What’s a non-profit organisation (NPO)?

A non-profit is a group of at least three natural people or legal entities who selflessly pursue a common goal. That means that the members of the non-profit cannot get any material benefits out of the operations. The common project is laid down in the organisation’s founding principles: the so-called statutes. 

Who should start an NPO? 

If you’re pursuing a goal that’s not based on making a profit and you want to work with others who share that goal, a non-profit organisation is the best choice. It's a popular choice for cultural, sports-related or social initiatives.

 

What are the benefits of an NPO? 

  • Founding a non-profit doesn’t require start-up capital. 
  • Flexible structure: the statutes give you the space to set your own specific rules and agreements. 
  • Members of a non-profit have limited liability: their own assets aren’t connected to the non-profit.

 

What are the disadvantages of an NPO? 

  • There are specific accounting requirements non-profits need to meet.  
  • Strict statute rules: the statutes need to include certain mandatory entries and not including some of them can lead to a legal dissolution of the non-profit organisation.

 

What are the start-up costs and what about taxes? 

You don’t need start-up capital to launch a non-profit. The only costs are the publication costs of a mention in the Belgian Official Gazette, which are indexed annually. Changes to the statutes or the board of directors also need to be published and are subject to publication costs. If the non-profit's capital exceeds €25,000, it’s subject to the wealth tax. Non-profits with a capital of under €25,000 don’t have to pay taxes. 

More information about starting an NPO?

Book an appointment at one of our offices or take care of it online via Smart Start Online.