Legal, registration, and taxation issues of associations

National and state/province laws regulate Membership Associations (MAs) and other nonprofit organizations (NPOs) in contemporary nations, although this is a very recent historical development (last century or two, usually). Legal treatment of MAs differs in civil law versus common law systems. In common law countries, MAs have much more freedom to form and operate, compared to civil law regimes, where the government seeks to control all NPOs. In either type of regime, Public Benefit Organizations (PBOs), seeking to foster the general welfare, usually receive special legal, registration/incorporation, and tax treatment, often including exemption from income taxes on net revenues. This chapter reviews the global legal situation of MAs regarding registration or incorporation as a Legal Person, freedom of and barriers to MA formation, obtaining public charity status, transparency, accountability, and dissolution.