Incorporation and activities of charity and support fund are regulated by the Law on Charity and Sponsorship Funds of the Republic of Lithuania, Civil Code of the Republic of Lithuania, and other regulations.

A fund is a public legal person of limited civil liability having its own name and the objective of providing charity and/or sponsorship and other support, in accordance with the procedure laid down in the Law on Charity and Sponsorship of the Republic of Lithuania and the Law on Charity and Sponsorship Funds of the Republic of Lithuania, to legal and natural persons in the fields of science, culture, education, arts, religion, sports, health care, social care and assistance, environmental protection as well as in other fields recognised as selfless and beneficial to society. The name of the fund must contain the words “charity” or “sponsorship” or “charity and sponsorship”.

The fund may have and acquire only such civil rights and duties that do not contravene the objectives of the fund indicated in the Civil Code, the Law on Charity and Sponsorship Funds of the Republic of Lithuania, and its articles of association. The fund has the right to pursue economic and commercial activities which are not prohibited by the law and which do not contravene its articles of association or the purposes of its activity and which are necessary to attain the fund’s objectives.
The founders of a fund may be legal and natural persons who have concluded a memorandum of association and who have undertaken, prior to the fund’s registration in the Register of Legal Entities, an obligation to make monetary or property contributions and provide services to the fund.
Persons who cannot be the providers of sponsorship under the Law on Charity and Sponsorship may not be the founders of a fund. All founders of the fund become its stakeholders as of the date of the fund’s registration in the Register of Legal Entities.
The fund must have the following bodies: general meeting of stakeholders and a governing body, which may be sole (director) and/or collegiate (board). At the general meeting of stakeholders, the right of decisive vote is granted to all stakeholders in a foundation. One stakeholder has one vote at the meeting, unless the articles of association of the foundation provide otherwise.

The fund must inspect its financial activities at the intervals prescribed by its articles of association. The inspections are conducted by an examiner or auditor elected by the general meeting of stakeholders for a term set down in the articles of association. Legal or natural persons, except for the founders or stakeholders and except for members of a managing body or employees of the fund, may be examiners (auditors).

The managing body specified in the articles of association must prepare an annual report on the fund’s activities for the previous financial year and present it to the general meeting of stakeholders within the term set down in the articles of association. The report is public. At the request of any legal or natural person, the fund must make the report available at its registered office or in any other manner.

Please, contact our team and we will provide professional consultations, help to prepare incorporation documents or upon your request, perform the whole procedure of incorporation of a new charity and support foundation.

Foundation incorporation procedure takes from 5 to 10 business days.