Zombie foundations: When the foundation itself becomes a funding project
Small foundations often spend more on themselves than on their cause. One donor's accounts show why nobody notices.
A German philanthropist has calculated the costs of running a charity foundation. His foundation has assets of €4 million, invested in bonds, dividend-paying stock funds, and certificates. Annual expenses, including accounting and regulatory compliance, total around €4,900. The philanthropist also spends 118 hours per year on foundation-related tasks, including investment management and tax compliance. The foundation generates around €110,000 in annual returns.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
