Legal Definitions - association

An association, in a legal context, generally refers to a group of individuals who have come together for a common, specific purpose without formally incorporating as a business entity. These organizations operate collectively to achieve their shared goals, rather than being structured as a corporation. While many associations function as non-profit entities and may qualify for tax exemptions, some might be treated differently for tax purposes if their structure and operations closely resemble those of a corporation, such as having centralized management or offering liability protection to members.

The term "association" can also broadly describe the act of gathering or connecting with others. For instance, the concept of "freedom of association" protects an individual's right to join with others to collectively express, promote, pursue, and defend common interests.

Here are some examples illustrating the legal meaning of an association:

• A Local Historical Society: Imagine a group of community members who form the "Old Millbrook Historical Society." Their purpose is to preserve local history, maintain a small museum, and organize educational events about the town's past. They have a volunteer board and membership dues but have not formally registered as a corporation.
  • Explanation: This historical society is an association because it is an unincorporated group of people (the community members) banded together for a specific purpose (preserving local history and educating the public). It operates collectively without the formal legal structure of a corporation.
• A Professional Networking Group: Consider a group of marketing professionals in a city who establish the "Urban Marketers' Forum." They meet monthly to share industry insights, discuss best practices, and facilitate networking among members. They have a steering committee and a set of informal rules but are not registered as a business entity.
  • Explanation: This forum functions as an association because it's an unincorporated organization of people (marketing professionals) united for specific purposes (networking, sharing knowledge, professional development). It operates without the legal formality of a corporation.
• A Community Garden Collective: A group of residents in an apartment complex decides to create the "Rooftop Gardeners' Association." Their goal is to collectively manage and cultivate a shared rooftop garden, grow produce for themselves, and foster a sense of community among residents. They have no formal bylaws or legal registration, just an agreement among themselves.
  • Explanation: This garden collective is an association in its simplest form: an unincorporated group of individuals (the residents) who have come together for a specific, shared purpose (managing a garden and building community).