Family foundation in the organization – what about reporting obligations?

There are over 2,200 family foundations registered in Poland, and their number is constantly growing. More and more registration applications are also waiting to be considered by the Court of RegistrationBy the end of the first quarter of 2025, the number of applications waiting for registration is already nearly 1,400.

Meanwhile, the reporting period is approaching, raising questions about the obligations of foundations still awaiting registration. Doubts remain as to whether, and to what extent, these entities are required to prepare financial reports, even though they have not yet been formally entered in the register. These and other issues related to family foundations are discussed below.

Contents:

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What is a family foundation in an organization?

In accordance with Article 23 of the Law on Upon preparation articles of association or announcement of the will, a family foundation is established in the organization.

Therefore, a family foundation in an organization is the first, transitional stage of the foundation's existence - it lasts from the moment of its establishment (e.g. signing the articles of association) until it is entered in the register of family foundations. Although this is only a "preparatory" stage, the law clearly indicates who may act on behalf of the foundation.

Who represents the foundation during the organisation phase?

According to the Act, a family foundation may be represented in the organization by:

• founder,
• proxy appointed by the founder,
• management – but only in exceptional situations specified in the Act (e.g. when the foundation is being established based on the will).

The founder has the full right to represent the foundation without any restrictions – they can undertake actions independently. They may also grant a power of attorney – to both individuals and legal entities. The law does not specify the form of such a power of attorney – it can be included in the founding act or in a separate document.

What happens after entry in the register?

Once entered into the register, the foundation's organisational stage ends and its representation is handled by managementThe founder and his or her attorney then lose the right to act on behalf of the foundation – unless they hold a formal function within it.

Does the appointment of a management board change anything in terms of representation?

Itself appointment of the management board (which takes place before registration) does not change the rules of representation at the organizational stage. Even if the board formally exists, it cannot act on behalf of the foundation—unless the law expressly allows it. In practice, this means that, alongside the board, the founder or their proxy remains active.

What activities are possible in the organization phase?

Activities of the family foundation in the organization should be limited to formal and preparatory matters. These include, above all:

• transfer of assets to a foundation,
• registering the foundation,
• concluding basic contracts, e.g. for legal or accounting services.

However, it is worth remembering that the act allows the foundation to incur liabilities in the organizationhttps://pmr-restrukturyzacje.pl/co-mozna-finansowac-z-majatku-fundacji-rodzinnej/bindingsThis may raise doubts – after all, one of the main goals of a foundation is to protect its assets. Those representing the foundation at this stage (i.e., the founder or their attorney-in-fact) should therefore carefully consider which actions can actually be taken now and which should be postponed until registration.

At this stage, it seems that the foundation should not yet provide benefits to beneficiaries – This stage should begin only after registration. The regulations are ambiguous on this matter, so proceed with caution.

Does a family foundation in an organization have to submit financial statements?

Yes – both the family foundation and the family foundation in the organization have an obligation preparation of financial statements for a given year (by the end of March, and its approval – by the end of June).

But please note – the reporting path is different than in the case of companies.

The family foundation is not registered in the National Court Register, only in the Register of Family Foundations, so it does not submit its financial statements to the National Court Register, but to the Head of the National Tax Administration (KAS).

Importantly, according to the position of the National Tax Administration, the report submitted to it must be in electronic form, consistent with a specific logical structure and sent via ePUAP or other electronic means of communication.

At the same time, the Family Foundation is required to submit a financial report to the appropriate court (i.e., the District Court in Piotrków Trybunalski, which maintains the Register of Family Foundations). The financial report must be submitted in paper form.

Financial reporting deadlines – what you need to remember

✅ until March 31, 2025 – preparation of the financial report for 2024,
✅ until June 30, 2025 – approval of the financial report by the appropriate body of the foundation (e.g. the board or the founder),
✅ then: submission of financial statements to the National Revenue Administration and the registry court – in accordance with the procedure described above.

Summary and legal support

A family foundation is a unique stage in the organizational process, raising practical questions, particularly regarding representation and reporting. Despite not being registered, this entity has real obligations, both legal and reporting.

If you are preparing to establish a family foundation or are already at the stage of organizing it, it is worth taking care of correct actions from the very beginning – including securing property interests and compliance with formal requirements.

Do you need support with your family foundation? Contact us – we provide comprehensive legal and accounting assistance, including preparation of registration documents, representation in registration proceedings and preparation of financial statements.