the increase and new developments in foundations and endowment funds | EUROtoday

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Final preparations for the exhibition entitled “Matisse.  L’Atelier rouge” at the Louis Vuitton Foundation in Paris, April 29, 2024.

The progress of foundations and endowment funds is each latest and spectacular: greater than 5,600 of those non-profit sponsorship organizations have been energetic in 2023. Their quantity elevated by 5% over one yr, and by 85% over ten years, specifies the Philanthropy Barometer, printed Wednesday June 19 by the Fondation de France. As for his or her expenditure, allotted to causes of common curiosity, it nearly doubled between 2014 and 2022 (neutralizing the impact of inflation), to achieve 16 billion euros.

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Their dynamism goes hand in hand with the rise, over the previous twenty years, in company sponsorship and donations, donations and legacies from people (primarily in favor of foundations and associations), which collectively represented 8.5 billion euros in 2019, in response to the newest Panorama of generosity, printed in 2021. “Creating a foundation or endowment fund marks a different level of commitment than one-off donationsexplains Anne Cornilleau, head of studies at the Philanthropy Observatory of the Fondation de France. This involves allocating large sums over several years, either by financing your own project of general interest – such as a museum, a retirement home, etc. – or, in 81% of cases, by supporting external projects. , in proximity or even in co-construction with the associations which lead them. »

The organizations experiencing the strongest growth are sheltered foundations – which benefit from the expertise and advantages of their hosting foundation, the main one being the Fondation de France –, as well as endowment funds. These, which only date from 2008, have the advantage of being able to be created by simple declaration to the prefecture, with an initial capital of 15,000 euros, while most foundations require a higher endowment. “The evolution of the legal and fiscal framework, in particular through the creation of various statuses over the past thirty years, has allowed different desires to act to materialize, and therefore for philanthropy to develop”deciphers Anne Cornilleau.

Social motion within the lead

Among creators, people and households stay the bulk profile (52%) however much less markedly than earlier than 2010 (65%). Companies are making progress: they took half within the creation of 30% of latest endowment funds and foundations in 2022 (in comparison with 21% earlier than 2010), adopted by associations, whose share elevated from 14% to 21%. “For companies, a foundation or an endowment fund is also a way of engaging their employees: they will be able to participate in governance and the selection of projects to support, engage in skills-based sponsorship…”notes the pinnacle of research.

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