Article 12 – The income sources of the association are listed below.
- Membership Fee: The entrance fee and the annual membership fee collected from the members are determined by the general assembly. Within these limits, the fees are determined by the board of directors. The general assembly has the authority to increase or decrease these amounts.
- Donations and contributions made voluntarily by individuals and legal entities to the association.
- Income from activities organized by the association, such as tea and dinner meetings, trips and entertainment, representation, concerts, and conferences.
- Income derived from the assets of the association.
- Donations and contributions collected in accordance with the legislation on fundraising.
- Profits obtained from commercial activities undertaken by the association to generate the necessary income to fulfill its purpose.
- Other income.
Principles and Procedures for Keeping Records and Books of the Association
Article 13 – Principles of record-keeping:
The association maintains its books based on the operating account. However, if the annual gross income exceeds the threshold specified in Article 31 of the Associations Regulation, starting from the following accounting period, the books are kept based on the balance sheet.
If the mentioned threshold is not reached in two consecutive accounting periods, the association can return to the operating account basis from the following year.
The association may keep books based on the balance sheet without adhering to the mentioned threshold with the decision of the board of directors.
If the association establishes a commercial enterprise, separate books are kept for this commercial enterprise in accordance with the provisions of the Tax Procedure Law.
Recording Method
The association’s records and registers are kept in accordance with the procedures and principles specified in the Associations Regulation.
Books to be Kept
The following books are kept in the association:
a) The books to be kept on the basis of the operating account and the principles to be followed are as follows:
- Resolution Book: Decisions of the board of directors are written in this book in chronological order with a reference number, and they are signed by the attending members.
- Membership Register: This book records the personal information of members who join the association, their entry and exit dates. The amount of entrance and annual membership fees paid by the members can be recorded in this book.
- Document Register: Incoming and outgoing documents are recorded in this book with the date and serial number. The originals of incoming documents and copies of outgoing documents are filed. Documents received or sent via email are stored by taking a printout.
- Operating Account Book: The income received and expenses made on behalf of the association are recorded in this book in a clear and orderly manner.
b) The books to be kept based on the balance sheet and the principles to be followed are as follows:
- The books mentioned in paragraphs 1, 2, and 3 of subsection (a) are also kept when books are kept based on the balance sheet.
- Journal and General Ledger: The method of keeping these books and recording format is carried out in accordance with the General Communiqués on Application of the Accounting System published based on the authority granted by the Tax Procedure Law and the Ministry of Finance.
Certification of Books
Except for the General Ledger, the compulsory books to be kept in the association are certified by the Provincial Directorate of Civil Society Relations or a notary before starting to use them. These books are used until their pages are filled, and interim certification of the books is not done. However, if the Journal is kept in accordance with the balance sheet basis, it must be recertified annually in the last month before it is used in the following year.
Income Statement and Balance Sheet Preparation
If the association keeps records based on the operating account, an “Income Statement” is prepared at the end of each year (December 31st), as specified in Appendix-16 of the Regulation on Associations. If the records are kept based on the balance sheet, a balance sheet and income statement are prepared at the end of each year (December 31st) based on the Accounting System Implementation General Communiqués published by the Ministry of Finance.
Income and Expenditure Transactions of the Association*
Article 14 – Income and expenditure documents:
Association income is collected using a “Receipt” (an example of which is provided in Appendix-17 of the Regulation on Associations). If the association income is collected through banks, documents such as bank receipts or account statements issued by the bank serve as receipts.
Association expenses are made using expenditure documents such as invoices, retail sales receipts, or freelance invoices. However, for payments falling under Article 94 of the Income Tax Law, a payment voucher is used as an expenditure document according to the provisions of the Tax Procedure Law. For payments not falling within this scope, documents such as “Expense Receipt” or “Bank Receipt” (an example of which is provided in Appendix-13 of the Regulation on Associations) are used as expenditure documents.
Deliveries of goods and services free of charge by the association to individuals, institutions, or organizations are made using a “Delivery of In-kind Aid Certificate” (an example of which is provided in Appendix-14 of the Regulation on Associations). Deliveries of goods and services free of charge to the association by individuals, institutions, or organizations are accepted with a “Receipt for In-kind Donation” (an example of which is provided in Appendix-15 of the Regulation on Associations).
These documents are printed in the form of bound books or continuous forms consisting of 50 original and 50 duplicate sheets with consecutive serial and sequence numbers, in the format and size shown in Appendices 13, 14, and 15. The documents to be printed in the form of forms or continuous forms must meet the specified requirements.
Receipt Documents
“Receipt Documents” to be used for the collection of association income (in the format and size shown in Appendix-17 of the Regulation on Associations) are printed by decision of the board of directors and obtained from the printing house.
The printing and control of receipt documents, their receipt from the printing house, recording in the ledger, handover between the outgoing and incoming treasurers, and the use of receipt documents and the delivery of collected income on behalf of the association by the person or persons are carried out in accordance with the relevant provisions of the Regulation on Associations.
Authorization Document
Except for the main members of the board of directors, individuals authorized to collect income on behalf of the association are determined by a decision of the board of directors, specifying the duration of the authorization. The “Authorization Document” (included in Appendix-19 of the Regulation on Associations) containing the clear identity, signature, and photographs of the individuals authorized to collect income is prepared by the association in duplicate and approved by the chairman of the board of directors. The main members of the board of directors may collect income without an authorization document.
The duration of the authorization documents is determined by the board of directors, up to a maximum of one year. Expired authorization documents are renewed in accordance with the first paragraph. If the duration of the authorization document expires or the person for whom the authorization document is issued leaves their position, dies, or is terminated from their job or duty, they are obliged to return the issued authorization documents to the association board of directors within one week. Additionally, the authority to collect income can be revoked at any time by a decision of the board of directors.
Retention Period of Income and Expenditure Documents
Except for the books, receipt documents, expenditure documents, and other documents used by the association are stored for a period of 5 years, in accordance with the numbering and date order in the books, unless otherwise specified in special laws.
Submission of Declarations
Article 15 – The “Association Declaration” (found in Appendix-21 of the Regulation on Associations) regarding the activities, income, and expenditure transactions of the association for the previous year, as of the end of the year, is filled out by the association board of directors and submitted to the local administrative authority by the president of the association within the first four months of each calendar year.
Notification Obligations
Article 16 – Notifications to be made to the local administrative authority;
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