Charitable Foundation in Europe: Benefits and pitfalls
The Charity Fund Abroad is an excellent solution for those who want to unite the capital of investors from all over the world for good purposes and minimize taxation in order to make the most efficient use of the funds received for the implementation of major social projects. To open a charitable fund in 2020, you need to analyze the goals of its establishment and choose the legal and organizational structure.
Types of foreign charitable foundations
- Charitable incorporated organization (CIO) - united charity organizations;
- Limited by guarantee - charitable companies;
- Non-corporate trust associations.
Let us dwell on these types in detail to understand their features and advantages. CIO and Limited by guarantee forms are suitable for creating organizations with a corporate governance body. The list of their possibilities is much wider than that of non-incorporated companies. They may have ownership of the real estate and other assets, enter into leases and other contracts with partners on behalf of the foundation, hire people by proxy to do charitable work on behalf of the foundation, and engage in other business activities that do not conflict with the laws of their jurisdiction.
When it is necessary to involve the maximum number of participants in the management of the fund, the legal form of a Charitable incorporated organization (CIO) is the best option. Such a charitable foundation should have its own constitution, which, in fact, is its "manager" (the content of the document defines the decisions of the board members).
Non-corporate trust associations are much less common. In such foundations, the directors are personally responsible for the actions of the company and may not engage in related commercial activities.
Duties of charitable foundations
- Registration according to the requirements of the country chosen as the jurisdiction;
- Organization of document flow in accordance with the requirements of regulatory authorities;
- Timely preparation and submission of reports for regulatory authorities.
To establish a charitable foundation in Europe, it will be necessary to provide a serious package of documents for registration in court, possibly in electronic form. The foundation's charter or constitution, specimen signatures of board members and documents confirming payment of all initial contributions are mandatory. The amounts of initial capital required for successful registration may vary greatly and depend on the law of the chosen jurisdiction.
It is recommended to reach out to IT-OFFSHORE specialists for help in figuring out how a charity fund is registered abroad in 2020. Our qualified employees will save you time and money, help you decide on the choice of the organizational and legal structure of the future charitable foundation, its registration, and documentation support.