The foundation business
On the first stage the so-called foundation business takes place. This is a unilateral letter of intent requiring written consent. The main component of the foundation business is the establishment of a statute.
The absolute core compo- nents of the foundation business are:
- Pledge of the transfer of property by the founder
- assets equipment
- Purpose of the Foundation
Request sample statutes
In addition, the individual countries have laid down further provisions in their foundation laws. If you are playing with the idea of setting up a foundation, you can request or download sample rates from the respective state authorities.
This is very helpful, since, in addition to the required components according to the German Civil Code (BGB), the country-specific regulations are also incorporated, and a modified pattern kit can thus shorten the following stage two.
Name and seat of the foundation
But first a few explanations to the listed components: Foundations should indeed often represent a legacy. Therefore, the foundation name will usually contain the founder name, or the name of the person to be reminded with the foundation (eg Konrad-Adenauer-Stiftung).
The seat of the foundation is freely selectable, so it can be determined independently of the place of residence of the founder. Legal minimum organ of the foundation is the executive committee. Depending on the size of the foundation and the assets to be managed, other bodies may be set up, such as an advisory council, a board of trustees or a supervisory board.
If the foundation was established during the lifetime, the founder may reserve a right to designate the organs. In doing so, he himself can be called an organ.
The foundation assets
As already explained, the foundation's assets should not be too tight. The foundation's assets must be at least so high that the purpose of the foundation is fulfilled and the ongoing administrative expenses can be covered by the income.
If this is not ensured due to the small size of the property, the rejection of the foundation fee will result. The purpose of the foundation should, however, not be defined too narrowly, so that the foundations of the foundations can still be left to decide.
The purpose of the foundation
They have set up a foundation with the purpose of founding and maintaining the children's playground in the Schwabenallee in Berlin-Biesdorf. This works for several years wonderful, but then the area is rebuilt with a school. The playground does not exist anymore.
The purpose of the foundation can no longer be fulfilled. The foundation would have to be dissolved. It is possible that the foundation supervisory authority adapts to the purpose of the foundation in order to avoid dissolution. Nevertheless, it is advisable to consider the purpose of the foundation more generally (eg maintenance and maintenance of a children's playground in Berlin-Biesdorf).
Submit the statute
If the foundation business is set up together with the statutes, this is submitted to Section 2 of the Senate Administration (eg Senate Administration for Justice). In the case of a non-profit foundation (contribution follows), it is also necessary to recognize the charitable status of the Directorate-General.
In order to accelerate the recognition process, it is also advisable to submit the drafts in advance in order to request informally desired changes. If the foundation business meets the legal requirements, the foundation is recognized. With recognition, the founder is obliged to transfer the assets indicated in the foundation business. The foundation business can start!
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