Must an Association Give Prior Notification When Receiving Aid from Abroad?
Aid received by associations from abroad requires review of prior notification, the banking channel and nature of the funds. Project support and service fees may be different transactions.
Prior notification to the civil administrative authority is the general rule when associations receive aid in cash or kind from persons, institutions and organisations abroad. Cash aid must be received through a bank. There are also notification arrangements for aid sent abroad; special cases and exceptions are examined for the particular transaction. An internal association resolution accepting aid does not replace the statutory notification. Whether money sent is aid or another payment must also be classified correctly.
Prepare the funding agreement, donor or institution details, amount and currency, bank receipts, project for use of the funds and administrative resolution. Tell the lawyer when acceptance, receipt or use of the aid is planned. Receiving funds first into a personal account and then transferring them to the association may not cure issues concerning the banking channel and source records. Funds received by a foreign NGO's branch from its head office should not be assumed exempt from notification merely because they are called an internal transfer. Documentation for aid in kind is also examined separately.
The legal nature of the agreement, content of the notification and correct transaction timing should be checked together. If an earlier transfer was deficient, the need for rectification and a defence is examined while preserving the actual dates. Foundations and associations follow different procedures; a form used for one should not be assumed sufficient for the other.
