This is the first commandment we need to know. We must know that the profit motive must be looked at from the perspective of the founders of the Association or Foundation, that is, that the founders cannot participate in the profit or sell their shares.
The answer is yes. This is so, in relation to Article 5.2 of the VAT Law, since from the point and time that non-profit entities use material and human factors of production to produce and distribute goods and services, these entities are subject to VAT. It does not matter the purposes pursued (social protection, humanitarian causes, etc.); as long as consideration is received for these goods and services (money or goods, in other words), Foundations and Associations will be subject to VAT.
Well, we already know that many Foundations and Associations are going to be subject to VAT, so it is now convenient to know if they can benefit from VAT exemptions in order not to pay this tax.
Grants and events dashboards are considered analysis tools and are used by managers to analyze grant, program and event indicators. Some of the main functionality of these types of dashboards is that they include graphical analysis of nine different areas: 1) Attendees per event, 2) Top 5 most important event budget items, 3) Budget per event, 4) Grant amount per program, 5) Grant amount ratio, 6) Amount committed per program, 7) Grants requested vs. grants declined, 8) Grants requested vs. grants declined per program (sorted), and 9) Balance and Commitment – actual vs. budget per grant. The filters on the top right allow for breakdown by month, program, and grant. Below, you will find an example of this type of dashboard.
Nonprofit organizations use grant and event dashboards to facilitate and streamline the tracking and analysis of essential KPIs. When used as part of good business practices in the Financial Planning and Analysis (FP&A) and Grants department, an organization can improve and streamline its grant, program and event strategies, and can reduce the chances that revenue will be lost because managers do not have the right information available.
Types of non-profit organizations in Argentina
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Non-Profit Entities are legal entities that are constituted by the will of association or creation of one or more persons (natural or legal) to carry out activities for the benefit of associates, third parties or the community in general. The Esal do not pursue the distribution of profits among its members. If you have any doubts, consult the
Although they do not have a specific profit motive, this type of entity must have an adequate capital management to be able to continue carrying out its activity. The President and the Secretary will be in charge of the accounting, reflecting in a correct way any financial movement that occurs, as well as the patrimony and the results of the association.
The non-profit nature of this type of organization allows it to be exempt from several taxes, but not all of them. In the first place, as long as their activity does not exceed one million euros, they will not have to pay the Economic Activities Tax (IAE), nor the Personal Income Tax (IRPF).
On the other hand, in all purchases made by third parties of the association’s products, they will be obliged to charge VAT, to be subsequently settled with the Tax Agency. For Corporate Income Tax (IS), they enjoy a partial exemption, but are still obliged to pay it.