Legal Definitions - fundatio

fundatio

Historically, fundatio refers to the act of establishing or founding a corporation, particularly one with a charitable purpose, such as a university, hospital, or philanthropic organization. This concept is often broken down into two distinct stages:

• fundatio incipiens

  This Latin term translates to "incipient foundation" and refers to the initial legal step of creating a corporation. It involves the formal act of incorporation or the granting of corporate powers, essentially bringing the entity into legal existence.

  • Example: Establishing a New Animal Shelter

    A group of animal welfare advocates decides to create a new non-profit organization to rescue and rehome stray animals. The moment they file the necessary articles of incorporation with the state government, and those documents are approved, they have completed the fundatio incipiens. This legal act officially establishes the animal shelter as a recognized corporate entity.

• fundatio perficiens

  Meaning "perfecting foundation," this term describes the act of providing the essential financial resources or endowment to a newly formed or existing corporation. While fundatio incipiens creates the legal shell, fundatio perficiens provides the financial substance that allows the organization to fulfill its mission.

  • Example 1: Funding a Community Arts Center

    After a local arts council successfully incorporates (fundatio incipiens) to create a new community arts center, a prominent local philanthropist donates a substantial sum of money to purchase a building and establish an operating endowment. This significant financial gift constitutes the fundatio perficiens, providing the crucial funding needed for the arts center to begin its programs and sustain its operations.

  • Example 2: Endowing a University Scholarship Fund

    A university, already a long-established corporation, decides to create a new scholarship fund specifically for students pursuing STEM fields. A former alumnus pledges a multi-million dollar donation to permanently endow this fund, ensuring that scholarships can be awarded year after year from the investment income. This act of endowing the scholarship fund is an example of fundatio perficiens, as it provides the financial foundation for a specific charitable purpose within the larger corporate structure.