Available structures
A substantial long-term commitment to a philanthropic cause generally requires the creation of a vehicle for the efficient management of all the financial aspects of the project: a public benefit foundation. However, the creation of such a vehicle can be a long, complex and time-consuming administrative process.
The Fondation de Luxembourg enables a Sheltered Foundation to be set up under its aegis: This vehicle has the same advantages as a foundation with its own legal personality, but greatly simplifies the incorporation process (a few weeks). The Fondation de Luxembourg takes charge of administering the new structure.
There are two kinds of Sheltered Foundations:
- The Endowment Foundation: Generally created for an indefinite term with a minimum life of 10 years; the donor endows his foundation with capital. This capital is then invested and the yield on these investments is the main source of income to support the causes and projects chosen by the founder.
- The turnover Foundation: Particularly suited to the needs of companies or for private individuals wishing to make a recurring commitment rather than a capital donation. The founder undertakes to pay a particular sum to his foundation each year to support the cause of his choice. This recurring flow is then invested in projects chosen by the founder.
