As a basic social organization and institutional form, foundation is different from government, enterprises and general non-profit organizations. The basic characteristics of foundations are public welfare, non-profit, non-government and fund trust.
1, public welfare
The public welfare of the foundation is reflected in three aspects: first, the foundation comes from donation, which is an institutionalized and organized form of public welfare donation; Second, the foundation has a clear public welfare purpose; Third, the foundation has a clear public welfare purpose and benefits specific groups and the whole society through various project activities. Public welfare determines that the foundation is essentially a social welfare organization.
2. Nonprofit organizations
Non-profit is embodied in the operation and management of the foundation and its corresponding system norms, which are manifested in three aspects: first, there is a non-profit distribution and income restraint mechanism, which requires the donors and actual entrusted managers of the foundation not to obtain benefits from the foundation's property and its operation; Second, there is a non-profit organization operation and management mechanism, which requires the foundation to have a self-control mechanism to effectively avoid higher risks and obtain higher returns; Third, there is a non-profit property preservation mechanism, which requires the foundation not to change the property and property rights structure by other means than donation.
3. Non-governmental nature
The folk nature of the foundation is the main feature that distinguishes it from the government, which is manifested in three aspects: first, the foundation is different from the government in decision-making system, and it is an independent legal person with independent decision-making and autonomy; Second, the foundation is different from the government in governance structure, and it is a democratic and open social organization; Third, the foundation is different from the government in operating mechanism, and it is an organization that pursues core competitiveness and survives the fittest in the market.
4. Fund Trust
Foundation is a collection of public welfare properties formed on the basis of donations, which exists in the form of funds.
Legal basis:
People's Republic of China (PRC) Civil Code
Article 57
A legal person is an organization that has the capacity for civil rights and civil conduct, enjoys civil rights and undertakes civil obligations independently according to law.
Article 87
A legal person established for public welfare or other non-profit purposes is a non-profit legal person if it does not distribute profits to investors, founders or members.
Non-profit legal persons include institutions, social organizations, foundations and social service institutions.
Article 92
Foundations, social service organizations, etc. , with legal person qualification, established for the purpose of donating property, registered and established according to law, and obtained the qualification of donating legal person.
A legally established venue for religious activities that meets the requirements of a legal person may apply for registration as a legal person and obtain the qualification of a donated legal person. Where laws and administrative regulations provide for places for religious activities, such provisions shall prevail.