Question

We want to hold a festival. Somebody has advised us that we should form a community of interest rather than an association. What actually are the differences between an association, a club and a community of interest?

Answer

If a community of persons is duly established as an association (non-economic purpose, written articles of association, founding minutes, bodies), it is considered to be an association in a legal sense in accordance with Article 60 et sequitur of the Swiss Civil Code (ZGB). An association is not required to include the term "association" in its name. It is clear from the articles of association (usually in the first article) that it is an association. For example, associations refer to themselves as communities, societies, parties or organisations. Associations with various sections or sub-associations are usually refereed to as organisations.

"Community of interest", "club", and "organisation" are not legal terms. Communities of interest and clubs are, however, often organised as associations. It is also possible for them to take a different corporate form, for example that of an ordinary partnership.  However, members of an ordinary partnership assume personal liability and groups that take this legal form are unable to open their own postal or bank account in their name.