The Law of Associations and Foundations issued by Royal Decree M/8 governs establishing two different entities: an association (an organization of people for a non-profit purpose, with a general assembly and members), and a foundation (an entity one or more persons establish by allocating funds for a public benefit purpose, with a board of trustees, not members). Choosing the right form from the start determines the entity's entire governance structure later.
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The National Center receives establishment applications electronically and issues the license once legal personality is acquired (within 60 days of completing documents), coordinating with the body overseeing the entity's main activity. Legal personality begins from the approval decision's date, not the application filing date.
Any fundraising campaign needs a prior license from the competent body, with collected funds deposited into dedicated bank accounts and periodic reports submitted on their use. The national "Ehsan" platform has become the accredited channel for documenting electronic donations and connecting donors with licensed associations, and fundraising outside this official framework exposes the association to liability.
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