For organizations
Knowledge Center: Governance & Organization
Knowledge Center: Governance & Organization
How do you set up a volunteer organization?
A good idea is a start, but establishing an organization requires more than just enthusiasm. You choose a legal structure, formalize agreements, and ensure you are well-organized on paper as well. This article guides you through the most important steps.
A good idea is a start, but establishing an organization requires more than just enthusiasm. You choose a legal structure, formalize agreements, and ensure you are well-organized on paper as well. This article guides you through the most important steps.
Choose a legal form
Most volunteer organizations opt for an association or a foundation . What is the difference?
An association has members who have voting rights and therefore influence on policy. This makes an association democratic in nature — think of sports clubs and neighborhood associations. A foundation has no members, only a board. This provides more clout, but less broad support from the constituency.
Both legal forms can be established with or without a notary. Without a notary, you are on your way faster and cheaper, but you do not have legal personality — which means that directors are personally liable. For most organizations, notarial incorporation is recommended as soon as you handle money or enter into agreements.
Draft articles of association
Articles of association are the rules of the game for your organization. They define the purpose, the composition of the board, how decisions are made, and what happens if the organization ceases to exist.
You can work with sample articles of association (see the downloads on this page) and adapt them to your own situation. Afterwards, have them reviewed by a lawyer or notary — especially if you intend to apply for a subsidy or enter into contracts.
Arrange a Chamber of Commerce registration
As soon as you are a legal entity, you register with the Chamber of Commerce. This is mandatory and requires little effort. You will receive a Chamber of Commerce number, which you need for a bank account, subsidy applications, and invoices.
Please note: non-profit volunteer organizations must also register.
Open a bank account
A business bank account in the name of the organization is not a luxury — it is a necessity. This way, you keep private and organizational finances separate, which is important for your accounting as well as for the trust of grant providers and donors.
Most banks offer special accounts for associations and foundations, often at low costs or for free.
Ensure there is a board
A board consists of at least a chairperson, treasurer, and secretary. Clearly define the division of tasks—not only in the articles of association, but also in board regulations. This prevents ambiguity and conflicts later on.
Also agree on how often you meet, how you make decisions, and what happens if someone wants to leave.
Next step
Your organization is established. Now it is time to develop policies: how do you work with volunteers, how do you communicate externally, and how do you keep your finances in order? Check out the other articles within this theme for further in-depth information.