Non Profit Organization In Turkey

What is
a Non Profit Organization in Turkey?

A Non-Profit Organization (NPO) in Turkey is an
entity established to serve public, social, or humanitarian
interests without seeking financial gain. These organizations
reinvest all income into their missions rather than distributing
profits to members.

Types of Non-Profit Organizations in Turkey

Turkey recognizes several types of Non-Profit
Organizations (NPOs), each serving different purposes and
operating under specific regulations. The main types include:

1. Associations (Dernekler)

• Formed by at least seven people with a common
  goal.




• Can engage in social, cultural, educational, and
  humanitarian activities.




• Governed by the Turkish Civil Code and
  regulated by the Directorate of Associations.




• Foreigners may be founders




• Examples: Human rights groups, sports clubs, and cultural
  organizations.

2. Foundations (Vakıflar)

• Established by individuals or entities with dedicated
  assets for public benefit.




• Foreigners may be founders.




• Require a minimum assets of 500,000 TRY.(about
  13,160 EUR)




• Regulated by the General Directorate of
  Foundations.




• Examples: Charities, scholarship funds, and healthcare
  foundations.

3. Public Benefit Organizations (Kamu Yararına
Çalışan Dernekler &
Vakıflar)

• Special status granted to associations or
  foundations that significantly contribute to public
  welfare.




• Eligible for tax exemptions and government
  support.




• Must meet strict financial transparency and
  reporting requirements.

4. Cooperatives (Kooperatifler)

• Member-owned organizations that focus on economic and
  social development.




• Operate in agriculture, housing, education, and
  trade.




• Governed by the Cooperatives Law and
  supervised by the Ministry of Trade.

5. International NGOs (Uluslararası
STK’lar)

• Foreign-based non-profits operating in Turkey.




• Must obtain government approval and register
  with the Ministry of Interior.




• Often involved in humanitarian aid, refugee assistance,
  and development projects.

Each type of non-profit organization in Turkey
serves a unique role, contributing to social progress and
development.

Legal Framework for Non-Profits in Turkey

Non-Profit Organizations (NPOs) in Turkey operate under a
structured legal framework to ensure transparency, accountability,
and compliance with national regulations. The key laws and
regulatory bodies governing NPOs include:

Turkish Civil Code (Türk Medeni
Kanunu)

• The primary law governing associations (dernekler) and
  foundations (vakıflar).




• Defines establishment procedures, operational rules,
  and dissolution processes.

Law on Associations (Dernekler Kanunu, No.
5253)

• Regulates the formation, operation, and
  supervision of associations.




• Requires associations to register with the Directorate
  of Associations and submit annual financial reports.

Foundations Law (Vakıflar Kanunu, No.
5737)

• Governs the establishment and administration
  of foundations.




• Managed by the General Directorate of Foundations
  (Vakıflar Genel
  Müdürlüğü).




• Foundations must operate for public benefit
  and adhere to strict financial reporting.

International NGO Regulations

• Foreign non-profits must obtain approval from the
  Ministry of Interior before operating in Turkey.




• Required to submit annual reports and comply
  with national laws regarding funding and activities.

Tax & Financial Regulations for NPOs

• Certain non-profits can apply for tax-exempt
  status if they meet public benefit
  criteria.




• Financial activities are monitored by the Ministry of
  Treasury and Finance to ensure compliance.

Turkey maintains a strict but structured legal
framework for non-profits, ensuring transparency and
accountability while allowing organizations to serve the
public effectively.

How to Register a Non-Profit Organization in Turkey

Establishing a Non-Profit Organization (NPO) in
Turkey involves several legal steps, depending on whether you are
setting up an association (dernek) or a
foundation (vakıf). Below is a step-by-step
guide to registering an NPO in Turkey.

1. Choose the Type of Non-Profit
Organization

Before starting the registration process, decide whether you
want to establish:

✅ An Association (Dernek) – Requires
at least 7 founding members and is easier to set
up.

✅ A Foundation (Vakıf) – Requires
an assets of 500,000 TRY and legal approval.

2. Prepare the Necessary Documents

• For Associations (Dernekler):
  

  • Articles of Association (Bylaws) –
    Defines the purpose, structure, and rules of the organization.

  
  

  • Founding Members’ IDs & Address Proof
    – At least seven Turkish or foreign individuals or
    corporates

  
  

  • Official Application Form – Submitted to
    the Provincial Directorate of Associations.




• For Foundations (Vakıflar):
  

  • Foundation Charter (Vakıf Senedi) –
    Notarized document outlining the organization’s purpose and
    assets.

  
  

  • Assets Proof – Minimum 500,000
    TRY in assets for public-benefit foundations.

  
  

  • Founders’ Identification Documents –
    Can be individuals or legal entities.

  
  

  • Registration Application – Submitted to
    the General Directorate of Foundations.

3. Submit the Application

• Associations apply to the Provincial
  Directorate of Associations in the city where they will
  operate.




• Foundations submit their application to the
  General Directorate of Foundations for
  approval.

After submission, the relevant authorities review the
application, ensuring compliance with Turkish laws.

4. Obtain Legal Status

Once the application is approved, the organization
receives:

✅ Official Registration Certificate –
Confirms the organization’s legal status.

✅ Tax Identification Number – Required
for financial transactions.

✅ Bank Account Opening Permission –
Allows the organization to receive donations and grants.

Compliance & Reporting Requirements for NPOs in Turkey

Once a Non-Profit Organization (NPO) is
registered in Turkey, it must comply with specific legal
and financial regulations to ensure transparency,
accountability, and lawful operations. Below are the key compliance
and reporting requirements for Associations (Dernekler) and
Foundations (Vakıflar) in Turkey.

• Financial Reporting
  

  • Associations must submit an Annual Activity Report and a
    Financial Statement to the Provincial Directorate of
    Associations.

  
  

  • Foundations must report their annual activities to the General
    Directorate of Foundations.to the General Directorate of
    Foundations.




• Tax Compliance & Exemptions
  

  • NPOs which is conducting commercial activities must declare
    their revenues and expenses with tax return to the Ministry of
    Treasury and Finance.

  
  

  • NPOs which hires any emloyee must declare theirs & emloyess
    social security contrubutions to the Social Security Institution
    .

  
  

  • Certain Public Benefit Foundations and Associations can apply
    for tax-exempt status to receive donation incentives and corporate
    tax exemptions.

  
  

  • All foreign donations must be reported to the Ministry of
    Interior for transparency.




• Fundraising & Donation Regulations
  

  • Public Fundraising (Bağış ve Yardım Toplama
    Kanunu) requires official permission from the local governor’s
    office.

  
  

  • All donation records must be documented and disclosed in
    financial reports.




• Membership & Governance Regulations
  

  • Associations must hold General Assembly meetings at least once
    every three years.

  
  

  • Any changes in bylaws, board members, or operational structure
    must be reported to the relevant government authority.




• Inspections & Audits
  

  • Turkish authorities can conduct regular audits to ensure
    compliance with financial and operational laws.

  
  

  • Non-compliance can result in fines, revocation of legal status,
    or criminal charges.

Fundraising & Donations for Non-Profits in Turkey

Non-Profit Organizations (NPOs) in Turkey rely on
fundraising and donations to sustain their
activities. However, strict legal regulations
govern how NPOs can collect funds, especially for public donations.
Below is a guide on legal methods, regulations, and best
practices for fundraising in Turkey.

1. Legal Ways to Fundraise in Turkey

✅ Membership Fees – Associations
can collect annual membership dues to support
activities.

✅ Private Donations – Individuals and
corporations can donate directly to registered NPOs.

✅ Corporate Sponsorships – Businesses
can support non-profits in exchange for social responsibility
contributions.

✅ Fundraising Events – NPOs can
organize charity auctions, concerts, and galas to
raise funds.

✅ Government Grants & Subsidies –
Some NPOs qualify for financial aid from local and national
governments.

✅ International Grants & Partnerships
– NGOs can receive funding from global
organizations like the UN, EU, or private foundations.

2. Public Fundraising Regulations

📌 Permission Required for Public
Donations – NPOs must get approval from the
local governor’s office to conduct public
fundraising.

📌 Transparent Financial Reporting –
All donations must be documented, reported, and
disclosed in annual reports.

📌 Foreign Donations & Aid –
International funding must be reported to the Ministry of
Interior.

🚨 Failure to comply with donation laws can result in
fines or legal action.

3. Best Practices for Successful
Fundraising

✔️ Use Online Fundraising
Platforms – Digital campaigns via social media and
crowdfunding sites can attract donors.

✔️ Engage Corporate Sponsors –
Partnering with businesses can ensure long-term financial
sustainability.

✔️ Offer Tax Benefits to Donors
– If an NPO has public benefit status,
donors can receive tax deductions.

✔️ Show Transparency – Publish
donor reports and success stories to gain trust
and encourage more contributions.

Challenges Faced by Non-Profits in Turkey

Non-Profit Organizations (NPOs) in Turkey play a crucial role in
social development, but they face several challenges that affect
their sustainability and operations. Below are some of the key
legal, financial, and operational challenges NPOs encounter in
Turkey.

1. Legal & Regulatory Challenges

📌 Strict Government Regulations –
NPOs must comply with complex legal frameworks and
regularly report activities.

📌 Fundraising Restrictions – Public
donations require official permission from the
local governor’s office.

📌 Foreign Funding Scrutiny –
International donations are closely monitored by the Ministry of
Interior, making it harder to receive external support.

📌 Lengthy Registration Process –
Establishing a foundation requires a minimum of 500,000 TRY and
approval from the General Directorate of Foundations.

2. Financial Challenges

📌 Limited Access to Funding –
Many NPOs struggle to secure government grants, corporate
sponsorships, or sustainable revenue streams.

📌 Taxation Issues – Only NPOs with
public benefit status receive tax exemptions, making it harder for
smaller organizations to thrive.

📌 Economic Instability – Fluctuating
currency and inflation rates impact donation levels and operational
costs.

3. Public Awareness & Trust Issues

📌 Lack of Awareness – Many people
are unfamiliar with non-profit operations, reducing potential
membership and volunteer engagement.

📌 Donor Skepticism – Transparency
issues in some organizations create distrust, discouraging
corporate and individual donations.

4. Operational & Administrative
Challenges

📌 Bureaucratic Barriers –
Frequent audits, compliance checks, and reporting requirements
increase administrative burdens.

📌 Lack of Skilled Workforce – Many
NPOs struggle to recruit and retain experienced staff and
volunteers.

📌 Limited Digital Adoption – Some
non-profits lack the technology or knowledge to implement effective
online fundraising and marketing strategies.

5. Political & Social Challenges

📌 Political Sensitivities – Some
NPOs, especially those working in human rights and advocacy, face
restrictions or government intervention.

📌 Limited Media Coverage –
Non-profit activities receive minimal mainstream media attention,
making outreach difficult.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.