Can a Slovak civic association generate profit? 

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The operation of civic associations is regulated by the Act on the Association of Citizens, Act No. 83/1990 Coll. A civic association is primarily established for non-profit and public benefit activities. To carry out this main activity, it is not necessary to register a trade with the trade licensing office. A civic association can also generate profit according to the Act on the Association of Citizens. However, this profit, compared to a commercial company (such as an s.r.o.), is not intended for distribution among the members of the civic association. A civic association can only use the generated profit to achieve its goals, for its activities, or for its own development. In other words, if a civic association generates profit from its activities, this profit is not intended for and cannot be distributed among its members.

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What are the possible funding sources for a Slovak civic association? 

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A civic association in Slovakia can primarily (and most commonly) obtain funds from these sources: 

• membership fees: these are financial contributions from members for their membership in the civic association.
• income from the civic association's activities: this refers to income generated from the civic association's primary activities, for which it was established.
• donations: A civic association can receive financial donations.
• various grants and contributions from the state budget based on state and institutional calls.
• income from 2% of taxes: A civic association registered to receive 2% of taxes can accept a share of paid tax.

In Slovakia, a civic association can, in addition to the aforementioned sources of income, additionally (and to a lesser extent) receive financial resources from these supplementary and secondary sources: 

• income from business activities.
• income from the sale and rental of real estate.
• income from charitable advertising.
• share in the profit of a commercial company. A civic association can be a partner in a commercial company.
• income from public collections and fundraising.
• income from loans and credits.

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So, can a civic association in Slovakia engage in business activities? 

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This brings us to the answer to our question: can a civic association engage in business activities? The answer is that a civic association can engage in business activities, but only to the extent that it is a supplementary activity to the civic association's main activities. This means that A civic association cannot be established for the purpose of conducting business., as often happens. Business activities should only be supplementary to the civic association's main purpose, and any income generated from such activities should be used to support the civic association's public benefit purpose. If a civic association decides to engage in business activities to support its main operations, these business activities must be specified in its statutes.

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