Turning a factual association into a non-profit organisation (vzw)
Setting up a non-profit organisation (in Dutch: a vzw, or vereniging zonder winstoogmerk) does require some attention. However, the formalities involved in a non-profit organisation are often more than worthwhile when compared to the risks you run as a factual association.
Last updated on 28.07.2025
Why a non-profit organisation might be a better choice than a factual association
A non-profit organisation has legal personality, so it is a separate legal entity. The non-profit organisation is separate from the people who manage it or do its day-to-day tasks. The money and possessions of the non-profit are separate from the personal assets of the managers. If the non-profit organisation has debts, for example, these remain the organisation’s debts. The managers are not liable for them.
A factual association does not have legal personality. It consists entirely of the people who are its members. If the factual association has debts, these are actually the debts of the people who make up the factual association. If something goes wrong in the factual association, the organisers are personally liable (with their own money, possessions, etc.). This can have serious consequences!
As the director of a non-profit organisation, you can only be held personally liable if you make (serious) mistakes, but you can protect yourself against these risks as well.
A non-profit organisation can sign contracts and own property in the name of the organisation. A factual association cannot. Contracts are signed with the members of the factual association. The factual association’s possessions are actually owned by the members.
A non-profit organisation can accept gifts and legacies (inheritances), but a factual association cannot.
Finally, but not unimportantly: in order to receive certain subsidies, for example those from your city or local council, the Amateur Arts Decree, the Supralocal Culture Decree, etc., it is a requirement for your group to be a non-profit organisation.
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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.*