20+ Years of Experience | 4 Languages (TR/EN/FR/RU) | TBB 81747

Community Foundations and Foundations Law Consultancy in Turkey

Community foundations have existed for centuries in the Republic of Turkey as the foundation of the freedom of worship and social services for religious communities. Operating under the guarantees provided by the Lausanne Treaty, these foundations make it possible to operate churches, monasteries, schools, and social facilities.

The office, registered with the Muğla Bar Association (Bar Registry No: 1704) and the Union of Turkish Bar Associations (Bar Association Roll No: 81747), pays special attention to the legal needs of community foundations. Services are provided in Turkish, English, Russian, and French regarding foundation management, resolution of real estate issues, relations with the Foundations Administration, and the establishment of new foundations.

What's on This Page?

1- Community Foundations and the Lausanne Treaty
2 - Establishing a New Foundation
3 - Foundation Management and Operation
4 - Legal Issues of Community Foundations
5 - Real Estate Matters and Property Lawsuits
6 - Restoration and Construction Permits
7 - Relations with the Foundations Administration
8 - Family Foundations
9 - Frequently Asked Questions
10 - Legal Articles

Community Foundations and the Lausanne Treaty

Community foundations are indispensable elements of the religious life of Christian communities in Turkey. These foundations have a special legal status guaranteed by Articles 40-45 of the Lausanne Treaty.
  • Lausanne Treaty Guarantees
    Fundamental Rights:
    • The right of religious communities to establish and manage their own foundations is recognized.
    • The ownership of places of worship (churches, chapels, monasteries) is protected.
    • The establishment and operation of educational institutions are free.
    • The activities of social assistance facilities are guaranteed.
    The 1936 Declaration:
    • In 1936, community foundations declared the real estate and assets they possessed to the General Directorate of Foundations.
    • This declaration is critically important for the determination of foundation properties.
    • The restitution of properties belonging to the foundation but not included in the declaration became possible with the law amendments of 2008-2011.
  • Characteristics of Community Foundations
    Management Structure:
    • The foundation's board of directors consists of members of the community.
    • Turkish citizenship is required.
    • The coordination of religious leaders (patriarch, metropolitan, bishop) is important.
    • There is responsibility towards the General Directorate of Foundations.
    Fields of Activity:
    • Worship services: Operation of churches and monasteries.
    • Education: Management of community schools and religious educational institutions.
    • Social services: Elderly care, health services, mutual aid.
    • Cultural activities: Museum, library, archive services.

Establishing a New Foundation

According to the Turkish Civil Code, new foundations can be established by real or legal persons. The establishment of a foundation is realized by dedicating assets to a specific and permanent purpose.
  • Conditions for Establishing a Foundation
    Founder Conditions:
    • Real persons (Turkish or foreign nationals) can establish a foundation.
    • Legal entities (companies, associations) can also be founders.
    • Full legal capacity is required (over 18 years of age, not being under guardianship).
    • The condition of reciprocity is not required for foreign nationals.
    Cases Where a Foundation Cannot Be Established:
    • A foundation cannot be established for a purpose contrary to the characteristics of the Republic determined by the Constitution.
    • It cannot be established for purposes contrary to the fundamental principles of the Constitution, the law, or morals.
    • It cannot be established for purposes contrary to national unity and national interests.
    • A foundation cannot be established with the aim of supporting members of a particular race or community.
    Purposes for Which a Foundation Can Be Established:
    • Educational, health, social assistance, cultural purposes. Supporting scientific research.
    • Environmental protection, sports, and artistic activities.
    • Family foundation (care and education of family members).
    • Religious services and operating worship facilities.
    Allocation of Assets:
    • Real estate, cash, and securities can be dedicated.
    • The entirety of the assets or their income can be dedicated.
    • The assets are transferred to the foundation and cannot be taken back.
  • Foundation Establishment Procedure
    Preparing the Foundation Deed:
    • The name, headquarters, and purpose of the foundation are specified in the deed.
    • The dedicated assets are shown in detail.
    • The management bodies are determined.
    • The organization and management style of the foundation are regulated.
    Official Deed:
    • The intention to establish a foundation is declared through an official deed or a will.
    • The official deed is prepared before a notary.
    • A notarized special power of attorney is required to establish a foundation by representation.
    Court Application and Registration:
    • The founder or the General Directorate of Foundations applies to the court.
    • Application is made to the court of the domicile.
    • The court examines the foundation deed and the purpose.
    • If it decides on registration, the foundation is registered in the registry.
    • The General Directorate of Foundations registers it in the central registry.
    • It is announced in the Official Gazette and acquires legal personality.
    Duration and Cost:
    • The duration and cost vary depending on the size of the foundation.
    • Average duration: 2-6 months.
    • Notary, registration fees, announcement, and consultancy fees are variable.

Foundation Management and Operation

The regular and lawful management of the foundation is critically important for the foundation to achieve its purpose and for its sustainability.
  • Foundation Management Bodies
    • Represents and manages the foundation.
    • Consists of at least 3 people.
    • Members must be Turkish citizens.
    • The term of office is specified in the foundation deed.
    • The election or appointment procedure is regulated in the charter.
    Auditor/Audit Committee:
    • Audits the financial and administrative affairs of the foundation.
    • At least 1 auditor must exist.
    • Prepares an annual audit report.
    • Works independently from the board of trustees.
    Foundation Manager:
    • Conducts daily affairs.
    • Implements the decisions of the board of trustees.
    • Manages personnel.
  • Foundation Operation and Income Sources
    Income Sources:
    • Donations: Donations from community members and supporters.
    • Rental income: Leasing of real estate owned by the foundation.
    • Interest and dividends: Utilization of foundation funds. Event
    • income: Organizing concerts, exhibitions, conferences. Grants:
    • Support from public institutions and international funds.
    Expense Management:
    • Foundation income must be spent in accordance with the foundation's purpose.
    • Regular expenses: Worship services, building maintenance, personnel salaries.
    • Investment expenses: Restoration, new building construction, equipment purchase.
    • Financial discipline and transparency are essential.
    Activity Reports:
    • An annual activity report is prepared and submitted to the Foundations Administration.
    • An income-expense statement and balance sheet are attached.
    • The activities carried out are explained in detail.

Legal Issues of Community Foundations

Community foundations encounter various legal issues in their daily activities and long-term planning.
  • Property Restitution and Registration Issues
    Properties Not Included in the 1936 Declaration:
    • Restitution can be requested for properties that belong to the foundation but were not reported in the 1936 declaration.
    • The evidence gathering process requires meticulousness: historical documents, notary records, witness statements.
    • Interviews with the Foundations Administration and follow-up of the application procedure are conducted. In case of rejection, there is a right to apply to administrative jurisdiction.
    Expropriated or Confiscated Properties:
    • Legal procedures exist for the restitution of properties taken for public use in the past.
    • Options for compensation allocation or in-kind restitution are evaluated.
    • ECHR case law provides important references in this regard.
  • Foundation Board of Directors Issues
    Election and Appointment Processes:
    • Board of directors' elections must be held in accordance with the foundation's charter and community tradition.
    • The approval and coordination of religious leaders are necessary.
    • Election results are notified to the Foundations Administration.
    • In case of disputes, mediation and legal remedies are available.
    Duties and Responsibilities:
    • Protection and operation of foundation properties.
    • Ensuring religious services are carried out without disruption.
    • Regular preparation of financial reports.
    • Regular coordination with the Foundations Administration.

Real Estate Matters and Property Lawsuits

The real estate owned by community foundations determines the financial strength and service capacity of the foundation. The protection and management of these properties hold special importance.
  • Title Deed Records and Registration Issues
    Correction of Title Deed Records:
    • Identification of properties that should be registered in the name of the foundation but are registered in other names.
    • Filing lawsuits for cancellation of title deed and registration.
    • Obtaining expert reports and historical documents.
    • Pursuing cases in land registry courts.
    Boundary and Parcelization Problems:
    • Boundary disputes with neighboring parcels.
    • Monitoring zoning plan changes.
    • Objecting to expropriation procedures.
    • Issues of easement rights and right of way.
  • Leasing and Operation
    Leasing of Foundation Properties:
    • Preparation of lease agreements.
    • Obtaining necessary permits from the Foundations Administration.
    • Ensuring rental amounts are in line with market value.
    • Special procedures for long-term leases.
    Commercial Use:
    • Commercial leases can be made to generate income for the foundation.
    • However, activities contrary to the foundation's purpose are not permitted.
    • Care must be taken in selecting tenants.
    • Rental income must be spent for the foundation's purposes.

Restoration and Construction Permits

The maintenance, restoration, and renovation of church and monastery buildings of historical and religious significance are subject to special permits and procedures.
  • Restoration Projects
    Conservation Board Permits:
    • A Conservation Board decision is required for any intervention in registered buildings.
    • The restoration project must be prepared by expert architects.
    • The project's compliance with historical and architectural authenticity is evaluated.
    • The permit process is variable.
    Implementation and Supervision:
    • Restoration work must be carried out by expert teams.
    • It proceeds under the supervision of the Conservation Board.
    • A usage permit is obtained upon completion.
    • Applications can be made to public institutions and international funds for financial support.
  • Simple Repairs and Maintenance Works
    Routine Maintenance:
    • Notification to the Foundations Administration is sufficient for simple works such as painting, whitewashing, roof repairs.
    • Renewal of plumbing, electrical, and heating systems.
    • Safety and fire precautions.
    • Garden and landscape arrangement.
    Emergency Interventions:
    • Emergency repairs after disasters like earthquakes, fires.
    • Conservation Board approval can be obtained later.
    • Documentation and photographing are important.

Relations with the Foundations Administration

Foundations' relations with the General Directorate of Foundations must be regular and transparent. Fulfilling legal obligations is critical for smooth operations.
  • Regular Reporting Obligations
    Annual Activity Report:
    • An activity report must be submitted regularly every year.
    • It describes the foundation's activities during that year.
    • An income-expense statement is attached.
    • Decisions of the board of directors are summarized.
    Financial Statements and Audit:
    • An income-expense statement and balance sheet are prepared. An independent audit report is provided if requested. The principle of financial transparency is adhered to. Donations and aid are recorded.
  • Transactions Requiring Permission
    Purchase and Sale of Real Estate:
    • Permission from the Foundations Administration is mandatory for purchasing real estate for the foundation or selling foundation property.
    • The permit application is made with justification. Fair determination of the property's value is important.
    • The permit process is variable.
    Significant Expenditures:
    • Notification is made for expenditures above a certain amount.
    • Special permission is required for major projects such as restoration and construction.
    • Acceptance and spending of donations.

Family Foundations

In addition to community foundations, consultancy services are also provided on family foundations. Family foundations are established by families to protect their assets and transfer them to future generations.
  • Establishing a Family Foundation
    Foundation Establishment Process:
    • Preparation of the foundation deed (purpose of the foundation, assets, management structure).
    • Drafting or approving the deed before a notary.
    • Application to the General Directorate of Foundations.
    • Registration and acquisition of legal personality.
    Assets That Can Be Allocated to the Foundation:
    • Real estate (house, land, apartment). Securities (stocks, bonds). Cash. Intellectual property rights.
  • Advantages of a Family Foundation
    Asset Protection:
    • Protection of family assets as a whole.
    • Preservation across generations without fragmentation.
    • Prevention of inheritance disputes.
    • Protection in case of bankruptcy and foreclosure.
    Tax Planning:
    • Savings on inheritance and transfer tax.
    • Corporate tax regime.
    • Tax advantages in income distribution.

Frequently Asked Questions

Legal Articles