Friday, January 20, 2023
The difference between an NGO and a civil association in Argentina continues to generate some controversy regarding its meaning and implications within the context of humanitarian work today.
Within our country's legal framework, nonprofit entities can register legally as a "civil association" (asociación civil) or "foundation" (fundación) according to a series of specific characteristics.
When it comes to knowing the difference between an NGO and a civil association, these two types of legal entities have particular obligations and rights, based on the legal guidelines set out in the new Civil and Commercial Code of the Nation.
So that you know what the difference is between an NGO and a civil association, we have written this article. As a result, you will know everything you need about the work of a nonprofit entity and the destination of each of your monthly donations.
If you want to understand even better the difference between an NGO and a civil association, it is important to mention that in Argentine territory, nonprofit entities can legally acquire the legal status of a civil association.
In fact, according to art. 148 of the Civil and Commercial Code of the Nation (Law No. 26,994), this is considered a private legal entity. Likewise, according to art. 168, any institution of this kind must have the common good as its objective. This applies as long as it does not violate what is established in the Constitution of the Argentine Nation.
Put simply, this kind of institution cannot have economic aims, either for its members or for third parties.
To illustrate this analysis of the difference between an NGO and a civil association, we will refer to Pata Pila ("bare feet" in Guaraní), whose legal status falls within a civil association.
Our founder, Diego Bustamante, states in a La Nación article that their tasks are centered on human accompaniment and humanitarian assistance for the main vulnerable sectors, especially the population severely affected by child malnutrition.
Since the new Civil and Commercial Code of the Nation came into force in 2015, this legal entity must be registered with the General Directorate of Legal Entities of the corresponding jurisdiction and requires the involvement of a notary public.
To know the difference between an NGO and a civil association, it should be mentioned that for a nonprofit entity to adopt this legal status, the following actions must be carried out:
In this guide on the difference between an NGO and a civil association, it is essential to point out that if a nonprofit entity is formed using the civil association as its legal form, it will be granted some tax advantages to contribute to its social work at the state level.
Below, we detail which taxes are involved when forming a nonprofit entity under this type of legal entity:
All civil associations are exempt from payment of the gross income tax, according to what is established in the following regulations:
The income tax exemption in Argentina applies to civil associations, foundations, cooperatives and public-benefit institutions. According to Law No. 20,628, this tax is calculated on the earnings obtained over the calendar year. This is done by applying a progressive rate to the net income obtained during a previously defined fiscal cycle.
In summary, understanding the difference between an NGO and a civil association lets us recognize the different institutional forms of nonprofit entities that exist in Argentina.
If you want to be part of La Comunidad of Pata Pila, you can make your monthly donation. In this way, you will be able to help different communities going through moments of social hardship.
Now that you know the difference between an NGO and a civil association, we invite you to learn about our finances and be part of our humanitarian mission.
As a result, you will be able to contribute to personal development and, at the same time, change the future of groups of families in vulnerable contexts, in the short, medium and long term.
Being a volunteer at an NGO is a challenge for anyone whose mission is to support vulnerable sectors of society. This work involves not only dedicating time and energy, but also commitment to the tasks and goals of a given nonprofit.
Supporting an NGO financially is one of the main actions when it comes to effectively contributing to any nonprofit institution.
There are currently several types of NGOs in Argentina. Although all of these institutions aim at community well-being, they have certain qualities that allow them to be categorized in different ways.