Which conditions must be met by Public Benefit Organisations?
Institutions must meet the following conditions to be designated as a Public Benefit Organisation (PBO).
- The institution is not a company with capital divided into shares, a cooperative, a mutual insurance society or another body that may issue participation certificates.
- At least 90% of the institutions efforts must be focused on the general good. This is referred to as the 90% requirement.
- The institution and the persons directly involved in the institution must comply with the integrity requirements.
- A director or person determining the policy may not treat the institutions assets as personal assets. The assets must be segregated.
- A PBO may not retain more assets than reasonably required for the institutions work. For this reason the institutions assets must remain limited.
- The directors’ remuneration must be restricted to an expense allowance or a minimum attendance fee.
- A PBO must possess an up-to-date policy plan.
- The PBOs costs must be in reasonable proportion to its expenditure.
- Funds remaining after the dissolution of the institution must be allocated to a general good objective identical to the institutions objective.
- A PBO is governed by specific administrative obligations.