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If you wish to start a charitable organization, you usually establish a foundation. You do this at a notary, with articles of association that specify, among other things, the purpose, the board, and the destination of the assets. A foundation has no members or shareholders, transfers any profits to the cause, and has legal personality (directors are usually not personally liable, with exceptions). Directors are registered in the Trade Register and the UBO in the UBO Register.
There is a greater need than ever for people who want to do good. Starting a charity is noble — we explain how it works and what you should look out for.
A foundation for your charity
If you have an idealistic, social, or societal goal, a foundation is the right form. You establish it alone or with others. Like a business, a foundation can perform legal acts and even make a profit—but it does not distribute this to shareholders; instead, it uses it to realize its goal. That goal is central.
Establishing a foundation
You need articles of association: the internal rules of the game, a sort of constitution, including the purpose, how directors are appointed and dismissed, and what happens to the assets upon dissolution. Foundations would do well to have their legal affairs in order, and good articles of association are indispensable in this regard.
To establish the foundation, you go to a notary, who draws up the notarial deed containing the articles of association. A legal entity can also establish a foundation. Directors are registered in the Trade Register, and the ultimate beneficial owner (UBO) in the UBO Register.
Management and staff
A foundation has no members (and therefore no general meeting) and no shareholders, but it does have legal personality: directors are usually not liable with their private assets — although there are exceptions, such as directors who overstep their authority.
Directors have signing authority and can enter into agreements on behalf of the foundation; you specify in the articles of association who is authorized, for example, that above a threshold amount, a majority of the board must sign. You can also establish a supervisory board. A foundation can hire staff and, like other employers, pays social security contributions and payroll taxes. If the foundation does not have ANBI status, directors may also be salaried employees themselves.
Costs of a foundation
No minimum starting capital is required, but there are notary fees (which vary by notary) and a one-time registration fee with the Chamber of Commerce. Seek legal advice in advance when drafting the articles of association and other documents.
Frequently Asked Questions
Which legal form should I choose for a charity?
Usually a foundation: it is focused on an idealistic, social, or societal goal, has no members or shareholders, and devotes its resources to that goal.
Do I need a notary?
Yes. A foundation is established by notarial deed, in which the articles of association are included. Directors are registered in the Trade Register and the UBO in the UBO Register.
Are directors of a foundation personally liable?
Usually not, thanks to legal personality. However, directors can be held personally liable in the event of improper management or acting outside their authority.
Assistance with setting up your foundation
The legal experts at MKB Juristen advise you and assist with articles of association and other documents. View our expertise in corporate law or schedule an intake meeting .
