Assets of associations
Find out what constitutes the assets of an association and how they are distributed in the event of dissolution of the associationThe assets of an association consist of funds acquired by the association through the collection membership fees, voluntary contributions and donations, funds acquired by the association in the course of performing activities aimed at achieving its objectives and performing economic activities, funds obtained from the state budget and budgets of local and regional self-government units, various funds and/or foreign sources through the financing of the association’s programmes and projects, as well as funds acquired in accordance with the law, its immovable and movable property, and other property rights.
Pursuant to accounting regulations, assets are resources that a non-profit organisation controls as a result of past events and from which future benefits are expected in the performance of the organisation’s activities. Assets are classified according to their type (non-financial and financial), durability (fixed and current) and function in the performance of the owner’s activities. Assets are initially stated at purchase value (cost of acquisition) or estimated value.
Fixed assets are financial and non-financial assets with a useful life of more than one year and which retain the same appearance for more than one year. Current non-financial assets are assets intended for the performance of activities or resale within one year.
Distribution of assets in the event of dissolution of an associationThe Act stipulates that after settling creditors’ claims and covering the costs of liquidation, court and other proceedings, the remaining assets are transferred to an association, institution or foundation that has the same or similar statutory objectives, on the basis of the decision of the assembly in accordance with the association’s statute.
An association is not permitted to distribute its assets among its founders, its members, persons authorised to represent it, its employees, or persons related to them. Related persons, for the purpose of this Act, are the spouses or common-law partners, same-sex partners, blood relatives in the direct line, siblings and guardians, adoptive parents or adopted children, and other natural and legal persons who may, on other grounds or in other circumstances, reasonably be considered to have interest links with the founders, members of the association or its bodies, persons authorised representatives of the association, or its employees.
Associations that have received funds from public source are required, in the event of their dissolution, to return the remaining funds to the budget from which such funds were allocated.
If, in the event of the dissolution of an association, the procedure related to the assets of the association as determined by its statute cannot be carried out for any reason, the remaining assets will be transferred to the local self-government unit in the territory of which the registered office of the association is located.