What is a communal non-profit organisation?
A non-profit association is described as "communal" when the municipality holds a majority of seats or votes in its general assembly or its board of directors. It can also be described as "communal" if the municipality bears the structural deficit or the liquidation liabilities of the non-profit association. These criteria are not cumulative.
When several municipalities decide to create a non-profit association together, it is called "pluricommunal non-profit association". Its legal regime is similar to that of local non-profit associations.
The missions of a municipal non-profit organisation
The municipality may entrust to a non-profit organisation any mission of communal interest, with the exception of the powers specifically assigned to the municipalities by law, such as the maintenance of public order or the management of civil status registers.
The municipality can entrust a mission of communal interest to a non-profit organisation only if it demonstrates that it will be more efficient than the municipal administrative services or an autonomous communal management.
When the municipality’s budget is more than 50% subsidised by the municipality, an agreement must be concluded between the non-profit organisation and the municipality. This agreement defines the tasks entrusted to the non-profit organisation, the means made available to it, the means of control of the municipality and the indicators to assess the performance of the tasks.
How is a communal non-profit organisation structured?
The communal non-profit organisation is composed of a general assembly gathering all the effective members and a board of directors.
Because of its public nature, guarantees of general interest are provided for:
- The representatives of the municipality in the general meeting may not exceed two-thirds of the same sex.
- At least one-third of the Board of Directors shall be appointed by the general meeting on the proposal of the municipal council or representatives of the municipal council.
- The board of directors may not have more than two-thirds members of the same sex.
- Opposition representation on the board is guaranteed.
- After each renewal of the municipal council, the members of the general assembly representing the municipality are appointed by the new municipal council.