Charitable foundation with family involvement and tax-disciplined governance.

Client benefit

Concrete client benefits.

• The founder can create a visible long-term charitable project with family continuity.
• Donation deductions and endowment gifts can be planned before liquidity is transferred.
• Family involvement can be structured without turning charity into private wealth management.
• A GmbH donation can be reviewed for corporate benefit, vGA risk and documentation.
• The foundation receives a compliance file for Mittelverwendung, reserves and board decisions.

Tax classification.

German charitable tax law requires exclusive and direct pursuit of tax-privileged purposes. Family benefits, reserves, asset management and company donations must be documented carefully.

• Donation deduction and endowment donation limits.
• Permissible family support under section 58 no. 6 AO where applicable.
• Timely use of funds, reserves and asset preservation.
• Corporate donation by a GmbH and hidden profit distribution risk.
• Separation of founder interests, foundation purpose and family governance.

Ongoing charitable administration.

The foundation needs annual accounting, minutes, purpose reporting, fund-use documentation, reserve decisions and governance records.

• Annual review of Mittelverwendung and reserves.
• Board resolutions for grants, projects and administration costs.
• Documentation of donations, endowment gifts and investment income.
• Monitoring of family-related benefits and conflicts of interest.

Set-up and implementation process.

• Define charitable purpose, funding plan and family role.
• Check donation deduction and endowment contribution timing.
• Draft statutes, board rules and conflict-policy clauses.
• Prepare tax office recognition and opening balance.
• Set up annual compliance calendar and reporting file.

Typical mistakes.

• The family benefit is described too broadly.
• Donations are made before deductibility and documentation are checked.
• Administrative costs, reserves and fund use are not recorded.
• A GmbH donation lacks business rationale and creates vGA risk.
• The foundation is launched without annual compliance process.

What Kanzlei Meyers & Partner AG delivers.

• Charitable purpose and feasibility memo.
• Statutes, governance rules and family-involvement limits.
• Donation and endowment contribution plan.
• GmbH donation review and vGA risk notes.
• Annual fund-use and reserve documentation template.
• Board and project decision file.

Documents for the first review.

• Founder profile and intended purpose.
• Asset and liquidity overview.
• Planned donations, endowment contributions and GmbH payments.
• Family involvement wishes.
• Existing charitable commitments and project ideas.
• Corporate accounts if a company donation is planned.

Result of the initial consultation.

The first review ends with a documented decision file: target structure, tax assumptions, exclusion points, implementation sequence, document list and clear next steps.

• Decision matrix with recommended structure and rejected alternatives.
• Tax and compliance workstream with open points, deadlines and responsible parties.
• Implementation plan for entity formation, banking, governance and ongoing administration.

Legal position and limits.

Charitable status, donation deductibility and permissible family involvement require case-specific review. The website gives orientation and does not replace binding tax office coordination.

Frequently asked questions.

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