What is the difference between an association and a foundation?
Both are non-profit legal persons governed by the same ordinance, but they start from different logics: an association starts from people, a foundation starts from an endowment. The difference decides who votes in the organisation.
Short answer
- An association is set up by at least three persons, while a foundation can be established by a single person.
- A foundation must have an initial patrimony worth at least 10 times the national minimum gross wage on the date it is established.
- An association has no statutory minimum initial patrimony.
- The governing body of an association is the general assembly of members; in a foundation it is the board.
- After registration, neither the founders nor their heirs can revoke the statute of a foundation.
What the law says
- GO 26/2000 art. 4 para. (1): an association is set up by three or more persons.
- Art. 15 para. (1): a foundation is established by one or more persons who dedicate an endowment permanently and irrevocably to a purpose.
- Art. 15 para. (2), as amended by Law 276/2020: the initial patrimony of a foundation must be worth at least 10 times the guaranteed national minimum gross wage, on the date of establishment.
- Art. 15 para. (3): for foundations whose exclusive purpose is collecting funds for other associations or foundations, the minimum is twice the minimum gross wage.
- Art. 20 and art. 28: the bodies of an association are the general assembly, the board and the auditors; a foundation has only the board and the auditors.
- Art. 7 para. (2) letter b) and art. 17 para. (2) letter b): a foundation always files the initial-patrimony documents.
The differences, side by side
Association and foundation compared on the criteria that matter at setup
| Criterion | Association | Foundation |
|---|---|---|
| Number of founders | At least three persons | One or more persons |
| Minimum initial patrimony | No statutory minimum | 10 minimum gross wages; 2 for fundraising-only foundations |
| Constitutive document | Statute, document under private signature | Statute, document under private signature |
| Governing body | The general assembly of members | The board |
| Patrimony proof in the file | Only for an immovable-property contribution | Mandatory in all cases |
| Members with voting rights | Yes, as set out in the statute | No; founders cannot revoke the statute after registration |
Practical examples
- Three friends who want to run free courses choose an association: they need no starting capital at all.
- At a minimum gross wage of 4,325 lei, the minimum initial patrimony of a foundation is 43,250 lei.
- The same foundation, if its exclusive purpose is raising funds for other NGOs, starts from 8,650 lei.
- A company that wants to dedicate 50,000 lei permanently to a social purpose chooses a foundation, because the endowment stays irrevocably tied to that purpose.
Common mistakes
- A foundation is chosen for a group that wants to decide together, although a foundation has no general assembly.
- Three founders are recruited for a foundation, although a foundation may have a single founder.
- The foundation patrimony is taken as a fixed sum found online, although the law expresses it in minimum wages on the establishment date.
- The old figure of 100 minimum wages is used, reduced to 10 by Law 276/2020.
How 4ong helps
- For associations, it keeps the member register and the membership fees, with a payment history per year.
- For foundations, it tracks the projects funded from the endowment, with a budget broken down by expense line.
- Both work on the same donor record: one-off donations, recurring donations and sponsorships with the contract signing date.
- The volunteer register, the hours timesheet and the volunteering certificates work identically in an association and in a foundation.