AfD and the Left party have sharply criticized the ongoing debate surrounding increased taxation of associations and clubs. Doris Achelwilm, the tax policy spokesperson for the Left parliamentary group, told the “Welt” that the Ministry of Finance’s method of plugging budget gaps by targeting associations remains a mystery for now. She stated that the expected additional revenue would be marginal, while associations would be “massively destabilized overnight.” Achelwilm deemed the focus on associations as a tax target, rather than on inheritances, assets, and capital gains, to be “more than grotesque.” She argued that the reform, drafted by the SPD and the Union with the intention of significantly relieving small and medium incomes, had instead swung into the negative, calling it politically and fiscally disastrous.
Kay Gottschalk, the financial policy spokesperson for the AfD parliamentary group, echoed this concern, adding that associations are essential components of sound youth work. He emphasized that they function to a greater extent than “certain ideology-driven NGO projects” and provide basic support in socially critical areas. Gottschalk declared that his party advocates for “considerable tax reductions across all sectors” and has presented a corresponding concept. “I can only say: keep your hands off the associations,” he warned.
Meanwhile, reports indicate that Federal Minister Lars Klingbeil (SPD) is planning to reduce the tax allowance for associations from 5,000 to 1,000 euros. This reduction is anticipated to affect business associations or professional sports clubs, rather than charitable organizations.
The Greens have publicly shown openness to the association reform. Sascha Müller, a member of the Greens parliamentary group’s finance committee, noted that the reform would generate only very low additional revenue and is “not an unwarranted increase,” given that these are associations with an economic purpose. However, he raised a point of contention, questioning why the federal government is not addressing the justice gaps in taxation-such as the taxation of inheritances or real estate-where wealthy individuals can largely avoid paying taxes through smaller measures.
The SPD, for its part, has announced that specific measures from the proposed reforms will be evaluated during the parliamentary procedure. Frauke Heiligenstadt, the SPD parliamentary group’s financial policy spokesperson, stated that “the draft law is still in a very early stage of coordination at the federal government level.” She affirmed that the party had strengthened associations, particularly in the past year, through the so-called Volunteer Package. This package included raising the allowance for volunteer work and supervisors, expanding liability protection, and increasing the expense thresholds for commercial operations. She concluded by stating that support for volunteer and non-profit work is deeply important to the party.
