The foundation

In the cultural sector you can come across different legal forms, but the foundation is the most common. This is mainly because our sector often has a non-commercial objective and this often involves financing in which part of the income comes from subsidies or funds. In addition, initiators or organizations generally have no profit motive, which makes this legal form more appropriate than, for example, the private or public limited company.

What is a foundation?

A foundation is an organization that can perform many corporate actions. This makes it possible to carry out a project or initiative according to legislation in the Netherlands. By definition, a foundation has no profit motive. You may employ people and have a positive financial result but ultimately you use this money to achieve the social, idealistic or social goal of your foundation.

Why you want to establish a foundation

Setting up a foundation is relatively easy and involves little cost. This makes it accessible to many people who are just starting an initiative or project. The basic premise remains that you have no profit motive. If you want to apply for subsidies and funds, a foundation is often a requirement.

Establishing a foundation in practice

If you decide to establish a foundation, you report yourself, alone or with others, to a notary. The notary then draws up a deed containing the foundation's statutes. The costs for a notary are around € 500, assuming the statutes are not too complicated. Those who qualify as directors are listed in the Commercial Register, which is managed by the Chamber of Commerce. Entry in the Trade Register is usually done directly by the notary. This costs €50. It is convenient to also immediately purchase an extract from that trade register at €15.

The cost

In addition to the set-up costs, you will have to take into account that you will have some overhead. This, of course, depends entirely on the organization and activities of the foundation. For example, you may have to rent office space or incur insurance costs. It is certain that as a foundation you will need to keep records. If you hire someone to do this, it will cost money. You may also have to file annual accounts if, for example, you partly engage in commercial activities and generate a certain amount of revenue.

The board

A foundation is characterized by having an official board. The board is ultimately responsible for the foundation. Because the principle of collective governance applies, each director must do his or her part. In addition to the board, the foundation may have a director (or directors) who, under the responsibility of the board, implements policy on a daily basis. In addition to the board, the foundation may also have a supervisory body called a supervisory board. It is important to have a strong board with preferably expertise and a relevant network. We have dedicated an article to the governance of a foundation. In it you will find tips and information to achieve a good board.

The foundation in relation to the tax authorities

When you are a foundation, you will have to deal with the Internal Revenue Service to a greater or lesser extent. It is important that you determine whether the foundation is also designated as an entrepreneur. For example, as a foundation, you may meet the requirements of entrepreneurship and therefore be liable for VAT. In general, a foundation has a "limited tax liability," which means that, among other things, you do not have to file a corporate income tax return. Nevertheless, it is advisable to check this carefully and, if necessary, seek advice from someone who specializes in taxes and administration.

ANBI status

As a foundation, you can also apply for the status of an Institution for General Benefit (ANBI), which can provide some tax benefits. You must then meet a number of conditions, including serving a social purpose. Read more about ANBI status in another article on this website.

Culture Governance Code

If you want to have good governance over your foundation, it is useful to have the Culture Governance Code at hand. This was drawn up by the Cultuur+Ondernemen Foundation, which sets itself up as the knowledge center for entrepreneurship in the cultural sector. In collaboration with a host of people from the field, they have summarized in eight principles a number of practical recommendations for the entire governance process. Many funds and subsidizers want to see that as a foundation you apply the Culture Governance Code or explain where you deviate from it and why you do so. Failure to subscribe to or comply with this code may be a reason for not awarding a grant. The Governance Code for Culture can be downloaded free of charge in PDF. In addition, a handy toolkit has been developed. Not only does the Governance Code for Culture contribute to the proper management of the foundation, many funds and subsidizers also require that the Code be applied before a subsidy application is granted. In some cases, application of the Code is therefore a requirement for receiving a grant.

Want to read more about this?

Cultuur+Ondernemen has a comprehensive page on setting up a foundation and everything involved. With videos, step-by-step plans and other useful tools.

Special thanks to

For this article, we used, among other things, information available on the digital Ondernemersplein of the Chamber of Commerce. In addition, we thank Deline Kruitbosch of Dirkzwager, legal & tax. Dirkzwager actively shares knowledge with anyone who needs legal or tax information.

If, from your expertise, you yourself have knowledge that would fit this topic, or if you see opportunities to improve this text, we look forward to receiving your message at info@cultuuracademy.nl.