The legislative status of nonprofit companies is primarily determined by the Civil Code of Russia, but this is not the only legislative act that must be followed. NCO status is assigned to them from the moment of state registration. Information on the administrative and civil status of such organizations will be considered under this article.
Concept
Non-profit organizations are organizations that do not pursue profit as the main goal of their work and do not distribute the amount received among the participants (Article 50 of the Civil Code of the Russian Federation).
The legal status of autonomous non-profit organizations predetermines their goals and objectives. The task of creating a non-profit organization may be to work or promote charitable, educational, social, cultural, scientific and managerial interests.
From time to time, this is done in order to protect people's health, develop sports in the state, or to satisfy the spiritual and other intangible needs of people.
Similar organizations are also created to ensure the protection of the rights and legitimate interests of both people and entire companies, to provide support in resolving disputes or providing legal advice.
A general characteristic of the legal status of non-profit organizations is that the existence of such companies is determined by goals that were aimed at achieving various types of public goods. Based on the presentation of the status of a non-profit organization, it is assumed that it is created as a legal entity from the moment of the state registration procedure in the manner established by law.
The main differences from commercial companies
The differences in the legal status of commercial and non-profit organizations are as follows:
- for non-profit companies, economic activity is auxiliary, ensuring their participation in property circulation, and the civil status of these companies is secondary;
- commercial organizations carry out economic activity, which for them is the main and fully regulated civil law.
Unlike commercial companies, non-profit organizations are not professional participants in property relations. Therefore, for non-profit organizations, the legislation establishes special legal capacity (Clause 1, Article 49 of the Civil Code of the Russian Federation) and allows you to use your property only to achieve the tasks indicated in their constituent documents (Clause 4 of Article 213 of the Civil Code of the Russian Federation).
The activities of non-profit organizations are aimed at the formation of public goods. They are the strongholds of the infrastructure facilities of civil society. They do not take part in production, but only in the redistribution of material goods (state product).
In all other respects, non-profit organizations are full and permanent participants in the turnover of real estate together with commercial ones.
Legislative framework
The status of an NPO is determined by various legislative acts, such as:
- Art. 50 of the Civil Code of the Russian Federation, which states that NPOs include organizations that do not define profit as the main goal of the work and do not distribute it among the participants.
- Law No. 7 of the Federal Law “On Non-Profit Organizations” of January 12, 1996 lists all forms of NPOs.The law describes the procedure for their creation, elimination and transformation.
- Special laws that govern the activities of nonprofit organizations.
Various national laws, such as the Code of Russia on Administrative Offenses and the Criminal Code of Russia, explain administrative and legislative and criminal penalties for violation of the terms of the law by such companies.
Legal status
From the moment of passing the state registration procedure, an NPO becomes an organization having:
- independent balance sheet;
- certain property;
- the ability to respond to all emerging obligations with your property.
The legal status of non-profit organizations is also characterized by the ability to open bank accounts and have their own stamp.
The term of activity of a newly created NPO is not established by law. The organization’s activities cease only after its elimination or transformation.
Like any legal entity, an NGO has its own name, including an indication of the type of organization. If the company has registered intellectual rights in its name, then it has the right to dispose of them at its sole discretion and impose a ban or restriction on its implementation by other companies.
Regarding the location of the NPO, it should be noted that it is indicated in the constituent documents and in the application when passing the state registration procedure. Interested parties can view this information by ordering an extract from the register.
Branches and representative offices of NPOs have the right to exist in large numbers. But it’s important to know that the parent company is responsible for their activities, since neither the branch nor the representative office have the status of an independent organization.
Administrative Legal Status
The administrative and legal status of non-profit organizations is determined by the rights and obligations arising from the moment of their creation.
Relations between NPOs and government bodies are combined with the functions that the organization performs. On the one hand, we are talking about obtaining different types of permits and licenses for the implementation of any work, on the other hand, the government can provide assistance (for example, by allocating subsidies or allocating financial resources).
According to the administrative-legal status of non-profit organizations, despite the fact that NPOs are public and created in order to fulfill cultural, scientific and political tasks, the government controls their activities. This allows the possibility of holding such companies accountable, which was established by law when committing violations.
Civil Status of Nonprofit Organizations
The legal status of non-profit organizations and their civil status are determined on the basis of the legal form chosen for the implementation of the activity. Namely, in paragraph 3 of Art. 50 of the Civil Code of the Russian Federation the following forms are indicated:
- consumer cooperative;
- social organization;
- social movement;
- partnership of property owners;
- fund;
- notarial chamber;
- religious organization.
The main task of the civil status of non-profit organizations is to achieve social, cultural and other socially significant tasks that are provided for in the charters and other constituent documents. At the same time, legislation does not exclude the possibility of NPOs carrying out commercial work necessary to ensure the organization’s activities.
This means that entrepreneurship should not be carried out in order to generate income.
Commercial activities can be carried out to receive funds and subsidies from the state and the implementation of socially necessary tasks. For example, the provision of services with a fee for them and the subsequent organization of a charity evening. Members of an NPO are not entitled to distribute profits among themselves.
Types of Organizations
The legal form of organization is a combination of certain features that objectively differ in the general system of features of organizations. They distinguish this group of companies from all others.
Let's consider the possible options for organizing NPOs in more detail.
The legal status of nonprofit corporate organizations is that they include organizations that do not pursue profit as the main goal of their work and do not distribute profit among participants. Founders receive the right to take part in the management of these companies and form their supreme body in accordance with paragraph 1 of Article 65.3 of the Civil Code of the Russian Federation.
The legal forms of nonprofit corporate companies are as follows:
- consumer cooperative;
- social organization;
- association (association);
- notarial chamber;
- partnership of property owners;
- Cossack society;
- community of indigenous peoples of Russia.
The legal forms of non-profit unitary companies are as follows:
- funds;
- institutions;
- autonomous non-profit organizations;
- religious organizations.
The fund is a unitary non-profit organization without membership, which was created by citizens and organizations on the basis of voluntary property payments. He carries out charitable, cultural, educational or other social, socially useful tasks.
The institution is a unitary non-profit organization that was created by the owner to implement managerial, socio-cultural or other functions of a non-profit nature (Article 123.21 of the Civil Code of the Russian Federation).
An autonomous non-profit organization is a unitary non-profit organization that does not have a membership and is organized on the basis of property contributions of people and organizations in order to provide services in the fields of education, health, culture, science and other areas of non-profit work (Article 123.24 of the Civil Code of the Russian Federation).
A religious organization is a voluntary association of residents of Russia or other persons permanently and legally living in Russia, formed by them for the tasks of collective faith and the spread of faith. It is registered as a legal entity (local religious organizations), as an association of these companies (centralized religious organization). The goal is the dissemination of religious information (Article 123.26 of the Civil Code of the Russian Federation).
In almost all cases, the difference in the organizational and legislative forms of non-profit companies is not justified by the current need, but only results from the adoption of a certain law on their status (for example, minority groups as organizations are actually consumer cooperatives).
In developed European legal systems, usually no more than 3-4 organizational and legal forms (association or union, foundation, institution) are used to reflect the features of their status.
The purpose of creating different forms of organization of NPOs
Funds: the formation of property through voluntary payments and their implementation for public purposes. They have no members. Activities are carried out to achieve the objectives.
Associations: protection of interests of participants on the basis of an agreement. They are created by commercial structures for organizing business management.
Social organizations: working together to achieve goals. Organized by a group of 10 people who have common interests.
Religious associations: recognition and introduction of people into faith, worship, rituals, religious education.
Consumer cooperative: improving the property status of members, providing them with a method of pooling contributions.
Institutions: the implementation of cultural, social, managerial and other tasks of the non-profit plan. The funds are invested by the founder.
ANO: the provision of educational, medical, sports and other services.
NP: achieving social well-being in all areas of life: health, culture, art, sports. This form is created to provide different types of services.
Communities of small nations are created by citizens on a voluntary basis. They must contain more than 3 members. People are united on the basis of common interests, territory of residence, traditions, crafts in order to preserve their life, culture, management principles. These NGOs can conduct business in order to fulfill their tasks. When leaving the company, a citizen has rights to property.
The table shows the differences in the main forms of NPOs.
| Indicator | NP | ANO | Private institution | Fund | Social organization | Association |
| Founders | individual | individual | Legal entity or citizen | Legal entity or citizen | 3 individuals and more | Entity |
| Membership | Yes | not | not | not | Yes | Yes |
| Entrepreneurship | allowed | allowed | allowed | allowed | allowed | not |
| A responsibility | not | not | Yes | not | not | Yes |
| Media Publishing | not | not | not | Yes | not | not |
Advantages and disadvantages of various forms of organization
Consumer cooperative:
- Pros: income distribution, trade stability, municipal support.
- Cons: responsibility for debts, full workflow, the need for additional investment in case of costs.
NP:
- Pros: security of property rights, there is no liability to creditors, freedom of choice of organizational structure.
- Cons: profit is not distributed, documentation development.
Association:
- Pros: transformation into a partnership, free use of the services of participants.
- Cons: the liability of former members for debts remains for 2 years.
Fund:
- Pros: the possibility of entrepreneurship, a huge number of owners, lack of debt, has its own property.
- Cons: annual public reporting, the possibility of recognizing bankruptcy, there is no possibility of transformation.
Religious Associations:
- Pros: do not have property rights.
- Cons: not responsible for debts.
Institutions:
- Pros: providing services for a fee.
- Cons: responsibility to creditors, the property belongs to the owner.
Public organizations:
- Pros: not responsible for debts, entrepreneurship is allowed. Freedom to choose tasks, ways of working.
- Cons: members do not claim transferred assets and contributions.
Unitary NCOs:
- Pros: no members, have the advantage of quickly making decisions about emerging problems.
- Cons: the difficulty of making final decisions with a huge number of owners.
Features
Features of the legal status of non-profit organizations distinguish them from commercial structures:
- Limited legal capacity. Associations can work only in those areas indicated in their constituent documents and relevant laws.
- Work in the public interest. NGOs do not seek profit.
- Doing business. NPO can be engaged in commerce only within the framework of achieving its statutory objectives. Members do not distribute income among themselves.
- Large selection of legal forms (OPF). When developing an NPO, a suitable OPF for certain tasks is selected in accordance with the law.
- Not recognized as bankrupt (except for funds and cooperatives). When a debt appears to creditors, the court cannot declare the company bankrupt. NPOs can be liquidated and property used to cover debt.
- Allocation of cash. NPOs receive assets from participants, as well as donations, voluntary payments, subsidies from the state, etc.
- For some NGOs, municipal registration is not required (social movements, amateur bodies). Such associations may not own property, rights in court, accounts, seals. When registering a foundation, a board of trustees must exist.This form of NPO can only be liquidated by court order.
Basic rights
The list of rights of non-profit organizations contains the following:
- open bank accounts throughout Russia, as well as outside it, in the manner established by national regulatory legal acts;
- have the seal of the organization, the full name of the established non-profit organization in the state language;
- have stamps and letterhead of the organization with its name, as well as an emblem, which must be registered in accordance with regulatory legal acts.
Characteristics of the Charter
The charter of a non-profit organization is a constituent document, which is compiled at the stages of the formation of NPOs, regardless of its form.
For a non-profit partnership, public organization and foundation, the Charter is the basis of the constituent package of documents. If an association or a union is created, the list of necessary documents contains the agreement of the deposit holders.
A large amount of information is required to draw up the Charter of NPOs:
- formation of responsibilities;
- a list of work on the formation of the company, it is extremely important to enter information on the voting procedure and approval of governing bodies, as well as a list of them for each form of organization;
- conditions for transfer of ownership: fundamentally indicate the sources of origin and options for the operation after elimination;
- terms of participation in the organization's workflow;
- conditions and procedure for the exit / entry of members: if the organization is created through participation, it must indicate its rights and obligations, exclusion rules.
The charter includes the subject and purpose, as well as a complete list of activities that will be carried out by the company.
The Charter indicates the legal address: it is important to state the location of the organization being created, referring to branches and representative offices.
The Charter shall indicate information on the name of a non-profit organization, the nature of its work, and public legal forms.
Conclusion
Thus, NPOs, although they are not engaged in generating income, are organizations due to the special legislative status and legal status of non-profit organizations. They are endowed with appropriate rights and obligations (with features that have been established by special legislative acts).
At the same time, the main feature of the legislative status of nonprofit companies will be that they carry out activities in accordance with the goals indicated in their charters, which are not related to revenue generation.
As a result, a non-profit organization, the name of which is successfully registered in the prescribed manner, acquires the exclusive right to create it. The place of a non-profit organization is the place of its state registration. This information, specifically the name and location, must certainly be indicated in the constituent documentation.