For weeks, people across Germany have been taking to the streets to protest right-wing extremism and stand up for democracy. Many nonprofit organizations would like to get involved. But there is some uncertainty: Are nonprofit organizations allowed to call for demonstrations, participate in them, or even help organize them? And what are the limits of what is permitted?
Occasional participation is permitted
If an organization only occasionally calls for, participates in, or supports a demonstration, this does not pose a legal problem. The Federal Ministry of Finance clarified this in early 2022 in the so-called Application Decree to the Tax Code. It states: It is acceptable for a tax-exempt organization to, in exceptional cases, take a stand on current political issues—for example, by issuing a call to action against racism. The association’s funds may also be used for this purpose.
It is important that such actions do not become the norm. However, it remains unclear exactly when the criterion of “on an isolated basis” is exceeded. If the organization is responding to a specific event—such as a racist incident—that is a strong indication that the action is permitted.
When the commitment becomes long-term: Review the purpose of the bylaws
If demonstrations and political statements are a regular part of the association’s work, it is advisable to amend the bylaws . This is because only activities that serve a legally recognized charitable purpose may be considered charitable. Work promoting democracy and human rights is not currently explicitly mentioned in the law. Furthermore, the purpose of “promoting the democratic system of government” is interpreted narrowly in practice. Many organizations resort to other purposes, such as “international understanding” or “tolerance in all areas of culture.”
Please note: Political activities must not take precedence
According to the implementing decree, nonprofit organizations are permitted to use political means—such as statements, demands, or demonstrations. However, these must “take a back seat” to their other work. There is no clear definition of what exactly constitutes a “political means.” Any organization that focuses primarily on political influence over the long term risks losing its nonprofit status. For this reason, many organizations are calling for a reform of nonprofit law.
No political party funding—but a clear stance is permitted
Nonprofit organizations may not support any political party—neither directly nor indirectly. However, they may express political views and assess whether political parties support or oppose them. Criticism of political parties is also permitted—as long as it stems from the organization’s nonprofit purpose. For example, those who advocate for human rights or against anti-Semitism may also take a public stance on these issues. There is no general requirement for neutrality among civil society organizations.
What Clubs Can Do
If in doubt, organizations should consult with the appropriate tax office . Document in advance exactly why and how you intend to express your views. The legal situation is complex, but it can be navigated. It is important to note that advocating for democracy, human rights, and the rule of law is legitimate—and should also be visible to the public. Nonprofit organizations should confidently stand up for their work.
