With the creation of a foundation, companies can help carry out works of general interest. But before starting, what are the steps to follow? What do you need to know to put your project into action? Today, we take a closer look at this subject and we give you all the keys to success!
Steps to follow to create a corporate foundation
A company foundation is a non-profit organization which can be created by one or more companies, in order to carry out works of general interest.
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If you want to create an entrepreneurship foundation, here is what you need:
- Step 1: Defining the purpose of the foundation
- Step 2: Choose a type of foundation
- Step 3: Determine legal status
- Step 4: Draft legal documents
- Step 5: Obtain the necessary authorizations and licenses
- Step 6: Obtain the necessary financing.
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What are the pros and cons of setting up a corporate foundation?
A work useful to the community is considered to be a work of general interest for entrepreneurship foundations. Creating such an entity has many advantages, such as:
- Credibility: Establishing a foundation gives donors and grantees additional assurance about the financial management process of your cause and will show donors that it is managed in an accountable and transparent manner.
- Cause control: Founders have full control over the mission and activities of the foundation, which helps them to ensure that the money goes to causes that are close to their hearts. Donors can also rest assured that their money will not be distracted or wasted.
- Tax support: An entrepreneurship foundation can benefit from various tax advantages, which allows donors to give with confidence knowing that they will reduce their taxes. The foundation itself may also be exempt from corporation tax (IS) if certain conditions are met.
However, there are also some disadvantages of setting up a foundation, including:
- Significant legal fees : Due to the complex procedures involved in setting up a foundation, the legal and administrative costs associated with setting it up are quite significant. You will therefore need to budget appropriately to cover these costs.
- Additional liability : Managing a foundation is not an easy task. Trustees must be careful to strictly adhere to certain rules and guidelines so that their foundation is considered legitimate by the relevant government agencies.
From the analysis of needs and decision-making to create a foundation, through the choice of its legal form, the search for funding and compliance with regulatory requirements, the establishment of a Foundation requires an efficient and adequate support. Faced with this challenge, entrepreneurs must above all ensure that they have the right technical and financial skills to implement their project. After this thorough study of all these parameters, companies can then choose the option that best suits their objectives and successfully create a lasting foundation. With the information provided in this article, you are now equipped for a successful foundation project!
