Stiftung

Stiftungen are a legal form of foundation used in German-speaking civil-law jurisdictions. A Stiftung is established when a founder endows assets to be used for a specified purpose over an indefinite period. The assets are dedicated to the foundation and are managed independently from the founder, meaning they cannot be claimed back or redirected at will. The foundation’s governing body, typically a board of trustees or a supervisory council, administers the assets and ensures compliance with the charter and applicable law. The foundation is usually required to exist for the duration of its purpose and is subject to annual reporting and, in many jurisdictions, to oversight by a public authority.

Types and purposes: Private foundations (Privatstiftungen) are often used to manage family wealth, provide for relatives, and support charitable activities; charitable or gemeinnützige foundations pursue public-benefit aims such as science, culture, education, health, or social services. Some foundations are donor-advised or corporate foundations established by corporations or wealthy individuals.

Legal framework: Laws governing Stiftung differ between Germany, Austria, and Switzerland (and other German-speaking regions). Core principles include enduring endowment, fiduciary governance, and tax considerations for recognized non-profits. Dissolution typically requires the assets to be transferred to another foundation with a similar purpose or to a public-benefit institution, in accordance with the statute.

Impact and significance: Foundations fund research, arts, education, and social programs, often offering long-term stability beyond individual lifetimes. Critics point to governance risks, opaque decision-making, and debates over philanthropic influence.