The question arises – which form to choose – a Charitable Foundation or a Public Organization. After all, these are two completely different forms of social activity of civil society. In addition, they are regulated by different laws.
We can say that the purpose of establishing organizations is the same – humanitarian assistance and meeting humanitarian needs, but the tasks are different. And the mechanisms of work of such organizations are also different.
Some only collect and redistribute aid. Others finance projects that will help, for example, to build safe housing for those who have lost it. They are looking for planners, designers, builders for this purpose.
So, what are the main fundamental differences between Charitable Foundations (CF) and Public Organizations (PO)?
CF – carries out charitable activities (accumulates charitable donations and distributes them in the form of assistance). NGO – protects rights and freedoms, satisfies public, in particular economic, social, cultural, environmental and other interests. That is, the sphere of activity of the CF is targeted assistance to those who need it, NGO – promoting the development of civil society in certain areas, financing projects, educational and other programs in such areas.
A CF can be established by even one person, an NGO – by at least two.
Only NGOs can carry out entrepreneurial activities (without the purpose of making a profit and in order to achieve the goal of the NGO). CF cannot carry out such activities.
NGO can finance construction projects (construction, purchase of goods), order services and works, if these projects are in the field of activity of NGO. The CF can finance only those projects, services and works that have a targeted purpose.
Administrative expenses (salaries, office maintenance) for the CF are limited to 20% of the received revenues, for the CSO they are not limited.