Why you should think about a charity fund

Why you should think about a charity fund

When opening a business, it is important to choose for one of the organizational and legal forms, for example, LLC, LC. Sometimes it is much easier to start an entrepreneurial activity with foreign enterprise. As for non-profit organizations (NPO), the entrepreneurs of a similar formula are considered much less frequently. The goal of this type of business is not income, but NPOs are often resorted to when conducting certain areas of business.

Important points

Non-profit organizations are created as independent legal entities. Such firms can open the material base, which is formed by donations, contributions. Charity funds referral to social needs of residents, the development of scientific activities, religious spheres.

There are 2 types of NPOs:

- Corporate, when the creators are involved in the life of the company.
- Unitary, when creators are not participants.

Positive and negative points

Together with social goals, charitable foundations can also conduct commercial activities (if this moment is indicated in the documents of the company). For example, a charitable organization may conduct educational activities (courses on a fee basis), provide legal services, issue educational programs, etc. Members of NGOs who work on a formal basis are in an employment relationship and receive a salary.

In some cases, non-profit organizations have almost the same conditions as commercial organizations, but in addition use the state. privileges.

Main advantages:

- Simplified reporting form (once a year).
- NPO members are not subject to liability for the obligations of the company.
- Organizations of this type do not have authorized capital.
- All funds that come from the budget, contributions, donations, contributions of NPOs are not subject to taxation.
- Property that goes to the fund as an inheritance is not taxable.
Organizations that are registered as NPOs have preferential benefits. You can also take advantage of the following disadvantages:
- The activities of the organization should fully answer the questions that are in all documents.
- A rather complicated registration form, since each type of company requires an individual list of documentation.
- The creator is responsible for the authenticity of information about the goals and direction of the organization, which is indicated during registration.

All income received by NPOs is not divided among the owners, but goes towards financing the goals of the enterprise.

When choosing a legal form for opening a company, the creator should consider the NPO, like the classical forms of company registration. If the goals comply with the rules for opening a non-commercial enterprise, it will be beneficial for an entrepreneur to apply to this form, if we take into account government benefits.

When opening a charity fund, it is important to take responsibility for creating internal documentation. It must prescribe the order of receipt of funds in the form of donations, contributions, further use of these funds. If something is missed and the development of documents is incorrect, then the benefits can turn into significant shortcomings. The company IT-OFFSHORE will help you to understand all the points and open a long-awaited charity organization.

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