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.