Philanthropy

Charitable endeavors can take many forms. Running your own charitable foundation can become an inspiring project for families and generations.

Philanthropy in Switzerland and abroad.

You and your family are thinking about engaging in charitable activities. You can get involved, for example, by doing your own project work, by making donations in cash or in kind, or by setting up your own foundation. Running your own foundation entails financial and legal responsibility.

Tax exemption.

We will prepare the application for tax exemption for you. The main aim here is to present the charitable nature of the planned activities and to distinguish them from non-permitted self-interest. Another important factor is the geographical orientation of the activities, specifically the relationship between activities limited to Switzerland and internationally oriented projects. Finally, the intention to also invest in operating companies as a non-profit foundation is a critical factor in granting tax exemption.

Formation.

We will be happy to advise you on the preparation of the foundation’s statutes and organizational regulations. The key element here is the definition of the foundation’s purpose. We’ll be happy to assist you in choosing your domicile and opening a capital contribution account. We’ll also assist you in appointing the auditors. The formation deed must be publicly notarized.

Board of trustees.

We’re happy to support your foundation as the member board of trustees responsible for defining the strategy, controlling the risks and preparing the accounts. Operational management may be delegated to an operational management team in individual cases. Each year, the board of trustees must report to the Supervisory Authority for Foundations on the foundation’s activities and financial situation.

Strategy and projects.

We’ll be happy to help you define your funding strategy and evaluate your projects. This includes deciding whether the foundation only wants to support projects initiated by third parties or whether the foundation would also like to develop and manage its own projects. With regard to the projects to be supported, a decision must also be made on their geographical orientation – Switzerland and/or abroad. When defining self-managed projects, it’s worth thinking about possible partnerships with other foundations, universities and/or operating companies at an early stage. When supporting third-party projects, it’s advisable that the collaboration between the parties be defined in a written cooperation agreement. This includes the support offered by your foundation, the prerequisites for this on the recipient’s side and the project reporting to be provided by the recipient. If you intend to invest in operating companies, it is important to ensure that the target company is accompanied by personnel and experts.

Building up the foundation’s assets.

The minimum recommended founding capital is CHF 100,000. Subsequent donations to the foundation may be made in any amount depending on the capital requirements. It’s advisable to allot the foundation’s capital resources by means of donations over several years. It’s not advisable to build up surplus capital in the foundation that is not required for operational purposes. In managing the foundation's assets, it is necessary to comply with regulatory diversification criteria. Finally, the tax deductibility for the donor may also play a role in determining donations to the foundation.

Administration.

We’ll support you in the day-to-day operations and administration of your foundation. We’ll prepare the meetings of the board of trustees for you and draw up the minutes of the meetings. In addition, there are aspects such as granting domicile, receiving mail and donation requests, and conducting correspondence with banks, beneficiaries and supervisory authorities.

Reporting to supervisory authorities.

Depending on the geographical focus of the foundation’s activities, the foundation will be supervised by the Cantonal or Federal Supervisory Authority for Foundations. We’ll prepare the documents for you to submit to the Supervisory Authority for Foundations. The yearly report to the supervisory authority is accomplished by submitting the activity report, the minutes of the meetings of the board of trustees and the audit report approved by the board of trustees.