A foundation is known as a non-profit organization that is formed in order to generate a general interest for the benefit of the collective. To form a foundation in Ecuador, a series of statutes and/or guidelines must be followed that we will make known through this page.
Requirements to create a foundation
The Government of Ecuador establishes, through the Ministry of Labor, a series of requirements for the constitution of foundations, the necessary reactions to complete the process of creating a foundation are the following:
- The Minutes of the Constitutive Assembly of the organization that is being formed must be submitted, it must be signed by all the founders and must describe the following requirements: the will of each one of the members for the creation of the foundation; You must also present the exclusive name in which you describe the provisional directive; At the same time, you must specify the full names of the founders, the nationality, as well as the identity document numbers of each one of them and the domiciliary address. Finally, you must indicate the place of the headquarters that the organization will take place, with reference corresponding to the avenue, street and / or province, inform the telephone number, and / or email address.
- It must also include a photocopy of the statute accompanied by the certification of the provisional Secretary, in which the date(s) of study and approval of the same must be indicated in an exact manner. You must also attach the Minutes of the assembly stating the interest and decision to communicate the organization and integration constituted.
- Also a certified copy of the document issued by the corresponding entity and that records the number of people that make up the board and the document that proves the legal representation of said constitution.
- Finally, include among the documents a certified copy of the legal instrument or the ministerial agreement that accredits the legal person(s) and the last legally approved reform of the statute.
What should the Statute contain?
For the creation of a foundation, a series of requirements must be presented, which must include the legally approved reform of the statute that accredits the legal personality, this statute must contain the following specifications:
- Full name and legal nature of the organization, in addition to the specific address of the headquarters of its operation.
- Specific object of the foundation.
- Purposes of the organization.
- Class, right and obligations of each of the members of the organization.
- Dispute Resolution Registry
- Structure and internal organization of the organization.
- Specification of the causes for which a member can be banned.
- Specification of the economic regime of the organization
Organization policy requirements
The requirements for the registration of the governing organization are the following:
- Announcement
- The respective minutes of the General Assembly where the final board of the organization was elected, in which all members and/or attending partners must sign.
- You must also include a simple copy of the agreement where legal status was granted.
Control and evaluation
For the creation and formation of a foundation, the associates must know that these organizations are subject to the following controls:
- Control of operation in charge of the ministry that granted the status of legal person to the members of the organization, includes the verification of the established documents, the fulfillment of the objective purposes, the list of the partners that make it up and the registration of the directive.
- Tax control of internal income generated by the foundation.
- Record of control and management of public resources
The formed foundations have the responsibility and obligation to provide the minutes of the assemblies held, economic reports, reports of approved reports and audits, in addition to information regarding all activities; facilitate the access of all this information to the competent officials who represent the state for the pertinent verifications.
Foundations that receive subsidies or public resources must be registered in the single registry of civil society organizations and be duly accredited before the corresponding institutions responsible for public resources. Taking into account the requirements established by the law and Ecuadorian regulations.
accreditation
We know accreditation as compliance with the legal regulations and statutes established by the respective ministries of the organization in question for each activity.
The formed foundations that for any reason receive public resources, must have prior accreditation to develop their activities, which will be conferred by the ministry corresponding to the branch in which they perform.
To obtain the necessary accreditation, foundations must provide the following information to the corresponding branch ministry:
- Geographical location that you want to intervene
- Population that benefits from the service.
- Quotation of each activity that you want to carry out or that have already been carried out.
- Financing sources.
- Indicators of quality and efficiency.
- professional experience
- Appointment of a head in charge of the audit
The foundations must present an annual report of activities, financial and audit reports in the entity that granted the accreditation.
The validity of the accreditation will have a period of four years, in which later the organization must be accredited in accordance with the provisions of the decree described.
How is a foundation constituted?
For the constitution of a foundation, the following requirements must be collected to later formalize the registration.
- Request for approval addressed to the director of the labor relations entity.
- Present the original and a copy of the constitutive act of the entity certified by the secretary, this letter must contain full names and surnames, identity card numbers of the founders of the organization, the signatures of the attendees in addition to the appointment of the provisional board of directors.
- The copies of the bylaws duly certified by the secretary must contain the address; the purposes of the organization; rights and obligations of the partners, in addition to the structure and internal organization; the economic patrimony, as well as the causes of dissolution and liquidation; and finally the other provisions that the partners consider necessary without opposing public order, laws and good customs.
- Two copies with a list specifying the founding members of the organization, in which are described: the names and surnames (and if they are natural persons), in addition to the identity card, the address, the value of the economic contribution and the signature of every member. In the case of being legal persons, they must include the company name, the single taxpayer registry, the appointment of the legal representative and the respective copies of the identification documents.
- The certificate of opening of the account in which the contribution of the taxpayers is made, in a bank and/or declaration of the previously valued assets that the partners contribute.
Its duties?
The foundations make various contributions without profit for the benefit of the community and among the functions they perform are the following:
- Collaborates in the development of personality in a proportional way among the collective.
- The integration between the family and the social circle.
- It contributes to the permanent personal, social and cultural improvement that is based on the conception of the human being, his dignity, his duties and his rights.
- Promotes citizen solidarity through the creation of educational establishments that develop collaborative activities for the development of the human being.
- It promotes the integral development of contemporary man through the use of renewable and non-renewable resources to guarantee human survival.
- Fosters, promotes, advises and finances solutions for less favored communities.
- Defends and monitors compliance with human rights framed in the programs and promulgated by nations united.
Benefits
The foundations allow and facilitate alliances with other institutions and also allow obtaining resources from third parties that sponsor the activities planned by the foundation.
In addition, a foundation provides an approach to the needs of society, making human beings more sensitive to the shortcomings of their peers.
Foundations play an important and characteristic role before society since they promote its development, focusing on covering and improving the quality of the less favored.