What is an Association?
An association is a non-profit entity composed of at least two people that come together with a common purpose. Its main objective is to carry out activities that contribute to social, cultural, sports, educational well-being, among others. The people who are part of the association do not receive any type of economic benefit, but all the money obtained is used to fulfill the purposes that have been established.
What is a Foundation?
A foundation is also a non-profit entity, but in this case, it is created through a donation or heritage intended to fulfill a specific purpose. Unlike an association, a foundation does not have members, but is managed by a board of trustees or governing board. The main objective of a foundation is to carry out activities for the benefit of society through the implementation of social, scientific, educational and cultural projects.
Differences between Association and Foundation
- An association needs at least two people to be created, while a foundation is created from a donation or heritage.
- The management of an association is carried out by the partners, while in a foundation it is a board of trustees or governing board that administers it.
- An association is financed through the contributions of its members and the activities it carries out, while a foundation is financed through the donation or assets with which it was created.
- An association can carry out any type of activity that has been established in its statutes, while a foundation is limited to the specific purposes for which it was created.
Conclusion
In summary, although both associations and foundations are non-profit entities and have the social well-being of society as their objective, there are significant differences between the two. It is important to know these differences before creating a non-profit organization to be able to choose the option that best suits our needs.
If you are interested in creating an association or foundation, it is advisable to seek professional advice to carry out all the procedures and comply with all legal obligations.
Remember: An association is created with at least two people who have a common purpose, while a foundation is created from a donation or assets destined for a specific purpose.
I am Sebastián Vidal, a computer engineer passionate about technology and DIY. Furthermore, I am the creator of tecnobits.com, where I share tutorials to make technology more accessible and understandable for everyone.