The financing and management of endowments and foundations in Serbia are governed by the Law on Endowments and Foundations, which regulates their establishment, legal status, assets, internal organization, as well as supervision and accountability.
An endowment (zadužbina) is a legal entity without members, established with an initial property intended for achieving a charitable purpose, while a foundation (fondacija) is a legal entity established to pursue public-benefit objectives without the requirement of initial endowment property.
Management Structure and Responsibilities
The core of governance lies with the management bodies, which ensure legality, transparency, and efficiency in the use of funds.
An endowment is managed either by the founder or by other individuals designated in the founding act, whereas a foundation is managed by a collective body – the Management Board, composed of at least three members.
The Management Board adopts financial plans, decides on the allocation of funds, and addresses all matters relevant to the organization’s operation and sustainability.
Role of the Director or Manager
The director or manager of an endowment or foundation plays a key role in representation and day-to-day administration, implementing the decisions of the management bodies.
They are responsible for preparing and executing financial plans and final accounts, as well as for the proper and purpose-oriented use of assets, in accordance with the founding documents and applicable legislation.
Financial Transparency and Legal Compliance
The financing of these entities must be transparent and legally grounded, with accurate records of all revenues and expenditures.
The law strictly prohibits the distribution of assets to founders, board members, or other individuals, except in the form of legitimate reimbursements and costs.
Additionally, the core property of an endowment or foundation must be protected from reduction below the legally prescribed minimum value.
Our Legal Services
Our law office provides comprehensive professional support in all matters related to the financing and management of endowments and foundations, including:
- Drafting and revision of founding acts, statutes, and internal regulations,
- Legal analysis and advice on the compliance of financial operations with the law,
- Preparation and oversight of financial plans and reports,
- Assistance in managing governing bodies and maintaining accurate documentation,
- Resolution of issues related to supervision and status changes.
With professional legal support, you can ensure the security, legality, and long-term sustainability of your endowment or foundation, thereby safeguarding its core mission and the founder’s intent.
If you require expert legal assistance, feel free to contact us via email at info@nikoliclegal.rs, or through our contact form or by phone.