Family foundations and charities in the spotlight
30/04/25
This article is based on the information known as of 29 April 2025.
Recent developments indicate an increasing focus on transparency and justification of the existing favourable tax treatment of foundations, particularly family foundations, whether or not these are regarded as an ANBI. These organisations would do well to prepare for the possibility of stricter rules and more supervision in the near future.
Recent fiscal research (in Dutch) into family foundations has led to important insights and policy intentions. The State Secretary of Finance and the House of Representatives are responding to these findings with proposals to address the improper use of tax benefits. The recommendations from the recent evaluation of the ANBI and SBBI regulations also play a role, as does the announced introduction of two digital ANBI portals.
Research into Family Foundations
The research report (in Dutch) on family foundations reveals the following notable findings about Dutch family foundations:
At the beginning of 2022, there were 234,000 foundations in the Netherlands, of which 66,800 (39%) qualified as actual family foundations.
These foundations collectively owned €30.8 billion in assets, mainly (58% to 97%) investments such as equity interests in companies, rental properties, and securities.
The return on these assets in family foundations is not subject to taxation in 82% to 99.7% of cases.
The families behind these foundations belong to the top 1% wealthiest households in the Netherlands in 20% to 48% of cases.
The tax authorities identified potentially socially undesirable tax structures in these family foundations.
Response from the State Secretary of Finance
On 24 April 2025, the State Secretary of Finance sent the government's response to the research on family foundations to the House of Representatives. The government appreciates that many family foundations are an important link for giving to charities. This also justifies a favourable tax treatment for foundations that spend their money on charities, in accordance with the ANBI regulation. The government acknowledges that for many foundations, there is no oversight on the use of their assets, while in most cases, these foundations are not liable to income tax. This poses a risk of undesirable use of the ANBI rules. Therefore, the State Secretary of Finance wants to conduct further research on two themes.
First, an evaluation of the anti-abuse legislation on segregated private assets (afgezonderd particulier vermogen; hereafter: APV) will be conducted. This will examine whether the existing legislation provides the Dutch tax authorities with sufficient tools to address all forms of abuse or improper use with APVs.
Additionally, the State Secretary of Finance announced an investigation into the corporate tax liability of foundations and associations. The State Secretary of Finance aims to send a letter to the House of Representatives in the autumn about the possibilities of adjusting the current rules on the corporate tax liability of foundations and associations, including the pros and cons. On 26 March 2025, during the committee debate on National Taxation, the State Secretary of Finance also indicated that an 'exit tax' for organisations that lose their ANBI status is being investigated.
A government response to the research on family foundations regarding ANBIs and the evaluation of the ANBI regulation is expected to be published before the summer. Work is being done on an ANBI portal for better oversight, as regulated in the Fiscal Collection Act 2026 (Fiscale Verzamelwet 2026), but the actual development and implementation will take several years.
Response from the House of Representatives
The House of Representatives has adopted two important motions in response to the research report on family foundations:
Evaluation of the ANBI/SBBI Regulation
On 23 April 2025, the report (in Dutch) 'Evaluation of the ANBI and SBBI Regulations' was published. This report evaluates the effectiveness and efficiency of the tax regulations for Public Benefit Organisations (algemeen nut beogende instellingen; ANBIs) and Social Interest Organisations (sociaal belang behartigende instellingen; SBBIs) over the period 2016-2023. The State Secretary of Finance will send the government's response to this evaluation to the House of Representatives before the summer. Additionally, it will be explored to what extent adding criminal offenses as a ground for withdrawing ANBI status in the General Tax Act (Algemene wet inzake Rijksbelastingen) is desirable and possible.
Main Findings of the ANBI regulation
Given the limited data and the relatively low oversight by the Dutch tax authorities, no definitive conclusion can be drawn about the effectiveness of the ANBI regulation. This applies to both the phase of recognising institutions and that of remaining designated as an ANBI.
However, the research shows that the majority (52%) of the panel survey is generally in favour of tax benefits for institutions that contribute to society. A quarter of the respondents would be more likely to donate to an institution with ANBI status.
The Dutch tax authorities have little insight into ANBIs once they are included in the ANBI register. There is no visibility on the size of these institutions and whether they are active or dormant. The research also shows that the tax authorities conduct little oversight on the institutions. Once institutions are ANBIs, they often remain out of sight for several years until a risk-based audit occurs or the tax authorities receive signals about an ANBI.
The researchers cannot make a statement about the efficiency of the ANBI regulation either. Efficiency can only be assessed if there is insight into the degree of effectiveness. However, the evaluation indicates that the ANBI team comprises relatively few FTEs, making the implementation costs of the ANBI regulation relatively low.
In our opinion, it is remarkable that the researchers cannot make statements about the effectiveness and efficiency of the ANBI regulation due to the lack of sufficient data. This was also the case in the previous evaluation in early 2017. As a result, some research questions cannot be answered, such as which ANBIs are dormant or active, the different types and sizes of ANBIs, and the extent to which there is abuse or improper use of the regulation.
However, the research shows that the majority (52%) of the panel survey is generally in favour of tax benefits for institutions that contribute to society. A quarter of the respondents would be more likely to donate to an institution with ANBI status.
Regarding the spending criterion, which is aimed at ensuring that the assets of ANBIs actually benefit the public interest, the researchers find that the current regulations already provide sufficient tools to address 'dormant' ANBIs. The practical bottleneck, according to them, lies not so much in the frameworks in law and policy decisions, but mainly in the lack of data available to the Dutch tax authorities to identify these institutions and subject them to further audits. Therefore, it is less obvious to make additional substantive adjustments to the regulations, but rather to focus on providing information to the tax authorities. The announced portal environment can help the tax authorities identify institutions and better monitor institutions that have not made expenditures for a certain period.
For violating the so-called integrity requirement, a sanction other than revoking the ANBI status would be appropriate, according to the report. Institutions whose ANBI status is revoked no longer need to meet the ANBI conditions and largely fall outside the supervision of the tax authorities. The researchers suggest replacing the institution's board as an example of another sanction.
The research report also offers an alternative to the information obligation that former ANBIs must comply with. It proposes that institutions that lose their ANBI status be required to spend the accumulated ANBI assets on goals that serve the public interest within a period of three to five years.
Main findings of the SBBI regulation and Support Foundation SBBI
Because there is very limited visibility on the extent to which the SBBI regulation is used, no definitive statement can be made about the effectiveness and efficiency of this regulation. Here too, the researchers note that the implementation of the regulation involves limited resources, making the regulation efficient in this respect. Once an institution falls under the SBBI regulation, it can be fairly certain that it is indeed the right institution, suggesting some degree of effectiveness.
The regulation for the Support Foundation SBBI is assessed as ineffective and inefficient, given the very limited use.
Collaboration between the Tax Authorities and branch organisations
A sectoral comparison shows that when the Dutch tax authorities collaborate with a branch organisation in the form of covenants or self-regulation, where the tax authorities remain responsible for designation and supervision, this seems to reduce the administrative burden in the context of supervision.
International comparison
An international comparison of nine countries shows that a system for general or socially beneficial institutions can be organised in different ways in practice. Therefore, it is not possible to directly adopt such a system for the Dutch situation without knowing the context. However, this comparison can serve as inspiration, for example, that an institution is automatically removed from the register if it does not meet the requirements for a certain number of years, or that institutions must spend a certain amount annually in the public interest.
Recommendations
Improving data collection: there should be better access to the data that the tax authorities need. This concerns data at the time of granting and thereafter when an institution has ANBI status. Further research is needed into which data sources the tax authorities can use to determine, for example, whether institutions are actually active or dormant, what different types and sizes of ANBIs exist, and to what extent the regulation is being abused/misused. Existing data sources can be used to increase insight and supervision.
Digital tools: introducing digital tools, such as the previously announced digital ANBI portal to support supervision and management.
Increasing the use of forms of sectoral regulation, codes, and self-regulation, in addition to the tax authorities' own supervision activities. The evaluation shows that this reduces the supervision burden on the tax authorities and also the burden on ANBIs.
SBBI awareness: increasing awareness of the SBBI regulation.
Data analysis: improving data collection for SBBIs to better assess goal achievement.
Two ANBI portals
The Fiscal Collection Act 2026 stipulates that to improve supervision and transparency of ANBIs, there will be two portals: portal-ANBI publication obligation and portal-ANBI supervision.
The portal-ANBI supervision falls under the responsibility of the Tax Authorities and is intended to digitise the registration of ANBIs, the systematic collection of data about ANBIs, and communication with ANBIs.
In the portal-ANBI publication obligation, ANBI publication data will be included. Each ANBI is then required to publish the publication data via a standard form by submitting it electronically through a central digital point facilitated by the Tax Authorities. The published data is accessible to everyone. The responsibility for the content and timeliness of this data remains, as it is now, with the ANBI itself.
Given the significant demand on ICT resources, the introduction of the portal-ANBI publication obligation is only possible by 2029, and the introduction of the portal-ANBI supervision by 2030.
Foreign ANBIs
The two portals will also apply to ANBIs not established in the Netherlands (currently about 400 of the approximately 45,000 ANBIs). The Advisory Division of the Council of State has advised paying attention to some EU legal aspects in the development of the portals, namely that administrative requirements such as language and access requirements can lead to an obstacle to the free movement of capital. In line with this advice, the government will take these aspects into account at an early stage of decision-making about the design of the portals. The government notes that the publication obligation already applies to foreign ANBIs.
Law on transparency and combating undermining by social organisations
On 1 April 2025, the House of Representatives adopted the bill on the Law on transparency and combating undermining by social organisations (Wet transparantie en tegengaan ondermijning door maatschappelijke organisaties; Wtmo). This bill requires foundations to file a statement of income and expenses with the trade register of the Chamber of Commerce. There will also be an information obligation for associations and religious organisations about the origin, purpose, and amount of donations from domestic and foreign sources.
The proposed effective date of the proposal is 1 January 2026, provided the Senate adopts the bill.
You can read more about this in the article 'Filing and information obligation for foundations and associations' (only available in Dutch).
What do these developments mean for your organisation?
Foundations, associations, and religious organisations must prepare for new transparency requirements and possible changes in tax treatment. Especially (family) foundations and ANBIs may face stricter supervision and possible adjustments in tax legislation.
The government expresses its appreciation for the fact that many family foundations play an important role in philanthropy and notes this forms a justification for favourable tax treatment. This is good news for the organisations and a confirmation that the government wishes to maintain the tax facilities for philanthropy. The focus of any adjustments will mainly be on institutions where there is less insight in the use of their assets and no tax is levied on (high) returns on assets.
Specifically, the government is exploring possibilities in the field of anti-abuse legislation on segregated private assets (APV), adjustments in the corporate tax liability of foundations and associations, and other measures against undesirable tax constructions through family foundations.
It is therefore important for your organisation to closely monitor developments in this area and to respond in a timely manner to any changes.
Given the findings of the ANBI and SBBI regulation evaluation report, no immediate action is required. However, if your institution has ANBI status, it is advisable to check at least annually whether your institution meets all ANBI conditions and to seek expert advice if in doubt. It can also not be excluded that the policy suggestions from the report will be translated into legislative proposals by the government. To know wether this will actually happen, we will have to wait for the government's response.
The introduction of the portal-ANBI publication requirement is expected to take place by 2029, and the portal-ANBI supervision by 2030. As an ANBI, you are responsible for the data included in the portal-ANBI publication requirement. The Dutch tax authorities facilitates this central digital point and provides a standard form through which you can submit the data electronically.
Regarding the Wtmo, it is essential as a director of a foundation, association, or other social organisation to prepare well for the introduction of this law by timely adjusting or refining internal processes and administration where necessary. The Wtmo is expected to come into effect on 1 January 2026, if the Senate adopts this bill in time. The Wtmo does not introduce new administrative obligations. Foundations are already required to prepare an annual statement of income and expenses for internal purposes. However, they must now file this statement of income and expenses with the trade register of the Chamber of Commerce. The filed data can only be viewed by specific government agencies. Additionally, information about donations, such as the donor's personal data, must already be recorded.
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