Business Activity of Foundation

Abstract

What is considered by a law body as a business is an activity to achieve the predetermined objective to produce earning or profit. Such activity is not only confined to corporation but also Foundation. Indeed, Foundation Act (UUY) has made law values of business to be functional to support the achievement of purpose and objective of Foundation. The purpose and objective of Foundation are closely related to social, religiosity and humanity interests. Both purpose and objective are achieved through social charity activities. The essence and characteristic of Foundation, therefore, are social activities in the social, religiosity and humanity interests. The philosophy behind social activity of Foundation is the values of collectivity and kinship to develop sense of care toward socioeconomic problems in the communities. Business activity has several functions. First is to support social activity of Foundation to achieve its purpose and objective, and second is to increase and empower Foundation’s ability to achieve the purpose. The self-support standing of Foundation is also important such that it will be independent with less dependence on other’s empathy. Business activity is implemented by establishing business organization which is managed by Foundation, or by participating into certain business organization. Such participation is made in two ways. One is by establishing business organization with other parties and second is by buying the stock of company.

Keywords: social activity and business activity of Foundation