The Basic Structure of Foundation Law

Legal Article · 12 November 2026
Attorney Thomas Andreas Di Constantinople

A foundation is a body of assets with legal personality, formed by allocating sufficient property and rights to a specific continuing purpose. This structure under TMK Article 101 differs from bodies of persons based on the will of members. The founder's intention to establish the foundation is important; however, once the assets have been allocated to a foundation that has acquired legal personality, administrative authority cannot be explained in the same terms as the founder's unrestricted personal power of disposal.

Under TMK Article 102, the intention to establish a new foundation is expressed through an official deed or a testamentary disposition. Legal personality is acquired by registration in the register maintained by the competent court. Merely executing a notarial deed or setting aside assets therefore does not complete every stage of formation. Whether the allocated assets are sufficient to achieve the purpose and whether that purpose is lawful also form part of the formation review.

The foundation deed is the basic document defining, in addition to the purpose, the allocated property and rights, organisational structure, administration and domicile. The statutory rules on mandatory content and the administrative body under TMK Articles 106 and 109 must be observed. The powers of governing bodies and arrangements for meetings and decisions are considered in relation to the deed. Administrative resolutions that change the foundation's purpose or exceed the limits in the deed require a further legal examination.

The Foundations Law contains provisions concerning mazbut, mülhak, community and tradesmen's foundations as well as new foundations. Their formation, administration and supervision regimes are not identical. In determining a foundation's legal position, its formation date, historical foundation instrument or deed and the special rules applicable to it are as important as its name. Supervision and day-to-day administration are also distinct functions. Assessing a particular transaction under foundation law first requires the correct foundation category and applicable rules to be identified.

Legal Basis: Turkish Civil Code No. 4721, Articles 101-102, 106, 109; Foundations Law No. 5737, Articles 3-6.

This article has been prepared for general legal information.