Foundation recognized as being in the public interest (FRUP)

A foundation is a legal person of private law non-profit.

The purpose of a foundation is to divest irrevocable resources, property or rights, by one or more natural or legal persons, for the purpose of carrying out a work of general interest.

It may be a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural work. But also the promotion of artistic heritage, the defense of the natural environment or the dissemination of French culture, language and scientific knowledge.

Criteria

For a foundation to be recognized as being in the public interest, it must meet several criteria, assessed by the Ministry of the Interior and the Council of State.

These criteria include:

• General interest of missions
• Aim distinct from the interest of members
• Non-profit making
• Radiation beyond the local setting
• Collegial and democratic governance
• Compliance with rules of transparency and ethics
• Financial stability and economic sustainability.

The foundation must also have statutes rules and regulations and a person who does not comply with the applicable rules and doctrine.

Decision

For a 1st recognition of public utility or substantial amendments to the articles of association as regards the social purpose or the substance of the allocation, the decision shall be taken by decree, after obtaining the opinion of the Council of State.

For non-substantial amendments, the decision shall be taken by order of the Minister of the Interior, after obtaining the opinion of the Council of State.

Processing of the application

The analysis of the file is thorough and involves a consultation of different ministries, depending on the areas of activity of the foundation.

The file must contain all the documents necessary to be examined. If the file is incomplete, it will not be processed.

Characteristics of the identifier number

Each foundation recognized as being in the public interest must have a unique identifier number, which remains the same throughout its existence.

This number is included in the national repository of funds and foundations.

Assignment of the identifier number

There are 2 possible scenarios (new foundation or existing foundation):

To be created and recognized as being in the public interest, the foundation must meet the following 2 conditions:

• Submit a project that meets the criteria for public utility recognition
• Have statutes that guarantee the proper functioning of the foundation in the long term.

Step 1: Request the support service to develop the foundation creation project

Before filing an official application, it is strongly recommended to use the support service, offered by the Ministry of the Interior, to prepare your project.

The objectives of this service are to:

• Check whether your project meets the criteria for public utility recognition
• Advise you on the governance, operation and business model of your foundation
• Assist you in drafting statutes adapted to your project and in accordance with the regulations and doctrine in force. A draft of the statutes will be proposed to you at the end of this process.

This support helps to resolve any questions or difficulties that may arise during the investigation of the application, which reduces the time required to examine your file afterwards.

This support is only done online via the following teleprocedure:

Assistance in drawing up the first statutes of a foundation recognized as being of public benefit

Step 2: Submit the application file for foundation creation

Once your project is ready, you can officially submit your file to the Ministry of the Interior.

The filing of the application is obligatory.

It is to be done online via the following teleprocedure:

Establishment of a foundation recognized as being of public benefit

Updating the statutes enables the FRUP to take account of developments, but also to adopt statutes that guarantee its smooth operation in the long term.

Step 1: Request the support service for amending the statutes of a foundation

Before submitting an official request for modification, it is strongly recommended to call on the support service of the Ministry of the Interior to prepare your project.

The purpose of this service is:

• Check whether your project meets the criteria for public utility recognition
• Advise you on the governance, operation and business model of your foundation
• Assist you in drafting statutes adapted to your project and in accordance with the regulations and doctrine in force. A draft of the statutes will be proposed to you at the end of this process.

This support allows you to resolve any questions or difficulties that might arise during the investigation of the application, which reduces the time to examine your file afterwards.

The request for assistance is made online only via the following teleprocedure:

Aid for amending the statutes of a foundation recognized as being in the public interest

Step 2: Submit the status amendment application file

Once your project is ready, you must submit an official file to the Ministry of Interior.

The change request is only made online via the following teleprocedure:

Statutory amendment of a foundation recognized as being in the public interest

Rules and regulations Role of the

Rules and regulations Foundations recognized as being in the public interest must adopt a procedure to specify how they apply the provisions of their statutes.

Rules and regulations Rules for the

Rules and regulations The following rules must be respected by the user:

• Include mandatory elements such as the conditions for the organization of meetings, the responsibilities and tasks of the different bodies (administrative or supervisory board), the procedures for taking and applying important decisions. These points ensure a clear and transparent management of the Foundation.
• Do not deal with matters reserved for statutes: certain fundamental elements of the foundation, such as its purpose, its members, or the conditions for amending statutes, must remain in the statutes. Rules and regulations The processor completes them without replacing or modifying them.
• Comply with the statutes of the Foundation. Rules and regulations The person concerned must comply with the rules laid down in the statutes. Rules and regulations For example, if the statutes require a quorum for validating a decision, the person cannot set a different quorum. This ensures consistency between the 2 documents.
• Respect the general rules applicable to the FRUP: the regulation must also respect the principles of ethics and transparency that apply to all foundations recognized as being of public benefit. This includes transparent financial management, compliance with the general interest objectives of the Foundation, application of the rules and doctrines in force.

If the Regulation does not comply with these principles, it may be challenged by the competent authorities.

Rules and regulations Taking effect of

Rules and regulations The takes effect after declaration to the Ministry of the Interior. However, it may oppose any element of the Regulation which does not comply with the legal framework.

Such opposition may arise at any time after the entry into force of the Regulation, but only after an adversarial procedure. The latter guarantees the Foundation the right to be informed of the points in dispute, to present its arguments or amendments, and to have its observations examined before a final and reasoned decision is taken by the competent authorities.

Rules and regulations Statement by the

The declaration shall be obligatory carried out online via the following teleprocedure:

Rules and regulations Declaration of the Union of Associations and Foundations of Public Benefit

Foundations recognized as being in the public interest must inform the Ministry of the Interior of the following changes.

Change of registered office

Any change in the registered office of the Foundation must be declared.

The declaration is to be made online:

Declaration of changes in the registered offices of establishments recognized as being of public interest

Change of institutional partners

Any change in a legal person who is a member of the college of institutional partners of the administrative or supervisory board shall be subject to approval by the Minister of the Interior.

The existence of convergence between the purpose of the foundation and that of the legal person is necessary to obtain approval.

The change declaration must be made online:

Declaration of changes in institutional partners of foundations recognized as being of public benefit

Change in the administration of the foundation

Any change in the person performing the duties of director, supervisory or managerial functions of the Foundation shall be reported.

The declaration shall be made using an online service:

Declaration of changes in the administration of a foundation recognized as being in the public interest (declaration of beneficial owners)

Foundations recognized as public utilities must comply with strict transparency rules by forwarding certain documents to the prefect of the department where they are based.

Minutes

Each minutes of the administrative or supervisory boards must be forwarded within one month of its approval.

Transmission is by using an online service:

Declaration of the minutes of foundations recognized as being of public benefit

Annual accounts, auditor’s report and activity report

These documents must be forwarded within 6 months of the end of the financial year.

Transmission is by using an online service:

Annual submission of the accounts and activity report of foundations recognized as being in the public interest

Initial allocation

Property or Rights

The resources, property or rights transferred to the Foundation constitute its initial endowment.

Assets can be movable property (work of art, for example) or buildings.

Rights can be real property rights (emphyteotic lease for example), copyright, social rights (for example, shares),..., .

Funds or payments

Resources may also be funds or payments made by the founders.

The initial allocation must be at least €1.5 million. It may be paid in installments over a maximum period of 10 years from the date of publication in the JOAFE: titleContent the decree granting recognition in the public interest.

Founders transfer their resources, assets or rights by gift or bequest.

Endowment revenue must be used to finance the social purpose of the FRUP.

Other resources

The Foundation's annual resources consist mainly of the following revenues:

• Income from the initial endowment and the assets it holds (copyright, investment income, etc.)
• New donations, donations or bequest
• Subsidies which may be granted
• Revenues from sales and/or services.

Foundations recognized as being in the public interest may be subject, according to their statutes, to the requirement of obtaining the authorization of the Prefect of Department for operations which modify or commit the assets of the foundation for the present or future. For example, acts of borrowing or sale.

The application for authorization shall be made using an online service:

Authorization of instruments of disposition of associations and foundations recognized as being in the public interest (borrowing, disposal)

The Foundation may be dissolved by decision of the Management Board or the Supervisory Board, after 2 deliberations, with at least half of the members. These two deliberations must be taken within 2 to 9 months of each other and by a majority of ¾ of the members present or represented.

However, a single deliberation shall be sufficient where the amendment is decided unanimously by the members present or represented, meeting a quorum of ²/3 of the members.

The request for dissolution of a FRUP must be made by electronic means:

An application for the dissolution of a FRUP shall be accompanied by a set of documents.

The foundation may also be dissolved in the event of withdrawal of the public benefit recognition.

Dissolution is subject to an order in council.

On dissolution, sums and assets that have not been used cannot be taken back by the founders. They must be entrusted to another foundation or association for a comparable or compatible purpose.