5 Types of Social Foundation and How To Establish It
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5 Types of Social Foundation and How To Establish It

START NOW – Did you know that there are several types of social foundation that are useful for improving the welfare of community?

If you’re so inclined, you can set up one of these types of social foundations and help build a community

Definition of Social Foundation

Definition of Social Foundation

Social foundation is an institution formed with the noble aim of organizing various activities that provide direct benefits for community.

This institution is not oriented towards personal gain, but rather prioritizes efforts to improve the welfare of society.

The types of social foundations designed to address various society problems. For example: poverty, social injustice, and minimum access to education and health services.

In Indonesia, social foundations are regulated by Law No. 16 of 2001. It provides a clear legal framework for the establishment and operation of foundations.

This ensures that the foundation operates according to the principles of transparency and accountability/ So, the public can monitor its performance easily.

The social foundations’ activities are very diverse, ranging from educational programs aimed at improving the quality of human resources.

In addition, there are also health programs that aim to ensure that people have access to adequate medical services.

Social foundations are also often involved in disaster relief and environmental conservation efforts.Thus, it has great impact in creating positive changes in society.

Differences between Social Foundations and Other Non-profit Organizations

Differences between Social Foundations and Other Non-profit Organizations

In addition to social foundations, there are also other types of non-profit companies. They have the same goal of providing benefits to the community. 

However, there are some significant differences between social foundations and other non-profit organization, such as: 

Structure and Registration

Social foundations have a more formal structure and are regulated by law. It must also be registered with the government. 

Social foundations also ned a valid deed of establishment. This to provides legality and legitimacy for the foundation in carrying out its social activities.

On the other hand, other non-profit organizations, such as associations or communities, often do not require formal registration. 

This makes their structure and operating rules more flexible.

More Specific Goals

Social foundations usually have more specific and targeted goals. For example, an education foundation has programs that aimed at improving access and quality of education.

Meanwhile, other nonprofit organizations usually have a wider range of activities and are not always focused on one particular theme.

This may make them less effective than the social foundations in order to achieve certain goals.

Resources and Funding

Social foundations tend to have greater resources. It is because they can receive donations and funds from various party, such as individuals, companies, and governments.

On the other hand, other nonprofits may rely more on volunteer participation and small donations from community members. 

Thus, their ability to conduct activities on a large scale may be more limited than that of social organizations. 

Types of Social Foundation

Types of Social Foundation

There are several types of social foundations that can be found, each with a different focus and purpose, such as:

Education Foundation

As the name implies, this foundation focuses on developing education at various levels, from primary to higher level of education.

Educational foundations often establish schools, training institutions, or scholarship programs to help children from underprivileged families.

Health Foundation

Health foundations aim to improve the health of the community. Their activities can include providing health services, health education, and disease prevention programs.

Environmental Foundation

This foundation is committed to protecting and preserving the environment. Their activities can include tree planting, waste reduction campaigns, and environmental policy advocacy.

Humanitarian Foundation

Humanitarian foundations work to provide assistance to those affected by natural disasters, conflicts, or other emergency situations.

This foundation usually raises funds and provides direct assistance to victims.

Foundation for Culture and Arts

This foundations focuses on the preservation and development of arts and culture. They usually organizing festivals, arts training, and programs aimed at preserving cultural heritage.

These various types of social foundations provide opportunities for individuals and groups to contribute in areas of interest to them.

Social Foundation Establishment Process

Now that you know the types of social foundations, it’s time for you to know the procedure of establishing one.

Establishing a social foundation requires a fairly structured process, including: 

Formulation of Ideas and Objectives

The first step in establishing a social foundation is to formulate clear ideas and goals.So, you can choose the right types of social foundation. 

For this, you need to clearly identify the social problem and outline the ways in which it will be addressed.

Formation of the Founding Team

Next, you need to form a founding team consisting of people who are committed to the foundation’s goals.

This team will be responsible for designing the foundation’s organizational structure, activities, and strategies.

Preparation of Articles of Association

The articles of association are an important document that explains the structure, objectives and operational procedures of the foundation.

This document must be prepared clearly and in detail to facilitate the implementation of foundation activities in the future.

Foundation Registration

After the articles of association are drawn up, the foundation must be registered with the relevant government agency.

In Indonesia, foundation registration is carried out at the Ministry of Law and Human Rights. This process involves submitting documents and fulfilling other administrative requirements.

For your information, the deed of establishment and articles of association are some examples of documents needed. 

Fundraising and Resources

After the foundation is officially registered, the next step is to raise funds to support the foundation’s activities.

This can be done through individual donations, corporate sponsorship, or collaboration with other organizations.

Program Implementation

After the establishment process completed, the foundation can start implementing its programs according to the objectives that have been set.

It is important to conduct regular evaluations to ensure that the programs really have a positive impact on the community.

Reporting and Accountability

As a responsible organization, all types of social foundation also needs to prepare financial reports and activity reports periodically.

This is important to maintain transparency and accountability to donors and the wider community. That way, their trust in the foundation will always be maintained.

If you are interested in establishing one of these types of social foundation, do not hesitate to use Start Now.

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