The foundation

When a foundation is set up, assets are made independent for a specific purpose. This means that it no longer belongs to the founder but to the foundation for a certain period of time.

The foundation is a legal entity headed by the foundation council. The foundation is established by means of a notarial deed or a will.

With the exception of the family foundation and the ecclesiastical foundation, the foundation must be entered in the commercial register.

A minimum capital of CHF 50,000 is required to establish a foundation in Switzerland.

This capital serves as the foundation's basic assets and must be contributed in full when the foundation is established. The foundation capital can be contributed in the form of money, real estate or other assets.

The minimum capital ensures that the foundation has sufficient financial resources to pursue its objectives and projects in the long term.

The purpose of a foundation is usually charitable, social, cultural or scientific. The precise objectives and activities are set out in the foundation charter and must comply with Swiss law.

A foundation may not pursue any commercial purposes and may not distribute any profits to the founders or third parties.

Instead, the foundation's assets must be used to fulfill the foundation's purpose so that a long-term and sustainable benefit for society is guaranteed.

The establishment and operation of a foundation in Switzerland requires at least three persons as members of the foundation board. The Board of Trustees is responsible for the management and administration of the foundation and for the realization of the foundation's purpose.

The members of the Board of Trustees are designated in the deed of foundation and must perform their duties on a voluntary basis or in return for appropriate compensation.

The cooperation and commitment of the members are decisive for the success and effectiveness of the foundation.

Establishing a foundation has many advantages. One of the biggest advantages is the opportunity to make a long-term and sustainable positive contribution to society. Foundations also enjoy tax advantages, as they can be exempt from tax liability for charitable activities. This means that more funds can be used to fulfill the foundation's purpose.

In addition, the foundation offers a high degree of flexibility in the design and implementation of its projects and can act independently of commercial interests. Foundations also enjoy a high level of public recognition and credibility, which facilitates support and cooperation with other organizations and institutions.

One of the disadvantages of a foundation is the high administrative effort associated with its establishment and management. Drawing up the foundation deed, registration in the commercial register and ongoing administration require time and commitment.

Another disadvantage can be the limited flexibility in the use of funds, as the foundation's assets may only be used for the defined purposes of the foundation. In addition, it can be difficult to raise sufficient funds and support to achieve the foundation's objectives in the long term.

Finally, there is a risk that the foundation may no longer be able to pursue its objectives if economic conditions or social needs change.

In summary, it can be said that setting up a foundation in Switzerland is a respected and effective way of making a long-term and sustainable positive contribution to society. However, the advantages of tax benefits and social recognition must be weighed against the administrative burden and financial challenges.gen werden.