Switzerland is home to thousands of charitable foundations, many of them created by international families. The articles collected here explain how a charitable foundation is formed, which authority supervises it, the conditions for exemption from tax and for the deductibility of donations, the governance and investment of the foundation's assets, and the use of foundations for international philanthropy. They also compare the Swiss foundation with the Liechtenstein foundation and the charitable trust, so that families can choose the structure that suits their purpose.
Switzerland is home to thousands of charitable foundations, many of them established by international families. A Swiss foundation can support causes anywhere in the world, it can be exempt from tax, and it is supervised by the state, which gives donors, beneficiaries and partner organisations lasting confidence in its work.
Foundations with a national or international purpose are usually supervised by the federal supervisory authority, while those with a local or cantonal focus fall under cantonal supervision. Supervision ensures that the assets are used in accordance with the founder's purpose, and it lends the foundation a credibility that is valuable in cooperation with governments, universities and international organisations.
The purpose clause deserves the most careful drafting, because it can be changed only under strict conditions once the foundation exists. Founders should consider how broad the purpose should be, how the board will be composed and renewed, and whether they wish to reserve the right to amend the purpose, which Swiss law permits within certain limits.
Tax exemption requires that the foundation pursue a public-benefit purpose selflessly and that its activity benefit an open circle of persons. Donors resident in Switzerland can generally deduct donations to exempt institutions within statutory limits. Founders should also plan how much capital the foundation needs, how that capital will be invested and how the foundation will be funded in the long term.
The articles explain how a charitable foundation is formed and supervised, the conditions for tax exemption and the deduction of donations, the rights a founder can reserve, and the alternatives offered by Liechtenstein foundations and trusts.
Changing, merging and dissolving a Swiss foundation
A foundation is created to last, often for generations, but the world in which it works changes. Its purpose may… Read more Philanthropy · InternationalCross-border giving: international donors and Swiss foundations
Philanthropy is increasingly international. Families from Asia, the Middle East, Africa and Latin America establish foundations in Switzerland to support… Read more Philanthropy · StructuresUmbrella foundations and other alternatives to your own foundation
Not every philanthropic project needs its own foundation. A separate foundation requires a board, accounts, an auditor, supervision and a… Read more Philanthropy · GovernanceThe foundation board: governance, investment and accountability
A foundation has no owners and no shareholders who hold its board to account. The foundation board therefore carries a… Read more Philanthropy · TaxTax exemption for charitable foundations in Switzerland
The tax exemption is what turns a Swiss foundation into an efficient instrument for philanthropy. An exempt foundation pays no… Read more Private Client · PhilanthropyCharitable foundations in Switzerland: formation, supervision and tax exemption
Switzerland is home to thousands of charitable foundations, many of them established by international families who want their philanthropy to… Read more