
In addition to the previous typology, additional distinction is to be made between the associations on the basis of their non- profit or for profit orientation.
The associations obtain their legal personality from their registration.
According to Section 11 of the Executive Order on notification, registration, fees. in the Danish Business Authority, the registration for associations is free of charge. Exceptionally, the establishment of an association with limited liability (fmba) the costs is DKK 670.4
The governing bodies of the associations in Denmark are the General Assembly and the Board of Directors.
Since associations that have non-profit statutory purposes can be exempted from VAT for the sale of goods and services in connection with their activities, it can be concluded that associations are allowed to carry-out economic activities in Denmark.
An association is tax-free if it is exclusively non-profit or if it has no business income. Income from deliveries to the members, including the members' payment of the membership fee, is not business income.
A non-profit association is also exempted from VAT.5 When the association sells goods or has income from events that are open to public, the association may be liable for VAT if the annual income from such activities exceeds DKK 50,000.6
According to the Danish National Centre for Social Research there are more than 100,000 active associations7. In 2011 the average income of the associations in Denmark was EUR 2 299,498. The total income of the associations can be estimated to 229 900 000 EUR. The economic weight of the associations in Denmark in 2011 can be estimated to 0,12% of the GDP. The study “Tal om foreninger og frivillighed” (2018) 9 highlights that more than half (57%) of the income in local associations comes from public funds. The situation in the associations operating at national level is similar - 45% of the funding comes from public sources. At the same time, research suggest that in 50 % of the local associations between 75 and 100 % of their income is from public funds, while the same applies to less than 30 % of the national ones. A report prepared by the Danish Institute for Voluntary Effort DIVE in 2019, highlighted that 39% of the Danish population had performed voluntary work within the previous 12 months. This is equal to 2.264 million people between the ages of 16 and 8510.
1.Definition, types of associations and characteristics
2. Sources of law founding associations
8. Definitions of public interest
10. Economic activities permitted
11. Governance, operating rules and bodies
13. Reporting and transparency
14. Resources and assets management 15
6.Share between voluntary and paid work
According to the recent study Volunteering infrastructure in |Europe (2020): “In Denmark, there is a long tradition of forming associations, and freedom of association is of such great importance that there has never been any law that defines or regulates third sector organisations and associations. On the contrary, freedom of association is secured by §78 of Grundloven (the Danish Constitution)”11.
There is therefore no law that regulates the legal regime of associations and no specific legal act that stipulates a list of requirements that an association must meet in order to be formed.
However, the Law on Registerd Socio-Economic Entreprises (Lov om registrerede socialøkonomiske virksomheder, LRSE), provides for the prerequisites for registration for socio-economic enterprises and therefore applies to associations.
According to Section 5 of the Law on Registered Socio-Economic Enterprises, social enterprises must meet the following five criteria to be labelled as social enterprise, in particular:
have a primary purpose that is beneficial to society with a social, cultural, employment-related, health-related or environmental aim.
bear significant commercial activity. The enterprise must sell either goods or services. This activity must constitute a predominant part12 of the revenue generated by the enterprise. The requirement that the company must be traders, should not be understood as meaning that the majority of the company's revenue must come from the sale of products and services, but the business must nevertheless constitute a significant proportion of revenue. The company may well receive public and private subsidies, donations, etc., as long as the company simultaneously has a sale of products or services that are not insignificant for the company's total turnover.13
be independent of public authorities. The public authorities must not have any significant influence on the management or operation of the enterprise.
be inclusive and responsible in terms of governance. The enterprise must involve employees, customers, partners and stakeholders. It should be managed responsibly in accordance with the social objectives.
be responsible about the social management of profits. The enterprise must spend its profits after tax on social objectives or reinvest the funds towards the same direction. However, a limited share14 of profits may be distributed as dividends to investors or owners. Profits should be reinvested in the enterprise, invested in other registered social enterprises, donated to charitable organisations or distributed as dividends to owners and investors to a limited extent.15
Particularly, three legal models16 (foundations, associations and limited liabilities companies) are dominating the field of social enterprise in Denmark.17 An association may have the character of a legal person – i.e., that the association can conclude agreements and assume obligations in the same way as persons or companies and act in the form of "associations" according to Danish legislation.
The purpose of an association can be “ideal” such as social and charity associations, sports associations, civil society associations or unions, or it may have an economic purpose. It is the association's purpose and actual activity that determines whether it should be registered and, if so, under which category and how.
In Denmark, the following 5 types of associations are met, however not all associations are obliged to be registered in the respective register kept by the authorities:
The following two types of associations must be registred:
Associations with limited liability (fmba) must be registered with CVR number
Cooperative housing associations have a duty to register because they are basically liable to corporation tax
The following three types of associations can register but it is not compulsory:
Voluntary associations can - but do not have a duty - to register. It can be, for example, a landowners' association or a cultural association
Ordinary associations (also called non-profit associations) can - but do not have a duty - to register. It can, for example, be a non-profit organization
Special associations can - but do not have a duty - to register. It can, for example, be a purchasing association”.18
In addition to the previous typology, additional distinction is to be made between the associations on the basis of their non-profit or for profit orientation: non-profit association aims to work for the benefit of the public - as opposed to commercial benefit, ie to create financial profit for a person or a group of people.19 An association can in some cases be considered non-profit or charitable, even if the association has a business income. It is a condition that the business income is closely linked to the non-profit purpose and that the income is used or set aside for the non-profit purpose of the association. Organizations pursuing political, economic or business interests are not considered non-profit.20
The Danish Constitutional Act stipulates in section 78 that citizens have the right to form associations without any prior permission for any legitimate purpose. Limitations to the scope of the freedom are introduced through the subsequent paragraphs of section 78, section 79 and 85 of the Constitutional Act.
There is no actual single act relevant to the principles of governance or functioning of associations. The key documents are the Statute which are drafted by its members and play a role of constitutional statute of the association (regulating its internal and external relations)21. Although there is no association law, certain requirements apply in practice. In case an association applies for states or municipality grants, has to meet certain requierments about the Statute in order to be acceptable (concerning management, purpose, membership regimes).22
On top of that, there are legal acts and case law that provide guidance about the competence of the court concerning associations:
For example:
-the Law on Registered Socio-Economic Entreprises (Lov om registrerede socialøkonomiske virksomheder, LRSE), provides for the prerequisites for registration for socio-economic enterprises.
-Danish non-profits operates within a legislative framework made up of various separate acts, among others “Lov om offentlige indsamlinger” (legislation on public fundraising).
- Charitable and non-profit associations must be approved pursuant to s. 8A and s. 12(3) of the Danish Tax Assessment Act–this is to determine if the association has an adequate level of public support
- Approved associations are able to apply for VAT refunds and tax relief, according to the Value Added Tax Act (see below).
- The employment legislation is always crucial when paid employees offer services to the association. The Board is responsible for compliance with the employment legislation.23 In addition to the Salaried Employees Act, there are a number of legislations that one has a duty to familiarize oneself with as an employer. Some of the most important laws in the field of labour market are: The Salaried Employees Act, Holiday law, the Employment Certificate Act, the Occupational Injuries Insurance Act, the Working Environment Act etc. It is important to mention that the Working Environment Act obliges all workplaces - including associations and voluntary organizations with paid or unpaid employees - to prepare workplace assessment (APV). If there are more than 10 employees, the employer must - that is, in associations the board of directors - also establish a working environment organization (AMO), where management and employees work together to strengthen the working environment.24
Unlike many other countries, as elaborated, Denmark does not have legislation on associations. There are no legal texts you can look up and see what exactly it takes before an association is formed.
If a court has to assess when a network, a collaboration or a group is one association, the courts tend to emphasize that certain conditions are met.
First of all, the court will look at whether there is at least an adopted Statute, whether there is a circle of members and whether there is an independent economy. There are no formal requirements for the degree of internal democracy, including whether you have an elected board or how you cooperate on the board. On the other hand, there are several recommendations and principles for good practice that you as an association and board can lean on. An example is good governance recommendations, which set out principles for good management of voluntary organizations. The recommendations are both internal in relation to how the board manages the organization, and external in relation to how the board relates to licensing authorities, stakeholders, the public, etc.25
The General requirements for associations according to case law include:
• At least two members;
• The members have entered into an agreement on the purpose of the association (this agreement is embodied in the Statute);
• The members meets on a regular basis;
• The members pay a membership fee to finance the association's activities;
• The supreme body of the association is a general assembly or a board of representatives, which can amend the statute and exercise ownership powers if the association has assets;
• Associations have an independent management body elected by the members at a general meeting;
• It is not compulsory for the association to possess any assets.
In general, it is not obligatory for an association to be registered.
However, an association must be registered for instance in the following cases:
are traders and the members have limited liability (fmba)
has employees and must pay salaries (e.g. to a caretaker)
must receive grants from the public sector (registered as voluntary associations)
must run a business (e.g. a kiosk in a sports association) and possibly be registered for VAT
must import or export (e.g. a purchasing association)
The following documents must be enclosed in the application for registration: Statute and board composition. 26 The association is allocated a CVR number. This is an association / company identification number. In general, an association is not required to have articles of association to obtain a CVR number. However, the Statute may be utilized also for tax exemption as they can be required to prove the non-profit purpose.27
The authority in charge of the registration is the Danish Business Authority.
Section 6 of LRSE provides for the documentation that an association is required to submit for its registration in order to be qualified as a social enterprise. These documents should prove the right of the association to work towards achieving a social purpose and are the following:
documentation that the social purpose is included in the Statute or founding document,
documentation showing that the association is a trader,
documentation showing that the association is independent of the public sector,
a description of how the association is inclusive and responsible in its work, and
documentation showing that it has a social handling of its profits.
According to Section 11 of the Executive Order on notification, registration, fees. in the Danish Business Authority, the registration for associations is free of charge.
Exceptionally, the establishment of an association with limited liability (fmba) the costs is DKK 670.28
After registration, the association acquires its own legal personality, therefore the liability is limited to the assets of the Registered Association and differentiated from the assets of its members.
In case of a misconduct, the Board of Directors is collectively responsible for decisions. The board is thus considered as a legal collective - where everyone has the same responsibility. If the board acts irresponsibly or negligently, the members may be personnaly liable, both legally and financially.29
The associations obtain their legal personality from their registration.
The Registered Association is a legal person, and it can be subject of rights and liabilities just as the natural persons do. This particularly means that it is able to act in its own name represented by its organs, conclude transactions, sue and be sued in its own name; it also has the right to possess property, including real estate.
Public benefit purposes are provided by tax legislation and indicatively may include: disease control; preventive child and youth work; development aid; church work; amateur sports work.
The same criteria applies for charitable or purposes that underlies the rules of associations that hold stand-alone events or collect and sell second-hand goods.
The purposes which according to ML § 1330, para. 1, no. 21, are considered charitable or otherwise non-profit nature, are the same as per the "arrangement rule" in ML § 13 , para. 1, no. 17, on VAT exemption for charitable events.
Important case law is to be specified: in accordance with SKM2009.211.SR , the Tax Council accepted the fact that an association's sale of goods and services was covered by the exemption in ML § 13 , para. 1, No. 22 (now No. 21). As the association's activities according to its statutory purpose are covered by the exemption provision in ML § 13 , para. 1, no. 5, on amateur sports work, and since the profits from the activities in question (concerts, fairs, Christmas events and the like) must be used for these charitable sports and sports activities, the association may use the provision on VAT exemption of sales of goods and services in connection with activities when the other conditions are met.
The purpose of an association is building up a community, which is why there must always be more than one member. The Danish Business Authority requires that at least two members participate before a community can be called an association.31 The Statute of an association regulates all subjects related to members: rights, entry and exit requirements.
The membership in the associations is voluntary.
Membership can be terminated voluntarily and involuntarily in the following cases::
1. Death or placement under full judicial disability. When the member is a legal entity, death corresponds to cessation (but not dissolution or start of liquidation).
2. Voluntary termination of the non-profit entity.
3. Exclusion by the members, if such a provision exists in the Statute. There is a rich case law on grounds for exclusion. In general it can be said that there is a requirement of objectivity and popularly it can be expressed in such a way that there must be a solid reason to decide that a member must be excluded and the courts are happy to undertake an assessment which in some cases leads to an exclusion being declared invalid.
As stated, an exclusion must be factual, reasonably justified and proportionate. The requirement of objectivity implies that an exclusion - if it is not - can be considered as invalid by national courts, even if a general assembly has agreed to the decision of the board of directors.32
If articles of association provide accordingly, members are obliged to pay the membership fees.
According to the Law on Registered Socio-Economic Enterprises (Lov om registrerede socialøkonomiske virksomheder), in order to receive the label Socio-Economic Enterprise, it is compulsory for the company to have a social purpose and generated profits must be reinvested in the company or donated/distributed to other socio-economic enterprises or organisations that work for the benefit of the public. The distribution of profits needs to be documented. There is a limited possibility of paying dividends to investors of the company.
Ordinary Associations (Non-profit associations):
Profits are used to further the association’s purpose and this needs to be documented. However, the association can use the generated profits to fulfil its own purpose, meaning the profit does not have to be distributed/donated to others.
The association cannot promote business interests of its members.
Associations with limited liability (Profit associations):
It is a requirement, that the main purpose is to pursue economic and business interests of the association’s members and conduct economic activity)
Profits are shared with the members according to its statue.
Since an associations can be exempted from VAT for the sale of goods and services in connection with activities of the associations that have non-profit statutory purposes, it can be concluded that associations are allowed to carry-out economic activities in Denmark.
These activities are not exactly and exhaustively described in the Value Added Tax Act (VAT act). Consequently, the case law plays a key role. An analytical catalogue of jurisprudence exists33.
From case-law practice, it arises that secondary activities are permitted to the association without limitation.34
In Denmark there are no special laws on associations. Although there is no association law, it is important to be aware of whether there are basic legal requirements for the association's structure, management and governance. In terms of the bodies required according to case law, two main bodies exist:
General Assembly
The general assembly is the supreme authority of an association, and is held annually (according to the description of the articles of the association). The articles of the association also set the guidelines for convening, voting and decision making in the General Assembly.35
Although organizations with voluntary boards can be structured very differently, a sample survey of nationwide voluntary social organizations in CFSA's Association Portal shows that the democratic association structure, where all members of the General Assembly jointly and with equal weight vote elect their joint management / board, is the most common form of organization.
General meetings and elections of boards of directors can be convened in different ways, even with the possibility of holding general meetings via e.g. digital platforms. There is still a tradition of associations and voluntary organizations in Denmark to keep a carefully convened, physical, transparent and democratically based annual general meeting - even if there is no legislation on how you hold a general meeting.36
In the majority of the associations, each member has one vote in the General Assembly, either directly or indirectly by proxy. Employees, volunteers, users and partners can also have access to the general meeting, with or without the right to vote- this is set in the articles of the association.37
Powers of the General Assembly
The General Assembly may:
1) amend of articles of association, which are the constitutional charter for the association,
2) elect and decide on the powers of the members of the Board of Directors,
3) determine the budget,
4) Presentation and approval of the annual report for the previous year,
5)deciding on the way the profits will be used .38
Board of Directors39
The Board of Directors must consist of at least of three people, elected by the General Assembly. Any Board must consist in: a chairman, who is in charge of the overall operations and management, an auditor who keeps track of finances, accounting and payments and a secretary who is responsible for keeping minutes of the decision-making processes and circulate them. If the Board has more members, then there might be also other roles, such as the Vice-Chairman, the Member Manager and the Activity Manager. However, all these roles are dependent on the size of the Board.
Powers of the Board
The Board is the management body of the associations. This means that the Board of directors must first and foremost adopt the decisions necessary for the association's operations and development based on the decision of the General Assembly and the instructions of the articles of association. 40
More precisely, the duties and powers of the Board include41:
Development of the strategy of the association.
Management of the financial matters of the association and the budget
Ensuring that the association remains consistent with its legal obligations
Ensuring that members have insight into and influence on the association
Ensuring that the articles of association are compliant, developed and regularly inspected
Employer duties (if the association has salaried employees). This means that the board has a duty to comply with the applicable labor market legislation.
Representation of the association in and out of court.
Sometimes, in big associations the management is differentiated into the top management and the day-to-day management. Top management belongs then to the Board, whereas daily management is being trusted in a special secretariat.
Rules of Procedure
The Board should decide on its rules of procedure. The rules of procedure are the board’s agreement on cooperation in the day – to – day management of the association. They are subject to the Statute which should at least contain details on: responsibilities and tasks, frequency and convening ways for the meetings of the board, keeping of the minutes of the board, voting processes.42
As a general rule, it is the chairman who convenes the board meetings. If the chairman is prevented, the vice-chairman may convene. The meetings should be convened by sending out the agenda at least 8 days before the meeting.
The Danish Central Business is the central government register. It collects primary data on all businesses in Denmark regardless of economic and organizational structure, including the associations.
The only reporting obligation relates to salaries and fees
If an association has employees, it must deduct taxes and contributions just like other employers. The association is required to report the payments, to the Tax Agency, as well as to submit reports about its salaries and fees.43
The associations operate with the following main types of resources:
• incomes from main non-profit activity,
• incomes from donations,
• incomes form membership fees,
• income from economic activities.
Among the subjects that must be covered in the statute are the rules for collection of members` contributions, as well as the steps to be followed during a potential liquidation. The Managing board is in charge of governing the assets of the association during the period of existence of the association. However, it must respect the requirements of the statute.
The liquidation phase comes before the dissolution of the association (and deletion from the registry). Taking a decision of a dissolution is a power of the General Assembly. Its termination also designates the termination of the legal personality of the association. The articles of the association should always indicate that the association's profits (liquidation proceeds) must be transferred to another association or organization which is domiciled in Denmark or in another EU / EEA country (upon dissolution).44
It depends on the provision of the Statute. They belong to the members of the association. However, there can be members of the board entrusted with special management competencies (top management) or who are elected from a fund that aims to exercise strategic influence on the company.45
The board of directors is primarily responsible for the tasks in a strategic level.
An association is tax-exempt if it is exclusively non-profit or charitable, or if it has no business income (income from services to the members, including the members' payment of the membership fee, is not business income.)
A tax-free association does not have to submit a tax return.
In some situations, the associations may be obliged to prepare an account. An association that is not taxable and that has no obligations in relation to the public sector can register at the Danish Business Authority as the possession of a CVR number is obligatory. A CVR number can be used to set up a bank account or to receive a grant from the municipality. In that case, the association can register as a voluntary organization.
For a non-profit association to be tax-exempted, the fulfillment of the following elements should be proved:
the statutory purpose of a charitable or non-profit nature.
if the CVR number is established as a charity / non-profit association.
the statutory resolution where values are transferred to a non-profit recipient
that sales may only be performed in connection with the charitable aim of the association
that profits may only be used for charitable or non-profit purposes
that there must be no distortion of competition.46
Section 8A of the Tax Assessment Act
The maximum amount the donors can get in deduction is 17,200 kroner per. person per year (2022). There is no lower amount limit, so the gift giver can also get deductions for small amounts. It is both associations, foundations and religious communities that can apply for approval according to the Tax Assessment Act §8A.
In addition, the the Danish Customs and Tax Administration SKAT makes the following requirements so that an association is approved to receive donations that are deductible:
The association must have an annual income of at least DKK 150,000.
The association must document that it receives more than 100 gift amounts of at least 200 kroner a year.
The association must have a democratically elected board.
The association must have at least 300 membership fees.
Local associations that are members of a national organization that has already been approved cannot be approved in accordance with section 8A of the Tax Assessment Act.47
Value Added Tax Act (VAT)48
VAT for associations is regulated in the Value Added Tax Act (Bekendtgørelse af lov om merværdiafgift).49
A non-profit association is exempted from VAT.50 When the association sells goods or has income from events that are open to public, the association may be liable for VAT if the annual income from such activities exceeds DKK 50,000.51 Usually, there is no distortion of competition when an association sells goods and services as a service to its members or a limited circle of users.
Delivery of goods and services in connection with charitable events as well as associations and others. collection and sale of second-hand goods of little value are, under certain conditions, exempt from VAT.52
The purposes which according to ML (VAT Act) § 13, para. 1, no. 21, is considered to be of a non-profit nature, are the same as the one according to the "arrangement rule" in ML (VAT Act) § 13, para. 1, no. 17 on VAT exemption for charitable events.
According to the Danish National Centre for Social Research there are more than 100,000 active associations in 202053.
In the Volunteer Survey from 2006, Danish researchers have given an estimate of how many voluntary organizations exist in Denmark.
They conclude that there are almost 101,000 associations divided into:
83,000 local and regional associations
3,000 nationwide associations
8,000 self-governing institutions
6,200 non-profit funds.54
Because of the lack of a legal obligation for registration of all associations there is a significant difference between this figure and the number of registered associations: a total of 282 social enterprises are registered in the VIRK database in 2018. Among them 123 are associations (43%), 90 are limited liability companies, 46 are foundations, and 23 are listed as “other enterprise forms”55.
In recent years, associations have experienced a different membership affiliation than reported previously. The estimated minimum number of members of the associations based on the requirements for formation of an association is 200 000.
A study conducted in, presented in the report Social enterprises and their ecosystems in Europe | Country report Denmark, 2017, highlights that Social enterprises in Denmark usually act in the areas of health and social services (40%), research (6%), education (5%), retail 4.6%, culture (2.8%) etc56.
The study “Tal om foreninger og frivillighed” (2018) 57 highlights that more than half (57%) of the income in local associations comes from public funds. The situation in the associations operating at national level is similar (45%) of the funding comes from public sources. At the same time, it is estimated that in 50 % of the local associations, between 75 and 100 % of their income is from public funds, while the same applies to less than 30 % of the national ones.
The same report highlights that the number corresponding to 43% of all non-profit associations experienced an increase in their income over the past three years, while 18% have experienced a decline. Just over one in four associations (29%) consider the development in their income to be unchanged. If one looks more closely at the local associations, 38% experienced an increase in revenue. Respectively, almost 51% of the nationwide associations answered that they have had an increasing income over recent years.
In 2011 the average income of the associations in Denmark was EUR 2 299,4958. The total income of the associations can be estimated to EUR 229 900 000.
The economic weight of the associations in Denmark in 2011 can be estimated to 0,12% of the GDP.
A report prepared by the Danish Institute for Voluntary Effort DIVE in 2019, highlighted that 39% of the Danish population had performed voluntary work within the previous 12 months. This is equal to 2.264 million people between the ages of 16 and 8559.
No data available.
References:
https://www.europeanvolunteercentre.org/_files/ugd/3ec99c_f2076d186d484ef0b42c4626cac43554.pdf
https://erhvervsstyrelsen.dk/sites/default/files/2019-03/evaluering_af_lov_om_registrerede_socialoekonomiske_virksomheder.pdf
https://erhvervsstyrelsen.dk/vejledning-registrering-som-registreret-socialoekonomisk-virksomhed
Social enterprises and their ecosystems in Europe | Country report DENMARK
https://fcmf.dk/foreningshaandbog/item/almennyttig-eller-velgorende-forening
https://fcmf.dk/foreningshaandbog/item/skat-foreningen
https://www.retsinformation.dk/eli/lta/2006/648
https://erhvervsstyrelsen.dk/bogfoering
https://frivillighed.dk/guides/moms-og-foreninger
https://frivillighed.dk/sites/frivillighed.dk/files/media/images/at_lede_en_sag_2_udgave/287256_at_lede_en_sag_hele_bogen_med_omslag_web.pdf
https://www.ageras.dk/ordbog/generalforsamling
https://www.legaldesk.dk/artikler/forening
Center for Frivilligt Socialt Arbejde for Socialministeriet, 2011.
Den frivillige sociale indsats. Årsrapport 2010 Center for Frivilligt Socialt Arbejde, 2018.
Tal om frivillighed i Danmark. Frivilligrapport 2016-2018. Frivilligjob.dk, 2010.
Available at www.frivilligjob.dk Henriksen, Lars Skov, 2008.
Frivilligcentre – knudepunkter i den lokale velfærdsstruktur? Tredje delrapport vedrørende evaluering af puljen til oprettelse af nye og styrkelse af eksisterende frivilligcentre i Danmark. Aalborg Universitet. Ibsen, Bjarne and Habermann, Ulla, 2005.
Defining the Nonprofit sector: Denmark. In Salamon, Lester: Working Papers of The Johns Hopkins Comparative Nonprofit Sector Project. The Johns Hopkins University, Center for Civil Society Studies. Ibsen, Bjarne, 2006.
https://www.europeanvolunteercentre.org/_files/ugd/3ec99c_f2076d186d484ef0b42c4626cac43554.pdf↩︎
https://fcmf.dk/foreningshaandbog/item/almennyttig-eller-velgorende-forening↩︎
https://erhvervsstyrelsen.dk/regler-erhverv/virksomhedstyper/foreninger/generelt-om-foreninger↩︎
https://erhvervsstyrelsen.dk/gebyrer-og-takster↩︎
§13 Value Added Tax Act, para. 1, No. 4.↩︎
https://fcmf.dk/foreningshaandbog/item/moms.↩︎
https://denmark.dk/society-and-business/associations↩︎
https://www.idan.dk/nyhedsoversigt/nyheder/2011/a037frivilligeoekonomi/↩︎
https://frivillighed.dk/sites/frivillighed.dk/files/media/documents/frivilligrapporter/tal_om_foreninger_og_frivillighed_cfsa_oktober_2018.pdf, p.13↩︎
https://www.europeanvolunteercentre.org/_files/ugd/3ec99c_f2076d186d484ef0b42c4626cac43554.pdf↩︎
https://www.europeanvolunteercentre.org/_files/ugd/3ec99c_f2076d186d484ef0b42c4626cac43554.pdf↩︎
Significant commercial activity is not to be understood as over 50 pct. of the profit must derive from sales of goods and services. As a rule of thumb, minimum 10 pct. must be classified as commercial activity. Source: Danish Business Authority, guidance on LRSE.↩︎
https://erhvervsstyrelsen.dk/sites/default/files/2019-03/evaluering_af_lov_om_registrerede_socialoekonomiske_virksomheder.pdf, p. 6.↩︎
No specific provisions are available↩︎
§5(5) LRSE.↩︎
In the case law↩︎
Social enterprises and their ecosystems in Europe | Country report DENMARK↩︎
https://erhvervsstyrelsen.dk/regler-erhverv/virksomhedstyper/foreninger/generelt-om-foreninger↩︎
https://fcmf.dk/foreningshaandbog/item/almennyttig-eller-velgorende-forening↩︎
https://skat.dk/skat.aspx?oid=2234905↩︎
https://frivillighed.dk/foreningsportalen/om-foreningsportalen/the-association-portal↩︎
https://frivillighed.dk/sites/frivillighed.dk/files/media/images/at_lede_en_sag_2_udgave/287256_at_lede_en_sag_hele_bogen_med_omslag_web.pdf, p. 16.↩︎
https://frivillighed.dk/guides/regler-for-arbejdsmiljoe-i-frivillige-sociale-foreninger↩︎
https://frivillighed.dk/sites/frivillighed.dk/files/media/images/at_lede_en_sag_2_udgave/287256_at_lede_en_sag_hele_bogen_med_omslag_web.pdf, p. 73↩︎
https://erhvervsstyrelsen.dk/regler-erhverv/virksomhedstyper/foreninger/generelt-om-foreninger↩︎
https://fcmf.dk/foreningshaandbog/item/cvr-nummer↩︎
https://erhvervsstyrelsen.dk/gebyrer-og-takster↩︎
https://fcmf.dk/foreningshaandbog/item/bestyrelsen↩︎
ML § 13, para. 1, no. 21, has the following wording: “§ 13. The following goods and services are exempt from tax: (...) 21) Goods and services provided by charitable or otherwise non-profit associations and others. in connection with the holding of activities, provided that the exemption will not be able to distort competition. It is a condition that the profit is fully used for the association's own purpose, and that the use of the profit at the request of the customs and tax administration can be documented. Delivery of goods and services of a commercial nature is not covered by the exemption.”↩︎
https://www.legaldesk.dk/artikler/hvilke-regler-gaelder-for-foreninger↩︎
https://forumadvokater.dk/fagomraader/foreninger/krav-paa-at-vaere-medlem-af-forening-eksklusion/↩︎
https://www.tax.dk/jv-2017-1/da/D_A_5_21_3.htm.↩︎
Decision SKM2003.19.TSS↩︎
https://fcmf.dk/foreningshaandbog/item/generalforsamling↩︎
https://frivillighed.dk/sites/frivillighed.dk/files/media/images/at_lede_en_sag_2_udgave/287256_at_lede_en_sag_hele_bogen_med_omslag_web.pdf, p. 18.↩︎
https://frivillighed.dk/sites/frivillighed.dk/files/media/images/at_lede_en_sag_2_udgave/287256_at_lede_en_sag_hele_bogen_med_omslag_web.pdf, p. 18.↩︎
https://www.ageras.dk/ordbog/generalforsamling↩︎
https://frivillighed.dk/sites/frivillighed.dk/files/media/images/at_lede_en_sag_2_udgave/287256_at_lede_en_sag_hele_bogen_med_omslag_web.pdf↩︎
https://fcmf.dk/foreningshaandbog/item/bestyrelsen↩︎
According to case-law↩︎
https://fcmf.dk/foreningshaandbog/item/forretningsorden↩︎
https://skat.dk/skat.aspx?oid=2234905↩︎
https://fundraisingbureauet.dk/8a-godkendelse/↩︎
https://frivillighed.dk/sites/frivillighed.dk/files/media/images/at_lede_en_sag_2_udgave/287256_at_lede_en_sag_hele_bogen_med_omslag_web.pdf, p. 23.↩︎
https://fcmf.dk/foreningshaandbog/item/skat-foreningen↩︎
https://frivillighed.dk/guides/skattefrie-gaver-til-foreninger↩︎
For a detailed analysis on the VAT taxes owed see: https://frivillighed.dk/guides/moms-og-foreninger↩︎
Bekendtgørelse af lov om merværdiafgift (momsloven), LBK nr 1021 af 26/09/2019.↩︎
§13 Value Added Tax Act, para. 1, No. 4.↩︎
https://fcmf.dk/foreningshaandbog/item/moms.↩︎
§13 Value Added Tax Act, para. 1, No. 17 and 18.↩︎
https://denmark.dk/society-and-business/associations↩︎
https://frivillighed.dk/guides/fakta-og-tal-om-frivillige-organisationer-i-danmark↩︎
Social enterprises and their ecosystems in Europe | Country report DENMARK↩︎
Social enterprises and their ecosystems in Europe | Country report DENMARK↩︎
https://frivillighed.dk/sites/frivillighed.dk/files/media/documents/frivilligrapporter/tal_om_foreninger_og_frivillighed_cfsa_oktober_2018.pdf, p.13↩︎
https://www.idan.dk/nyhedsoversigt/nyheder/2011/a037frivilligeoekonomi/↩︎
https://www.europeanvolunteercentre.org/_files/ugd/3ec99c_f2076d186d484ef0b42c4626cac43554.pdf↩︎