Next financial affair? – Seniors association has raised 2 million from non-profit pot

The Kogler-based NPO fund was established in the spring of 2020 to help charities and other non-profit organizations, institutions of recognized religious communities and volunteer fire brigades through the Corona crisis. More than 50,000 applications have now been paid out. In the course of a NEOS parliamentary inquiry into the payments in Upper Austria, there is now evidence that the NPO fund has made payments to organizations that could be considered sub-organizations of the ÖVP.

These include smaller payments of less than €11,000 to the Upper Austrian Economic Association, the Farmers’ Union, the Student Union and the Youth Party. The Ring of Freedom Youth also received compensation. However, the cash flow to the Upper Austrian Senior Citizens Association and its local groups is particularly striking: exactly 1,915,194.14 euros are quoted for the payment period from July 2020 to March 2022. When applying, the organizations must expressly confirm that there is “no reason for exclusion” is according to the NPO Fund Directive. It states that political parties are not eligible for funding under the law. Thus, the term “political party” means all state, district and community organizations, as well as all “partial organizations defined according to thematic criteria or those of interest representation”.

Deceived by double existence?
The Upper Austrian Seniors Association is now arguing against the APA that it has not applied for funding as a party organization, but for the association of the same name. According to state manager Franz Ebner, the Senior Citizens’ Association leads a double life as a sub-organization of the ÖVP and as a non-profit association. Ebner emphasizes that there is a strict financial separation between the two organizations. He does admit that the party organization and the club are largely identical: in both cases ex-governor Josef Pühringer is the chairman, and in both cases he is the general manager (paid by the club, not the party). The members are also largely congruent.

However, Ebner dismisses the fact that the seniors’ association exploited a legal loophole in funding. “I don’t see it that way, because there are two organizations.” In addition, the Ministry of Social Affairs advised the Senior Citizens’ Council to use the NPO fund to absorb the loss of income during the Corona crisis. And the Seniors Association is also on the Seniors Council. For example, there was a loss of income because the annual senior ball could not be organized twice, emphasizes Ebner. He is relaxed about an investigation because the applications have been properly filed with the tax advisers and there are “strictly segregated treasuries” between the party and the association.

After the information, Kogler’s department is now questioning the legality of the grants to the seniors’ association: The ministry ordered the federal development bank, AWS, through which the fund is processed, to review. According to this directive, all organizations throughout Austria where there are such indications must be clarified whether they are part of a party organization within the meaning of the Political Parties Act.

Incorrect information can have criminal consequences
As a result, subsidies granted would have to be repaid. As the application form also states, “incomplete or inaccurate information” can also lead to criminal charges and a “permanent exclusion from all federal funding.”