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How to run an NGO in Finland

Manoj Bhusal
Manoj Bhusal

In order to run an NGO in Finland, you have to take several steps. These steps include: forming your team, drawing your bylaws, and paying the registration fee. Your bylaws should be either in Finnish or Swedish, and the chairperson of the organisation is expected to be residing in Finland.

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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 Non足profit 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 Non足profit 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!