Charitable status and political involvement

Non-profit civil society work – essential for our vibrant democracy

Under Article 21 of the German Basic Law, civil society organizations have a right to participate in the formation of political opinion alongside political parties. For a vibrant democracy, it is essential that a wide range of actors take a critical look at existing conditions and take a stand. However, since the Attac ruling in 2019, there has been significant legal uncertainty in politically engaged civil society. In the Attac ruling, the Federal Fiscal Court decided that non-profit associations that work to “promote democratic government” and “political education” may not act with the intention of “influencing political decision-making and public opinion”.

It is a heavy blow to democracy when organizations are stripped of their non-profit status due to their political stance or no longer express themselves politically because they fear this consequence. For many associations, it is almost impossible to predict whether their work will still be classified as charitable in the future - and more and more organizations are being stripped of their charitable status. But democracy needs a strong civil society. That is why, as part of the “Legal certainty for political decision-making” alliance, we are campaigning for a reform of non-profit law. Our work in this area is supported by the Open Society Foundations.

Further information on the Attac ruling and the importance of non-profit law for associations can be found here.

GFF expert opinions show urgent need for reform of non-profit law

Through two expert legal opinions and a study, we have examined how non-profit law is structured in Germany, what this means for political engagement and where there is an urgent need for reform:

• Prof. Dr. Dr. Patricia Wiater shows in the GFF report “Political Participation of Civil Society - Human Rights Framework for the Treatment of Non-profit Organizations” why European human rights guarantee the political participation of civil society organizations.
• Our study “Shrinking Spaces in Germany, Shrinking Spaces in Europe”, prepared jointly with the Open Society Foundations, shows that the political involvement of civil society is not only restricted in autocratic countries, but also in countries that we perceive as intact democracies.
• Prof. Dr. Sebastian Unger (Ruhr University Bochum) analyses in the legal opinion “Political activity of non-profit corporations” (in German) commissioned by us that the political activity of civil society organizations is compatible with non-profit status to a greater extent than assumed in the Attac decision.

A summary of the results of the legal opinion and the study can be found here.

Our draft for a law to strengthen democracy and out 7-point-plan

German non-profit law urgently needs to be brought into line with the constitutional and human rights model of a democracy in which a critical and democratically engaged civil society plays a central role. On August 2, 2021, we therefore published our own draft bill for a law to strengthen democracy (in German). The draft shows what measures the new federal government can and must take to modernize non-profit law and create legal certainty for politically engaged associations. You can find a FAQ on our draft for a law to strengthen democracy here (in German).

In addition to our draft for a law to strengthen democracy, we present a 7-point plan in our policy paper “7 points for a modern non-profit law - How democratic engagement and civil society can be strengthened by legal means” (in German). It is designed be implemented in the coming legislative period in order to create a future-proof and sustainable non-profit law as the basis for a vibrant democracy in the longer term.

DemoZ and innn.it: We support affected associations in court

We support civil society organizations in court that have had their non-profit status revoked due to their political commitment. This includes the Demokratisches Zentrum Ludwigsburg (DemoZ). The association offers a comprehensive cultural and educational program and creates space for political discussions. In doing so, it positions itself against all forms of hostility towards specific groups. The Ludwigsburg tax office accused the association of lacking “intellectual openness” and revoked its non-profit status. After a three-year legal dispute, the DemoZ regained its non-profit status, at least from September 2022. The central question of the extent to which associations are allowed to engage in political activity remained unanswered.

The association innn.it (formerly Change.org) was also stripped of its non-profit status. It operates Germany's largest online petition platform and thereby promotes the democratic participation and involvement of millions of citizens. In 2021, the Berlin tax office revoked the association's non-profit status. This shows a completely outdated understanding of how democracy works and what is non-profit. At the heart of the dispute was the question of whether the platform is also allowed to address petitions to companies. You can find our statement on the Change.org case from 2019 here (in German). After many years of litigation, the Berlin-Brandenburg Fiscal Court finally ruled in favor of innn.it in November 2023: a broad understanding of the standard is needed that also includes criticism of corporations. This is the first step towards regaining non-profit status. We supported innn.it in the legal dispute.