Pawn shops are currently institutions of private assistance or AP. Like any institution, its activities must be controlled by the a law regulating its functions. In the case of PA institutions, there is a federal law that governs from the year 1943, undergoing changes by abrogation, i.e. by revocation of some norms, in 1998. It is for this reason that in recent days has been updated legislation for such institutions. According to the law that governs us today, the AP institutions seclasifican in foundations, and associations.Such classification is established based on two criteria: first, which refers to its duration and purposes; and, secondly, that refers to the time of its Constitution and the way of creation of their heritage.

It is this last criterion is the one that applies to foundations and associations. Thus, the institutions AP may be known as foundations or associations. In this way, means that a foundation can be comply by moral persons that constitute, in terms of the law, through the involvement of private property goods destined for carrying out acts of social assistance. In the case of associations, understood that they are moral persons whose members provide periodic fees or raised donations for the support of Lainstitucion, notwithstanding that it may agree that the members also contribute with personal services. In the same way and based on the law, private assistance institutions can be constituted in life of the founders or by Testament.

Currently, only 22 States of the Republic have their own legislation. However, are only some laws define them to private assistance institutions as entities with legal personality and its own assets, without aim of profit which, with particular property executed acts of social assistance without individually designating the beneficiaries. On the other hand, some other laws define them in general terms as institutions constituting by the will of individuals, no purpose of profit, in favour of individuals or society, with elsiguiente object: help the weak or the marginalized; and/or promote the overcoming of the man, regardless of their economic or social; or contribute to the improvement of the conditions of the community and / the environment.