Abstract

The article presents the most characteristic features of foundations focusing on the purpose of their activities in the light of the provisions of the Foundations Act of 6 April 1984, and discusses major administrative law privileges as well as tax reliefs awarded to foundations due to their public benefit activities. Taking into consideration that the purpose of a foundation’s activity is essential for being granted legal and tax privileges, in the first part of the article problems concerning interpretation of Art. 1 of the Foundations Act as regards establishing a purpose of a foundation’s activity have been analysed. The article also discusses chief tax exemptions granted to public benefit foundations and the requirements concerning their activities and expending their income, which need to be fulfilled by foundations in order to get tax reliefs. Foundations also can apply for being awarded the status of a public benefit organization. In the last part, the article presents legal issues concerning the conditions as to the purpose and scope of a foundation’s activity and the possibility of conducting business operations to be met by a foundation in order to be granted such a status. It also presents legal privileges and tax concessions awarded to public benefit foundations.