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Foundations and associations law is a specific field of law that regulates all processes of non-governmental organizations, from their establishment to their dissolution. These structures, which aim to provide social benefit, are subject to a strict control mechanism to ensure compliance with the law.
The main sources of foundations and associations law are the Turkish Civil Code, the Associations Law No. 5253 and the Foundations Law No. 5737. This field, which defines the legal framework of non-governmental organizations, covers all processes relating to establishment, management, registration, financial operations, economic structures and dissolution.
Association: An association is a community of persons formed by at least seven real or legal persons who continuously combine their knowledge and efforts to achieve a specific and common purpose other than profit sharing.
Foundation: A foundation is a collection of assets formed when real or legal persons allocate sufficient assets and rights, by their free will, to serve a specific and continuous purpose.
The founding philosophy and legal requirements of these two institutions differ from each other.
Minimum Number of Founders: At least seven founders with legal capacity must come together.
Free Establishment System: As a constitutional right, no prior permission from any public authority is required to establish an association.
Acquisition of Legal Personality: An association acquires legal personality as soon as its charter and establishment notification are submitted to the local administrative authority, namely the Governorship or District Governorship.
Number of Founders: A foundation may be established by a single real or legal person through a unilateral declaration of intent.
Foundation Deed: The intention to establish a foundation is declared through an official deed before a notary public or by will.
Asset Requirement: A minimum amount of cash or immovable property, determined annually by the Council of Foundations and sufficient to achieve the foundation’s purpose, must be allocated to the foundation.
Acquisition of Legal Personality: A foundation acquires legal personality when it is registered in the court registry as a result of a registration lawsuit filed before the civil court of first instance at its place of residence.
Associations and foundations are obliged to establish the bodies required by law in order to maintain their legal existence.
General Assembly: The highest and most authorized decision-making body of the association, consisting of all members.
Board of Directors: The executive and representative body of the association, responsible for organizing daily affairs.
Supervisory Board: The internal audit mechanism of the association, responsible for reviewing financial and administrative compliance.
Management Body / Board of Directors: The only mandatory body that conducts the affairs of the foundation and represents it externally.
Optional Bodies: Bodies such as a Board of Trustees or Supervisory Board may also be established, provided that they are specified in the foundation deed.
Feature | Association | Foundation |
|---|---|---|
Basic Element | It is a community of persons. | It is a collection of assets. |
Minimum Founder Requirement | At least 7 founders are required. | 1 person is sufficient. |
Membership System | There is a right to join, withdraw and hold membership. | There is no membership system. |
Legal Personality | It begins upon notification to the Governorship or District Governorship. | It begins with court registration. |
Change of Purpose | It may be changed by a decision of the general assembly. | It is possible only by court decision and under limited conditions. |
Membership is essential in associations, and no one can be forced to remain a member. Membership may end through resignation, loss of membership requirements or a decision of the disciplinary board. Since foundations do not have a membership structure, liquidation and termination processes take place under the supervision of the General Directorate of Foundations in cases such as court decisions, the purpose becoming impossible to achieve or the depletion of assets.
Foundations and associations are regularly supervised both by their own internal supervisory bodies and by authorized state institutions. Expenditures outside the stated purpose, irregular admission of members or declarations contrary to legislation may lead to serious administrative fines, suspension of governing bodies and even dissolution lawsuits.
The activities of foundations and associations are strictly supervised by both their internal bodies and state institutions in terms of compliance with legislation and financial rules:
Supervision of Associations: Administrative and financial inspections are carried out by inspectors of the Ministry of Interior, General Directorate of Relations with Civil Society.
Supervision of Foundations: Both the financial structure and compliance with the foundation deed are supervised by the General Directorate of Foundations under the Ministry of Culture and Tourism.
Sanctions: Irregular expenditures, errors in declarations or member registrations contrary to legislation may result in severe sanctions ranging from administrative fines to the suspension of board members and even dissolution of the institution by court decision.
An attorney specialized in this field coordinates the legal processes of non-governmental organizations from beginning to end and minimizes possible administrative and criminal risks:
Prepares draft association charters and foundation deeds in accordance with legislation and the client’s vision. Files and follows up the registration lawsuits before the civil court of first instance required for the establishment of foundations.
Supervises the conduct of ordinary or extraordinary general assembly meetings in accordance with legal procedures.
Manages the establishment of economic enterprises, incorporation processes and tax exemption applications.
Provides defense in internal disputes, annulment lawsuits concerning removal from membership, or dissolution and closure lawsuits filed by public institutions.
Monday - Friday / 09:00 - 18:00
