The factual association

Last updated on 28.07.2025

The name says it all: a factual association is a group – i.e. at least 2 people – who meet ‘informally’, without a corporate structure. A non-profit purpose may be cultural, social, sporting, humanitarian or scientific in nature. You’re considered to have a factual association if, for example, you organise a street party with your neighbours, but also if you and a few dance teachers start offering classes together, or if you rehearse every week with your dance company.

As an informal (non-incorporated) association, you have few administrative obligations and no fixed structure. You decide for yourself how to organise your association. You don’t need to draw up articles of association, hold general assemblies, appoint directors (often also called ‘board members’), deposit your annual financial statements at the court registry, etc., so a factual association doesn’t need much administration.

In legal terms, a factual association does not have legal personality. So from a legal point of view, a factual association is not a separate legal entity with its own rights and obligations. The factual association is the people of which it consists.

You cannot enter into a contract with a factual association as an organisation, only with the people who are members of it. For example, if you want to take out a lease, you have to sign the contract in your own name on behalf of the association.

That means that the people who are part of the factual association are personally liable for any mistakes, damage or loss caused by the association. If you rent a refrigerator for a street party, for example, and the invoice isn’t paid, you will be personally responsible for paying the invoice as a member of the factual association. If a major mistake is made in the group with serious financial or human costs (fraud, a fire, an accident, etc.), the association will not be held financially responsible. The people who are members of the association will be personally responsible.

A factual association has no fixed structure. You are completely free to decide for yourself how it is organised and managed. 

Still, we recommend setting down clear, written rules and arrangements with your fellow organisers. How will you manage the money? How will you make decisions together? Who has a say, and who is involved in the decision-making? Who is part of the group, and who isn’t?

It’s crucial to have the insurance you need, even in a factual association. Danspunt offers very affordable physical accidents and civil liability and personal accident insurance for the members of factual associations.

You don’t need to keep complicated accounts, but do make sure that your administration is accurate and transparent. Keep a clear list of all your income and expenditure. Never give money to any of the members of the association without the appropriate contracts and methods of payment (see the section on statuses and payments).

To avoid arguments (with the other people in the association or in the event of an inspection), make sure that the factual association’s money is kept separate from your own. Keep a separate cash box or open a bank account in the name of the factual association.

Watch out for VAT!

A factual association is subject to the same VAT rules as any other organisation, which means it may also be liable for VAT – with all the associated obligations! 

If your plans are modest and the risk is limited, and you are working with people you trust, then a factual association is a good way of organising yourselves. Do run your association carefully, though, and keep the tips above in mind. This will help you avoid problems or arguments.

Always remember that you will be held personally liable if anything goes wrong in the association.

If you start making more ambitious plans with greater commitments (especially financial ones) or more risks, then it may be more advisable to choose a different organisational form with legal personality, such as a legally constituted non-profit organisation (vzw). That will give you better personal protection and a more robust legal structure. Find out here why a non-profit organisation is sometimes a better choice than a factual association.

Need more info or advice?

You will find extensive information at Cultuurloket (only in Dutch).

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*Disclaimer: This web page offers practical guidelines and is not intended to replace legal advice. Always consult a professional for specific questions.*