BRAZIL Law and Practice Contributed by: Daniel Zugman and Frederico Bastos, BVZ Advogados | Bastos, Bari, Vilela e Zugman
a sustainable source of long-term funding while pro - tecting the donated capital. However, an endowment fund is not itself an investment fund and is not sub- ject to the regulatory framework applicable to invest - ment funds supervised by the Brazilian Securities and Exchange Commission (CVM). Accordingly, associations are generally preferred for operating charitable activities, whereas private foun - dations are more commonly used where the objec - tive is to dedicate assets permanently to philanthropic purposes. Where the objective is to ensure the long- term financial sustainability of philanthropic activities while preserving the principal capital, an endowment fund may complement either structure.
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