European Capital of Culture Chemnitz 2025 GmbH becomes a non-profit organisation
Legal form to be changed at the turn of the year
The City Council today decided to change the legal form of the European Capital of Culture Chemnitz 2025 GmbH. The company, which was founded in 2021, will in future have the legal status of a non-profit organisation ("gemeinnützige GmbH", or "gGmbH" for short).
The company does not yet have formal non-profit status. However, in order to fulfil the contract with the City of Chemnitz, it is already carrying out activities that are largely in line with the now envisaged statutory purpose of promoting art and culture, science and education, fostering an international mindset, promoting the arts and culture, and promoting the arts and culture.The fulfilment of the agreement with the City of Chemnitz already largely provides for activities that correspond to the now envisaged statutory purpose of promoting art and culture, science and education, fostering an international mindset, tolerance in all areas of culture and international understanding as well as the general promotion of the democratic state.
The European Capital of Culture Chemnitz 2025 GmbH organises and implements the Capital of Culture Year 2025 in order to fulfil its statutory purpose and the underlying contractual relationship with the City of Chemnitz. This becomes clearest when looking at the third-party projects that make up a large part of the Capital of Culture 2025 programme. Here, the role of the GmbH is based on traditional public cultural funding in the broadest sense, in that it participates in the projects by providing partial financing. In addition, the company supports the project participants by providing advice and further support (capacity building). This does not take place with the intention of making a profit. No economic benefits are realised from its own projects either.
The stipulation of non-profit tasks in the articles of association and the associated legal form of a non-profit limited liability company has the following advantages: In contrast to a GmbH, a gGmbH is eligible to apply for many funding programmes. The non-profit status opens up the possibility of accepting donations and issuing donation receipts. It also opens up the possibility of realising civic participation through voluntary work and insuring the volunteers involved accordingly.
No changes to the structures are planned. The change to non-profit status to a gGmbH is planned for 1 January 2024.