Foundation refers to a non-profit legal person established for the purpose of engaging in public welfare by using the property donated by natural persons, legal persons or other organizations. The foundation has the characteristics of non-profit, serving social welfare undertakings and pursuing the increase of social welfare and the maximization of social benefits.
There are three main types of non-profit organizations in China: social groups, foundations and private non-enterprise non-profit organizations are mainly engaged in public welfare undertakings, but social welfare undertakings are not exclusive to non-profit organizations, and governments and enterprises can also engage in public welfare undertakings.
Foundations cannot be transformed into enterprises, and their work features are gathering social funds for the purpose of public welfare and putting them into public welfare projects to provide welfare for the society. Of course, full-time staff of non-profit organizations are paid, but the cost cannot exceed 10% of income, and the current salary standard is not high.
At present, it is still lower than that of enterprises. Non-profit organizations can invest in enterprises, but enterprises must be independent legal persons, and the profits earned by non-profit organizations in enterprises should be used for public welfare purposes.
Benefits and values of foundations
1. Establishing a brand and improving the image and popularity of corporate social responsibility is equivalent to "soft advertising", so many celebrities and companies have set up foundations.
2. Foreign contacts and relations with the government will be established or facilitated by the Foundation. Through the collaboration of the foundation, some entrepreneurs who were originally unknown can establish communication channels with famous business leaders at home and abroad. For example, the initial contact between the Niu Gensheng family of Mengniu and the Rockefeller family of the United States, and the subsequent exchanges and cooperation were all based on the cooperation and exchanges between the Rockefeller Foundation and the Old Bull Foundation.
3. From the tax point of view, both individuals and enterprises can enjoy the tax credit policy if they set up foundations and make large donations every year. And you can kill two birds with one stone, reduce taxes and do good at the same time.
4. Family inheritance, the foundation fixed the wealth and put it into charity, forming a sustainable form of wealth use. Facts have proved that great wealth can be passed down from generation to generation. The secret is not to keep wealth, but to use it correctly. Family foundation is the best model. For example, the Rockefeller family in the United States, with abundant capital, has survived for six generations and is still thriving.