Fondation des Fondateurs

Purposeful – transparent – cost-effective

Grant-making incurs costs

The endowment and the returns it yields for grant-making purposes must be in due proportion to the administration cost.

There are limits to the extent that these costs can be minimised in respect to an independent foundation: the expenses incurred merely for administrative management, accounting, auditing, the annual report and accountability to the Supervisory Board for Foundations (Stiftungsaufsicht), etc. can quickly add up to annual costs of up to CHF 50,000 or more.

As a matter of principle the administrative costs must not account for an excessively large proportion of the overall budget, as the foundation may otherwise, under certain circumstances, be unable to satisfy its purpose over the long term in respect to its profitability and impact.

The principle of cost effectiveness

The system of administrative pooling used within the FdF umbrella organisation keeps administrative costs below the levels they would otherwise be in an independent foundation. All the same, it is impossible to avoid certain fundamental costs, which means that there is a cost base that simply cannot be undercut.

However, the same principle applies here: the larger the endowment, the better the ratio between the grant-making amount and administrative costs. This is why FdF operates based on a transparent cost model. The umbrella foundation is not required to return a profit, although it is also not permitted to absorb longer term losses. In consequence, it applies the principle of cost effectiveness, and must generate returns that are sufficient to cover costs.

Do you have any questions?
Please feel free to contact us.

You can reach us by telephone on: +41 44 251 05 45 and by email under: 

What does it cost to set up a foundation?

The costs incurred when establishing an independent foundation can quickly add up to over CHF 10,000, especially the legal fees, consultancy fees, the entry in the trade register, notary costs, and acceptance by the Supervisory Board for Foundations.

Your advantage with the FdF:

Foundation pooling keeps the cost of setting up your foundation significantly lower, as you will no longer be required to pay for notarization or entry in the trade register, and in most cases you will not require legal advice.

FAQ

What are the administrative overheads in running a foundation?

There are limits to the extent that these costs can be minimised in respect to an independent foundation: the expenses incurred merely for administrative management, accounting, auditing, the annual report and accountability to the Supervisory Board for Foundations, etc. can quickly add up to annual costs of up to CHF 50,000 and more.

As a matter of principle the administrative costs must not account for an excessively large proportion of the overall budget, as the foundation may otherwise, under certain circumstances, be unable to satisfy its purpose over the long term in respect to its profitability and its impact.

Your advantage with the FdF:

FdF operates an administrative pooling system to keep overheads lower than they would be in the case of an independent foundation. Nevertheless, certain basic costs are simply unavoidable.

FAQ

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