Is it legal to “BUY” or “SELL” a Non-Profit Organization in Brazil

  • September 11, 2023
  • Ingesto
  • 11 min read

This text was written by one of our Volunteer Consultants, Rubens Santana, and part of the text below was altered and modified by the author in order to better contextualize the user and add new and original content.

There is an unregulated market for “buying” and “selling” NGOs in Brazil? In this text we will deal with this topic and clarify everything about it, even because we will discover Soon below like the Google presents a satisfactory answer to the question.

So we ask: Is it possible to sell a Non-Profit Institution – ISFS? Is it possible to sell your Non-Governmental Organization – NGO? It is possible to “sell” and “buy” a CNPJ of a Organization of Civil society of Public Interest – OSCIP? or “buy” or “sell” your Foundation, Association, Religious Association, OSCIP, YOU, and other related organizations?

I clarify here that, when we are talking about “buying” or “selling” CNPJ of a non-profit organization we are actually dealing with the transfer of ownership of that CNPJ. That is, the CNPJ was linked to a board of directors appointed and elected by a meeting and will be replaced by another board appointed and elected by a meeting. Everything is completely legal, strictly complying with the provisions of the Civil Code and adjacent legislation.

He wants TRANSFER or PURCHASE The Ownership of a NON-PROFIT ORGANIZATION Contact us at the links below:

Google doesn't know
Search on Google

Well, as we all know, when we have a question, where do we go? In the past we looked in dictionaries, today however, we invariably turn to Google.

When we have a doubt, we look for Soon O GOOGLE so that in seconds we can obtain a satisfactory and possibly correct answer. The objective of Google Always be efficient in your responses. The focus is to deliver a result that is one hundred percent correct. That's the goal, that's Google's mantra.

However, in our initial doubt about the possibility of commercializing a NGO O Google, today, January/23, still failed miserably. He still doesn't know what people are asking and so he offers an unsatisfactory answer. Surely from this text, perhaps the search engines of the Google begin to present a correct answer to the question.

If you open a tab in your browser right now, and type in the search page Google and search: “how to buy an ngo“, the answers will be those that will appear in the image below. Just skip the ads, which are paid and go to the organic results, the ones after the ads. (an addendum to this part of the text. If you do a search today, you will notice that Google has already corrected the content it delivers to the user. In this case, the first result that appears is actually Rubens Santana's own text In other words, it's Google being Google, increasingly improving its efficiency in delivering results).

You organic results are exactly those that Google they consider more relevant and that is why they present you. Are they:

Google's answer to the question: “how to buy an NGO”

If you type: “how to sell an NGO“, in the same way, the Google You won’t know the answer and will give you some results similar to those in the image below:

Google's answer to the question: “how to sell an NGO”

That is, the Google still don't understand what people are asking. When a user searches on Google, “how to buy an ngo”, “how to sell an ngo”, he is really wanting to know what is necessary to “buy” and “sell” a CNPJ of a non-profit institution. And in that case, the Google does not yet know how to present a satisfactory and efficient response.

The answers from Google These two questions are usually answers about the possibility of a non-profit organization being able to sell products and profit from it. As you can see, it has no association with the user's question.

In any case, we will present in this text the correct answer about the “buying” and “selling” of Non-Profit Organizations in Brazil. We will check whether the legislation allows this, whether it is really a clandestine market or whether it is just a lack of information.

So, follow me through the text below and you will find out everything about the subject.

“Buying” and “selling” a non-profit organization is nothing more or less than “buying” and “selling” a CNPJ, but in our case, a CNPJ of a non-profit organization.

So the question is: Is it possible to “buy” and “sell” the CNPJ of a Non-Profit Institution in Brazil legally? Does the law allow this? It's forbidden? Why is so little said about the subject? And because when people deal with this issue, they are “full of fingers”, as if it were illegal marketing? As if they were doing something illegal?

Can or can not?

Well, it is not prohibited or illegal to “sell” CNPJs in Brazil. Yes, it is allowed to “buy” or “sell” the CNPJ. When talking about “buying” and “selling” a CNPJ of a company FOR PROFIT, it is important to make it clear that this process involves the sale of a company's shareholder shares. Everyone needs to agree (in the case of a company that has shareholders).

Therefore, anyone who “buys” a National Register of Legal Entities You will become the new person responsible for the company and all of its obligations, assets and liabilities will be under your responsibility.

However, when it comes to a NON PROFIT ORGANIZATION, is it also possible? It's cool?

Yes, it is possible and is it legal, however? There's always a catch. There are some differences that need to be clarified.

At the CNPJ with TO PROFIT, of companies, belongs to the owners, to the partners of that company, and therefore, at their discretion, if they wish, they can separate themselves from that company. CNPJ, can sell, without major problems, as they are the real owners of that CNPJ.

However, when we talk about Organizations of Civil society, NON PROFIT ORGANIZATION, It is important to understand that this model of CNPJ has different legal characteristics from the other model of CNPJ, for profit, requiring a more careful analysis.

As we know, the Non profit organization are constituted by the meeting of people who wish to develop activities of social interest, in favor of a certain group or society in general, without the intention of obtaining Profit or other type of financial benefit.

For an association to gain legal personality and be able to carry out these activities, it is necessary that the incorporation documents (minutes of the meeting creating and electing the first board of directors, as well as the bylaws) are duly registered with the Legal Entities Registry Office and on Brazil's federal revenue.

O statute, in addition to various information, such as the name, headquarters, and purposes of the entity; the rights and obligations of members; among other requirements contained in the civil Code (Law No. 10,406/02, Art. 54), must also clearly define the structure and organizational functioning of the entity and how it will be unavailable.

To “sell” a NGO, the decision-making power of a meeting of a general meeting convened exclusively to discuss this matter. In other words, in theory, the decision-making power for the “sale” of the Institution does not belong to one person, in this case, the President. This type of matter can only be decided by the group of members entitled to vote in a specific voting session.

However, generally in the statutes there is a clause that provides for the dissolution of the entity, which says: “…in case of dissolution (in case of dissolution) of the entity, the respective net assets are transferred to another legal entity of the same nature that meets the requirements of this Law and whose Object is, preferably, the same as that of the extinct entity.” In other words, by statute, according to the text set out in the statute, the institution could not be sold, it could only be transferred. In other words, money could not be made with the availability of CNPJ. However, in the case in question, we are not talking about dissolution, the institution is not dissolving, what will occur is the transfer of ownership of the CNPJ. O CNPJ It was linked to a group of people and will be linked to another group. There is no obstacle to this transfer of ownership, even if its statute contains a clause like the one above.

However, when establishing and maintaining a non-profit organization, the creators generally end up investing money, accountant, notary's office, lawyer, fees and services, maintenance, water, electricity, rent, this is all financed either by donations or with their own resources. of the creators of that Project. Thus, when a non-profit organization will transfer ownership of the CNPJ to another organization or to another legal entity, wants, at least, to recover part of the resources invested in the institution over the years of that organization's existence.

Therefore, it is completely natural for the Organization to request some financial value to transfer ownership of that CNPJ to another Organization, that is, there is absolutely nothing illegal in this act.

PRICE OF A NON-PROFIT ORGANIZATION

Right here begins one of the biggest challenges for those who are going to “sell” or “buy” a CNPJ of a Non profit organization. How to quantify the price of that Organization. Well, on our journey we've seen it all, people asking for 100 thousand reais, another 100 thousand dollars for a CNPJ. In this case, people ask us, are these values real? Is it feasible to sell a Non-Profit Organization for these values?

So, what will determine the value of the CNPJ whether it would be your tangible assets or not. If an Organization has a headquarters that costs 100 thousand reais or 100 thousand dollars, it is clear that it would be fair that, when transferring ownership of that CNPJ the Institution receives the value proportional to the real estate of that Organization.

Now, if the non-profit institution does not have any assets, often in fact, it only has debt, how can it want a higher price than necessary to pass that CNPJ? There's no point. So, when a person wants to spend a CNPJ and asks, let's say, 100 thousand to transfer that CNPJ, we know in advance that the person has no idea what they are talking about, so we prefer not to continue the conversation.

What we see here quite frequently is prices in the order of 1 thousand to 10 thousand reais, hardly more than that. But there is also a variant. If there is an urgent demand, generally whoever is passing the CNPJ will charge more for this urgency. For example, we have already seen a case in which a person would participate in a Notice and needed an Organization, in this case, he needs an organization with some characteristics and with a certain urgency, so whoever was going through the CNPJ demanded a slightly higher price for that CNPJ, something around 20 thousand reais. But in this case there was a conjunction of situations, it is not the standard.

Thus, we came to the conclusion that it is indeed possible to transfer the CNPJ of a NON-PROFIT INSTITUTION.

If you have any questions, I am available to provide any clarifications that may be necessary through our Whatsapp.

A hug and success to everyone.