Global Nonprofits Guide

Strengthening civil society in a jurisdiction can have positive impacts; however, we are aware of the risks, such as increased competition for funding, the risks of duplicating efforts in the same environment and on similar topics, the lack of adaptation of activities to the different context, lack of knowledge of specific cultural differences or dynamics (resulting in ineffective activities), and the lack of coordination among multiple organisations.

For these reasons, before setting up a new entity in a country, we always recommend to thoroughly research the jurisdiction and territory, looking for existing nonprofits with a similar mission/activities/targeted audience as yours to cooperate with, addressing the special concerns related to the territory (different cultural context and or special safeguarding needed in that particular environment) and consequent eventual need for adaptation of your activities, and strategise on the need for coordination with existing nonprofits.

While in some countries registration is obligatory in order to be able to operate as a nonprofit, other countries may not require nonprofits to register.

In countries where registration is a question of choice, you may want to consider potential benefits a voluntary registration can bring. These are, for example, legal capacity to enter into agreements, limited liability of the persons involved in the nonprofits that is separated from the liability of the profit companies, access to certain fiscal benefits that are reserved for registered nonprofits only etc. For unincorporated nonprofits, the main benefit may be the limited bureaucracy for registration.

To review countries where a nonprofit can remain unregistered to lawfully operate, you can use the 'Guide me' option in the Global Nonprofits Guide, and select 'yes' when answering question 3.

When you have a limited number of founders, you should check the minimum number required and their eligibility. Countries typically require 2 to 3 founders to set up an association and 1 founder for a foundation. However, there are also countries that require a much higher number of founders, so we recommend checking this before you make your decision.

Check also whether you and your other founders are eligible to begin a nonprofits in the selected country. Following are most common eligibility requirements:

• Age of the founders: Some countries may require founders to reach a certain age. Minimum age varies among countries and is typically between 15 to 18 years old.
• Legal capacity: If you are a youth group or your founders are otherwise limited in their legal capacity, check whether the country does not require founders to have a full legal capacity. Some countries may require at least one founder to have a full legal capacity, others may require it from all founders.
• Legal entities as founders: Some countries may now allow legal entities to serve as founders, especially when it comes to associations. Consider this if you plan to engage a legal entity as a founder.

To filter available jurisdictions based on selected requirements for founders, use the 'Guide me' option. You can also use the 'Review' or 'Compare' options to look up requirements in specific jurisdictions.

If you plan to set up a nonprofit outside of your homeland, look into the residency and/or citizenship requirements for founders in the selected country(ies). Most European countries allow foreigners to set up a nonprofit and some may require at least a residency permit. However, there are also countries that allow only its citizens to set up a nonprofits.

The easiest way to select countries where setting up a nonprofit for non-citizens and non-legal residents is possible, is to use the 'Guide me' option and pay close attention to questions 11 and 12. 

For more information, check out the topic “Founders” on the results page.

Most common costs include:

• Registration fee: varies among countries and also among legal forms. Some countries may exempt nonprofits from a registration fee.
• Endowments: are typical for non-membership legal forms and vary from country to another, usually in tens of thousands of EUR/USD.
• Translation costs for translating your documents to the language of the country of registration.
• Notarial fees for official verification of the documents.
• Costs of opening a bank account.
• Deposit and first few months of rent of an office space (or payment for a virtual legal seat).
• Costs of office equipment and initial supplies.
• Legal representation costs: depending on the complexity of the registration process, you may need to pay legal fees.

For more information, check out the topic “Costs” on the results page. To compare the costs between countries, you can use the 'Compare' option of the Guide.