A foundation is a non-profit organization,the founders of which are ordinary citizens or legal entities who, on a voluntary basis, contribute property to the organization. The organizers of the institution pursue social and charitable, cultural and educational, other goals that are useful to the public.
Legal features of the funds
The legal provisions of the funds are not only defined.Civil Code, but also the law on non-profit organizations. A foundation is an organization whose specificity dictates obedience to a specific law. The activities of certain categories of funds fall under a special regulation. Public associations are controlled by the law on public organizations. Charitable funds carry out their activities under the law on charitable activities. Within the organization, membership is not provided, and the founders themselves do not participate in the organization’s work and do not have the authority to manage the funds.
State funds
The concept of a fund includes not only non-profitinstitutions, which were discussed above. There are funds of the Russian Federation, which are classified as state. Off-budget funds began to appear when there was a reform of the financial system of Russia in the 1990s. Pushed to the creation of specific organizations the relevance of the solution of a number of tasks of a social and economic nature. In the future, it was planned to create a sustainable pension system, medical care and social insurance. The extrabudgetary fund is a stable source of funds that is used to finance certain social needs of society and which is amenable to long-term forecasting. Sources of replenishment of the organization are clearly fixed, and the use of funds is predetermined by the intended purpose.
Types of funds and flow of funds
Extrabudgetary funds play an important role in the systemcentralized finance of the country. The organization accumulates funds outside the federal budget and outside the budgets of the subjects of Russia. All money is used to implement the constitutional rights of citizens of the country. The social fund goes to providing people by age, by illness, by disability, to help with the loss of the breadwinner and in many other situations. The budget of each organization is approved at an official meeting in the format of federal laws. The income of institutions is ensured by the obligatory payments of the unified social tax. The structure of state-type extrabudgetary funds includes:
- Russian Pension Fund;
- social insurance fund;
- federal organization;
- territorial health insurance organization.
Subtleties of the budget
The extrabudgetary fund is a statean organization formed on extra-budgetary funds, which is controlled by the country's authorities, and the budget of which is directed exclusively to the realization of the social needs of both general federal and territorial purposes. The budget of organizations and its project for the coming year is formed by the authorities of the latter. Projects are submitted to the federal executive authorities and are accepted in the format of federal legislation. If there is a shortage, sources for its liquidation are considered and approved. The project should be provided and sources of income and sources of expenditure. Before its approval, the budget must go through a whole chain of government bodies, inclusive with the counting chamber.
Russian Pension Fund
The largest extra-budgetary fund of the country isPension. It plays the role of the most significant social institution in the country. Its formation is due to the need for financial management of pensions from the state. The Pension Fund simultaneously solves two tasks:
- Withdrawal of pension funds from the structure of the consolidated budget.
- The withdrawal of pension funds to the level of an independent process.
The budget is set bydeductions of funds to the Pension Fund in the form of insurance premiums and payments by employers. As a result, the state budget removes the burden in the form of fulfilling obligations to pensioners. Obligations are fulfilled at the expense of insurance payment. The latter reform structured the pension into three parts: basic, insurance, and funded.
Distribution of payments to a pension organization
The pension fund guarantees the payment of basicpensions to all persons of retirement age. Increased payments are aimed at persons who have reached the age of 80 years and persons with the 1st disability group. The size of the insurance part of the payment depends solely on the seniority of the pensioner and on the size of his salary. The payment is formed by contributions to the Pension Fund of insurance contributions every month. The insurance part of the payments corresponds to the ratio of the calculated pension capital to the number of months of the expected payment period. In fact, the funds are not collected on the account of one person, but are used to pay other pensioners.
Social Security Fund
The first social insurance fund in Russiaappeared in 1992. It is governed by the laws of the country. Like the Pension Fund, the organization acts as an independent financial and credit institution. Any fund property is federal property. Funds are not subject to withdrawal and do not act as part of budgets at any level. Social insurance funds are replenished by tax deductions. This is a single social tax and a tax on the application of the simplified tax system, a tax on periodic income and agricultural tax. The main direction of expenditure of funds from the association is the payment of benefits to persons who have temporary disability. The maximum amount of benefits is strictly limited to standard values.
Housing fund
The fund has a slightly different format than thoseorganizations that are presented above. It does not accumulate material resources, but combines all residential buildings and residential premises of the state. This concept is considered basic in all housing legislation. The housing fund is considered to be the dominant public domain, in which all of society is interested in saving and preserving. The generic term includes substructures differentiated by the following criteria:
- belonging to a certain form of ownership (private, municipal and state);
- the specifics of the use of residential premises (social use fund, commercial and individual).
Like the Pension Fund, its housing equivalentcontrolled by the state, which keeps its records in accordance with the procedure determined by the Government of the Russian Federation. The system does not include buildings and premises that are focused on seasonal or temporary residence, regardless of its duration. Unauthorized constructions are not included in the fund. Those objects that are not part of the structure can not fall under the norms of the housing legislation, and any manipulations with them are very difficult to carry out, including re-registration.
