Introduction

The term “nonprofit organization”

In institutional law the term “nonprofit organization” (organisme sans but lucratif) is only an informal, non-official term often used to refer to organizations that do not distribute their profit to their members or founders. In fact, the criterion of non-distribution of profit is part of the legal definition of each entity.

This paper principally presents associations regulated under the July 1, 1901 Act (relating to the contract of association [afterwards: L. 1901]), public utility associations (association reconnue d'utilité publique) and public utility foundations (fondation d'utilité publique).

Empirical information

At present, there are an estimated 1,100,000 active associations (including 1,971 public utility associations) with more than 21 million members and 1.8 million employees. Most associations are formed in the athletic (24%), cultural (19%) and leisure and social activities (18%) sectors.

In September 2008 there were 552 public utility foundations and 218 company foundations (fondation d'entreprise). In 2007 709 sheltered foundations (fondation abritée) (including 610 set under the Fondation de France) and 16 scientific cooperation foundations were counted. Most foundations are found in the cultural (21%), social activity, charitable and humanitarian aid (22%), health (15%) and educational (13%) sectors.

The number of nonprofit organizations, in particular public utility associations and public utility foundations is increasing continually.