The cost of creating a foundation or the total amount involved depends on its type. Fondation de France shelters three types of foundations or funds. In France, they are:
- distribution funds, which allocate the entirety of their resources, until they run out completely;
- expendable endowment funds, in which part of the funds are invested to generate dividends for its operations, in addition to its initial capital, where applicable;
- permanent endowment funds, in which assets are invested and only the dividends are allocated to the funding of charitable projects.
Depending on the model chosen, initial outlay varies when creating a foundation.
Distribution and expendable endowment funds require initial outlay of €200,000 within five years. Creating a permanent endowment funds requires a minimum outlay of €500,000. Depending on the objectives set and the assets contributed, founders can choose between these three models. Investment management can be handed over to Fondation de France or dealt with by the founder.
The different steps in creating a foundation
To breathe life into a project and find out the cost of a foundation or the amount needed to create a foundation, please refer to the “Create a donor-advised fund in four steps” page.