Giving
Philanthropy
A tax-exempt charitable foundation or structured giving programme with the governance supervision expects.
PhilanthropySwiss
foundation
A foundation has no owners and no members: once the founder dedicates assets to a purpose, those assets belong to the foundation itself and serve only that purpose, under state supervision. It is a durable vehicle for philanthropy or for holding family wealth across generations, and, where charitable, exempt from income and capital tax. The trade-off for that permanence and exemption is letting go of owner-style control. We get the deed and purpose right at the start, because they are hard to change later.
At a glance
Assets dedicated to a purpose, for good.
Charitable or wealth-holding: the deed decides everything.
- Form
- Swiss legal entity, no owners
- Created by
- Public deed or will
- Endowment
- ~CHF 50k working floor
- Charitable
- Income & capital tax exempt
- Overseen by
- State supervisory authority
The essentials
What a Swiss foundation is
A foundation, governed by the Swiss Civil Code, is a pool of assets the founder dedicates by public deed or will to a defined purpose. It has no owners; the assets belong to the foundation and serve only its purpose, administered by a council and overseen by a supervisory authority. Charitable foundations can be tax-exempt; family and wealth-holding ones are not, and classic family foundations are limited by law. The purpose is durable and hard to change, so the deed is drafted with care from the start.
Who this is for
- founders establishing a philanthropic or charitable foundation;
- families holding wealth in a durable, supervised vehicle;
- donors wanting a credible, tax-exempt giving structure;
- those weighing a foundation against a trust.
Where it fits
A foundation often sits within wealth structuring, supports a philanthropy programme, or is compared with trustee services.
The choice
Charitable vs family foundation
The type of foundation drives its tax treatment, its permissible purpose and what the supervisor expects. The choice comes first.
| Feature | Charitable | Wealth-holding / family |
|---|---|---|
| Purpose | Public benefit | Holding, defined private aims |
| Tax | Exempt on application | Taxed as an entity |
| Distributions | To the public-benefit purpose | Limited by law for families |
| On dissolution | To another exempt body | Per the deed |
A charitable foundation buys tax exemption and credibility at the price of serving no private interest; a family foundation keeps a private purpose but is taxed and constrained. Picking the wrong one is costly to undo, because the purpose is hard to change. We establish the type that actually fits the goal, and say so when a foundation is not the right tool at all.
How it runs
How it is established
Define the purpose, draft the deed, endow and register, then meet supervision, with the exemption ruling where charitable.
- Step 1
Define the purpose
Settling the foundation’s purpose and type, knowing it will be durable and hard to change.
- Step 2
Draft the deed
Drafting the foundation deed, governance and council, and executing it as a public deed before a notary.
- Step 3
Endow & register
Transferring the endowment and entering the foundation in the commercial register.
- Step 4
Tax exemption
For a charitable foundation, applying to the cantonal authority for the income- and capital-tax exemption.
- Ongoing
Supervision & admin
Running accounts, the auditor relationship and supervisory filings, and supporting the council.
Budget
What it costs
Set-up cost depends on the complexity of the purpose and governance and on the exemption application; there is also the endowment itself, which the supervisor expects to be sufficient for the foundation to function. Ongoing administration is scoped to the foundation’s activity and reporting.
We scope and quote against the foundation’s purpose and size. Pricing is on request.
Discuss your foundation
What it takes
What a foundation requires
A credible, durable foundation rests on:
- a clearly defined and lawful purpose;
- an endowment sufficient to pursue it;
- a deed executed as a public deed and registered;
- a governing council and, in most cases, an auditor;
- for charitable foundations, a tax-exemption ruling.
A foundation means letting go — by design
The most common misunderstanding is treating a foundation like a company the founder still controls. It is the opposite: the assets are dedicated, the purpose is fixed, the council administers under state supervision, and a charitable foundation can serve no private interest at all. A founder who wants to keep owner-style control, draw income freely, or change direction at will should not use a charitable foundation. A classic family foundation is itself limited by law. The permanence is the point, and it is what gives the vehicle its credibility and, where charitable, its tax exemption. We make sure the founder wants that trade before building it.
Why Goldblum
The foundation, and what it involves
Getting the deed and purpose right at the start, obtaining exemption where charitable, and running the foundation under supervision is the work this firm does.
Durable
The deed right first time
A purpose and governance drafted with care, because they are hard to change, the foundation built to last across generations.
Exempt
Charitable status secured
For public-benefit foundations, the income- and capital-tax exemption obtained and the structure built to keep it.
Run
Supervision handled
Accounts, auditor, supervisory filings and council support: the ongoing administration a supervised foundation requires.
Related
Around the foundation
Cross-border
Trusts & trustee services
The foreign-law alternative for a cross-border family, administered from Switzerland.
Trusts & trustee servicesThe whole picture
Wealth structuring
The wider structure a foundation usually sits within: entities, holdings, residence and succession.
Wealth structuring
FAQ
Swiss foundation: FAQ
01What is a Swiss foundation?
A Swiss foundation (a Stiftung) is a pool of assets that the founder dedicates, by public deed or by will, to a defined purpose. Unlike a company it has no owners and no members: once endowed, the assets belong to the foundation itself and must be used only for the purpose set out in the deed. It is governed by a foundation council and overseen by a state supervisory authority. Foundations are used for philanthropy, for holding and protecting family wealth across generations, and for specific purposes such as employee welfare or culture. The defining feature is permanence and dedication: the founder gives the assets a purpose and largely lets go of them.
02What does it take to establish one?
A founder, an endowment, a defined purpose and a public deed. The founder dedicates assets to a purpose stated in the foundation deed, which is executed before a notary as a public deed (or set out in a will). The foundation is then entered in the commercial register and comes under a supervisory authority. There is no statutory minimum endowment, but supervisory authorities in practice expect enough capital for the foundation to pursue its purpose meaningfully: commonly around CHF 50,000 as a working floor, more for an active charitable foundation. We draft the deed and purpose, set the governance and take the foundation through registration and supervision.
03Charitable or family foundation — what is the difference?
A charitable (public-benefit) foundation pursues a purpose of general interest (relief, education, research, culture) and, if it qualifies, is exempt from income and capital tax. A wealth-holding or family foundation holds and administers assets, historically for a family's benefit, and is not tax-exempt; Swiss law also limits classic family foundations, which cannot provide maintenance income to relatives at will. The choice drives everything: tax treatment, the permissible purpose, the supervisory expectations. We establish the right type for the goal, and are candid where a foundation is not the best vehicle for it.
04When is a foundation tax-exempt?
When its purpose is one of public benefit, the assets are irrevocably dedicated to that purpose, and no private interests are served: the foundation cannot distribute to the founder or family, and on dissolution the assets must pass to another tax-exempt body. Exemption is granted by the cantonal tax authority on application, and it covers income and capital tax; qualifying donations may also be deductible for the donors. The conditions are real and policed: a foundation that blurs charitable and private purposes will not get, or will lose, exemption. We structure the foundation to meet them and obtain the exemption ruling.
05Who controls a foundation after it is set up?
The foundation council (the board) administers the foundation in line with the deed, and the supervisory authority oversees that it does. The founder can sit on the council and shape the initial purpose and organisation, but cannot retain the kind of control an owner has over a company: the assets are dedicated, and the purpose is fixed. The founder may reserve a limited right to amend the purpose under strict statutory conditions, but this is narrow. Anyone wanting to keep ongoing control should understand this before choosing a foundation: the trade-off for permanence and, where charitable, tax exemption is letting go.
06Can the purpose be changed later?
Only within narrow limits and with the authority's involvement. The purpose is meant to be durable; changing it generally requires that circumstances have altered so much that the original purpose has lost its meaning, and the supervisory authority must approve. A founder can reserve, in the deed, a limited right to have the purpose amended, but no earlier than ten years after establishment or the last change, and only within the same general field. This rigidity is a feature, not a flaw. It is what makes a foundation a credible long-term vehicle. We draft the purpose carefully up front because it is hard to change.
07How is a foundation supervised?
By a state supervisory authority: the Federal Supervisory Authority for foundations active nationwide or internationally, or a cantonal authority for locally active ones. Supervision ensures the foundation uses its assets according to its purpose: the authority reviews annual accounts and the auditor's report, can intervene if the foundation strays, and approves certain changes. This oversight is part of what gives Swiss foundations their credibility with donors, beneficiaries and tax authorities. It also means real obligations: proper accounts, an auditor in most cases, and engaged governance. We set the foundation up to meet them and can administer it on an ongoing basis.
08How does a Swiss foundation compare with a trust?
A foundation is a Swiss legal entity that owns its own assets for a purpose; a trust is a relationship under foreign law in which a trustee holds assets for beneficiaries. Switzerland recognises foreign trusts and supervises professional trustees, but has no domestic trust statute, so a trust is always foreign-law. For a founder who wants a Swiss entity, supervision and (if charitable) tax exemption, a foundation fits; for a cross-border family used to common-law trusts, a trust administered from Switzerland may suit better. They are different tools. We advise on which fits the goal, and can set up either, including a foundation alongside trustee services.
09Does a foundation need an auditor and annual accounts?
In most cases yes. A foundation must keep proper accounts, and unless it is small enough to qualify for an exemption it must appoint an auditor, whose report goes to the supervisory authority alongside the annual accounts. The threshold for being released from the audit obligation is narrow, so the majority of active foundations carry an auditor. These obligations are part of what gives a Swiss foundation its credibility: the accounts and the audit are how the supervisor confirms the assets are being used for the purpose. They also mean real ongoing administration, so we factor the auditor and reporting into the running cost from the outset rather than treating set-up as the whole job.
10Can Goldblum establish and run the foundation?
Yes. We advise on whether a foundation is the right vehicle and which type, draft the deed and the purpose, structure the governance and council, take the foundation through notarisation, registration and supervision, and, for charitable foundations, obtain the tax-exemption ruling. We can then provide ongoing administration: accounts, the auditor relationship, supervisory filings and council support. Because the purpose is hard to change once set, we put real care into getting the deed right at the start. The result is a foundation that is credible to authorities and donors and durable across generations.
Considering a Swiss foundation?
Tell us the purpose: philanthropic or family. A partner advises on the right vehicle, drafts the deed, and takes it through registration, supervision and tax exemption.