This offers all donors the opportunity to make their contributions tax deductible. In Germany, donations to a charitable foundation of up to one million euros per person into the foundation’s asset pool can be deducted from income tax (immediately or spread over 10 years as desired). Married couples assessed together can endow twice as much. For the general charitable deduction, up to 20 percent of the total amount of income can be claimed.

Entrepreneurs may alternatively claim up to 4 per mille of the sum of the total sales of wages and salaries spent in the calendar year as a special tax expense. The donation amount can be carried forward for an unlimited period of time. Donations to a charitable foundation are exempt from gift and inheritance tax – in principle also retroactively if the inherited or donated assets flow into a charitable foundation within two years.

The prerequisite for these tax benefits is the approval of the Articles of Association by the tax authorities and the associated determination of compliance with the requirements of the Articles of Association.