An association is a non-profit organization formed for a shared goal. Discover the definition, legal basis, and steps to establish an association in this article.
Definition of Association
An association is a type of organization commonly found in everyday life. Whether for social, religious, or hobby-related activities, an association provides a platform for individuals with similar interests to unite and collaborate toward a common goal. But what exactly is an association? What is its legal basis and main characteristics? Let’s explore these aspects in depth.
An association is an organization formed by a group of people to achieve a common goal. These goals can vary, ranging from social, cultural, religious, to sports activities. An association allows people with similar interests or visions to collaborate, share ideas, and work together to achieve something greater than individual actions.
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Legal Basis
The legal basis of associations in Indonesia is governed by the Civil Code (KUHPerdata), specifically Articles 1653 to 1665. Associations must also be registered in accordance with regulations at the Ministry of Law and Human Rights (Kemenkumham). By registering, the association gains legal recognition from the state. This process is crucial to obtain legal recognition and protection in case of disputes or issues that may arise in the future.
Characteristics
To understand better, here are some key characteristics of an association:
- Formally Established Organization: Associations usually have a clear organizational structure, with designated administrators and members.
- Common Goal: All members share the same goal, which forms the basis of the association’s activities and operations.
- Voluntary Membership: Anyone can join as long as they meet certain requirements set by the association.
- Non-Profit Based: Typically, associations are not established to seek financial profit.
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Structure
An association generally consists of several basic organizational structures:
- Chairperson: The leader responsible for overseeing the organization’s operations.
- Secretary: Responsible for managing administration and ensuring the association’s activities run smoothly.
- Treasurer: Manages finances and ensures transparency in the use of association funds.
- Members: Individuals who join the association to support its activities and goals.
Advantages
There are several advantages of forming and being part of an association, including:
- Strength in Numbers: By working together, an association can achieve greater results than individuals working alone.
- Moral and Social Support: Members can support each other, whether in social, professional, or even personal activities.
- Clear Legal Status: Once officially registered, the association gains legal recognition, facilitating activities such as fundraising or partnering with others.
Disadvantages
However, like any other entity, associations also have some disadvantages, including:
- Complex Administrative Process: Establishing a legal association requires several bureaucratic steps that may take time.
- Diverse Interests: Differences in opinion among members can sometimes affect the continuity of the organization.
- Limited Funding: Since they are non-profit, associations often face challenges with funding.
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Is an Association a Legal Entity?
An association can become a legal entity if it is officially registered and meets certain requirements set by the government. A legal entity association typically has the capacity to enter into agreements, manage assets, and be legally accountable.
What is the Difference Between an Association and a Foundation?
The main difference between an association and a foundation lies in their purpose and organizational structure:
- Association: Focuses on the common goal of its members, who have voting rights in decision-making.
- Foundation: Established for social, religious, or humanitarian purposes without members. A foundation is led by administrators who do not have voting rights like in an association.
How to Establish an Association
Establishing an association involves several important steps, including:
- Gather Members: Determine who will be the founders and initial members of the association.
- Draft the Articles of Association (AD) and Bylaws (ART): These documents contain the rules that will govern the association.
- Register with Kemenkumham: This process involves submitting documents to government agencies to obtain official legal status for the association.
Conclusion
Associations play an important role in social and professional life. With a clear legal basis, they provide a platform for individuals to collaborate and achieve common goals. Although they have some disadvantages, the advantages of associations make them a relevant choice for many people.
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