The Non-Profit Act 2015 came into force on January 1st, bringing with it a fundamental reform of the foundation in accordance with the Federal Foundation and Fund Act (BStFG).

 

The legislator’s objectives were primarily to make foundations more attractive according to the BStFG and to provide incentives to increase the number of non-profit foundations on the one hand, but also the volume of donations to such institutions.

 

The legislature has at least partially succeeded in this. In addition, the reform brings some design advantages for the foundation according to the BStFG, which could make it a suitable alternative in certain cases compared to the private foundation according to the PSG. What is particularly noteworthy here is that, according to the BStFG, the foundation offers the possibility of transferring founder rights to successors.

The main goals of the legislature were:

  • the reduction of administrative expenses and the increase in efficiency in the foundation and fund system,
  • increasing donations to non-profit organizations,
  • increasing donations into the assets of non-profit foundations,
  • increasing the number of non-profit foundations and non-profit international organizations based in Austria,
  • increasing the attractiveness of Austria as a location for international organizations.

 

In addition to extensive changes to the Federal Foundation and Fund Act (BStFG) itself, numerous subsidiary laws (such as the EStG, KStG, GreStG, StiftEG and the BAO) were also selectively modified to achieve these goals.
You can find more detailed information about the reform and the new design options in our Newsletter.

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