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Record number of foundations: smaller ones are fighting for survival!
The number of charitable foundations in Germany is increasing, but many are fighting for survival. Challenges and reforms are highlighted.
Record number of foundations: smaller ones are fighting for survival!
The ups and downs of small charitable foundations in Germany have reached a crucial point in recent years. Today, August 16, 2025, various analyzes report on the overall situation of these foundations, which have reached a record high in Germany. Nine out of ten of these institutions are non-profit, just like Vanessa Weber's foundation, which she set up five years ago with a base of 50,000 euros. But the reality is bleak for many of these smaller foundations. Last year, Weber had to pay 2,500 euros out of her own pocket for administrative costs and is dissatisfied with the quality of advice when setting up her foundation.
Felix Oldenburg, former Secretary General of the Federal Association of German Foundations, emphasizes that many small foundations are inactive. This is also reflected in the sobering figure that around 80 percent of foundations have a base of less than one million euros, which significantly limits their ability to act. While the banks benefit from these foundations, the reality for the foundations themselves is often different. The returns from the foundation's assets are often lower than with regular investments. In addition, foundations generally have to choose conservative investment strategies to ensure capital preservation.
New foundation law and future developments
However, the situation could soon change. A nationwide register of foundations will be introduced from 2026, while changes to foundation law came into force in 2023 in order to create uniform regulations. These changes allow foundations to be dissolved under certain circumstances and make it easier to make changes to the statutes. But despite this progress, it remains problematic because foundations do not have to disclose their finances - only the foundation supervisory authority and the tax office have access to the financial statements.
Oldenburg recommends that young founders use assets instead of cash to set up foundations to overcome financial challenges. Weber now regrets her decision to found the foundation and plans to compensate for the deficits privately, which dramatically illustrates the precarious situation of small foundations.
The gaming world and its fluctuation
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