What is a Foundation?

A private foundation is a charitable organization that, while serving a good cause, might or might not qualify as a public charity by government standards. The Bill & Melinda Gates Foundation is the largest private foundation in the U.S. with over $38 billion in assets. Most private foundations are much smaller.

How To Register A Foundation In Namibia

1. Submission of name application/reservation form CM5 or reserve a name online
2. Once approved, you may apply for a Certificate of Incorporation and Certificate to Commence Business. This requires the submission of the following documents:

• Memorandum and article of Association in triplicate of forms CM3, CM4, CM44B and CM44C.
• Copy of approved name on CM5
• Notice of postal and registered address on CM22
• List of Directors, Auditors and public Officers on CM29
• Appointment of an Auditor on CM31
• Application of Certificate of Registration of memorandum of External Company CM46
• Request for submission of additional Copies on CM51.

Frequently Asked Questions (FAQ’s)

What is a foundation and how does it work?

Broadly speaking, a foundation is a nonprofit corporation or a charitable trust that makes grants to organizations, institutions, or individuals for charitable purposes such as science, education, culture, and religion. There are two foundation types: private foundations and grantmaking public charities.

What is the purpose of a foundation?

The purpose of a foundation is to hold up and hold together the structure above it. A properly-built foundation increases the amount of abuse a house structure can take and remain safe for the people inside it.

What is considered a foundation in Namibia?

A foundation (also a charitable foundation) is a category of nonprofit organization or charitable trust that typically provides funding and support for other charitable organizations through grants, but may also engage directly in charitable activities.

What is the difference between a foundation and a nonprofit organization?

Foundations are organizations that did not qualify as public charities. They are very similar to nonprofits, except money for a foundation usually comes from a family or a corporate entity, whereas nonprofit money often comes from their revenues.

How much money do you need to start a foundation in Namibia?

For instance, you should expect to set aside at least $5,000 to start a donor-advised fund sponsored by a financial firm. Many community foundations can set up a fund for $1,000 or less if you give regularly. But it usually takes at least $250,000 in assets to make a private foundation worth the cost.

What is the benefit of having a foundation in Namibia?

Giving to a private foundation may make it possible for you to: Reduce your income tax for each year in which you make a contribution. Avoid capital gains taxes depending on the characteristics of property contributed. Reduce or eliminate potential estate taxes.

Who controls a foundation in Namibia?

They receive most of their financial support from and are normally controlled by their founders. They must make charitable distributions throughout their taxable year. They are tax-exempt organizations, but must pay a nominal excise tax of 1.39% on their net investment income.

What are the three types of foundations?

Foundation types vary, but likely your house or addition does or will have one of these three foundations: full or daylight basement, crawlspace, or concrete slab-on-grade.

How do foundations get their money in Namibia?

They are usually funded by endowments from a single source such as an individual or group of individuals. Family foundations are usually funded by an endowment from a family. With family foundations, the family members of the donor(s) have a substantial role in the foundation’s governance.

Do foundations have to pay taxes in Namibia?

Private foundations are exempt from federal income tax because they are charitable or “section 501(c)(3)” organizations. This means that the foundation’s investment earnings, capital gains and certain other types of income are not subject to income tax.

How do I start my own foundation in Namibia?

1. Choose a name for your private foundation. You can name your private foundation after your family, the charitable purpose, or something generic that inspires you or enables you to maintain a low profile.
2. Complete the brief set-up questionnaire.
3. Fund your foundation and start giving.

Can you take a salary from a private foundation in Namibia?

Set reasonable salaries. Many small foundations are run with no paid staff, but if you do pay staff, in particular family members, the salary has to be commensurate with the work. A private foundation can’t ask for money from outsiders unless it’s registered with a state charity bureau to do so

How do foundations avoid taxes in Namibia?

In addition to a deduction for income taxes on gifts to a private foundation, donors may also be able to avoid paying capital gains taxes by donating highly appreciated assets to a private foundation. Instead of capital gains taxes, private foundations pay a nominal excise tax on the sale of appreciated assets.

Can you make money running a foundation in Namibia?

While a nonprofit organization itself cannot earn a taxable profit, the people who run it can receive a taxable salary. All nonprofits have administrative costs, which include not only expenses like paying rent and utilities, but also compensating the staff that runs the organization.

Can I run a nonprofit from my home in Namibia?

Many people dream of starting a nonprofit organization to serve their goals, and this is completely possible to do from your own home. These organizations serve the community through education, direct service or charity, and in return do not have to pay many of the taxes that for profit businesses pay.

Can a nonprofit be run by one person in Namibia?

No one person or group of people can own a nonprofit organization. Ownership is the major difference between a for-profit business and a nonprofit organization. But nonprofit organizations do not have private owners and they do not issue stock or pay dividends.

Can a foundation have employees in Namibia?

Foundations can hire staff, reimburse expenses, set up structured giving programs such as scholarships, and make grants directly to individuals in need.

Are foundation board members paid in Namibia?

Foundations that compensate staff members are more likely to compensate their board members. However, for the typical foundation, board compensation levels are eminently reasonable. The median individual board member compensation in independent foundations is only about $8,000