Alapítvány

Alapítvány is the Hungarian word for foundation. In a legal and financial context, an alapítvány is a type of non-profit organization that is established by a founder or founders who commit assets to a specific purpose. These assets are then managed by a board of trustees or a foundation board, with the income generated from these assets used to support the foundation's objectives. The core principle is the segregation of assets from the personal property of the founder, with the foundation operating as a distinct legal entity.

Alapítványok can be established for a wide range of purposes, including charitable, educational, scientific, cultural, artistic, or social welfare endeavors. They are a common structure for philanthropic activities in Hungary, allowing individuals and organizations to contribute to the public good in a structured and legally recognized manner. The establishment and operation of an alapítvány are governed by specific Hungarian laws, which dictate requirements for registration, governance, and reporting. Transparency and accountability are key aspects of their functioning, often involving public disclosure of their activities and financial statements. The long-term sustainability of the foundation's mission is usually ensured through the careful management and investment of its endowment.