Endowment

Under a Endowment An endowment is a voluntary contribution to a foundation. Sub-foundations increase the basic assets of a foundation. Sub-foundations can consist of money or contributions in kind (e.g. real estate).

Most foundations also take Donations an. In contrast to endowments, which increase the foundation's base, donations from foundations must be used promptly for the foundation's purpose.

For donations and endowments to legally capable and fiduciary foundations, in contrast to donations to other charitable institutions, there are additional maximum amounts for the deduction of special expenses. With the Law on the Further Promotion of Civic Involvementwhich came into force on 1 January 2007, the maximum amount for the endowment of foundations was raised.

Pursuant to § 10 b para. 1a EStG, § 9 no. 5 GewStG § 10 b para. 1a EStG, § 9 no. 5 GewStG § 10 b para. 1a EStG, § 9 no. 5 GewStG, it is possible to make contributions to the basic fund of a charitable foundation and to claim this contribution for tax purposes. A maximum amount of 1,000,000 euros applies as a special expense deduction in the year of the contribution itself and spread over the period of the following nine years.