Nonprofit Organizations Law and Policy Third Edition - Libraries ...

SEC. IV FOREIGN NONPROFIT ORGANIZATIONS 53
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individuals from forming groups to defend their "alleged mutual interests."
In furtherance of this prohibition, Articles 291-294 of the Napoleonic
Code created and punished the crime of association. Al though Article 8
of the Constitution of 1848 recognized the right to associate, it did not
repeal the Articles of the Napoleonic Code. This situation remained until
the enactment of the law of July 1, 1901 (the "Association Law") which
created the right to form groups or associations.
The Association Law created a right to create associations, but it did
not create a legal entity specific to associations. Article 1 of the Association
Law defines an association as an agreement by which two or more
persons mutually and permanently make available to themselves their
knowledge and activities for a purpose other than making profit.
To be construed as an association under French law, the group of
persons must be independent and the association must be created permanently
and indefinitely. Groups that are created for the sole purpose of
promoting one event, or to lobby for a particular mission, are not considered
to be an association under French law and case law.
An association, which can take the form of a mere agreement between
two or more persons, does not have to be publicly registered with the
authorities. However, if an association is declared and registered with the
authorities, it will benefit from the attributes of a legal entity. To register
an association, the association must have by-laws drafted in accordance
with the Association Law and certain written formalities must be carried
out with the local police and administrative authorities (the "Prefecture")
at the place of the association's registered office.
There is a distinction under French law between an association and a
foundation: the purpose of an association is to permit a group of persons
to pursue a common objective for non profit reasons, whereas pursuant to
the Law nE 87-571 of July 23, 1987, the purpose of a foundation is to
receive assets irrevocably for the furtherance of the goal of the foundation.
A foundation does not have members.
The legal concept of a trust does not exist under French law. Consequently,
there is no such entity as a charitable trust in France.
There are several different types of nonprofit associations in France,
such as public interest associations and associations which are subject to
administrative approval.
A public interest association is one which meets two criteria: first it
must have a general public interest mission as its goal, such as sports
federations, a musical orchestra, tourism, education and culture, and
second, it must allow for administrative oversight to assure that the
association is furthering its purpose. There is no fixed manner in which
this latter criteria must be met, but the by-laws must provide for some
oversight mechanism, for example, the appointment of governmental
representatives to the board of directors.