Explanation and meaning of ‘Station’ in NGOs and non-profit organizations
The term ‘Station’ refers, in the context of non-governmental organizations (NGOs) and non-profit organizations, to a permanent or temporary, organizationally distinguished unit that is established to fulfill the organization’s purpose. Stations are usually regional, functional, or topic-specific locations, offices, facilities, or contact points where operational tasks are carried out and the pursuit of charitable objectives is practically implemented. They therefore constitute an important building block of the organizational structure and are subject to various legal frameworks.
Legal classification of stations in non-profit organizations
Definition and distinction from other organizational units
Stations, in contrast to loosely organized project groups or temporary working groups, are organizationally firmly established operational units. Depending on the wishes of the organization under company law, they may appear as branches, district offices, head office, or regional subsidiaries and often have their own scope of activity. The precise design of the station, including its tasks, powers, and responsibilities, generally arises from the articles of association or internal regulations of the respective organization.
Stations vs. Head Offices
While head offices are often the central administrative hub of an NGO, stations are primarily used for the operational implementation of the charitable activities in the field.
Statutes and establishment of stations
For the establishment of a station within a non-profit organization based in Germany, the requirements of association and tax law are of central importance.
Statutory foundations
The establishment of a station should be regulated in the organization’s articles of association. According to § 58 Nos. 1 and 2 of the Fiscal Code of Germany (AO), the articles must clearly and unambiguously state the purpose and the means of its implementation. The foundation of stations as part of the measures to promote the organization’s purpose should be explicitly provided for or covered by an appropriate board resolution.
Registration law aspects
Stations—provided they are not legally independent organizational units (e.g., not registered associations or independent companies)—are not to be entered independently in the association register. Leadership and liability responsibility regularly remain with the board of the main organization, unless a separate legal form is chosen for the station (e.g., gGmbH, sub-association).
Recognition of non-profit status
All activities of the stations must fall within the purposes pursued by the organization (§ 52 AO). Activities and revenues of the station must therefore be attributable to the tax-privileged activities, to avoid endangering the non-profit status of the main organization.
Operational and liability aspects
Organizational integration and authority to issue instructions
Stations are usually subject to the organizational authority to issue instructions and are bound by the internal rules and instructions of the board as well as existing compliance requirements. It is the overall responsibility of the organization to design all stations in such a way that control and management mechanisms are put in place.
Employee leasing and labor law
Employees in stations are subject to the employment laws of the host country. If a station is established abroad, the labor laws of the host country take precedence, whereby any delegation directives as well as tax aspects (payroll tax treatment, social security law) must be observed. The status of the station as a dependent permanent establishment is relevant under labor and tax law.
Liability and insurance
The organization is generally liable for actions and omissions of employees at its stations. An alternative arrangement is only possible by establishing a legally independent entity. Insurance coverage (e.g., liability, accident insurance) must also be explicitly obtained for branches and stations.
Tax treatment
Operating expenses and tax allocation
All business and personnel costs in connection with stations must be listed separately in the budget plan and correctly allocated to non-profit purposes (or possibly taxable income in the case of commercial operations). Independent bookkeeping at the stations is permitted, but final accounting and consolidation are done through the NGO’s main body.
VAT treatment
Income generated from services provided by non-profit stations is generally exempt from VAT under § 4 Nos. 20 ff. UStG, provided they are tax-privileged entities and the income is directly used to fulfill the charitable purpose.
Stations abroad
Stations outside Germany are subject to the applicable national laws (e.g., tax law, labor law, association law abroad). Special attention must be paid to compliance with the requirements for the use of funds under German AO provisions for corporations if non-profit status is to be retained in Germany. In addition, registration and approval requirements may exist in the host country.
Data protection and compliance in stations
Data protection obligations
Stations as part of an NGO are required to comply with the General Data Protection Regulation (GDPR) and national data protection laws. This especially includes the regulation of data processing, the use of IT systems, and the appointment of a data protection officer, if the unit processes sensitive data of data subjects.
Compliance and internal control systems
Stations must also be integrated into the organization’s internal control system, complaints and whistleblower systems, and risk analysis. Guidelines such as the code of conduct or internal regulations are to be implemented consistently across all stations.
Dissolution and restructuring of stations
The closure or restructuring of a station is governed by the articles of association, the requirements of labor law (protection against dismissal, social plans), and tax and funding regulations (reversal of funding, obligation of use of funds). An orderly wind-down must be documented in order to avoid liability and tax risks.
Summary
The ‘Station’ in NGOs and non-profit organizations is a central organizational unit for carrying out operational tasks and implementing charitable objectives. Its legal design requires careful attention to statutory requirements, labor, tax, and data protection regulations as well as a clear organizational connection to the main organization. Besides compliance with legal frameworks, transparency, internal control mechanisms, and adherence to charitable principles are essential for the proper management of stations.
Frequently Asked Questions
Is a station in an NGO or non-profit organization classified as an internship or an employment relationship under labor law?
The legal classification of a station in an NGO or non-profit organization largely depends on the actual circumstances. The key factor is whether the focus is on learning and training (internship) or on a regular employment relationship with tasks carried out under instruction and for payment. As a rule, mandatory internships completed as part of an education or study program do not constitute employment relationships in the strict sense. Voluntary internships and ‘stations’ for career orientation, however, can, depending on design and duration, be regarded as employment relationships, in which case labor law protections, such as minimum wage laws or protection against dismissal, may apply. The specific contractual arrangement and integration into operational procedures are decisive; if in doubt, legal review is recommended.
Does social security coverage apply during a station?
Social security obligations during a station depend on its legal classification. For mandatory internships as part of school, university, or vocational training, there is generally no requirement to contribute to social security. However, if it is a voluntary internship or a station that qualifies as an employment relationship, general social security regulations apply, meaning there may be obligations for health, nursing care, pension, and unemployment insurance. Factors such as weekly working hours, remuneration, and duration of activity are decisive for the specific assessment.
Is a station remunerated, and does it fall under the Minimum Wage Act?
Whether a station is remunerated and whether the statutory minimum wage must be paid again depends on the type of station. Mandatory stations or internships as part of education or university studies are generally exempt from the Minimum Wage Act (§ 22 MiLoG). Voluntary internships of up to three months for orientation purposes are also largely exempt. However, if the station exceeds this period or is regarded as an employment relationship, the minimum wage must generally be paid. Non-profit organizations are legally treated no differently in this respect than private companies.
What liability risks exist for participants during a station in an NGO?
During a station, participants are generally—like regular employees—covered by the organization’s accident insurance, provided this is covered by the host organization and its legal status. In case of damage caused by negligence, liability to the organization or third parties may arise, although the NGO usually provides coverage (employer’s liability, accident insurance). In cases of deliberate or grossly negligent damage, personal liability cannot be ruled out. It is advisable to clarify the insurance coverage explicitly before starting the station.
Are there special data protection requirements during a station in an NGO?
During a station in a non-profit organization, all data protection regulations under the GDPR and the Federal Data Protection Act (BDSG) must be observed. Participants usually gain access to personal data of clients, donors, or third parties. NGOs are required to inform interns and station staff about their obligations. Violations of data protection requirements can lead to disciplinary action as well as civil or criminal consequences. Appropriate instructions and any necessary confidentiality agreements should be included in the station contract.
Which working time regulations apply to a station?
The Working Hours Act (ArbZG) also applies to a station in an NGO, unless explicit exceptions apply (e.g., for certain mandatory internships). This means a maximum of eight hours of work per day (with exceptions up to ten hours), compliance with break regulations, and protection on Sundays and public holidays. Adolescents are also subject to the Youth Protection Act (JArbSchG), which imposes stricter limits on working hours, breaks, and types of employment. Overtime is only permitted within narrow legal limits and always requires written documentation and, if necessary, compensation.
Can a station be credited toward later vocational training or university studies?
The legal possibility of crediting a station toward training courses or academic achievements is not generally regulated but depends on the examination regulations or the respective training institution. Universities and chambers often accept stations in recognized NGOs as proof of practical phases or required internships, provided the activities correspond to the relevant profession and a qualified certificate of the type, content, duration, and success of the station is presented. It is advisable to obtain written confirmation from the institution prior to commencing the station that crediting is possible.