Solutions → Foundations A comprehensive guide to board workfor foundations:
A comprehensive guide to board workfor foundations:
Reduca brings together meetings, minutes, documentation, and agreements into a single workflow—secure, traceable, and easy to get started with.
Full traceability
All decisions are documented and linked to the purpose.
Legally sound
BankID signing and archiving of minutes and decisions.
Continuity in management
The history remains unchanged regardless of a change in management.
Features
Everything you need for the foundation's board work
Reduca handles all aspects of board work—from sending out notices to finalizing signed minutes and archiving documentation.
Meetings & minutes
From the notice of meeting to the signed and filed minutes.
Core function Electronic signing with BankID
Digitally sign documents — legally valid under the Foundations Act.
Core function Document
Charter, annual reports, and other documents.
Handling Calendar & annual cycle
Deadlines for the County Administrative Board and audits are scheduled in advance.
Planning Agreements
Keep track of the foundation's agreements and due dates.
Important Video meetings
Video calls right in Reduca — no external apps required.
Built-in Customer case
What Boards Say About Reduca
Boards of directors across Sweden share their experiences working with Reduca.
"
Reduca has made it easy for us to sign minutes, conduct smooth meetings, assign tasks within the board, and keep all board materials in one place.
Näsbypark Tennis Club
The Board of Directors
"
Reduca gives us a sense of professionalism and sustainability. We’ve built a structure that remains solid no matter who fills a particular role.
Torekov Boat Society
The Board of Directors
"
Since we implemented Reduca, we’ve become much more efficient, and it has really simplified our work on the board.
Archipelago City SFF
The Board of Directors
Board Governance for Foundations
Background information
What is a foundation—and how is it different?
A foundation is a legal entity with no members or owners. This is what makes a foundation’s board unique—you manage assets on behalf of a specific purpose, not on behalf of a group of people.
The foundation has no governing body above the board
Unlike associations and corporations, a foundation does not have a general meeting or shareholders who can remove the board. This makes the board’s responsibility and self-discipline especially important—you are both the stewards and the overseers of your own operations.
20 000+
Registered foundations in Sweden
6 months
Deadline for submitting the annual report to the county administrative board
1.5 million SEK
Threshold for mandatory registration and audit
Association — governed by its members
The General Meeting is the highest governing body. The members elect and remove the Board of Directors. The Board of Directors reports to the General Meeting and is ultimately accountable to the members.
Foundation — guided by its purpose
The foundation’s purpose is set forth in its charter and cannot be changed arbitrarily. The board of directors manages the assets to fulfill this purpose—and is subject to oversight by the county administrative board.
Roles and Responsibilities
The Board's Responsibilities in a Foundation
In a foundation, the board bears a greater and more direct responsibility than in most other types of organizations.
Basic
Manage in accordance with the purpose
The Board’s primary responsibility is to manage the assets and operations in accordance with the organization’s purpose. Any deviation from this may result in personal liability.
Required
Bookkeeping and Annual Report
Foundations with assets exceeding 1.5 million Swedish kronor are required to maintain accounting records and must prepare an annual report.
Required by law
Audit
Most foundations are subject to mandatory audits. The auditor reviews the financial statements and reports to the county administrative board.
Important
Asset Allocation
The Foundation’s assets shall be invested in a manner appropriate to its purpose. The Board of Directors is responsible for the investment policy.
Varying
Allocation of funds
If the foundation awards grants or scholarships, the board is responsible for ensuring that the awards are made fairly and in a documented manner.
Required
Minutes and documentation
All board decisions must be recorded in the minutes and filed. The County Administrative Board may request documents at any time.
Legal Affairs and Oversight
Laws and regulations governing foundations
Foundations are governed by the Foundations Act (1994:1220) and are subject to supervision by the county administrative board.
1
The Foundations Act governs everything
The Foundations Act (1994:1220) is the central piece of legislation. The foundation charter—the founder’s terms—is binding and carries significant weight.
2
The County Administrative Board exercises oversight
Foundations with assets exceeding 1.5 million kronor are subject to supervision by the county administrative board and may be audited at any time.
3
Audit requirement for most entities
Foundations that are required to maintain accounting records are generally subject to mandatory audits. The auditor is appointed by the board but is independent of it.
4
The purpose cannot be changed arbitrarily
The foundation’s purpose may be changed only with the permission of the county administrative board—and only if there are exceptional circumstances.
5
Personal responsibility is possible
Board members may be held personally liable in cases of gross negligence or mismanagement.
6
Registration requirement
Foundations with assets exceeding 1.5 million kronor must be registered. Changes to the board of directors must be reported on an ongoing basis.
Ongoing work
How the Board handles management
Good governance is about staying true to the purpose, keeping the finances in order, and documenting everything carefully.
1
Be familiar with your foundation’s charter
The charter is your most important governing document. All board members should have read it and understand it.
Review the terms of reference at the first board meeting following each new member’s appointment. Upload it to Reduca so everyone can always find it.
2
Establish an investment policy
The Board of Directors shall decide how the foundation’s assets are to be invested and document this in an investment policy.
Review the investment policy at least once a year and record the decision in Reduca.
3
Keep your books and annual reports in order
The annual report must be prepared within six months of the end of the fiscal year and submitted to the county administrative board.
4
Handling Dividends Correctly
Decisions regarding grants or scholarships shall be made by the board, documented in the minutes, and traceable to the intended purpose.
Always document the decision-making process in Reduca—the county administrative board may review these records.
5
Work with your accountant
Provide the auditor with access to all documentation, respond to questions in a timely manner, and take audit findings seriously.
Planning
The Foundation Board's Annual Calendar
A well-planned board year ensures that you meet your legal obligations on time.
January–February — Planning and Annual Report
Begin work on the annual report. Draw up the annual plan and schedule the board meetings for the year. Review the investment policy.
March–April — Audit and Annual Report
Submit the supporting documents to the auditor. Approve and sign the annual report. Submit it to the county administrative board.
May–June — Distribution and targeted efforts
Process applications for grants or scholarships. Carefully document the decisions in Reduca.
June–August — Day-to-day management
Monitor the performance of the investments. Hold at least one board meeting. Ensure that the books are up to date.
September–October — Strategy and Budget
Hold a strategy meeting. Start planning the budget. Assess whether the foundation is fulfilling its mission.
November–December — Wrap-up and preparation
Finalize the budget. Conduct a board evaluation. Ensure that all documentation is complete in preparation for the upcoming audit.
Learn from others
Common mistakes made by foundation boards
These mistakes often result in comments from the auditor or intervention by the county administrative board.
Management that does not serve its purpose
Decisions are made without regard to the purposes set forth in the foundation’s charter.
→ Always link decisions to the relevant section in the minutes.
The annual report is submitted late
The County Administrative Board has clear deadlines. Late submissions may result in a warning and a fine.
→ Set an internal deadline in January. Give the auditor enough time.
No documented investment policy
Investments are made without a written policy, which makes it difficult to justify the decisions during an audit.
→ Adopt an investment policy at Reduca and review it annually.
Conflicts of interest are not being handled properly
Paying dividends to related parties without disclosing a conflict of interest is a common and serious violation.
→ Establish a procedure for handling conflicts of interest. Always document this in the minutes.
Changes to the board of directors are not reported
Changes to the board of directors must be reported to the county administrative board. If this is overlooked, the foundation may have incorrect information.
→ Always notify the county administrative board of any changes to the board of directors within one month.
History and documents are disappearing
Records on personal devices are lost when members leave office — a serious problem during audits.
→ Gather all documentation in Reduca — it belongs to the foundation, not to any one person.
Frequently Asked Questions
Questions and Answers About the Foundation Board
The most common questions we receive from foundation boards.
A management foundation operates a program directly. An endowment foundation invests capital and distributes the returns as grants. This difference affects how the board operates and what is required of the administration.
Foundations with assets exceeding 1.5 million kronor are subject to mandatory auditing and must have a certified or licensed auditor. Smaller foundations may have a lay auditor.
No—not on your own. The intended use can only be changed with the county administrative board’s permission, and then only if there are exceptional circumstances.
It depends on the foundation's bylaws. Sometimes the board selects new members itself; other times, they are appointed by an external party. Always check the bylaws.
Yes, provided it is consistent with the terms of the appointment and the fee is reasonable. Decisions regarding fees must be made by the board and recorded in the minutes.
Yes — digital meetings are permitted, and the minutes can be signed digitally using BankID directly in Reduca. Please verify that the terms of reference do not restrict this.
No connections
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Legal Disclaimer: This guide is based on current Swedish legislation and general corporate governance practices. The information provided does not constitute legal advice. Always consult a qualified attorney for specific questions regarding your organization. | Support: support@reduca.se · 08-39 39 48 (weekdays 9:00 AM–5:00 PM).