What is a charitable foundation and why create one?

Almost everyone has at least once seen an announcement raising funds for treatment of a serious illness — published on billboards in the city, on a collection box with a photo near a supermarket checkout, or as a help request post on social media. Most people walk past, guided by their own moral principles; others try to help with a small amount; but there are people for whom helping others is one of life’s priorities. In this article we will not only explain the concept of charity, but also lift the curtain on how you can create a dream cause and how much it will cost to establish a charitable foundation.

Any charitable foundation is a non-profit organization whose main purpose is to accumulate and raise financial and material resources for free sponsorship of a charitable project. As the definition shows, it is an organization that is free to dispose of the funds received and is fully exempt from tax. Most often, the founders of such organizations are philanthropists with a solid financial position. Any person willing to participate regularly in various projects and fund them may become a member.

The process of establishing such a legal entity is quite laborious and has a number of pitfalls. Without creating a charitable foundation, the price of a business owner’s peace of mind would be too high, because alone they would have to deal with a mass of unresolved requests and a large flow of information, leaving virtually no time for the core business.

In Ukraine there are several types of charitable activity that differ in a number of ways:

1. Direct transfer of funds or any property into ownership of a project in need;
2. Implementation of wills, including hereditary contracts under which property was transferred for charitable activity;
3. Temporary or permanent transfer of the right to use certain property or rights to that property;
4. Holding auctions, lotteries, contests, or other fundraising events;
5. Compensation by charitable foundations of expenses incurred by the organization receiving assistance;
6. Joint charitable activity or performance of other contracts aimed at charity;
7. Other types of activity.

In addition, receiving charitable assistance from such foundations may take place alongside social payments and benefits provided by law. When registering a charitable foundation, each founder’s share price may vary depending on their means. Most often a reliable law firm is engaged for this process — one that will not only tell you how much it costs to open a charitable foundation, but also help you complete the entire procedure from A to Z, including all bureaucratic delays.

How much it costs to organize a charitable foundation depends on many factors that will be taken into account when signing the agreement to create the foundation. The price will depend on the set of services the initiator chooses to use. For some, a one-time consultation is enough — including a name check, development of the founding purpose, and preparation of constitutional documents.

For a more comprehensive approach, the cost of registering a charitable foundation rises due to the law firm’s direct participation in the creation process itself. This already includes filing documents for state registration, obtaining registration documents, obtaining non-profit organization status, producing a seal, and opening a bank account.

If the founder wants the charitable foundation to operate at full capacity from day one and to accelerate the inflow of funds, they may also order media and news-agency registration services and consultations on grant activity.

Any law firm can calculate how much it costs to open a charitable foundation, because its own rates will be involved, taking into account the company’s reliability and trust level. When registering a charitable foundation, the price should be fully justified, since all creation costs are effectively paid from funds that could theoretically have gone to charity.

Therefore you should not immediately turn to the most expensive office, type into Google “charitable foundation registration price,” and follow the first advertising link — where you will likely find a firm trying to profit from such noble intentions. You can find a worthy, professional, reliable team with a long track record that will be on the same wavelength with you and help bring a long-held dream to life.

One of the best and most honest companies providing charitable foundation registration services is VINCO’S, which has highly qualified specialists on staff and many years of experience in legal services of this kind. When calculating charitable foundation registration, the price depends only on the service package the client chooses. No hidden fine-print clauses — all terms are transparent, the team is open, and the result is always of a high standard.

The company’s slogan is Law company VINCO’S “The best lawyers for your business.” This market player has more than 7 years of experience in charitable foundation registration, which means your project is in reliable hands.