Liquidation of a Charitable Foundation

Charitable Foundation Liquidation Services

The closure of a charitable foundation is possible in two cases:

• reorganization – involves the transfer of all rights and obligations to its successors;
• liquidation – the termination of the foundation’s activities and its existence.

Any charitable organization, including a charitable foundation, has a distinctive feature — it cannot generate profit from its activities or distribute it among its founders, members of the governing body, or other persons. This means that the foundation, due to its non-profit nature, must support itself: office rent, payroll, etc. Such a financial burden is beyond the capacity of many commercial companies, and all the more so charitable organizations. Therefore, the number of organizations that cease their activities is growing every day.

The liquidation of a charitable foundation involves state registration, since the foundation is a legal entity.

However, the law establishes a phased procedure for the liquidation of a charitable foundation, so before state registration you must:

1. Hold a general meeting of participants where a decision on liquidation is made, a liquidation commission is created, its chairperson or a liquidator is appointed (by the way, the functions of the commission may be performed by the foundation’s governing body), the liquidation procedure and deadlines are determined, and the period during which creditors may submit claims to the foundation is set. After the decision is made, the registration authority must be notified in writing about the liquidation of the foundation.
2. Carry out all necessary measures aimed at terminating the foundation’s activities. These matters are handled by the liquidation commission. It dismisses employees, inventories assets, returns licenses to the appropriate authorities, provides documentation for inspections, prepares the liquidation balance sheet, and transfers documents to the archive.

Next, state registration of the termination of the legal entity is carried out. For this, you need to submit the following documents to the registrar:

• registration card;
• certificate from the archive;
• certificate of no outstanding debts;
• certificates from the Pension Fund and social insurance funds.

Special care must be taken when preparing the documents, since the registrar has the right to leave them without consideration. If the documents are prepared correctly and submitted in full, the registration of the termination of the legal entity is carried out. No later than the next working day, the registrar must issue to the chairman of the commission or a representative of the foundation an official document confirming the liquidation of the foundation – a Notice of state registration of the termination of the legal entity.

Charitable Foundation Liquidation Services by the legal entity “Nakaz”

Liquidation is a process that takes a lot of time and effort, so it’s better to entrust it to professionals. Our specialists solve legal issues daily, so they will efficiently carry out an express liquidation or a turnkey liquidation, which will allow you to take minimal part in the process and save time.

To order the service you need to:

• send all the necessary information about the foundation to the email;
• grant us the authority to liquidate – sign a power of attorney.

Our services include:

• consultations on registration issues;
• holding the general meeting;
• drafting documents during the liquidation process;
• preparation and submission of documents to the registration authority;
• obtaining the Notice of termination of the legal entity.

Legislation:

Law of Ukraine “On State Registration of Legal Entities and Individual Entrepreneurs” of 15.05.2003 No.755-IV;

Law of Ukraine “On Charitable Activities and Charitable Organizations” No.5073-VI of 05.07.2012;

Order of the Ministry of Finance of Ukraine “On approval of the Regulation on the Register of Non-profit Institutions and Organizations” of 24.01.2013 No.37.