HOW TO START AN ASSOCIATION
On this page, we tell you what you should think about before you start an association. We will also tell you how to start an association.
What is an association?
An association is a group
- with at least three members
- which is non-profit
- whose activities are continuous.
Being a non-profit organisation means that the main goal of the association is not to make a financial profit.
The association’s activities must be continuous. Therefore, for example, a single meeting or demonstration is not an association.
Associations are also called organisations.
An association can be registered or unregistered
An association can be either officially registered or unregistered.
Before you start an association, it is important to think about what the association will do. This will affect whether or not the association needs to be registered.
You should register an association if you want to raise more than €20,000 a year in the future. Unregistered associations can raise up to €20,000 per year.
Registered association
A registered association has officially registered in the Finnish Register of Associations. The Finnish Register of Associations is maintained by the Finnish Patent and Registration Office. In a registered association, the board is responsible for ensuring that the association works correctly. Its activities are governed by the Associations Act.
A registered association has legal capacity. This means that the chairman or members of the board can act for the association in official matters. For example, they can sign a lease in the name of the association. They can also manage the association’s legal affairs, such as acting for the association in court.
A registered association can raise money. It can ask for membership fees from members of the association and organise events. A registered association can also apply for funding from municipalities, the government or other sources.
In Finnish language, the abbreviation “ry” is often used for a registered association.
Read the Finnish version of the Associations Act on the Finlex website.
Unregistered association
An unregistered association is an association that is not listed in the Finnish Register of Associations. The Finnish Register of Associations is maintained by the Finnish Patent and Registration Office. The activities of an unregistered association are only partly governed by the Associations Act.
An unregistered association has no legal capacity. This means that all its members are personally responsible for the agreements that the association makes. However, the board of an unregistered association may act for the association in practical situations, such as negotiations.
An unregistered association can raise money. It can ask for membership fees from members and organise events.
Read the Finnish version of the Associations Act on the Finlex website.
Do you want to start an association? First consider the following questions:
Why do you want to start an association?
What are the goals of the association?
Also think about:
- What do we want to advocate?
- What do we want to achieve?
- What skills do we have?
- What new can we give to people?
Find information about other similar associations. If many associations are already doing similar work, it is not useful to start a new association. Then it makes more sense to join another association.
Who organises the activities of the association?
According to the law, an association must have at least three members. That’s why it’s always a good idea to plan your association’s activities together with others.
How does the association earn money?
An association can raise money in the following ways:
- It can ask for membership fees from its members.
- It can receive subsidies and grants, for example, from municipalities or the state.
- It can organise fairs and events.
The association’s finances need to be carefully planned. When starting an association, decide how the association will earn money.
In order to get grants and subsidies, an association needs to be well managed and operate for many years.
How do you develop the association?
It is important that you develop the work of your association. Treat an association as a long-term project. Planning your activities well will ensure that the association will be successful in the future.
How to start an association
1. Preparations
An association needs at least three people over the age of 15 to create it. The chairperson and the vice-chairperson of the association must be over 18 years old. They must live in Finland. They must have an address and residence permit in Finland. The chairperson of the association must be of good character. They also need to manage their own finances properly. This means that they must not have any debts under enforcement proceedings.
2. Trustees and board members
The association must choose an operations inspector, chairman, vice-chairman, secretary and a treasurer or accountant.
The founders of the association may hold these positions. Persons who are not members of the association can also be chosen.
More information about association trustees and board members can be found in Finnish on the Association Administration page.
3. Founding meeting and rules
When an association is started, the first step is to hold a founding meeting. The meeting is usually attended by the founders of the association. Founders are the people who want to start the association.
At the founding meeting, the founding members join the association and choose the first board of the association. At the meeting, the rules of the association are also written and approved. In addition, the charter is signed. The charter is the document in which the founders agree on the establishment of the association.
4. To register or not to register?
You do not need to register your association. You should register your association if you want to raise more than €20,000 a year in the future.
Unregistered associations can raise up to €20,000 per year.
Read more about setting up an association in Finnish in the guide of the Finnish Patent and Registration Office.
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