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Manoj Kr. Bhusal
Silver Lining Creation Ry
P.O. Box 1 4, 00271
HELSINKI, FINLAND
Phone: +358468478608,
E-mail: info@silcreation. org
www.silcreation.org
Program Structure
 How to Register & Run a Non-Profit Association in
 Finland - a Presentation (30 min)
 Coffee break (15 min)

 Group Work (30 min)
 Work in groups to create a dummy organization

 Group work presentations (45 min)
Today's Non­profit world
 World is full of non-profits
 40000 in the US, 3 million in India, 0.3 million in Russia

  Philosophy behind non-profits
  Criticisms: neo-colonialism, religious propoganda, corruption

 INGOs, BINGOs, TANGOs, GONGOs, DONGOs

 Non-profits & Development aid
Registering an Association in Finland
  Registration is optional
  Registration requires for bank/financial transactions/legal capacity
  Property ownership
  Electronic Notice
  National Board of Patent and Registrations (www.prh.fi)

  Regulated by the Associations Act
  www.finlex.fi/www.phr.fi

  Chairperson should be residing in Finland
  Unless a special exemption is not granted
Focus should be on non-profit work
A non-profit association is an organisation, meant to be permanent,
founded by several persons or several organisations having legal
capacity, for the realisation of a common non-profit purpose.
Needs at least 3 founding members/age 15 or above

Should be based in only one municipality in Finland
Branches are possible though

File for a business ID (Y-tunnus) when needed
Requires for paying salaries, taxation etc.
More info on www.ytj.fi (PRH & Tax admin joint business info. system)
Auditing & Accounting
Needs one ordinary auditor and one deputy auditor
Accounting period must be 12 months
The Rules/Bylaws/Statute


 Should be drafted in Finnish or Swedish
 Name should be unique & relevant to your work/objectives
 Should fulfill the requirements of Associations Act Section 8

  Purpose and activity must be well defined

  Well-defined liabilities/responsibilities of members
  Liability to pay fees must be included

  Rights of members
  Right to participate, vote, get elected
  Any restriction must be mentioned and justified in the rules
  Executive committee
  At least 3, must be mentioned in the rules, bankrupt persons can't serve
  Chairperson & vice-chairperson residing in Finland (exemption possible)
The Rules/Bylaws/Statute


 Provision for regular meetings
 Written invitations (such as emails) required

 Use of assets in case of dissolution
 For a non-profit cause

 Authorized person to sign
 Chairperson, but could be shared with someone else as well, bank use & costs

  Renewing an association
  Not required, amendments must be notified, annual meeting held

  Fees: 100€ to register
  Electronic registration is 30% cheaper, each amendment costs money
Other Practical Issues


 Non-profits & tax exemption
 If yearly transaction is below certain amount

 Fundraising needs special permission
 From the police

  Allowed to sell products and services

  Do not need an external auditor
  If financial transaction is not too complicated

  Fees: 100€ to register
  Electronic registration is 30% cheaper, each amendment costs money
My own experience

 Easy to register, difficult to run
 Voluntarism has limits, time management, consistency,funding etc.

 A lot of paperwork
 You have to have everything prepared even when you don't need to
 submit them anywhere
 Businesses enjoy better protection
 Such as start-up grants, constant counselling

  Career prospects are higher
  Personal network expands, gain knowledge and skills

  Keeping slow and steady helps
  Things do not happen overnight, it takes time and consistent effort
Few tips




Make use of IT & Social Networking sites
Build a webpage, Facebook, Twitter, YouTube, LinkedIn help too

Work, but document them as well!
Annual reports, audit reports, newsletters, photos, videos

Join organization networks, Evaluate yourself
For instance, join KEPA & Moniheli, SWOT analysis

Study legislation
Important: Associations Act, Auditing Act, Social Welfare Act

Celebrate! Have fun!
Organize events, gatherings, have fun and recharge your batteries!
What to expect?

Change over time, evolutionary process
Things change over time, be flexible to obey your intuition




    2009                                         2012

Desire to do everything
Be realistic, have a focus, brand yourself

Financial hardships/hidden costs
Maintaining website(s), even a post box costs quite much

Failures
They teach a lot, accept them and learn from them and move on

Opposition, criticism, manipulation
Competition, unrealistic expectations (from south), criticism of work
methods
Group Work

  Form a group
  4-6 persons in a group

 Discuss and come up with an idea of an association
 Justify the need, why do you want a new association? Name the
 organization and design a logo.
  Mention at least 5 objectives
  i.e. what does the organization aim to achieve
  Specify your beneficiaries, Map your partners/stakeholders
  Who is the service for? Who will be your possible partners?

  Specify at least 3 working methods/tools
  For instance, online campaign, a publication, services, advocacy, lobbying
  Identify a few financial sources
  For instance, membership fee, product sale, donations, service sale
 Come back and present!

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How to run an NGO in Finland

  • 1. Manoj Kr. Bhusal Silver Lining Creation Ry P.O. Box 1 4, 00271 HELSINKI, FINLAND Phone: +358468478608, E-mail: info@silcreation. org www.silcreation.org
  • 2. Program Structure How to Register & Run a Non-Profit Association in Finland - a Presentation (30 min) Coffee break (15 min) Group Work (30 min) Work in groups to create a dummy organization Group work presentations (45 min)
  • 3. Today's Non­profit world World is full of non-profits 40000 in the US, 3 million in India, 0.3 million in Russia Philosophy behind non-profits Criticisms: neo-colonialism, religious propoganda, corruption INGOs, BINGOs, TANGOs, GONGOs, DONGOs Non-profits & Development aid
  • 4. Registering an Association in Finland Registration is optional Registration requires for bank/financial transactions/legal capacity Property ownership Electronic Notice National Board of Patent and Registrations (www.prh.fi) Regulated by the Associations Act www.finlex.fi/www.phr.fi Chairperson should be residing in Finland Unless a special exemption is not granted
  • 5. Focus should be on non-profit work A non-profit association is an organisation, meant to be permanent, founded by several persons or several organisations having legal capacity, for the realisation of a common non-profit purpose. Needs at least 3 founding members/age 15 or above Should be based in only one municipality in Finland Branches are possible though File for a business ID (Y-tunnus) when needed Requires for paying salaries, taxation etc. More info on www.ytj.fi (PRH & Tax admin joint business info. system) Auditing & Accounting Needs one ordinary auditor and one deputy auditor Accounting period must be 12 months
  • 6. The Rules/Bylaws/Statute Should be drafted in Finnish or Swedish Name should be unique & relevant to your work/objectives Should fulfill the requirements of Associations Act Section 8 Purpose and activity must be well defined Well-defined liabilities/responsibilities of members Liability to pay fees must be included Rights of members Right to participate, vote, get elected Any restriction must be mentioned and justified in the rules Executive committee At least 3, must be mentioned in the rules, bankrupt persons can't serve Chairperson & vice-chairperson residing in Finland (exemption possible)
  • 7. The Rules/Bylaws/Statute Provision for regular meetings Written invitations (such as emails) required Use of assets in case of dissolution For a non-profit cause Authorized person to sign Chairperson, but could be shared with someone else as well, bank use & costs Renewing an association Not required, amendments must be notified, annual meeting held Fees: 100€ to register Electronic registration is 30% cheaper, each amendment costs money
  • 8. Other Practical Issues Non-profits & tax exemption If yearly transaction is below certain amount Fundraising needs special permission From the police Allowed to sell products and services Do not need an external auditor If financial transaction is not too complicated Fees: 100€ to register Electronic registration is 30% cheaper, each amendment costs money
  • 9. My own experience Easy to register, difficult to run Voluntarism has limits, time management, consistency,funding etc. A lot of paperwork You have to have everything prepared even when you don't need to submit them anywhere Businesses enjoy better protection Such as start-up grants, constant counselling Career prospects are higher Personal network expands, gain knowledge and skills Keeping slow and steady helps Things do not happen overnight, it takes time and consistent effort
  • 10. Few tips Make use of IT & Social Networking sites Build a webpage, Facebook, Twitter, YouTube, LinkedIn help too Work, but document them as well! Annual reports, audit reports, newsletters, photos, videos Join organization networks, Evaluate yourself For instance, join KEPA & Moniheli, SWOT analysis Study legislation Important: Associations Act, Auditing Act, Social Welfare Act Celebrate! Have fun! Organize events, gatherings, have fun and recharge your batteries!
  • 11. What to expect? Change over time, evolutionary process Things change over time, be flexible to obey your intuition 2009 2012 Desire to do everything Be realistic, have a focus, brand yourself Financial hardships/hidden costs Maintaining website(s), even a post box costs quite much Failures They teach a lot, accept them and learn from them and move on Opposition, criticism, manipulation Competition, unrealistic expectations (from south), criticism of work methods
  • 12. Group Work Form a group 4-6 persons in a group Discuss and come up with an idea of an association Justify the need, why do you want a new association? Name the organization and design a logo. Mention at least 5 objectives i.e. what does the organization aim to achieve Specify your beneficiaries, Map your partners/stakeholders Who is the service for? Who will be your possible partners? Specify at least 3 working methods/tools For instance, online campaign, a publication, services, advocacy, lobbying Identify a few financial sources For instance, membership fee, product sale, donations, service sale Come back and present!