In order to make easier for foundations to support public benefit causes across the EU, the Commission has presented a proposal for a European Foundation Statute. On this way, it can be created a single European legal form - the ‘European Foundation’ (FE) – which would be fundamentally the same in all Member States and would exist in parallel with domestic foundations.

The European Commission presented a proposal for a European Foundation Statute which aims to make it easier for foundations to support public benefit causes across the EU. Overall, the proposals seeks to create a single European legal form - the ‘European Foundation’ (FE) – which would be fundamentally the same in all Member States. It would exist in parallel with domestic foundations. Acquiring the status of a European Foundation would be entirely voluntary. The Commission launched in 2009 a public consultation on this topic.

The Statute focuses on public benefit purpose foundations, which make up the great majority of the foundation sector. It lays down the main requirements for the European Foundation. For instance, each FE would need to prove its public benefit purpose, cross-border dimension and that it possesses the minimum founding assets of €25,000. On the proposal, the European Foundation can be set up from scratch, by converting a national foundation into a European Foundation or through a merger of national foundations. FE acquires a legal personality upon its registration in a Member State.

With the proposal, the Commission stresses that the costs and uncertainty will be reduced. European Foundations will have legal personality and legal capacity in all Member States. This new status will allow them to carry out activities and channel funding within the EU in an easier and less costly way, thanks to the similar rules applied to them throughout the EU. In addition, the Statute would provide the FE with a European label and image, which should make European Foundations recognisable and trustworthy, and hence encourage foundations’ cross-border activities as well as cross-border donations. Furthermore, the European Foundations will benefit from the same tax regime as the one applicable to the domestic ones. Member States would need to regard the FE as equivalent to public benefit purpose foundations established under their own national legislation.