As part of our Corporate Social Responsibilities (“CSR”) Programmes, we are assisting those who intend to set up charitable foundation, FOR FREE!
According to our findings, after talking to numerous representatives from Charity Organisations, most of the donations were on a one-off basis and it is highly affected by the economic condition. It is much easier for them to raise funds during good times as compared to bad times when everyone tends to tighten his/her belts.
Further, the current stringent guideline to obtain approval for tax-exempted under subsection 44(6) of Income Tax Act 1967 stipulates that at least 50% of the income and donation received must be spent yearly in carry out the objectives of the organisation. Failure to meet this condition may cause the relevant authority to withdraw the tax-exemption status. This scenario actually discourages the organisations to plan for management, operation and expansion of their organisations.
Thus, in order to benefit the society in a long run, it is necessary to provide a long term and continuous contribution or funding. Thus, the next level of CSR Program for any individual or company is to have his/its own Charitable Foundation.
In Malaysia, there are two (2) most common methods of forming a Charitable Foundation. Firstly, setting up the Charitable Foundation under Companies Act 1956 as a Company Limited By Guarantee. This type of Foundation requires a minimum of RM1 million contributions before the Foundation may begin to operate. However, it has a separate legal entity whereby the Foundation may conduct any transaction under its own name. It can also sue or be sued.
Another method of setting up foundation is governed under Trustee Incorporation Act 1952 which has to be registered with Prime Minister’s Department. This type of Foundation has no specific minimum contributions. Hence it is more convenient for any interested donors to do good. The Foundation may commence its operation regardless the amount of contributions. In contrast to the former, this Foundation has no separate legal entity. Any transaction has to be done in the name of its own Trustees. However, Foundation under this type is more flexible, less cost of formation and no minimum requirement for contribution which make it a more recommended version of setting up a foundation.
Quoted from Robert Kiyosaki – “When you create wealth, it’s your responsibility to return it to society”. Jim Rohn, an American entrepreneur once said, “Giving is better than receiving because giving starts the receiving process”.
Please contact us now at firstname.lastname@example.org if you are keen to give back to the society or you hope to find out more information from us. We are ready to assist you.
Our panel beneficiaries
Malaysian Federation of Deaf