Family foundations remain a relatively new concept in Polish law. This article focuses on the types of business activities a family foundation may legally undertake.

What Does the Law Say?

Article 5 of the Family Foundation Act precisely defines the scope of permitted business activities. According to this provision, a family foundation may engage in business activity as defined in Article 3 of the Entrepreneurs’ Law of March 6, 2018, but only within the following areas:

  1. Disposal of assets, provided they were not acquired solely for resale
  2. Leasing, renting, or otherwise making assets available for use
  3. Joining and participating in commercial companies, investment funds, cooperatives, and similar entities, both domestic and foreign
  4. Acquisition and disposal of securities, derivatives, and similar rights
  5. Granting loans to:
    1. Capital companies in which the foundation holds shares
    2. Partnerships in which the foundation is a partner
    3. Beneficiaries of the foundation
  6. Foreign currency transactions for payments related to the foundation’s activities
  7. Production of non-industrially processed agricultural and animal products, provided at least 50% of the product originates from the foundation’s own cultivation or breeding
  8. Forestry management

Activities listed in points 7 and 8 may only be conducted in connection with an agricultural holding.

Additionally, the disposal of rights resulting from participation in entities mentioned in point 3 and assets listed in point 4 are excluded from the restriction in point 1.

What Does This Mean in Practice?

In short, Article 5 outlines a closed list of business activities that a family foundation may pursue. These activities are limited and must align with the foundation’s statutory purpose—supporting its beneficiaries in a sustainable and long-term manner.

Examples of Permitted Activities

Disposal of assets not acquired solely for resale

  • Selling real estate no longer needed by the foundation
  • Selling vehicles, machinery, or equipment no longer in use
  • Selling shares, bonds, or other financial instruments

Leasing, renting, or making assets available

  • Renting out residential or office properties owned by the foundation
  • Leasing vehicles or equipment to third parties
  • Leasing agricultural or forest land

Participation in companies, funds, and cooperatives

  • Joining a commercial company aligned with the foundation’s goals
  • Investing in an investment fund that supports relevant projects
  • Participating in a cooperative focused on organic farming or elder care

Trading in financial instruments

  • Investing in securities issued by mission-aligned companies
  • Trading financial instruments for profit
  • Using derivatives to hedge currency risk

Granting loans

  • Providing loans to subsidiaries in various sectors
  • Supporting beneficiaries with loans for education or healthcare
  • Financing social or charitable initiatives

Foreign currency transactions

  • Paying foreign suppliers for goods or services
  • Receiving donations from international donors and transferring funds to Polish organizations

These examples illustrate that while a family foundation may engage in various business activities, it must do so within a legally defined framework that supports its long-term mission.

Legal Support

Business operations—especially within a foundation—require expertise and precision. If you’re considering establishing a family foundation, it’s essential to consult professionals who can guide you through the legal and strategic process. Destrier’s legal team specializes in business law and has extensive experience in setting up and managing family foundations. With our support, you can be confident that your foundation will operate in full compliance with Polish law, allowing you to focus on your long-term goals.

Contact us today to begin your journey with confidence.