¶ … Non-Profit Organizations in United States of America and France COMPARISON OF NON-PROFIT ORGANIZATIONS IN UNITED STATES OF AMERICA AND FRANCE

Non-Profit Organizations in France and the United States of America

Creation

Association Loi 1901 is the name given to a not for profit making organization that comprises of two or more people. This name has been derived from the convention that was entered in the French Law on the 1st of July in the year 1901. A not for profit in France can operate without declaration as well. If the organization is not declared then it does not exist as a legal entity and comes under the collective membership of its owners. (Staff Members of the Cecaudit International Inc., 2014)

Declaration

The organization, however, is required to get itself declared if it needs to create a bank account or go for fundraising. In addition to that, the organization is also required to go for declaration if its members aim at buying, selling or taking any other legal action on its behalf. (Staff Members of the Cecaudit International Inc., 2014) The process of declaration requires the following:

Submission of declaration with Prefecture or Sous-Prefecture.

Declaration of the creation of the association in the official journal. The official journal, here, can be defined as a daily paper that is edited by the French government. It consists of the official declarations, legal information and information in association with the creation of new organizations. (Staff Members of the Cecaudit International Inc., 2014)

The declaration of the organization is free but it must consist of the following information:

The exact name of the organization that is to be created along with the abbreviation, if it is to be used.

The objective or main aim that the organization would address.

The address of the main building or office of the organization. Under this head, physical address of the organization shall be provided rather than the post box.

Information in relation to the members who would be in charge of the administration and management of the organization. This information would include, full names, addresses, dates of birth and places of birth of these members.

A copy of the statute of the organization. This statute must be dated and certified by at least two people.

The submission of a compte rendu, which must be signed by the incharge of the administration of the organization.

A list of all the members of the association.

Addresses of all the members of the association.

Other information that might be required for the purpose of declaration include the website of the association and email addresses of the important members of the organization. (Staff Members of the Cecaudit International Inc., 2014)

Once the organization submits all the above mentioned information with the Prefecture or Sous-Prefecture, it will be provided with a receipt, also referred to as the recepisse, of declaration from the administration within a period of 5 days after the submission of all the necessary documents. (Staff Members of the Cecaudit International Inc., 2014)

Official Journal

The organization is then required to submit an application form in the official journal in relation to the creation of the organization. This can be done at the same at which the declaration is made. The publication of the creation of the organization must appear in the official journal, also referred to as Journal Officiel, within a period of one month after the submission of declaration with the Prefecture or Sous-Prefecture. A fee is charged for the publication of declaration in the official journal. (Staff Members of the Cecaudit International Inc., 2014)

In the United States of America, not for profit organization is a broad term that encompasses a number of organizations including charity organizations, non-profit organizations, non-governmental organizations, civil society organizations, and private voluntary organizations. The not for profit organizations are regulated by the federal, local and state laws in the United States of America. (Non-profit Law - Guide to Charitable Organization Law, 2014)

The basic motive of a not for profit organization is to conduct business that would benefit the general business, irrespective of the interests and benefits of the shareholders. The organizations do not hold a motive of maximizing profit as well. These corporations are created in accordance with the state law. (Non-profit Law - Guide to Charitable Organization Law, 2014)

The creation and management of a not for profit organization in the United States of America follows the procedure that is listed below. This procedure is used by all the States and regions of the United States of America.

The name of the organization cannot be registered unless and until the name can be distinguished from all the other names that are present on the records. In order to determine that whether the selected name is available or not the organization is required to visit the website of the office of Secretary of State. Once the organization has determined that the name is available it can register it with the office of the Secretary of State. (Members of the Secretary of State, Government of State of Ohio, 2014)
The next step is the filing of articles of incorporation with the Secretary of State. The articles must include the following information:

The name of the corporation that is to be created.

The place where the main office of the organization would be located.

The major objectives and purposes for which the organization is being created.

The incorporator, who can be defined as the person who is creating the corporation, shall sign all the articles.

The names of the people who would serve as initial directors and the people who would serve as the initial members of the organization.

The statement of the purpose of the organization. This statement must be created very carefully as the organization. This is because the organization can legally operate for the purposes that are mentioned in the statement and no other purposes. (Members of the Secretary of State, Government of State of Ohio, 2014)

At the same time the organization is also required to appoint a statutory agent. This is because a not for profit organization is regarded as a non-fictious individual by the law. This statutory agent is responsible for managing, receiving and submitting various legal notices and documents for the organization. (Members of the Secretary of State, Government of State of Ohio, 2014)

The organization is also required to file for the exemption of federal taxes with the IRS. In addition to that, filings for the exemption from property tax shall be made with the government of the city in which the organization operates. Once the organization gets the tax exemption status from IRS, it then applies to get an exemption from taxes with the state. (Members of the Secretary of State, Government of State of Ohio, 2014)

The organization is also required to get the solicitation license from the city offices if it aims at soliciting funds. In addition to that, it is also necessary for the organization to get the federal employer number from the secretary of state or secretary of commerce, once it starts hiring people. (McNamara, 2014; Members of the Secretary of State, Government of State of Ohio, 2014)

Management

There are no set rules in relation to the structure of management in a not for profit organization, in both France and the United States of America. The concerned authorities can use ant management structure that best suits the objectives and purpose of the organization. It is, however, necessary for the organization to invite all the members of the organization in the annual general meeting that is held by the administration of the organization. (Staff Members of the Cecaudit International Inc., 2014)

If any changes are made in the organization then it is necessary for the concerned authorities to make a declaration of these changes at the Prefecture within a time period of three months. These changes are required to be noted in a register that can be presented to the legal and administrative authorities and officials, by the organization, if and when required. These changes can also be published in Journal Officiel. This, however, is not a necessary requirement. (Staff Members of the Cecaudit International Inc., 2014)

In France a not for profit organization can go through three major kinds of dissolution. All these types are listed below:

Voluntary dissolution, also referred to as dissolution volontaire.

Legal dissolution, also referred to as dissolution judiciaire.

Administrative dissolution, also referred to as dissolution administrative. (Staff Members of the Cecaudit International Inc., 2014)

In the United States of America, after every five years the organization is required to file a statement of continuous existence with the office of secretary of state. The office of secretary of state generally notifies the statutory agent of the organization 4 months before the deadline that the statement of continuous existence is required. (Members of the Secretary of State, Government of State of Ohio, 2014)

In addition to that, if the organization makes any changes in the statutory agent then it must update the office of the secretary of state. Any changes in the contact number and address of the existing statutory agent shall also be updated with the…