Non-profit vs For profit ORGs in Belgium is a May 1st, 2020 blog article that matters greatly to help everyone in the Eclipse Community understand the actual impact about the Foundation moving from a Delaware, USA- not-for-profit Foundation to a non-profit foundation in Belgium. It matters if you know about the March 23rd 2019 change of law that affects how Non-profit organisations used to be governed by the act of 1921.
Article:
“A private [Belgium] foundation can conduct commercial operations without distinction between principal and ancillary activities (under the law of 1921, the non-profit association could not conduct these activities). However, this difference between the two forms of entities has disappeared with the entry into force of the CAC [introduced on 23 March 2019].
Further, and in a similar fashion to the non-profit association, the profits generated by the activities of the foundation must be allocated to the implementation of the aim of the foundation, and not distributed to the founders or directors.“
Question:
Who will guarantee that the Foundation doesn't conduct business as a for-profit using the removal of March 2019 law change?
See below the actual freedom to run the Foundation as a for profit under the new Belgium law:
Article:
Although the [Belgium] non-profit association must refrain from distributing profits to its members, it has complete freedom to conduct commercial or industrial operations, whether they are ancillary or not (CAC). This is a drastic modification, as under the law of 1921, non-profit associations were not allowed to conduct industrial or commercial operations.
Thank you for answering this question on the call &/or via public writing that ought to arrive to the +2,100 EF Committers.