With this guideline for founding an association we want to help you on your way to becoming a student initiative as a registered association (e.V.). The work you are already doing can be given completely new opportunities and many advantages by founding an association. In order to make this process as quick, easy and professional as possible, we have compiled all the necessary information about the legal form of a registered association and the tasks before, during and after its founding in detail and in a checklist at the end.

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Is an e.V. the right choice for me?

Founding an association has various advantages, but also obligations. However, if you want to professionalise your commitment in the long term, it is highly recommended to found a registered association. An e.V. (”eingetragener Verein”) is an association of people who jointly dedicate themselves to a non-profit purpose.

Advantages

1. A registered association is a legal entity, acts independently in legal transactions and limits the liability of its members for their work in the association
2. By founding a registered association, an initiative can enjoy various tax benefits and is allowed to issue donation certificates
3. Through its own association accounts, finances become transparent and access rights are clearly regulated
4. It is necessary to be registered as an official association in order to receive various financial and other support from the public sector, foundations and others

Disadvantages

1. Registered associations are only allowed to pursue economic goals in a very limited capacity
2. Associations must keep accounting records and are held accountable to the tax office

Requirements

1. In order to found an association, you only need seven legally competent members

What are the alternatives to an e.V.?

Unregistered association (”nicht eingetragener Verein”)

1. Requires at least 3 members for formation
2. It is NOT a legal entity, the members can personally be held liable for their actions within the organization
3. In the event of a legal dispute it is treated like a registered association and can sue and be sued as an organization
4. Formation does not have to be confirmed by a notary, which makes it faster and less bureaucratic
5. An unregistered association is not recognised by many institutions, e.g. banks seldom grant an account to unregistered associations

Economic association (”wirtschaftlicher Verein”)

An economic association has the aim of providing its members with financial benefits. It is not an alternative for most projects of association founders.

Further information: deutsches-ehrenamt.de

Foundation Guide

Association statutes (”Vereinssatzung”)

The association statutes are the constitution of an association and regulate many essential aspects. Both the goals and organisational regulations are bindingly defined in them. The association's statutes are responsible for regulating collaboration within the association and are also relevant, for example, when it comes to recognising non-profit status.

It is advisable to thoroughly research while writing the association's statutes and to pay attention to the exact wording. Every association is different and requires different paragraphs. Nevertheless, it is advisable to look at the statutes of other associations.

Any subsequent changes to the statutes and changes to the board must be submitted to the register of associations at the local district court.

Before the founding meeting, it is recommended to have the statutes checked by the Aachen tax office, as they will decide on the non-profit status of the association later on. An examination by a lawyer is also recommended.

Minimum requirements for the articles of association (§57 BGB)

• Purpose, name and place of business of the association
• The name must be clearly distinguishable from existing associations from the same locality
• The purpose may not violate criminal law, the constitutional order or the idea of international relations
• Economic business operations are only possible to a very limited extent
  • It is possible to sell tickets for a concert as a music association but selling phones as the same association would exceed the possibilities of that registered association

Desired content of the statutes of the association (§58 BGB)

• Regulations on the entry and departure of members
• Rules on the raising of membership fees
• Regulations on the composition, formation, election and discharge of the board of directors
• Conditions under which the general meeting (”Mitgliederversammlung”) is to be convened, on the form of appeal and on the certification of resolutions
• The intention to have the association entered in the register of associations

Optional content in the statutes of the association

• Regulations for the dissolution of the association and the use of the association's assets
  • You could arrange to donate the association's assets to proRTWH in case of dissolution, so that they will continue to be available to student associations.
• Representation regulations of the board
• Further rights and duties of the members
• Describe further organs (advisory boards, treasurer, etc.)
• Model statutes - State of NRW
• For a possible accreditation as a student association of the RWTH, certain general conditions must also be met in the statutes