Different foundation models
Creating a foundation or fund requires complying with the legislation in force governing entities in different forms. In fact, foundations and funds differ from associations, in both status and operating model.
There are eight types of foundations and funds in France:
- a foundation of public interest;
- a donor-advised fund;
- a charitable foundation;
- a partnership foundation;
- a corporate foundation;
- a university foundation;
- a hospital foundation;
- a scientific cooperation foundation
Each foundation type differs in its operating model and statutory obligations.
Mandatory steps in creating a foundation
In most cases, creating a foundation or fund in France requires administrative authorization from the Interior Ministry or a decree from the Council of State. The financial contribution generally takes place when the foundation is created and represents its capital, to cover operations and meet the objectives set. Depending on the foundation type, initial capital outlay ranges from 150,000 euros to 1.5 million euros in the case of foundations of public interest. The status of the organization needs to comply with the provisions set out in the 1987 Law on the development of sponsorship.
