How do charitable foundations work?

It is worth helping, it is much more than a slogan. For many people, broadly understood charity work, volunteering, or simply supporting various actions and foundations, is a value that is permanently inscribed in their lives.

It is worth helping, it is much more than a slogan. For many people, broadly understood charity work, volunteering, or simply supporting various actions and foundations, is a value that is permanently inscribed in their lives. Charitable foundations are organizations that by definition help, e.g. people with disabilities. Thanks to them, those who want to help can choose the form of support (e.g. donation, 1% annually).

Foundation of public benefit – specific activity

The activity of a foundation with the status of PBO is specific because it is focused on providing aid in accordance with specific assumptions. According to the official definition, it is an organization whose main features are:

• capital earmarked for a specific purpose,
• the statute defining the principles of capital use and the nature of the business,
• non-governmental and impersonal character,
• taking over by the management board of custody over the property and responsibility for achieving goals after the foundation is entered into the National Court Register,
  independence from individuals in terms of purposes, property and disposal.

Public benefit foundations have various possibilities of obtaining financial and material resources intended for statutory purposes, in particular donations, inheritances, bequests, subsidies, public collections, 1% tax in the annual settlement. Legal personality and the status of PBOs provide foundations with certain privileges, such as:

• tax exemption: corporate income tax, real estate tax exemption, civil law tax exemption,
• exemption from stamp and court fees,
• the right to publish free information about activities on public radio and television stations.

Foundations helping people with disabilities

In order for a foundation to obtain the status of a PBO, it should operate in one of the public benefit areas defined by regulations. One of them is helping people with disabilities, including the activities of foundations helping children with disabilities. This assistance may be of a very different nature, e.g. the most obvious, i.e. financial support, addressed both to people with disabilities and their carers. It is worth knowing that this applies to help for children with disabilities and adults. Equally important is the joint implementation of educational and professional goals.

The foundations also help in organizing treatment, provide access to the latest methods and rehabilitation. A very important aspect of the operation of a foundation that helps people with disabilities is broadly understood support in fulfilling life passions. Disability does not have to block the way to making your dreams come true. It is worth breaking down stereotypes excluding people with disabilities from many activities – these are also important goals of a public benefit foundation.

What does the foundation live on?

Public benefit foundations, by definition, do not carry out profitable activities, their purpose is charity (e.g. foundations for children with disabilities). Nevertheless, capital is necessary that will allow the implementation of the statutory objectives, as you can easily guess, the initial capital generally does not cover all needs. So let’s take a look at how foundations raise funds for their activities.

Donation – financial or in kind, is things or funds that are donated voluntarily without any benefit. According to the definition, it is a form of contract in which the donor undertakes to provide a free service to the recipient at the expense of his property.

In-kind gifts – a specific type of donation, the subject of which are items given to the foundation by the donor (free of charge). A donor can be a natural or legal person. Write-offs of 1% of personal income tax (this form applies only to foundations with the status of OPP).

Each taxpayer who settles accounts in the annual tax return may allocate 1% of the tax to a selected public benefit foundation. These funds will be transferred by the Tax Office. Public collection – public collection of money or things for a predefined purpose, an appropriate permit is required. Types of public collections:

• collecting donations for money boxes or stationary moneyboxes,
• voluntary payments to a separate account for a given collection,
• sale of the so-called bricks,
• sale of items and services,
• roundabout assembly.

Subsidies from public and private funds – the so-called grants may be awarded by local governments, public administration and private sources (organizations specializing in granting grants). It is a non-returnable financial aid that a foundation helping people with disabilities may receive from a donor (sponsor) for a specific purpose related to its statutory activity or for institutional support.

Paid public benefit activities – carried out as part of the tasks specified in the statute, falling within the area defined in the Act on Public Benefit and Volunteer Work. The foundation may charge fees for this activity. Examples include rehabilitation foundations or those that also offer rehabilitation treatments and services. The most important thing is that income from paid public benefit activities may only be used for public benefit activities.

Fundraising – an effective process of obtaining funds from individuals, companies, organizations, institutions, etc. The funds are collected for social and charitable purposes, and therefore helping people with disabilities fits perfectly into the activities of fundraisers. Methods such as fundraising, lotteries, auctions, public events combined with fundraising, selling bricks, clickable banners on websites are used here.