Charitable foundation is an
independent legal entity that directs donations to charity. In most countries,
charity is given support by legislation, and the foundation as well as donators
are provided tax benefits.
It should be noted that a
charitable foundation cannot be used for personal wealth protection or tax
optimization. The time when legislation of some country allowed carrying out
commercial activities under the guise of charity and thus evading payment of
taxes, is over. Nevertheless, such foundations can effectively use funds for
Main advantages of using charitable foundations
- Charity systematization
The main problem encountered by successful businessmen and wealthy families are random requests for donations or financial support submitted by organizations and individuals. Having its own charitable foundation, the family can identify types of charities to which it is ready to allocate funds, alongside establishing clear rules of providing financial support.
- Building public relations to strengthen the business and family reputation
Charity plays a very important role in activities of successful businessmen and wealthy families. Own charitable foundation is useful for strengthening family reputation, since it has its own unique mission and values, while being a complete legal entity.
- Long-term charity planning
Charitable foundation sets strict rules for charitable activities for many years to come. Families often establish foundations that invest the initial amount donated during first years of the foundation’s operations and use generated proceeds for charity purposes. The charitable foundation also may determine members of the foundation council and the board, as well as set the rules for appointment of new managers.
- Control over utilization of funds
Unlike occasional charitable activities, establishing a charitable foundation the family can engage in charitable projects directly and determine conditions of providing assistance. Therefore, complete situation control gives confidence that assistance is provided in the most efficient way.
- Participation in public and/or international projects
Charitable foundations can raise additional financing and participate in international or public projects, strengthening the family reputation and expanding opportunities for charitable activities.
ABLV Charitable Foundation is one of the largest and most prominent foundations in Latvia. The foundation operates since 2006, and we would like to share accumulated experience with our customers.
We provide advice on charitable activities, assist in establishing foundations in Latvia and Russia, arrange procedures and prepare internal documentation of the charitable foundation, as well as offer administration services.
Also, we would like to offer you our asset protection and payment administration services.