What types of foundation and endowment are there?
The first question for anyone wanting to start a foundation or endowment is which legal form it should take. The simplest form is an endowment contribution, as it does not need to be recognised by the authorities. It is also cheap to create an endowment fund, which is legally the same as an endowment contribution but offers you more options.
The first question for anyone wanting to start a foundation or endowment is which legal form it should take. The simplest instrument is an endowment contribution, as it does not need to be recognised by the authorities. It is inexpensive to create your own endowment fund. Legally it is an endowment contribution, but it offers you more options. In this way you can give your fund a name and establish its aim.
Otherwise you can opt to set up an endowment with a money-back guarantee. This is possible with a donor loan: You can offer long-term help without having to part with your donation permanently. However setting up your own foundation gives you the most options. In this case too, you must take care to choose the right form. But don’t worry, we will be happy to advise you!
Different ways of Endowments
Endowment contributions: the simplest way to give
An endowment contribution does not require any recognition from the authorities and it is the simplest instrument for giving. If you want to make a lasting contribution to help us fight hunger, you can simply contribute to the funds of the Deutsche Welthungerhilfe Foundation!
Endowment funds: “your own foundation” from 5,000 euros
Endowment funds are legally considered to be endowment contributions and they can be set up in a few days. However they offer you more options. You can name them and specify their purpose, and let the endowment fund grow on its own or with others.
Donor loans: a money-back guarantee from 10,000 euros
You can provide long-term support without handing over your assets permanently, by giving the Welthungerhilfe Foundation an interest-free loan. This allows you to keep your options open, as you can increase your loan, cancel it, or convert it into an endowment contribution.
Your own foundation: this is possible from 25,000 euros
Having your own foundation offers you the most flexibility. A trust foundation is often enough for a simple charitable foundation. For large amounts, or if you want to organise your own projects, we recommend a foundation with legal capacity.
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