The charitable foundation is a non-governmental organization which was opened with the aim of carrying out charitable activities. This fund is a legal entity which uses donations from individuals and legal entities to carry out charity projects.
Most states are providing charitable foundations with substantial support (in the form of tax benefits) at the legislative level.
It should be noted that a charity fund is not a tool for optimizing tax spending. It is classified as a non-governmental organization that carries out charitable activities in accordance with state law and the public interest.
The main features of charitable organizations:
- Both legal entities (the form of ownership of a legal entity does not matter) and individuals can register a charitable foundation;
- Those, who want to set up a charity fund, should know that the founders of the fund may not be budgetary or municipal organizations. In other words, any organizations with a state form of ownership;
- The fund activities should be transparent (interested parties can request a report on cash transactions performed at any time).
- Сharitable foundations may be involved in international and government projects, as well as be engaged in the financing of international programs;
- Registering a charity foundation helps its founders strengthen and enhance their reputation.
Required documentsIf you are planning to register a charity fund remotely, you will need the following documents:
- Founder's application for registration of a charity fund;
- The Statutes of the charitable foundation which should spell out the principles of the fund’s work, fund-raising methods, and a method of funds distribution. It is also necessary to indicate the percentage that can be used for the internal needs of the fund. Usually, about 20% is indicated, which covers the cost of renting an office space, transportation costs and the wages of employees. The Statutes should explain the program of the fund and its purposes.
- Information about the founders of the fund. If the founder is a legal entity, you should provide all information about the owners, the organizational structure of the company, etc.;
- Notarized copies of the fund founders passports;
- Information about the persons who will be involved in the management of the fund;
- Protocol of the meeting of founders.