Profits in a non-profit organisation (vzw)
What do you do if your non-profit organisation... makes a profit?
Last updated on 28.07.2025
Non-profit organisations in Flanders typically operate under the legal form 'vzw', which is short for Vereniging Zonder Winstuitkering (an 'association without profit').
Unlike some other forms of legal entity, a non-profit organisation is not allowed to pay out profits or material benefits to its members, directors or other parties, except to achieve the non-profit purpose for which it is intended.
However, a non-profit organisation is allowed to make profits or have more income than expenditure, as long as those profits are only used to serve the purpose of the organisation – in other words, they are reinvested in the activities of the organisation.
What a non-profit organisation cannot do is pay out those profits to people who are actively involved in the organisation. It cannot do so indirectly either, for example by paying its directors exorbitant sums, giving them exclusive gifts or offering disproportionate rewards of any kind.
Your non-profit organisation can pay its staff, freelancers, association workers and volunteers for their services at appropriate rates (‘market rates’). All of this must be properly traceable in the organisation’s paperwork and accounts. Find out more about this in the section on paying and getting paid.
Commercial activities
Non-profit organisations are allowed to develop unlimited commercial or trading activities.
If the non-profit organisation’s commercial activities are more than incidental to your non-profit purpose, however, your organisation will not be eligible for the more advantageous legal entities tax (rechtspersonenbelasting). Instead, it will be liable for corporation tax (vennootschapsbelasting). This also means you can no longer work with volunteers. Read more about non-profit organisations and taxes.
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*Disclaimer: This web page offers practical guidelines and is not intended to replace legal advice. Always consult a professional for specific questions.*