The Stiftung für das Museum Folkwang is recognized by the tax authorities as a non-profit organization worthy of support. Contributions to non-profit foundations can be deducted from taxes upon presentation of a contribution certificate. Endowments and donations are tax deductible for both natural and legal persons (individual enterprises, private limited companies and corporations).
Endowments with a value of up to one million Euros (two million Euros for married couples) are tax deductable. The endower may spread the assessment of this amount over a period of up to ten years depending on his or her requirements.
Donations are tax deductible up to a limit of 20% of revenues; if the donation exceeds this limit the difference can be assessed the following year.
Under tax law, non-profit trust foundations are treated the same as foundations having legal capacity (see the section on endowments and donations).
Entrepreneurs as Endowers
Entrepreneurs and enterprises may claim the so-called book value privilege. If assets are transferred from the enterprise’s assets to the foundation, the withdrawal can be debited from the book value. The difference between book value and market value need not be taxed.
Philip Kwame Apagya
Young Love, 1996
© Philip Kwame Apagya