A voluntary group or union (also sometimes called a voluntary organization, common-interest association, association, or society) is a group of individuals who enter into an agreement, usually as
volunteers
Volunteering is an elective and freely chosen act of an individual or group giving their time and labor, often for community service. Many volunteers are specifically trained in the areas they work, such as medicine, education, or emergenc ...
, to form a body (or
organization
An organization or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences) is an legal entity, entity—such as ...
) to accomplish a purpose. Common examples include
trade association
A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific Industry (economics), industry. Through collabor ...
s,
trade union
A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...
s,
learned societies
A learned society ( ; also scholarly, intellectual, or academic society) is an organization that exists to promote an academic discipline, profession, or a group of related disciplines such as the arts and sciences. Membership may be open to al ...
,
professional association
A professional association (also called a professional body, professional organization, or professional society) is a group that usually seeks to advocacy, further a particular profession, the interests of individuals and organisations engaged in ...
freedom of association
Freedom of association encompasses both an individual's right to join or leave groups voluntarily, the right of the group to take collective action to pursue the interests of its members, and the right of an association to accept or decline membe ...
in ultimate terms (members may choose whether to join or leave), although membership is not necessarily voluntary in the sense that one's employment may effectively require it via
occupational closure
In sociology, an occupational closure (or professional demarcation) is the process whereby a trade or occupation (vocation) transforms itself, or tries to transform itself, into a true profession by closing off entry to the profession to all but ...
. For example, in order for particular associations to function effectively, they might need to be mandatory or at least strongly encouraged, as is true of
trade union
A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...
s. Because of this, some people prefer the term common-interest association to describe groups which form out of a common interest, although this term is not widely used or understood.
Voluntary associations may be incorporated or unincorporated; for example, in the US, unions gained additional powers by incorporating. In the UK, the terms voluntary association or voluntary organisation cover every type of group from a small local residents' association to large associations (often registered charities) with multimillion- pound turnover that run large-scale business operations (often providing some kind of
public service
A public service or service of general (economic) interest is any service intended to address the needs of aggregate members of a community, whether provided directly by a public sector agency, via public financing available to private busin ...
as subcontractors to government departments or local authorities).
Voluntary association is also used to refer to political reforms, especially in the context of urbanization, granting individuals greater freedoms to associate in civil society as they wished, or not at all.
Differences by jurisdictions
In many
jurisdiction
Jurisdiction (from Latin 'law' and 'speech' or 'declaration') is the legal term for the legal authority granted to a legal entity to enact justice. In federations like the United States, the concept of jurisdiction applies at multiple level ...
s no formalities are necessary to start an association. In some jurisdictions, there is a minimum for the number of persons starting an association.
Some jurisdictions require that the association register with the police or other official body to inform the public of the association's existence. This could be a tool of political control or intimidation, and also a way of protecting the economy from
fraud
In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...
.
In many such jurisdictions, only a registered association (an incorporated body) is a
juristic person
A juridical person is a legal person that is not a natural person but an organization recognized by law as a fictitious person such as a corporation, government agency, non-governmental organisation, or international organization (such as the Eu ...
whose members are not responsible for the financial acts of the association. Any group of persons may, of course, work as an informal association, but in such cases, each person making a transaction in the name of the association takes responsibility for that transaction, just as if it were that individual's personal transaction.
There are many countries where the formation of truly independent voluntary associations is effectively proscribed by law or where they are theoretically legally permitted, but in practice are persecuted; for example, where membership brings unwelcome attention from police or other state agencies.
History
Voluntary groups are a broad and original form of nonprofit organizations, and have existed since ancient history. In
Ancient Greece
Ancient Greece () was a northeastern Mediterranean civilization, existing from the Greek Dark Ages of the 12th–9th centuries BC to the end of classical antiquity (), that comprised a loose collection of culturally and linguistically r ...
, for example, there were various organizations ranging from elite clubs of wealthy men (''hetaireiai'') to private religious or professional associations.
In preindustrial societies, governmental administrative duties were often handled by voluntary associations such as
guild
A guild ( ) is an association of artisans and merchants who oversee the practice of their craft/trade in a particular territory. The earliest types of guild formed as organizations of tradespeople belonging to a professional association. They so ...
s. In medieval Europe, guilds often controlled towns.Kohn M. (2003) Merchant Associations in Pre-Industrial Europe Ch. 16 i . Merchant guilds enforced contracts through embargoes and sanctions on their members, and also adjudicated disputes. However, by the 1800s, merchant guilds had largely disappeared.
Economic historians
Economic history is the study of history using methodological tools from economics or with a special attention to economic phenomena. Research is conducted using a combination of historical methods, statistical methods and the application of ...
have debated the precise role that merchant guilds played in premodern society and economic growth.
In the United Kingdom, craft guilds were more successful than merchant guildsStarr M. (1919) A Worker Looks At History, Ch. 7: The Guilds Plebs League Google Books entry and formed
livery companies
A livery company is a type of guild or professional association that originated in medieval times in London, England. Livery companies comprise London's ancient and modern trade associations and guilds, almost all of which are Style (form of a ...
which exerted significant influence on society.
Legal status
A standard definition of an unincorporated association was given by Lord Justice Lawton in the
English trust law
English trust law concerns the protection of assets, usually when they are held by one party for another's benefit. Trust law, Trusts were a creation of the English law of English property law, property and English contract law, obligations, a ...
case ''
Conservative and Unionist Central Office v Burrell
''Conservative and Unionist Central Office v Burrell'' 981EWCA Civ 2 is an English trusts law case ruling on the " beneficiary principle". The Inland Revenue sought to define the party, a mixed-money, common-object body with regular spending f ...
'' (1981):
In most countries, an unincorporated association does not have
separate legal personality
In law, a legal person is any person or legal entity that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for the term "''legal'' person" is t ...
, and few members of the association usually enjoy
limited liability
Limited liability is a legal status in which a person's financial Legal liability, liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company, or joint venture. If a company that provides limi ...
. However, in some countries they are treated as having separate
legal personality
Legal capacity is a quality denoting either the legal aptitude of a person to have rights and liabilities (in this sense also called transaction capacity), or the personhood itself in regard to an entity other than a natural person (in this sen ...
for tax purposes: for example, in the United Kingdom an unincorporated association is assessable to
corporation tax
A corporate tax, also called corporation tax or company tax or corporate income tax, is a type of direct tax levied on the income or capital of corporations and other similar legal entities. The tax is usually imposed at the national level, but i ...
. However, because of their lack of legal personality, legacies to unincorporated associations are sometimes subject to general common law prohibitions against purpose trusts.
Associations that are organized for profit or financial gain are usually called
partnership
A partnership is an agreement where parties agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations ...
s. A special kind of partnership is a
co-operative
A cooperative (also known as co-operative, coöperative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democr ...
which is usually founded on one person-one vote principle and distributes its profits according to the amount of goods produced or bought by the members. Associations may take the form of a
non-profit organization
A nonprofit organization (NPO), also known as a nonbusiness entity, nonprofit institution, not-for-profit organization, or simply a nonprofit, is a non-governmental (private) legal entity organized and operated for a collective, public, or so ...
or they may be
not-for-profit corporation
A nonprofit corporation is any legal entity which has been incorporated under the law of its jurisdiction for purposes other than making profits for its owners or shareholders. Depending on the laws of the jurisdiction, a nonprofit corporation m ...
s; this does not mean that the association cannot make benefits from its activity, but all the benefits must be reinvested. Most associations have some kind of document or documents that regulate the way in which the body meets and operates. Such an instrument is often called the organization's bylaws, constitution, regulations, or agreement of association.
Common law
Australia
In most states and territories in
Australia
Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
, a similar set of laws allows not-for-profit associations to become legal entities with a limit to the liability of their members. An example of such a law, the ''Associations Incorporation Act 1985'' that is in force in
South Australia
South Australia (commonly abbreviated as SA) is a States and territories of Australia, state in the southern central part of Australia. With a total land area of , it is the fourth-largest of Australia's states and territories by area, which in ...
, allows for the creation of a legal entity able to buy and sell land and in general, enter into legally binding contracts. Many clubs and societies begin life as an unincorporated body and seek to attain incorporated status to protect its members from legal liability and in many cases to seek government financial assistance only available to an incorporated body. Clubs and societies wishing to incorporate must meet the provisions of the relevant state act and lodge their constitution with the corresponding state government authority.
Israel
In
Israel
Israel, officially the State of Israel, is a country in West Asia. It Borders of Israel, shares borders with Lebanon to the north, Syria to the north-east, Jordan to the east, Egypt to the south-west, and the Mediterranean Sea to the west. Isr ...
, many non-profit organizations (NPOs) and non-governmental organizations (NGOs) are established as registered nonprofit associations (Hebrew '','' plural ) (some are established as public benefit companies (Hebrew ) not to be confused with public benefit corporations). ' are regulated by the Associations Law, 1980. An ' is a body corporate, though not a company. An ' must register with the ''Rasham Ha’amutot'' ('Registrar of Amutot'), under the purview of the ''Rashut Hata’agidim'' ('Corporations Authority') of the
Ministry of Justice
A justice ministry, ministry of justice, or department of justice, is a ministry or other government agency in charge of the administration of justice. The ministry or department is often headed by a minister of justice (minister for justice in a ...
.
The ' are distinguisged from the , which predated the State of Israel, and are regulated by the 1909 Ottoman Law on Associations, based on the French law of 1901. Since 2014 there were attempts to modernize the Ottoman Law and put in line with other non-profits.
United Kingdom
England and Wales
Under
English law
English law is the common law list of national legal systems, legal system of England and Wales, comprising mainly English criminal law, criminal law and Civil law (common law), civil law, each branch having its own Courts of England and Wales, ...
, an unincorporated association consists of two or more members bound by the rules of a society which has, at some point in time, been founded.
Several theories have been proposed as to the way that such associations hold rights. A transfer may be considered to have been made to the association's members directly as joint tenants or tenants in common. Alternatively, the funds transferred may be considered to have been under the terms of a private
purpose trust
A purpose trust is a type of trust which has no beneficiaries, but instead exists for advancing some non- charitable purpose of some kind. In most jurisdictions, such trusts are not enforceable outside of certain limited and anomalous exceptions ...
. Many purpose trusts fail for want of a
beneficiary
A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of ...
and this may therefore result in the gift failing. However, some purpose trusts are valid, and, accordingly, some cases have decided that the rights associated with unincorporated associations are held on this basis. The dominant theory, however, is that the rights are transferred to the members or officers absolutely, perhaps on trust for the members, but are importantly bound by contracts ''
inter se
''Inter se'' (also styled as ''inter sese'') is a Legal Latin phrase that means " ong or between themselves"., ''Inter se'' 819 (6th Ed.). The phrase is "used to distinguish rights or duties between two or more parties from their rights or duty ...
''.
Accordingly, on dissolution, the distribution of these rights depends on how they were held. A purpose trust may by its nature survive the dissolution of the association, or it may not. If it fails as a result of the dissolution, then the rights will be held on
resulting trust
A resulting trust is an implied trust that comes into existence by operation of law, where property is transferred to someone who pays nothing for it; and then is implied to hold the property for the benefit of another person.
The trust property ...
for the contributors, unless they can be shown to have renounced their right to such a trust in their favour. If the rights are held subject to contract, then they will be divided among the surviving membership upon dissolution, according to the terms of the contracts ''inter se'' or an implied term according to contribution. If, as a result of this contract or statute, no member can claim, the rights will pass to the Crown as ''
bona vacantia
Unowned property includes tangible, physical things that are capable of being reduced to being property owned by a person but are not owned by anyone. ' (Latin for "ownerless goods") is a legal concept associated with the unowned property, which e ...
''. This conclusion has also been suggested where the association dissolves because only one member remains, although this has been doubted by some commentators who believe the last members should be entitled to the rights.
Scotland
Scots law
Scots law () is the List of country legal systems, legal system of Scotland. It is a hybrid or mixed legal system containing Civil law (legal system), civil law and common law elements, that traces its roots to a number of different histori ...
on unincorporated associations is essentially the same as English law.
United States
Each state sets its own laws as to what constitutes an unincorporated association and how it is to be treated under the laws. In the United States, voluntary associations which were incorporated were "pre-eminent" in collective action.
California
In
California
California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...
, during the 1980s, then
Los Angeles County
Los Angeles County, officially the County of Los Angeles and sometimes abbreviated as LA County, is the most populous county in the United States, with 9,663,345 residents estimated in 2023. Its population is greater than that of 40 individua ...
district attorney
In the United States, a district attorney (DA), county attorney, county prosecutor, state attorney, state's attorney, prosecuting attorney, commonwealth's attorney, or solicitor is the chief prosecutor or chief law enforcement officer represen ...
Ira Reiner decided to use California's unincorporated associations law to attack
street gangs
A gang is a group or society of associates, friends, or members of a family with a defined leadership and internal organization that identifies with or claims control over territory in a community and engages, either individually or collecti ...
and the habit of their members of tagging
graffiti
Graffiti (singular ''graffiti'', or ''graffito'' only in graffiti archeology) is writing or drawings made on a wall or other surface, usually without permission and within public view. Graffiti ranges from simple written "monikers" to elabor ...
in public spaces, in an attempt to abate vandalism and to recover cleanup costs. He sued the street gangs by name, with cases titled such as ''City of Los Angeles v. The Bloods'' and ''City of Los Angeles v. The Crips'', which then allowed the city to go after any member of the street gang, as a member of the unincorporated association being sued, for damages resulting from graffiti tagging involving that gang's name,.
New York
New York state law regarding unincorporated associations actually gives members of the association more protection against liability than that given to either stockholders of
corporation
A corporation or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law as ...
s or members of
limited liability companies
A limited liability company (LLC) is the United States-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a ...
. This was noted in the case of ''
International News Service
The International News Service (INS) was a U.S.-based news agency (newswire) founded by newspaper publisher William Randolph Hearst in 1909.
vs
Associated Press
The Associated Press (AP) is an American not-for-profit organization, not-for-profit news agency headquartered in New York City.
Founded in 1846, it operates as a cooperative, unincorporated association, and produces news reports that are dist ...
'', because the members of the AP are not liable for damages for the organization's actions unless the association as a whole approved it.
Texas
In
Texas
Texas ( , ; or ) is the most populous U.S. state, state in the South Central United States, South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the we ...
, state law has statutes concerning unincorporated non-profit associations that allow unincorporated associations that meet certain criteria to operate as entities independent of their members, with the right to own property, make contracts, sue and be sued, with limited liability for their officers and members.
Civil law
Certain civil-law systems classify an association as a special form of
contract
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...
ual relationship.
Canada
Under the
Quebec Civil Code
The ''Civil Code of Quebec'' (CCQ; , ) is the civil code in force in the Canadian province of Quebec, which came into effect on January 1, 1994. It replaced the ''Civil Code of Lower Canada'' () enacted by the Legislative Assembly of the Provinc ...
an association is categorized as a type of statutory specific contract set forth in a constitution. An association can become incorporated with its own legal identity so that it may, e.g., open a bank account, enter into contracts (rent real estate, hire employees, take out an insurance policy), or sue or be sued.
France
In
France
France, officially the French Republic, is a country located primarily in Western Europe. Overseas France, Its overseas regions and territories include French Guiana in South America, Saint Pierre and Miquelon in the Atlantic Ocean#North Atlan ...
, all voluntary associations are non-profit. They may count as unincorporated () or incorporated (') and are created in terms of and governed by the Waldeck-Rousseau Act 1901. This is why '' association loi (de) 1901'' is subjoined to their name, except in the
Alsace
Alsace (, ; ) is a cultural region and a territorial collectivity in the Grand Est administrative region of northeastern France, on the west bank of the upper Rhine, next to Germany and Switzerland. In January 2021, it had a population of 1,9 ...
-
Moselle
The Moselle ( , ; ; ) is a river that rises in the Vosges mountains and flows through north-eastern France and Luxembourg to western Germany. It is a bank (geography), left bank tributary of the Rhine, which it joins at Koblenz. A sm ...
area, which is governed by local law in this regard (the area was German in 1901), and are therefore called '' association loi (de) 1908''. If the association responding to defined criteria, like social or medical help, for example, they can be declared "public utility association" () by French authorities. Associations created under the 1901 act have a significant amount of freedom in their internal operation, such as management or authorized members.
Germany
The
German Civil Code
German(s) may refer to:
* Germany, the country of the Germans and German things
**Germania (Roman era)
* Germans, citizens of Germany, people of German ancestry, or native speakers of the German language
** For citizenship in Germany, see also Ge ...
sets out different rights and rules for an unincorporated association () with legal identity (''Vereine'', art. 21–79 BGB) versus an incorporated association () with full
legal person
In law, a legal person is any person or legal entity that can do the things a human person is usually able to do in law – such as enter into contracts, lawsuit, sue and be sued, ownership, own property, and so on. The reason for the term "''le ...
ality, which the law treats as partnerships (''Gesellschaften'', art. 705–740 BGB). Associations can be for-profit () or non-for-profit ('). Associations which pursue a public purpose can apply for tax exemptions ().
Freedom of association
The freedom of association stands in the United Nations'
Universal Declaration of Human Rights
The Universal Declaration of Human Rights (UDHR) is an international document adopted by the United Nations General Assembly that enshrines the Human rights, rights and freedoms of all human beings. Drafted by a UN Drafting of the Universal D ...
:
Article 11 of the European Convention on Human Rights
Article 11 of the European Convention on Human Rights protects the right to freedom of assembly and association, including the right to form trade unions, subject to certain restrictions that are "in accordance with law" and "necessary in a democr ...
also protects the right to
freedom of assembly
Freedom of assembly, sometimes used interchangeably with the freedom of association, is the individual right or ability of individuals to peaceably assemble and collectively express, promote, pursue, and defend their ideas. The right to free ...
and association.
See also
*
Active citizenship
Active citizenship involves citizens having control over their daily lives as users of public services, allowing them to influence decisions, voice concerns, and engage with service provision. This includes both choice and voice, enabling citize ...
*
Anarchism
Anarchism is a political philosophy and Political movement, movement that seeks to abolish all institutions that perpetuate authority, coercion, or Social hierarchy, hierarchy, primarily targeting the state (polity), state and capitalism. A ...
Collective
A collective is a group of entities that share or are motivated by at least one common issue or interest or work together to achieve a common objective. Collectives can differ from cooperatives in that they are not necessarily focused upon an e ...
*
Cooperative
A cooperative (also known as co-operative, coöperative, co-op, or coop) is "an autonomy, autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned a ...
Not-for-profit arts organization
A not-for-profit arts organization, also known as a nonprofit arts organization, usually takes the form of a not-for-profit organization, nonprofit organization, association, or foundation. Such organizations are formed for the purpose of develo ...
*
Registered association (Finland)
In Finland a (Finnish for registered association) or (Swedish) is a registered, non-profit organization. The abbreviations (also ) (Finnish), (Swedish) or (Northern Sámi) are used as a suffix ending of the association's name, added when th ...
Unincorporated association
Unincorporated association refers to a group of people in common law jurisdictions—such as the United Kingdom, Canada, and New Zealand—who organize around a shared purpose without forming a corporation or similar legal entity. Unlike in some ...