How Should Money Received by a Foundation from Abroad Be Documented?

Foreign Elements and International Activities

Prepared by: Constantinople

Money arriving from abroad in a foundation's account does not establish that every obligation for the transaction has been fulfilled. Determine whether it is a donation, aid, project funding, a loan or payment for services. The Foundations Law requires cash aid received from or sent abroad to pass through a bank and be notified to the Directorate General. The applicable procedures and forms are examined according to the foundation category. The notification regime for a foreign foundation's Turkish branch must not be confused with transactions by a new foundation established in Turkey.

Retain donor or funder details, the agreement, transfer description, bank receipt, acceptance resolution and expenditure budget. For conditional funding, the written terms should establish permitted expenditure and what happens to unused money. Routing money through an administrator's or volunteer's personal account may make the source and use chain harder to prove. Consistency between currency, sending account, transfer dates and contractual records is important.

After identifying the funds' legal nature, check compliance with the foundation deed, representative authority and notification timetable. Accepting funding and conducting a fundraising campaign are different transactions; if there is a campaign, permission requirements are assessed separately. How a missing notification is addressed depends on specific dates and documents. Records should be examined rather than waiting on an assumption that a special exemption exists.