Associations are supported mainly by income from membership fees , although they also often receive grants and donations. If they make a profit, it must be reinvested in fulfilling the purposes set out in the statutes of their foundation. It will never be distributed among the members.
Let us look at an example of the difference between the activity of an association in terms of its social purpose and what would be involved in the exercise of an economic activity. A traditional music association, when it acts as an exhibition at a festival to spread culture, is fulfilling its non-profit purposes. However, if it carries out the same action after sending a budget to the organization and agreeing on a monetary compensation, it would then be exercising an economic activity for profit. In this last case, it would behave like any civil or commercial company.
To create an association , at phone number afghanistan least three people are needed , either physical or legal. These people will draft the founding or incorporation deed and the statutes, which will regulate the rules that will govern the Association.
The statutes shall specify at least the following information: the name of the association, the address, the activities that the association intends to carry out, the types of members and their obligations and rights, and the requirements for admission or separation of members.
The governing body, the representative, and the operating criteria (procedure for electing the representative, powers, duration of the position, reasons for termination, method of adopting agreements, etc.) will also have to be named. The expected duration of the association or whether it is understood to be constituted for an indefinite period will also be defined.
If the founding partners make any financial contribution to the start-up, this must be recorded. Even if it is a non-profit entity, it will be obliged to keep an accounting record of income and expenses . This record will be divided into financial years, each with its opening and closing date.