Related parties

The foundation law of 2015 defines the key people who are seen as related parties of the foundation. The law requires foundations to report all the transactions with these related parties in the financial statement. Transactions with related parties can mean any economic benefits or actions that take place between the foundation and a related party.

The Board of KY Foundation has created internal related parties’ guidelines. According to these guidelines, transaction with related parties are not prohibited, but

  • transactions must be justified based on the purpose and practices of the foundation. Any grant that is awarded to a related party must fulfill the general criteria of the foundation’s grants, and has to be available for others in the foundation’s target audience with similar terms. Any commercial agreement must be market-based. Any monetary compensations must be conventional and based on important work done for the foundation
  • related party relationship may cause disqualification in preparations, decision-making and implementation of the foundation’s activities
  • related party transactions must be reported in the financial statement according to the instructions of the foundation law

To fulfill the reporting responsibilities, KY Foundation maintains a related parties register including the persons and legal entities close to the foundation. The register is updated by a yearly questionnaire that is sent to the related parties specified in the foundation law.

These related parties are:

  1. The founder of the foundation, and a person, community or foundation that has sole control over the foundation; and any daughter community or daughter foundation of either these actor or the foundation,
  2. Members and deputy members of the board and administrative council, CEO and his/her replacement, general partners and auditors of the foundation and all communities and foundations specified in item 1,
  3. Managing Director and other executive personnel of the foundation
  4. Family members of a person specified in items 1-3,
  5. Other close relatives of a person specified in items 1-5,
  6. Any community or foundation in sole control of the persons specified in items 1-5.

KY Foundation’s related party register is not a public register. The privacy policy of the register can be found HERE.

KY Foundation kindly asks all the related parties specified in the items 1-3 above to fill the Related Parties Declaration Form (found HERE) and to either return it to KY Foundation’s Managing Director Juho Paavola by email (juho.paavola@kyweb.fi) or to bring the filled form to KY’s office at Konemiehentie 4, Espoo.