Public utility of the associations. Revocation by the Administration and foundational solution

Abstract

The non-lucrative aim of associations can lead to the attainment of private interest as much as general interest. In the latter case, the search of common welfare makes them worthy of special protection by the public authorities, as specified in their legal declaration as ‘associations of public utility’. However, after the Organic law of Associations, 22nd March, 2002 (LODA), the Administration is unwilling to grant the classification of public utility to those associations which carry out an economical activity in order to ensure provision of resources to comply with their aims. As a result of said proceedings these entities are, in practice, excluded from acceding to the privileged economical regime, laid down in the Law 49/2002, of 23rd December of the economic regime of non-lucrative entities, as well as from the economic incentives of sponsorship (LRF - ENL) ultimately, to the detriment of the aim pursued by them. In this context we suggest combining the concepts of association and foundation as a mechanism to guarantee legal certainty in its actions. In this way allowing associations peaceful enjoyment of their rights in order to fulfil their aims of general interest, which are individual. Thus circumventing the complex proceeding of the public utility declaration without increasing the indirect economical charge, all of which will result in transparency of its activities and efficiency of resource management.