Charitable Organizations in Georgia represent a specific category of nonprofit organizations that have been granted official "Charitable Organization Status." Many non-governmental organizations engage in charity, but not all hold this status. Having official status grants the organization significant tax privileges, which increases donor motivation and opportunities for fundraising. At the same time, obtaining and maintaining the status involves high standards of transparency and reporting. Legal services for charitable organizations involve not only registering an N(N)LE but also navigating a complex bureaucratic process at the Revenue Service to obtain the status and subsequently adhering to strict regulations.
What does Charitable Organizations service cover?
Legal.ge lawyers will help you bring your charitable activities within the legal framework:
- Obtaining Status: Preparing an application for the Revenue Service, drafting the activity program and budget in compliance with legal requirements.
- Managing Tax Benefits: Consultation on profit tax exemption and rules for issuing tax receipts to donors.
- Internal Monitoring: Implementing control mechanisms for the targeted spending of funds to avoid revocation of the status.
- Reporting: Preparing and submitting annual financial and programmatic reports to the tax authority.
- Fundraising Law: Legal support for public donation collection campaigns (online platforms, donation boxes).
Benefits and Obligations of the Status
Cooperating with an organization holding charitable status is beneficial for businesses because their donations can be deducted from gross income up to a certain limit. However, the organization is obliged to:
- Keep strict records of income and expenses;
- Ensure that assets are used solely for charitable purposes;
- Publish an annual activity report and financial statements;
- Not engage in political activities or funding of parties.
Georgian Legislation on Charity
The main regulatory act is the Tax Code of Georgia (chapter on Charitable Organizations), which detailed the rules for granting, revoking, and taxing the status. Regarding the organizational-legal form, the Civil Code applies (N(N)LE or Foundation). The Law on Grants and orders of the Minister of Finance regulating the administration of charitable activities are also important.
Process Stages
- Preliminary Audit: Checking the organization's readiness for status (at least 1 year of activity history).
- Application: Applying to the Revenue Service.
- Verification: Investigation of activities by the tax authority.
- Granting Status: Receiving the official certificate.
- Ongoing Compliance: Annual mandatory reporting.
Why Legal.ge?
Obtaining charitable status is a complex procedure and often ends in refusal due to documentation flaws. Legal.ge specialists have experience interacting with the Revenue Service and know how to prepare documents so that your organization successfully obtains the status and enjoys all legal privileges.
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