The Foundation is a non-commercial type organization, the founders of which are ordinary citizens or legal entities who, on a voluntary basis, make property contributions 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 work of funds
The legal provisions of funds are determined not only by the Civil Code, but also by the law on non-profit organizations. A foundation is an organization whose specificity dictates the obedience to a certain law. The activities of certain categories of funds are subject to special regulations. Public associations are controlled by the law on public organizations. Charitable foundations carry out their activities within the framework of the law on charitable activities. Membership is not provided for within the organization, and the founders themselves do not take part in the work of the organization and do not have the authority to manage funds.
Public funds
The concept of a foundation includes not only non-profit institutions, but alsowhich were discussed above. There are funds of the Russian Federation that belong to the category of state funds. Extra-budgetary funds began to appear when the reform of the Russian financial system took place in the 1990s. The urgency of solving a number of problems of a social and economic nature prompted the creation of specific organizations. In the future, it was planned to create a sustainable system of pensions, medical care and social insurance. An off-budget fund is a stable source of funds that is used to finance certain needs of a society at a social level and which lends itself to long-term forecasting. The sources of replenishment of the organization are clearly fixed, and the use of funds is predetermined by the intended purpose.
Types of funds and areas of spending
Extrabudgetary funds play an important role in the country's centralized finance system. The organization accumulates funds outside the federal budget and outside the budgets of the constituent entities of Russia. All money is used to implement the constitutional rights of the citizens of the country. The social fund goes to provide people with age, illness, disability, for help with the loss of a breadwinner and in many other situations. The budget of each organization is approved at a formal meeting in the format of federal laws. Incomes of institutions are provided with obligatory payments of the unified social tax. The structure of non-budgetary funds of the state type includes:
- Russian Pension Fund;
- social insurance fund;
- federal organization;
- territorial he alth insurance organization.
The subtleties of budgeting
An off-budget fund is a state organization formed with extra-budgetary funds, which is controlled by the country's authorities, and whose budget is directed exclusively to the implementation of social needs of both general federal and territorial purposes. The budget of organizations and its project for the coming year is formed by the governing bodies of the latter. Projects are submitted to the federal executive authorities and adopted in the format of federal legislation. If there is a deficit, the sources of its liquidation are considered and approved. The project should include both sources of income and sources of expenditure. Before being approved, the budget must go through a whole chain of state authorities, including the Accounts Chamber.
Russian Pension Fund
The country's largest off-budget fund is the Pension Fund. It plays the role of the most significant social institution in the country. Its formation is due to the need to manage the finances of pension provision by the state. The pension fund solves two problems at the same time:
- Withdrawal of pension funds from the structure of the consolidated budget.
- Bringing pension fund flows to the level of an independent process.
The budget is formed at the expense of deductions to the Pension Fund in the form of insurance premiums and paymentsemployers. As a result, the burden is removed from the state budget in the form of fulfilling obligations to pensioners. Obligations are fulfilled at the expense of the insurance payment. The latest reform structured the pension into three parts: basic, insurance and funded.
Distribution of pension organization payments
The Pension Fund guarantees the payment of a basic pension to all persons of retirement age. Increased payments are aimed at persons who have reached the age of 80 and persons with the 1st disability group. The amount of the insurance part of payments depends solely on the seniority of the pensioner and on the amount of his salary. The payment is formed by deductions to the Pension Fund of insurance premiums every month. The insurance part of payments corresponds to the ratio of the estimated 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 Russia appeared 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 property of the Foundation is federal property. Funds are non-withdrawable and do not form part of budgets at any level. Social insurance funds are replenished from tax deductions. This is a single social tax and a tax on the application of a simplified taxation system, a tax on periodic income and agricultur altax. 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 the allowance is strictly limited by the normative values.
Housing stock
The Fund has a slightly different format than the organizations 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 stock is considered to be the dominant state property, in the conservation and preservation of which the whole society is interested. The generalized concept includes substructures differentiated according to the following criteria:
- belonging to a certain form of ownership (private, municipal and state);
- specifics of the use of residential premises (social use fund, commercial and individual).
Like the Pension Fund, its housing analogue is controlled 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 oriented towards seasonal or temporary residence, regardless of its duration. Unauthorized constructions are not included in the fund. Those objects that are not included in the structure cannot fall under the norms of housing legislation, and it is very difficult to carry out any manipulations with them, including re-registration.
