you thought, foundations are only for wealthy philanthropists. But
primarily foundations are a useful, effective and especially sustainable tool to
permanently use for many people and future generations. People with
life experience who have performed a family role and were succsessful
in their profession, make themselves strong at the age of social
projects, but more and more young people donate money or do some
volunteer. That they give a lot back to the society that once makes
their success. The amount donated by you once acts far beyond the day,
because unlike the donation, which is used in a timely manner, is the
foundation's assets and will not be touched as it used to be a lasting
legacy and to community projects.
in not only your capital remains effective indefinitely, even you stay
with your commitment and wish your name to posterity in mind. You can
also express your regional solidarity. This is especially true for
companies who want also take on social responsibility in their area.
Unfortunately, it is now so that the social gap is widening more and more in our society. You can help by directly supporting a social project or investing your time. A
endowment to a foundation also helps and has a lasting effect.
(external donations) are important in order to obtain permanent
viable foundations, a different tax reduction applies to them from the normal donation.
For companies that do not want to engage
themselves socially, an endowment can have a positiv effect, as
a one-time donation allows them to be acknowledged again and again.
Through an endowment the originally donated amount will not be
used, instead the interest will continued to fund the selected
This endowment could of
course also be increased and larger projects or even more
projects can be carried out.
natural or legal persons, they are independently an endowment to
benefit from tax advantages of whether you have donated money or other
values (such as
shares or property).
amounts between € 10,000 and € 250,000, it is a useful alternative to
bring the amount on an already existing foundation in the endowed
assets. In this case, the administrative costs - which is defined by
the Law on Foundations - minimal. This means that a much larger
proportion of the funds made available directly benefit the Foundation
tasks. This is also the advantage over the establishment of a private
There are in addition to the endowment to the basic assets of a foundation more lasting ways of philanthropic activities:
Special edition deduction for external donations (special
Special expenses pursuant to §
10 b paragraph 1a EStG are up to a maximum of up to 1 Mio Euro
in the year of the grant itself, and over the following next
After 10 years, still not "consumed"
amounts go into general indefinite donations (b § 10 Section 1
Sentence 1 ITA). The special edition deduction applies only to
donations in the assets of a foundation stock (endowment). Thus,
the donation enjoys the same preferential tax treatment as a
first donation for a newly established foundation. This
amount of 1 Mio. Euro is doubled for jointly assessed persons.
This is done according to the
request of the donor's choice of the year of the grant or any
evenly or unevenly distributed on the grant year and the
following nine years.
2022 Mrs S makes a donation to a non-profit foundation in the amount of
25,000 Euro. For optimum tax relief Mrs S sought the advice of
their tax consultant deduction for 2022 with 0 Euro, with
8,500 Euro for 2023, for 2024 with 0 Euro, with 10,500
Euro for 2025, for 2026 with 3,500 Euro and 2,500 Euro for
Do you want to help but you do not know if you need
your capital in the future (eg for
Under this condition the foundation grant is
the right thing. The foundation grant will invest your money for
the foundation. Income (interest) flowing into the projects of
the Foundation to convert your profitably interest into
advantage is that your capital continue exist for you and for
example for your retirement. You leave the
Foundation only the interest and can at any time once
again have your assets. A positive side
effect is that you do not have to specify at your tax office this interest. Another advantage is
that a foundation which is recognized as a
charity have not to pay any tax regading the interest.
from the interest will come to the project.
From a height of
in interest income you have a deduction of more than 25%
that does not apply
to the Foundation and is advantage for the
see example below.
At the same time the foundation grant is a way for you to "test"
our Foundation so you could later convert to your request, the
Anyone can help through a single or regular donation or endowment.
You can combine your donations
with personal events, such as the celebration of your birthday
or your wedding anniversary. It is also possible, as part of a
funeral instead of flowers and wreaths to ask for a donation for
a specific non-profit organization.
More and more often
descendants are missing in our society. If so, then the
inheritance falls automatically to the state. Those who want to
arrange things differently can also use a foundation as an heir.
With each donation in favor of a non-profit foundation, is that
the estate tax is eliminated. In this way, the support comes
fully to the social purpose. The foundation can be used with or
without their own offspring as your heritage.
The same applies for a gift
and the associated gift tax is not due for a grant to a
According to the Real Estate
Transfer Tax Act Land Gifts are not the foundation of the real
estate transfer tax.
Transfer heirs and beneficiaries of
donations inherited within 24 months or assets donated to a
foundation, will void the inheritance or gift tax.
Inheritance tax already paid will be
SUPPORT FROM THE GOVERMENT
By the tax exemption
certificate from the Tax Office, the non-profit foundation is
not paying any withholding tax to the state. Normally, interest
earnings, which amount to an individual than the free allowance
of € 801.00, subject to 25% withholding tax. In addition to
these 25% is the solidarity surcharge and church tax, if
you belong to a church (concession).
€ 40,000 investment to 2,5% >> € 1,000 interest per
After the exhaustion of the free allowance it comes to the
deduction of withholding tax and the solidarity surcharge, it
will be of interest to only about 736.20 euros. At non-profit foundations thanks to
the support from the state, the full € 1,000 are for non-profit
The tax office and the foundation supervisory regularly check the charitable status, so is guaranteed at all times, that the non-profit foundation supports the community on material, spiritual or moral area selflessly (§ 52 AO).