Foundation Wealth

As a social based legal entity, a foundation certainly need wealth to perform purpose and objectives of such foundation as stated in the article of association of such foundation. However, for such non-profit legal entity, there is still a certain way to raise funds as we will explain further in this article.

As regulated in Article 26 of Law of Indonesia Number 16 of Year 2001 concerning Foundation, foundation’s wealth came from a separate wealth of the founder in a form of money or goods. Beside of that initial wealth, foundation may gain their wealth from:

1. Donation or unbinding aid;
2. Endowments;
3. Grants;
4. Wills; and
5. Other gain that is not in accordance with Article of Association of Foundation and/or the applicable laws and regulations.

Such wealth may be used for the purpose of foundation purpose and objectives of the foundation. According to five points above, foundation may also gain their wealth from establishing and/or participation in business entity that shall not exceed 25% of the total of Foundation’s wealth.