Definition of NGOs
“An association may be founded for the common realization of a non-profit purpose”. (Sec. 1,supra, n.2)
Founding of NGOs
A legal permanent association may be founded by a minimum of three individuals of at least 15 years old or organizations having legal capacity. Foreigners can also act as founders. “A charter shall be drawn up on the founding of an association and the rules of the association shall be annexed thereto.” (Sec. 7, Ibid) The association has to prepare the basic declaration forms, the charter and the rules and submit the documents for state registration (Sec. 47-48, Ibid).
Aims that may be pursued by NGOs, and rules applicable to members
The associations are founded for the common realization of a non-profit purpose, but the purpose “may not be contrary to the law or proper behavior” (Sec. 1, Ibid) and shall be expressed in the Rules annexed to the charter. Members of an association have the right to demand that the association’s meetings are held, and be present during the meetings, and may exercise their power of decision at the meetings (Sec. 17, 20 and 23, Ibid); to nominate candidates and to be elected as members of the executive committee (Sec. 28 and 35, Ibid); and to acquaint themselves with the information made available to all members of the association (Sec. 11, Ibid).
Functioning of NGOs without state registration
The registration of association is not obligatory. Although functional, an unregistered association does not have legal capacity, thus does not enjoy certain rights or undertake certain obligations that registered associations are entitled to Sec. 58-59, Ibid).
Registration requirements for NGOs
To register an association, the founders shall submit in writing the declaration for registration (basic declaration) along with the charter and the rules to the National Board of Patents and Registration of Finland (NBPR) or the local authority of the domicile of the association. In addition to basic information about the association and its founders, the basic declaration, inter alia, shall contain personal identity code or the date of birth of the chairperson of the committee and of each person authorized to sign in the name of the association as well as list of limitations vis-a-vis this right. If there is no obstacle found for registration, the association shall be added to the register without delay (sec. 48 and 49, Ibid). There is no specified time limit to review the registration application of an association. The registration fee varies from 15 to 60 euros.
Authorized state bodies and NGO registry
All registered associations are entered in the Register of Associations which is maintained by the NBPR of Finland. The register offices serve as local authorities in matters concerning the Register of Associations. The Register and all related documents are available to the public (Sec. 47, Ibid).
Government bodies have the right to scrutinize the work of associations only if there is a legitimate reason for it. These bodies can, however, act only within the limits of their competence which is laid down in the Acts regulating their functions.
Denial of registration
An association may be denied registration by the NBPR on the grounds stipulated in the Associations Act (In Sec. 3 and 49(1-4), Ibid). The decisions of the NBPR can be challenged according to the provisions of the Administrative Procedure Act (434/2003).
Branch offices of NGOs
If a Finnish association or international NGO wants to open a branch office in Finland no additional authorization or registration is required. However, many international NGOs prefer to register their branches and obtain legal capacity.
Re-registration requirements for NGOs
Actual re-registration is not required. However, the law requires a registered association to provide the NBPR with relevant information if amendments are made to the documents of the association (Sec. 52 and 53, Ibid).
Authorized state bodies granting financial and other benefits to NGOs
Associations in Finland can receive funding from government. The grounds on which funding may be granted are contained in the Act on State Aid (668/2001). The consideration of and the decision on the granting of state aid is made by the authority which is involved in coordination of an area of activity in question, and therefore may vary depending on it.
Foreign funding of NGOs
NGOs are allowed to receive foreign funding. Relevant tax legislation is applicable when funds are being transferred from one country to another.
Tax exemptions for NGOs
Non-profit associations, recognized as such in accordance with the tax legislation, are exempted from paying certain categories of taxes. Furthermore, when a non-profit association is considered to be especially significant for public well-being, it can be exempted from paying all taxes (Act on the Tax Relief of Certain Non-profit Associations (680/1976).
Termination, dissolution, and liquidation procedure for NGOs
The court of the first instance of the domicile of an association may, on the basis of action brought by the Ministry of the Interior, Public Prosecutor or a member of the association, declare the association terminated: if the association acts substantially against law or good practice; acts against the purpose defined in its rules; or if the association acts in violation of the permission given by the County Government (an association whose activities include training in the use of firearms and whose sole purpose is not hunting) or in the event that, when the primary purpose of the association is to exercise influence over state affairs, but the chairperson or members of the executive committee are not residents of Finland (Sec. 4, 35 (para.3) and 43, supra, n.2).
“If the public interest does not require termination of the association, the association may be warned instead of being terminated” (Sec. 43 (para.2), Ibid).
A member of an association or other interested party may within 6 months after the entry of the note on dissolution into the register of associations bring actions against liquidators before the court of the domicile of the association (Sec. 42, Ibid).
Participation on drafting laws that affect the status of NGOs
Although there is no explicit legal provision on participation of NGOs in the drafting of legislation, the opinion of non-governmental organizations is regularly heard and taken into account on both the national and local levels in Finland. Such participation is ensured through soliciting the NGOs’ opinion by different Ministries; requesting written statements from relevant NGOs or by arranging oral hearings to which the NGOs and others are invited. NGOs can also present their view to the authorities at their own initiative.
The analysis is based on the information provided by the Permanent Mission of the Republic of Finland to the OSCE, who completed the ODIHR questionnaire.
Posted: November 2004
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