Establishing Charitable Foundations or Family Foundations
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The number of newly established foundations continues to rise – but choosing the right form of foundation can be challenging, especially when it comes to succession planning or securing wealth in the long term. In addition to personal and business goals, tax and legal frameworks must be taken into account.
The process becomes particularly challenging when the foundation is intended to be recognized as a charitable entity. Numerous formal requirements must be met – including a clearly defined charitable purpose, detailed information on how this purpose will be fulfilled, and compliance with the principle of asset dedication. Mistakes at this stage can not only result in tax disadvantages but also significantly delay the recognition process.
Even setting up a family foundation can present significant challenges. Although the formal requirements are somewhat lower due to the lack of charitable status, family foundations still require intensive tax planning – as they often involve substantial assets and may pose significant tax risks (e.g. income or gift tax).
Tailored Advice and Legally Sound Implementation
We guide you from the initial idea through to the legally compliant establishment of your foundation. Our experts analyze your objectives, advise you on potential alternatives, and structure the foundation in a way that is both tax-efficient and aligned with your succession planning – helping you fully leverage available tax benefits.
Our Services in Detail
- Review of your individual objectives and advice on the most suitable foundation type
- Evaluation of alternative solutions if a different structure may be more advantageous
- Advice on optimal foundation structuring from both a tax and business perspective
- Determining the ideal level of initial endowment capital
- Support with designing the foundation as a tax-efficient succession model to reduce inheritance and gift tax
- Development of a long-term strategy for achieving the foundation’s purpose
- Drafting of the foundation charter, including compliance with charitable law requirements if applicable
- Coordination with foundation supervisory authorities and relevant government bodies
- Clarification of tax-related questions and coordination with tax authorities to obtain charitable status (if required)
Your Benefits
- Tailored advice: Individual solutions aligned with your personal or business goals
- Legally sound implementation: Avoidance of mistakes that may lead to tax disadvantages or delays in recognition
- Efficient process: End-to-end support from the initial idea to successful foundation setup
- Tax optimisation: Reduction of tax burdens and full use of potential advantages
