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Bree is a municipality in the Flemish province of Limburg and is subject to Belgian federal and Flemish regional rules that govern non-profit and charitable organizations. In Belgium the most common legal forms for non-profit work are the non-profit association - known in Dutch as Vereniging zonder winstoogmerk or VZW - and various types of foundations. Since 2019 the Companies and Associations Code modernized how associations and foundations are created, governed, merged and dissolved. A properly formed non-profit obtains legal personality and must comply with registration, governance, accounting and public-reporting obligations. Local municipal rules affect fundraising, use of public space and events in Bree, and Flemish and federal agencies regulate subsidies, tax treatment and volunteer support.
A lawyer who understands Belgian non-profit law can help you avoid costly mistakes and keep your organization compliant. Common reasons to seek legal help include:
- Starting a new VZW or foundation and drafting clear statutes that reflect your purpose and governance model.
- Determining whether planned activities are considered economic activities and how that affects taxes and VAT.
- Applying for recognition or approvals that make donations tax-deductible for donors.
- Advising on board members rights and obligations, and limiting personal liability for directors.
- Preparing or reviewing employment contracts, volunteer agreements and social security obligations.
- Structuring mergers, splits or dissolution to protect assets and donors intentions.
- Negotiating leases, grants, public contracts or subsidy conditions with local authorities.
- Responding to regulatory inquiries, audits or disputes, including data protection and anti-money-laundering questions.
The following key legal aspects are particularly relevant to non-profit and charitable organizations operating in Bree:
- Legal form and formation: Choose an appropriate legal form - typically a VZW or a foundation - and adopt written statutes that define purpose, members, governance, voting rules and amendment procedures. Statutes must comply with the Companies and Associations Code.
- Registration: Register the organization with the Crossroads Bank for Enterprises - Kruispuntbank van Ondernemingen / Banque-Carrefour des Entreprises (KBO/BCE). Registration gives the organization a company number and is required for banking, hiring staff and many administrative procedures.
- Accounting and reporting: Maintain accounting records, hold an annual general meeting and, depending on size, file annual accounts with the National Bank of Belgium. Thresholds determine simplified or full accounting obligations.
- Governance and director duties: Board members and managers have statutory duties of care and loyalty. They can be held liable for negligent management or breaches of law or statutes.
- Tax treatment and donations: Non-profits are subject to corporate tax rules if they carry out economic activities. Certain non-profits may be exempt from corporate tax for their non-economic activities. For donors to enjoy tax deductions, the organization often needs approval from the Federal Public Service Finance or recognition as a public-benefit institution.
- VAT and economic activity: Activities resembling commercial operations can trigger VAT registration and VAT obligations. Distinguishing charitable from economic activities is essential for correct tax treatment.
- Employment and volunteers: Hiring staff requires compliance with Belgian employment law, social security registration and payroll obligations. Volunteers are not employees but must be treated in line with volunteer rules and safety obligations. Municipal grants and some subsidies have specific employment conditions.
- Fundraising, events and permits: Municipal rules in Bree may require permits for street collections, raffles, public events or use of parks and buildings. Always check with the municipal services for permit requirements and local conditions.
- Data protection: The EU General Data Protection Regulation applies to donor, volunteer and beneficiary data. Non-profits must implement privacy policies, lawful bases for processing and appropriate data security.
- Grants and public funding: Flemish and municipal subsidies carry specific reporting, audit and transparency requirements. Non-compliance can trigger repayment or sanctions.
To start a non-profit association you draft statutes that define purpose, members, governance and decision-making. Hold a founding meeting, adopt the statutes and elect a board. Register the association with the Crossroads Bank for Enterprises (KBO/BCE) so it receives a registration number. Depending on planned activities you may also need to register for VAT, social security for employees or seek specific local permits for events.
A standard VZW can be founded by private deed without a notary. Certain types of foundations or acts involving real estate sometimes require a notarial deed. A lawyer or notary can advise whether your chosen structure or planned transactions require notarization.
Non-profits that carry out purely non-economic activities may be exempt from corporate tax for those activities. If the organization performs economic activities - such as selling goods or regular paid services - those activities are taxed. VAT and payroll taxes may also apply. A tax specialist can map activity lines and help with filings.
In Belgium donors can receive a tax certificate for donations only if the recipient organization has the necessary approval or recognition from the Federal Public Service Finance or meets the statutory requirements for deductible gifts. The procedure depends on the type of organization and the value or purpose of donations.
Board members must act with due care and in accordance with the statutes and law. They can be held personally liable for unlawful acts, negligent management or breaches of mandatory rules. Proper minutes, conflict-of-interest policies and compliance measures reduce risk. Insurance for directors and officers is common.
Volunteers are generally unpaid. Reasonable reimbursement of expenses and small allowances are permitted, but if payments are regular and substantial the relationship may be considered employment with social security obligations. Document volunteer status and reimbursements clearly.
Hiring staff requires registration with social security and tax authorities, a written contract that complies with Belgian employment law, application of the correct collective bargaining agreement if applicable, payroll withholding and employer social contributions. Employment termination rules and leave obligations also apply.
Yes, organizations with legal personality must maintain accounting records and prepare annual accounts. Depending on size, they must file accounts with the National Bank of Belgium. Small associations may benefit from simplified rules, but basic bookkeeping and an annual meeting are always required.
Many public collections, lotteries and events require municipal permits. Use of public parks, streets or municipal halls will typically require authorization from the City of Bree. Raffles and lotteries may be further regulated at regional or federal level. Check with the municipal services early in your planning.
Dissolution and merger are governed by your statutes and the Companies and Associations Code. Dissolution normally requires a decision by the general assembly, settlement of liabilities and distribution of residual assets in accordance with the statutes and law. Mergers require formal procedural steps and often registration and publication. Seek legal and accounting advice to ensure compliance.
Useful institutions and support bodies for organizations in Bree and Belgium include the following:
- City of Bree municipal administration - for local permits, halls or public-space use and local funding opportunities.
- Province of Limburg - provincial programs and support for cultural and community projects.
- Flemish government agencies - for regional subsidies, volunteer support and sectoral rules.
- Crossroads Bank for Enterprises - KBO/BCE - registration and company number services.
- National Bank of Belgium - guidance on filing annual accounts.
- Federal Public Service Finance - rules on tax deductibility for donors and corporate tax questions.
- Privacy Commission - guidance on GDPR compliance in Belgium.
- King Baudouin Foundation and other major foundations - models for good governance and grantmaking best practices.
- Volunteer centres and umbrella organizations in Flanders - practical support for volunteer management and training.
- Local accountants and lawyers specialized in non-profit law - for statutory drafting, taxes and employment matters.
If you need legal assistance with a non-profit or charitable organization in Bree follow these practical steps:
- Clarify your objectives and prepare a short project description - include purpose, planned activities, target beneficiaries, expected income and whether you will employ staff or rely on volunteers.
- Contact the municipal services in Bree early to check permit requirements for events and local support options.
- Consult a lawyer experienced in Belgian non-profit law to draft or review statutes, advise on tax and VAT implications and explain director liability and compliance obligations.
- Meet an accountant to set up bookkeeping, reporting schedules and to advise on grant accounting and annual accounts filings.
- Prepare internal policies - conflict of interest policy, privacy policy for GDPR, volunteer and employment policies, and a basic compliance calendar for filings and meetings.
- When meeting a lawyer bring your draft statutes or draft plan, list of founding members, any property or lease documents, a draft budget and a list of specific questions about taxes, permits or employment. Agree a clear engagement letter that sets out fees and the scope of work.
- Consider insurance for board members, volunteers and events, and set up a simple risk register for major activities.
Taking these steps will help ensure your organization is legally sound and ready to operate effectively in Bree and beyond.
