Turkey - NGO Law Monitor - Research Center - ICNL

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Turkey - NGO Law Monitor - Research Center - ICNL http://www.icnl.org/research/monitor/turkey.html[11/2/2012 12:45:08 PM] Law 2911: Law on Demonstrations Law 4962: Tax Exemption for Foundations Income Tax Law Corporate Tax Law Property Tax law VAT Law Pending NGO Legislative / Regulatory Initiatives There are no pending legislative or regulatory initiatives. Legal Analysis Organizational Forms Back to Top There are two legal forms of CSOs in Turkey: associations and foundations. Article 33 of the Constitution grants the right to form these entities. These organizations must be not-for-profit establishments. Article 56 of the Civil Code states: “An association is defined as a society formed by unity of at least seven real persons or legal entities for realization of a common object other than sharing of profit by collecting information and performing studies for such purpose.” Article 101 of the Civil Code defines foundations as “charity groups in the status of a legal entity formed by real persons or legal entities dedicating their private property and rights for public use.” Associations are registered with the Department of Associations under the Ministry of Interior. Although many associations believe that the registration process is being handled according to the law, they still claim that the process is slow and cumbersome at times. All associations have to form a general assembly, an executive board consisting of five individuals, and an auditing committee of three persons. Foundations are established and registered through a court decree. The court may ask the General Directorate of Foundations to review each application. Foundations only need form an administrative body. Additionally, foundations must have a minimum capital of 50.000 Turkish Liras (app. 35.000 USD). Public Benefit Status The law in Turkey provides for public benefit status for CSOs, but only a very limited number of organizations have been granted public benefit status. To illustrate: Out of more than 84,000 registered associations, only about 420 are recognized as public benefit organizations. Article 27 of the Associations Law grants authority to the Council of Ministers to determine which CSOs can be granted this status. Article 20 of Law 4962 provides the legal basis for tax exemptions of those foundations that are granted public benefit status. Associations and foundations seeking public benefit status must secure the approval of the Council of Ministers. Upon receiving an application for public benefit status, the Council of Ministers must determine whether or not the activities of the CSO actually benefit the general public and are not intended to serve any one particular group. Since the law does not provide a clear definition of what activities constitute “public benefit”, the decision-making process is subject to discretion of the Council. Unsurprisingly, decisions are sometimes perceived as being highly political. However, there are specific minimum requirements in the law which CSOs must meet; for instance, foundations must spend more than two-thirds and associations more than half of their revenue toward their mission. Barriers to Entry All Turkish citizens can establish or be a member of associations. Some restrictions are applicable, however, to military and security personnel, judges and attorneys working under the Ministry of Justice and some other government officials working within designated ministries. In addition, only foreigners with a residence permit are permitted to found or join an association in Turkey. In general, if the regulations are satisfied, NGOs will not be refused registration. Article 56 states that “No association may be formed for an object contrary to the laws and ethics.” Article 101 of the Civil Code states that “Formation of a foundation contrary to the characteristics of the Republic defined by the Constitution, Constitutional rules, laws, ethics, national integrity and national interest, or with the aim of supporting a distinctive race or community, is restricted.” Moreover, the required content of the association by-laws is overly detailed.
Turkey - NGO Law Monitor - Research Center - ICNL http://www.icnl.org/research/monitor/turkey.html[11/2/2012 12:45:08 PM] The Foundations Law sets a minimum capital requirement of 50.000 Turkish Liras (app. 35.000 USD) in order to establish a foundation. Although there is no minimum requirement for founders or members for foundations, at least seven founders are required to form an association. Additionally, associations are required to form an executive board made up of at least five people, while foundations are only “encouraged” to do so. Foreigners can be members of boards as long as they reside in Turkey. However, the executive board must still have a Turkish majority. According to implementing regulations for the Associations Law, associations seeking office space within residential buildings must secure the permission of all residents living in the building – a requirement that is burdensome at best, and in some cases practically impossible. The failure to secure office space may prove a barrier to the process of registration for associations. In order to form a federation or a confederation, the Associations Law requires a minimum of 5 and 3 organizations, respectively, to come together. Problematically, however, the law requires that member organizations must have the “same purpose”, which is unnecessarily limiting. Barriers to Operational Activity In general, Turkish CSOs are free to operate and are free from government harassment such as frequent inspections, requests for documentation, etc. Government officials are prohibited from attending meetings and CSOs can hold internal meetings free from external pressure. CSOs are not required to inform the government about their programs and projects. There are, however, some standard forms that CSOs must complete each year which can be cumbersome and time consuming for some organizations. Specifically, associations and foundations must complete annual statements which are submitted either to the Interior Ministry, Department of Associations or to the General Directorate of Foundations. Additionally, CSOs must complete standard forms before receiving and/or utilizing foreign funding and opening new branches or offices. In addition, CSOs frequently are fined for “improper” record keeping. More disturbingly, Article 33 of the Associations Law holds the chair of the executive board of the association responsible – i.e., personally liable – for any sanctions and/or fines assessed against the association. Foreign organizations are subjected to serious bureaucratic rules when opening a branch office in Turkey. If a CSO becomes involved in an illegal activity, the organization can be terminated by a court order. Organizations that violate the law can be terminated only with a court order. Barriers to Speech / Advocacy CSOs are prohibited from directly engaging in political activities, although the term “political” is nowhere defined in the law. However, many CSOs work to influence public policy in their related field, and are therefore involved in public policy debate. Nonetheless, the government-CSO relationship is weak. CSOs struggle to have substantial influence in the formation of public policy. The most recent EU Progress Report on Turkey highlights the reluctance of the Government to work with CSOs on the reform agenda. It is difficult for NGOs to gain access to parliamentary committees. Additionally, the Department of Associations and the General Directorate of Foundations, the two government organs in charge of relations with CSOs, do not have strong ties with the sector and there are no rules setting the standard for such relationships. Furthermore, some human rights organizations complain about the law-suits brought against them, which they interpret as harassment. A survey under the Civil Society Index Project (CSI) revealed that 63% of respondents (stakeholders within civil society) perceived that the state exerts some limitations on the advocacy activities of CSOs. Although Turkey has taken serious steps toward creating a more enabling environment for CSOs, there remains a culture of state control and domination over civil society. Barriers to International Contact There are no restrictions for Turkish CSOs to operate in other countries. But when receiving a grant from an international organization, CSOs must notify the appropriate government office. International CSOs operating in Turkey must receive permission from the Government prior to starting their activity. Barriers to Resources Foreign Funding There are no limitations on foreign funding, but there is a notification requirement relating to foreign funding. Foundations must notify public authorities within one month after receiving the funding, while associations must notify the Government before using the funding. Domestic Funding
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