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How does a company set up an employee welfare foundation?

Strictly speaking, this is not a foundation. To become a legally binding foundation, there will be very strict approval procedures. The foundation can initiate social donations.

It is recommended that you set up a workshop care group, and then all participants can jointly formulate a set of detailed rules for donations, money custody, and distribution, agree on them, and abide by them, and then all of them will sign and approve them.