Concerns over oversight... Billions of liras in resources flowing to foundations

According to data from the General Directorate of Relations with Civil Society under the Ministry of Interior, there were 74,127 associations operating across the country in 2001, the year the AKP came to power. 

According to the report by İsmail Arı, at least 27,005 associations were established between 2001 and 2023, and the number of associations across the country soared to 101,132. The Ministry also disclosed the total income of these 101,132 associations, meaning the money they manage. According to the Ministry's data, the 2022 income of these associations was 52 billion 593 million TL. In other words, the money managed by these associations is many times higher than the budgets of many ministries, public institutions, and municipalities. On the other hand, information was also shared that approximately 18,000 associations carry out activities for religious purposes. 

BILLIONS OF LIRAS IN FUNDS

According to data from the General Directorate of Foundations, there were 4,566 foundations operating across the country in 2001, when the AKP came to power. During the 22-year AKP era, at least 1,282 more foundations were established, and the number of foundations rose to 5,848. The number of people who are members of these foundations reaches 1 million. Furthermore, the annual income of these foundations is approximately 90 billion TL. 

This means that foundations and associations in the country manage a massive amount of money, at least 142.5 billion TL per year. The government, meanwhile, provides many “conveniences” to these associations and foundations. 

According to Article 6 of the Law on Collection of Aid No. 2860, individuals and organizations cannot collect aid without obtaining permission from the competent authority. However, upon the recommendation of the Ministry of Interior and with the approval of the President, 50 associations and foundations have been granted the right to collect aid without permission to date. Thanks to this, associations and foundations, especially those belonging to religious communities and sects, can collect money as they wish without needing permission from the state. 

Among the associations and foundations granted the right to collect aid without permission are the Deniz Feneri Association, the Diyanet Foundation, the Humanitarian Relief Foundation (İHH), the reactionary Aziz Mahmud Hüdayi Foundation, the Hayrat Humanitarian Aid Association, and the Beşir Social Assistance and Solidarity Association. Additionally, the Turkey Youth and Education Service Foundation (TÜRGEV), where Bilal Erdoğan is an executive, the Turkey Youth Foundation (TÜGVA), and the Foundation for Dissemination of Knowledge (İlim Yayma Vakfı) are also on the list of organizations granted the right to collect aid without permission. While the list includes associations and foundations of AKP officials, associations such as the Association for Supporting Contemporary Living (ÇYDD) are not on the list. Uğur Taşkıran, a Board Member of the Ankara Chamber of Certified Public Accountants (ASMMMO), evaluated the striking increase in the number of foundations and associations for BirGün. Taşkıran stated, “Financial oversight of foundations and associations is very difficult. They are exempted from taxes on the grounds that they work for the public good and are frequently mentioned in allegations of money laundering. It is common knowledge that land and buildings are allocated to them or resources are transferred to them, especially by municipalities and other public institutions. Besides these, they collect money without permission. They also receive grants and collect large amounts of donations. Companies that donate to associations with the status of working for the public good also benefit from tax exemptions.” 

TAX EXEMPTION

There are 363 associations across the country with the status of “Association working for the public good.” The benefit of this status for associations is as follows: “The status of an association working for the public good is a privilege granted by the state if the associations meet certain conditions. Associations with this status can benefit from many advantages such as tax exemption, ease of collecting donations, and the opportunity to cooperate with public institutions and organizations.” AKP President Erdoğan has granted tax exemption status to at least 73 foundations during his tenure. Among these foundations are TÜGVA, where his son Bilal Erdoğan is an executive, and the Women and Democracy Foundation (KADEM), where his daughter Sümeyye Erdoğan Bayraktar is an executive. Erdoğan also ensured that the Nun Education and Culture Foundation, where his son-in-law Berat Albayrak is an executive, and the Turkey Technology Team Foundation, where his other son-in-law Selçuk Bayraktar is an executive, benefit from tax exemptions. The İsmailağa Mosque Science and Service Foundation belonging to the İsmailağa Community, the İhlas Foundation belonging to the Işık Community, the Enderun Education Foundation, the İlkseç Science, Culture, Health, Education, Environment and Social Assistance Foundation, and the Hoşgör Fatih Science Research Foundation were also exempted from taxes. The Human Education Culture and Assistance Foundation, the New World Foundation, the Marmara University Faculty of Theology Foundation, the Reyhan Culture Foundation, the Güneysu Foundation for Helping Science Students, and the Science and Human Foundation, all known for their proximity to the AKP, were also on the list of foundations that received tax exemptions.