A donation at least one hundred kroons shall give the right to make up a fund. The peculiarity of funds is that the founder can specify a particular field he or she wishes to support.
An agreement is made with the donor to fix all the particulars of the would-be funds, e.g. a goal, extent of the fixed capital, distribution of the annual interests accrued on it, etc.
The donated money shall be kept as the fixed capital for the would-be fund, and it shall be inviolable – support awards and scholarships shall be distributed on the basis of profits the Foundation obtains of investing its fiscal resources.
Foundation DHARMA is entered into the list of non-profit organizations and foundations whose donations do not undergo taxation on income. That is the companies registered in the Republic of Estonia can make donations of up to 3 % of the sum paid by them in the same calendar year with the exemption of income tax but undergoing individually registered social tax, or up to 10% of the last year’s profit.
Since 1999 an individual can also donate sums of money equal to 5% of his or her annual income undergoing exemption from income tax. In 2000 the Government of Estonia introduced the procedure for scholarships to become exempt from income tax.
The person to pay the scholarship must be on the above-mentioned list, paying scholarships is an activity included in the by-laws of the organization, applying for a scholarship must follow public competition, the officers or members of the Board of the Foundation must not get the scholarship. The scholarships of Foundation DHARMA correspond to the set requirements and therefore have been turned exempt both from income tax and social tax.