Bill for the transparency and counteracting undermining by social organizations

The bill for the transparency and counteracting undermining by social organizations Act (hereinafter: the Act) includes three components to achieve the following two goals:

(i)               making donations transparent, and

(ii)              (ii) counteracting undermining by social organizations. The aim is to have the Act come into effect on January 1, 2026, for social organizations such as foundations, associations, and religious communities. The bill still needs to be considered by the Senate.

Transparency obligation 

The bill includes a retention obligation for donation and personal data for 350,000 social organizations in the Netherlands. Your organization must be able to provide insight into the origin, purpose, and amount of donations for five fiscal years. To keep the administrative burden for social organizations limited, social organizations only need to provide insight into donations of at least 15,000 euros upon request. 

The mayor, the public prosecutor's office, and other designated government agencies can request this information. If your organization does not comply with this transparency obligation, it may be guilty of an economic offense, while obstructive directors risk the imposition of a management ban. Additional rules are expected to be established regarding the provision of information, the security of this information, and how to handle anonymous donations.

The transparency obligation aims to gain more insight into the financial flows from domestic and foreign sources to social organizations in the Netherlands. It combats undesirable influence through donations in social organizations.

Filing obligation 

The bill requires all foundations, including a Foundation Administration Office and a Public Benefit Organization, to file financial documents with the trade register of the Chamber of Commerce. A balance sheet and statement of assets and liabilities must be filed – signed by the directors and, if present, members of the supervisory board – within ten months after the end of the fiscal year. The filing obligation will apply to fiscal years starting after the bill comes into effect.

The filed data can only be viewed by specific government agencies, including the Public Prosecutor's Office, the Minister of Justice and Security, the police and national investigation service, municipalities, the Tax Administration, the FIOD, and the AIVD. The filing obligation aims to prevent financial-economic abuse, such as money laundering and terrorism financing. The financial information provides possible leads in the investigation of violations and crimes.

Enforcement instruments 

The final component of the bill provides the public prosecutor's office with additional powers to act against social organizations when the activities undertaken are seen as 'undermining' (deliberately and systematically weakening or undermining essential organs for the functioning of the rule of law or fundamental freedoms).

The Public Prosecutor's Office can, in case of serious doubt whether the law or the statutes are being properly followed, request a social organization to provide information about the geographical origin, purpose, and amount of one or more donations.

The court can also impose an order for a maximum duration of two years to withhold, cease, and keep certain activities ceased if this order is necessary to avert the undermining or its consequences.

We will keep you informed about the progress of the legislative process. If you have any questions, you can of course contact colleagues from our Social Organizations Market Group.