Foundation Knowledge
Many questions arise repeatedly when it comes to foundations. Here you will find an initial orientation — concise, understandable, and without legal jargon. The aim is to present fundamental aspects clearly and make complex relationships easy to understand.
The answers do not replace individual consultation. Instead, they provide a structured introduction to key questions and show how we at StiftungsHafen approach the topic of foundations: practical, clearly structured, and with an awareness of the long-term responsibility that comes with a foundation.
Explained Briefly
Many questions about foundations arise again and again. Here you will find an initial orientation — concise, easy to understand, and without legal jargon. The answers do not replace individual consultation but show how we at StiftungsHafen approach the topic of foundations.
01
What is a trust foundation?
A trust foundation (also called a dependent or non-incorporated foundation) is created when a founder transfers assets to a trustee — for example, to StiftungsHafen Treuhandgesellschaft mbH. The trustee manages these assets separately from its own assets and uses them exclusively for the purpose defined in the statutes.
02
What advantages does a trust foundation offer for me as a founder?
You do not need to build your own organization or appoint a board or management team. The trustee takes care of the administration — from accounting to annual reports. At the same time, you benefit from legal, tax, and organizational expertise and can focus on the purpose, content, and impact of your foundation.
03
From what amount does establishing a foundation make sense?
There is no fixed limit. The crucial factor is whether the assets are sufficient to meaningfully and sustainably fulfill the desired purpose and whether the ongoing costs are proportionate to the returns. Together, we will review your goals and asset structure and then assess whether and to what extent a foundation would be appropriate.
04
Is a trust foundation tax-advantaged?
Yes — if it is recognized as charitable by the tax authorities. In that case, the foundation can issue donation receipts, contributions can be claimed for tax purposes within the legal framework, and the foundation itself may be exempt from certain taxes. From the outset, we ensure that the statutes and agreements are structured in a way that meets the requirements for charitable status.
05
How much work will I have with the foundation myself?
That depends on how actively you would like to be involved. If we take on the fiduciary administration, we handle the operational work — such as accounting, payment processing, annual financial statements, reports on the use of funds, and reporting. You define the strategic direction and decide on the course, while we take care of the implementation.
06
Can I involve my family in the foundation?
Yes. Family members can be involved, for example, through advisory boards, supervisory bodies, or consulting roles. This allows the foundation to remain anchored in family tradition without placing administrative burdens on all relatives. It is important that roles and responsibilities are clearly defined in the statutes.
07
Can I change my mind later?
Foundations are generally designed for the long term. Within a defined framework, however, priorities and structures — particularly in trust foundations — can often be adjusted. Whether and how changes are possible depends on the specific structure. That is why we place great importance from the beginning on carefully designed but not overly restrictive statutes.
08
Is donating to existing organizations not easier than creating my own foundation?
Donations make sense if you want to support existing organizations that already run suitable projects. Establishing your own foundation becomes interesting when you want to create your own framework with your own purpose, priorities, and long-term perspective. In many cases, a combination of donations and a foundation solution is the right approach.
What Could Your Foundation Look Like?
These answers provide an initial orientation. What a suitable solution might look like for you specifically depends on your personal situation, your assets, and your goals.
If you would like to explore the topic of foundations further, we would be happy to speak with you. In the orientation meeting, we clarify your questions and outline possible paths.