What is a foundation 1

The foundation: investing your money permanently for the common good

Apart from the legal forms mentioned here, there are also alternative organizational modelswith which charitable purposes can be pursued: for example, the non-profit GmbH (gGmbH, also called Stiftungs-GmbH) or a foundation in the form of an association. Both are not subject to the supervision of the foundation supervision, but neither do they enjoy any tax advantages.

On the other hand, foundations established for private use are generally taxable on their assets and all of their income. This type of foundation includes, for example, family foundations that only serve the material support of family members.

For some legal forms, it is not generally specified whether it is a non-profit or a private foundation. At Corporate foundations For example, the objective can vary depending on the discretion of the board of directors. Another example are church foundationswhose usefulness is not monitored by the state, but by the church foundation supervision. It is also more and more common that several individuals jointly set up a foundation (which then functions as a citizen, community or collective foundation or foundation. Community of founders referred to) or financially to a pre-existing facility Contribute (for example through donations).