Foundation (institution) - SpeedyLook encyclopedia

France

Types of foundation

The term of foundation indicates the act by which one or more natural persons or morals decide the irrevocable assignment of goods, rights or resources with the realization of a work of general interest and with nonlucrative goal. The foundation is distinguished from the association by the fact that it does not result from the contest of will of several people to work together, but of the financial liabilities and irrevocable of the creators of the foundation, whether they are private individuals or companies. A foundation, it is above all the private money placed at the disposal of a public cause. Contrary to an association, a foundation does not comprise members. It is directed by a board of directors, of which the members can be partly made up by the founders, but also members of right and co-opted members elected.

The French legislation distinguishes three types of foundations:

the foundation of company , created by a Undertaken which carries out the initial equipment and can give its name to the foundation. Its lifespan is limited to five years, renewable. The foundation of company is the framework in which the company exerts and develops its action of Mécénat.
the foundation recognized of public utility , created by an individual (provided that the objectives of the foundation are of general interest), a family, an association, a group of people, private individuals or companies. The recognized foundation of public utility exists really only as from the moment when she is recognized of public utility by decree of the Minister of Interior Department after favorable opinion of the Council of State. The procedure is thus extremely demanding insofar as the French State wants to make sure of the character really of general interest of the goal that the foundation from its statutes assigns. Because of its irrevocable character, the lifespan of the foundation becomes unlimited then. The recognized foundation of public utility can receive public or deprived subsidies, gifts and Legs, call upon public generosity, organize demonstrations relative to its objectives, sell products related to its object. Contrary to the other non-profit making organizations, it could also be owner of investment properties, even if these buildings directly do not relate to the object of the foundation.
the sheltered foundation , created within the Institute of France, the Foundation of France, or another foundation known as sheltering. The sheltered foundation does not have the statute of moral person. It is the organization which lodges it which manages its budget.

Only these three forms of legal entities are authorized, since the law of 1987, to carry the title of foundation. There exists also a tolerance as for the port of the title of foundation in favor of the foundations which had acquired the use of this word in their title before the coming into effect of the law.

The procedure of recognition of public utility of a foundation is necessarily initiated in front of the Ministère of the Interior. This procedure can, according to the cases, to take few months at some two years. The request file must emphasize the ends which the founders work towards, originality of the foundation, generous character and/or of general interest of the objectives, financial means at the disposal of the institution in the form of an initial equipment, the incomes of which it will lay out, etc

The Ministère of the Interior requires in particular a minimal initial equipment of an higher amount a million euro before leaning on the file of recognition of public utility. In addition, the statutes can provide that a representative of the State will sit at the Board of directors of the foundation. Failing this, a government commissioner will supervise the activity of this one. Lastly, an estimate concerning the first three businesss year of the foundation is required.

Patronage

The " law Aillagon " of August 1st 2003 reforming the legislation relating to the patronage allowed the recent creation of many foundations.

Switzerland

The foundation is governed by the Swiss Civil code, Article 80 and S. Its definition is the assignment of goods (which they are movable or real) with a precise goal, decided by the founders.

The foundation has as an aim the assignment of goods in favor of a special goal.

The United States

There exists today: 62000 foundations in the United States which invests each year 3,6 billion dollars in the culture. Two more important in this field are the Fondation Ford (approximately 80 million dollars per annum) and the Fondation Reynolds (58 million dollars per annum).

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