An endowment fund is an organization non-profitcreated by one or more natural or moral, for a fixed or indefinite period.

The purpose of the endowment fund is to:

• to carry out a work or mission of general interest (useful to the community, at a given period)
• or to assist another non-profit-making body in carrying out a work or mission of general interest by granting it funding.

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

The establishment of the endowment fund is subject to a statement to the prefecture of department in which it will have its head office.

A receipt shall be issued in the month following the lodging of the declaration when the declaration file is complete.

The Prefectural Service sends the publication form to the JOAFE: titleContent to the Directorate of Legal and Administrative Information (Dila).

To be able to justify the existence and legal capacity of the endowment fund, officers may download a copy of the ad published in JOAFE, or proof of publication.

This document is to be retained throughout the life of the endowment fund. Publication in the JOAFE is free.

Information needed

The creation request must contain the following information:

• Endowment Fund Email and Phone 
• Personal information about the founder(s) (surnames, first names, date of birth, place of birth, occupation, domicile and nationality)
• List of banking institutions with which the endowment fund will have accounts or means of payment and their contact details (any change of banking institution will have to be declared to the prefecture)

Documents needed

The declaration file shall include the following documents:

• Application form for publication in the JOAFE
• Articles of Agreement of the endowment fund, which shall include the name and address of the head office, its purpose and the duration for which it is established
• List of persons in charge of its administration, indicating their surname, forename, date and place of birth, occupation, domicile and nationality.

To create an endowment fund, founders must provide, in cashduring the first accounting year, an initial allocation of at least €15,000.

This allocation must be granted in full and on a definitive basis.

The endowment fund is administered by a board of directors that includes at least 3 members appointed, the 1^re once, by the founder(s).

The statutes shall lay down the composition and conditions of appointment and renewal of the Management Board.

The Fund shall publish its annual accounts within six months of the end of the financial year. It shall appoint at least one auditor and one alternate, where the total amount of its resources exceeds €10,000 at year-end.

Publication of the annual accounts of associations, foundations and endowment funds

The Fund shall appoint at least one auditor when the amount of its resources exceeds €10,000 per year.

Where the fund's donations are greater than €1 000 000, the use of an advisory committee shall be mandatory. This committee is composed of qualified persons from outside the Management Board, and is responsible for making and following up on investment policy proposals.

In addition, the endowment fund sends each year to the prefect within six months of the end of the financial year an activity report, its annual accounts and the report of the auditor.

The annual activity report, sent to the prefecture, must contain the following elements:

• List of legal persons benefiting from the redistributions including the following information (name, address of the registered office, email address, telephone numbers, nature of the redistributions and their amounts)
• Indication that the fund benefits directly or indirectly from benefits or funds paid in cash or granted in kind by a State foreigner, by a foreign legal person, by any legal arrangement under foreigners law comparable to a trust or by a natural person not resident in France
• List of the donations received, indicating the amounts of the donations and the persons issuing the donations

The prefect may suspend the activities of the endowment fund if the latter does not comply with this obligation until the aforementioned documents are transmitted. In the absence of regularization, the endowment fund can be dissolved by judicial means (referral to the judge).

The resources of the Fund shall consist of the following amounts:

• Income from endowments (the fund may not dispose of or consume its capital endowments unless the articles of association lay down the conditions under which the capital endowment may be consumed)
• Proceeds from activities authorized by the statutes
• Proceeds from fees for service rendered.

The fund can appeal for public generosity.

The endowment fund shall draw up annual accounts which shall include at least one balance sheet and one profit and loss account. It must also present in a separate statement of accounts the resources and benefits granted by a foreign natural or legal person.

These elements must be published by 30 June of the year following the JOAFE: titleContent.

To do so, the endowment fund can use the following online service:

Publication of the annual accounts of associations, foundations and endowment funds

Where it is supported by donations from public generosity, the fund shall draw up annual accounts which shall include a balance sheet, a profit and loss account and an annex. The latter shall include the annual employment account of the resources collected from the public.

The endowment fund must also send an annual activity report to the prefecture, the auditor’s report and any prior statements of public appeal campaigns for generosity.

These elements can be communicated to the prefecture via the online service set up by the Legal Directorate of Administrative Information (Dila).

Publication of the annual accounts of associations, foundations and endowment funds

If the prefect finds that the fund is not working properly, he may decide, after formal notice has been given but not followed by action, to suspend the fund's activities for a maximum of six months. He must notify the auditor and the banking institutions by registered letter with a request for notification of receipt.

If there is no regularization, the judge may ask for the endowment fund to be dissolved.

Statutory amendments and changes in the administration of the endowment fund are subject to review statement to the prefecture of the department of its head office.

The declaration duty be made within Three months.

The file shall contain the following documents:

• Application form for publication in the JOAFE
• Documents relating to the amendments (new registered office, new list of directors, new articles of association)
• Decision of the legislative body.

A receipt shall be issued within one month of the lodging of the declaration when the declaration file is complete.

The Prefectural Service sends the publication form to the JOAFE: titleContent to the Directorate of Legal and Administrative Information (Dila). Publication in the JOAFE is free of charge.

The Endowment Fund may be wound up in the following circumstances:

• Under the articles of association, where the endowment fund is of a fixed duration
• By decision of the members
• By decision of the court (within the jurisdiction of which the endowment fund has established its seat) at the request of the prefect in the event of serious malfunctions in the realization of the purpose of the endowment fund.

The fund shall be wound up under the conditions laid down in the statutes or by the liquidator appointed by the court.

The dissolution must be declared in the prefecture and published in the JOAFE: titleContent. Publication in the JOAFE is free.

The form is sent by the prefecture to the Dila for publication in the JOAFE.

Unused resources are transferred to another endowment fund or to a recognized public benefit foundation.