Consulting

• Tax and legal advice on the establishment of foundations
• Audit and support in the drafting of statutes and articles of association with a view to obtaining and maintaining non-profit status in coordination with the tax office and the foundation supervisory authority
• Tax advice on the delimitation and allocation of activities in the various spheres (ideal area, asset management, special-purpose operation and economic business operation)
• Advice in connection with endowments and donations
• Advice on turnover tax, especially with regard to the application of exemption regulations
• Support during tax audits
• Advice on foundation law issues
• Advice on the use of subsidies
• Advice on the liability of board members and protective measures
• Advice on consumer foundations
• Advice and support for restructuring in connection with asset succession (e.g. family foundations)
• Protection of assets against access by third parties (asset protection)
• Replacement inheritance tax planning
• Income tax planning for foundations as well as for beneficiaries
• Cross-border/international fulfillment of charitable purposes
• Restructuring and mergers of non-profit organisations
• Advice in case of loss of non-profit status (misuse of funds or activities not in accordance with the statutes)
• Liquidation of non-profit-making entities

*Legal advice from qualified lawyers

 

 

Ongoing support

• Creation of reserves
• Amendment of statutes
• Financial and payroll accounting
• Preparation of tax returns and annual financial statements
• E-balances for non-profit organisations
• Statement(s) of application of funds
• Optimization of the accounting system
• Review of the activity reports
   

 

Audit

• Mandatory and voluntary audits of annual financial statements
• Where-used list checks
• Audit of the internal control system
• Examination of the proper use of donations
• Audits according to § 53 HGrG

 

The most common form of the foundation is the charitable one. If a foundation pursues a charitable purpose, it is granted the status ‘charitable’ and related tax benefits after it has been audited by the foundation authority and tax office. Charitable foundations can promote, for example, cultural institutions or cancer aid, or they can act on their own behalf.

 

Private benefit foundations, such as family foundations, do not benefit from a tax exemption. Their mission is solely to secure wealth and provision for the family and thus does not serve the corporate good.

 

The contributions to the family to secure their provision do not reduce the income of the foundation and are therefore not tax-privileged. They are considered as distributions from corporations. You nonetheless can take advantage of tax benefits. Please click here for further information.