Formation & Registration of Foundation: What is a Foundation?

Foundations are formed to give, donate, grant other nonprofit organizations. Foundations gets shape with its own assets and properties.

Foundation is nothing different from a nonprofit organization. But it differs by formation and registration countrywide.

1. The main concept of the foundation is to fund other organization by donating its own fund or to raise the funds for its own charitable activities.

2. The foundation is of two types: Public foundation and Private foundation. Private foundations are formed by a private entity or by an individual family.

3. The foundation has its own board members, assembly and voting. But it's not having shareholders like a nonprofit company.

4. Foundations are formed with assets and it's being delivered to other nonprofit organization in the forms of donations, grants and charity donations.

5. Foundations are often set up for charitable cause, family patrimony and collective purposes.

6. Some specific laws are applicable to the foundation. So without the help of a certified chartered person, Auditors, Lawyers and attorney, it is difficult to form such foundation like trust, society or nonprofit company.

7. As usual, the accountability of such foundation is annual as like trust, society and nonprofit organizations.

8. Private foundations are formed for philanthropy purposes by individual, family or group of Individuals.

9. Foundations play the role of major movable and immovable assets. So consultation from Auditors, lawyers/attorney is must for every move towards formation of such foundation.

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