Are the Assets Allocated to Establish a Foundation Sufficient?

Foundation Formation and Foundation Deed

Prepared by: Constantinople

Assets allocated to establish a foundation are assessed against both the minimum announced for the application year and the resources required by the chosen purpose. According to the decision published by the Directorate General of Foundations, the minimum formation assets for 2026 are five million Turkish lira. Reaching this figure does not guarantee that activities of any scale will be considered adequately resourced. A broad purpose involving continuing expenses may also require explanation of the income structure.

For cash, the documents evidencing source and allocation are examined; for property, ownership, encumbrances, usability and valuation are reviewed. A sale advertisement alone cannot determine the value of property burdened by a substantial mortgage, co-ownership problem or use restriction. Whether the asset belongs to the founder or another person and who can allocate it are established separately. Expected future donations must not be confused with existing assets.

Title records, bank documents, valuation reports, the draft deed and initial operating budget may be sent for review. Legal transferability of assets and their relationship to the purpose should be checked together; sufficiency is not assessed from the total figure alone. If the formation year changes, the minimum must be verified again. Different rules may govern transferring property to the foundation and its subsequent sale or exchange. The founder should not make difficult-to-reverse allocation decisions without understanding those consequences.