What is the definition of a non-profit organisation? How are non-profit organisations divided and how are they funded? What do I need to do to set up a non-profit organisation? Where can I find information about the largest non-profit organisations in the Czech Republic? There’s no easier way to find out than by reading this article.
So, what are non-profit organisations?
Firstly, it is important to note that any non-profit organisation is considered a legal entity. This legal entity does not generate profit to distribute to its owners. If a profit is generated, it must be reinvested in the organisation to fulfil its mission. Non-profits are usually established to bring together people with similar interests, to help those in need, or for educational purposes, as higher education institutions are also non-profit organisations.
How are non-profits divided?
The most basic division distinguishes between non-state non-profit organisations and state-funded organisations or public law corporations (municipalities, regions).
Further divisions
- Public law organisations – for example, funded organisations, established by the state administration or local government.
- Private organisations – these can be foundations, associations, or institutions within the church, established by a private individual or legal entity.
- Public law institutions – an example is a public university.
For your information, here is an overview of the largest associations in the Czech Republic.
Source: takovijsme.cz/co-jsou-neziskovky/
Setting up a non-profit organisation
Are you setting up a non-profit and don’t know which form to choose and how to proceed? The most common forms include:
- Registered association
- Foundation
- O.p.s. (publicly beneficial company)
- Funded organisation
- Foundation/foundational fund
- And others (e.g. a church legal entity)
As inspiration for how to draft the articles of association, you can use the public register, which contains all legal entities that exist in the Czech Republic. It is certainly not ideal to copy anything, and the specific form of the non-profit and the wording of the founding documents should be chosen in the context of the specific intention.
How are non-profits funded?
Firstly, it depends on whether the non-profit is state-funded or not. If we are talking about a state-funded form, the main source of income is money from public budgets. However, it can also receive similar income as non-state non-profits, including:
- Sale of products and services, income from assets
- State subsidies, grants
- Contributions from municipalities and regions
- Donations from citizens and companies, or membership fees from foundations
- Free work provided by volunteers
So, what are the largest non-profit organisations in the Czech Republic?
You can find a football pitch in almost every village. Football is clearly the most popular sport in the Czech Republic, with the largest base and number of members. Even in relatively small towns, football is taken very seriously and it is often the only organisation in the municipality that also provides cultural activities.
- Football Association of the Czech Republic
- CESNET, an interest association of legal entities
- Czech Ice Hockey Association
- People in Need, o.p.s.
- Czech Athletic Association
- Mountain Rescue Service of the Czech Republic, o.p.s.
- Czech Tennis Association
- Association of Towns and Municipalities of the Czech Republic
- Czech Olympic Committee
- Czech Volleyball Association
- Czech Beekeepers’ Association
- Czech Basketball Federation
- Czech Floorball
- Czech Ski Association
- Czech Canoeing Association
You might find the article registration in the commercial register or are government bonds worth it useful.
