What is the difference between a trust and a corporation form of a foundation?
The corporation form of a foundation involves establishing a non-profit corporation. Articles of incorporation or other similar legal documents must be filed with the appropriate state agency. The non-profit corporation cannot begin operation until these forms are filed. After it is created, the foundation adopts by-laws to provide the internal operating rules of the corporation. A charitable trust only requires the preparation and execution of a trust document and the transfer of initial trust assets for its establishment. A charitable trust is subject to jurisdiction of a local court perhaps, in addition to state rules. A charitable trust acts through trustees rather than board members. Although a charitable trust is easier to set up, it is more difficult to change. A court proceeding is generally necessary to change a trust. A corporation on the other hand, can be changed by a vote of the directors and filing of the proper legal documents with the appropriate state agency. According
The corporation form of a foundation involves establishing a nonprofit corporation. Articles of incorporation or other similar legal documents must be filed with the appropriate state agency. The nonprofit corporation cannot begin operation until these forms are filed. After it is created, the foundation adopts by-laws to provide the internal operating rules of the corporation. A charitable trust only requires the preparation and execution of a trust document and the transfer of initial trust assets for its establishment. A charitable trust is subject to jurisdiction of a local court perhaps, in addition to state rules. A charitable trust acts through trustees rather than board members. Although a charitable trust is easier to set up, it is more difficult to change. A court proceeding is generally necessary to change a trust. A corporation on the other hand, can be changed by a vote of the directors and filing of the proper legal documents with the appropriate state agency. Accordingly
