Two New Nonprofit Foundations Recognized in Saxony

Saxony now has two more nonprofit foundations. They were recently recognized at the State Foundation Day in Saxony, as announced by the State Directorate of Saxony (LDS), the responsible authority.

The “Foundation 23 – Fundamental Rights for All” aims to promote the protection of fundamental rights and the defense of democracy. The “Stiftung Wege aus Trauma – Orientierung und Hilfe” seeks to support victims of crime and disasters, refugees, displaced persons, and war victims, as well as academia and research.

Foundations as a Pillar of Democracy

State Parliament President Alexander Dierks sees foundations as a contribution to democracy. “Foundations enrich our community, and through them, a self-confident civil society demonstrates which causes and areas are particularly important to it. At the same time, it becomes clear that it does not always have to be the state that oversees every aspect of our society.” To truly bring a foundation’s mission to life, a great deal of volunteer commitment is needed. That deserves recognition.

Foundations have held society together for centuries

“Our foundations do good, and that deserves more attention,” explained LDS President Béla Bélafi. “Among other things, they promote education, culture, science, the environment, and social welfare, and they step in where the state has never been or is withdrawing. They have held our society together for centuries.”

The oldest foundation dates back to the 16th century

According to the State Directorate, there are currently 714 foundations in Saxony, including 471 charitable foundations. By the end of September this year, a total of 26 new ones had been established, including 14 charitable ones. Foundations have a long tradition in this state: The oldest foundation still in existence is the “Elector Moritz’s Pious Foundation in Glashütte,” established in 1543. It supports the education of children, primarily those of kindergarten age.

State Directorate Exercises Legal Oversight

As the foundation authority, the State Directorate of Saxony recognizes foundations as having legal capacity. It is also responsible for legal oversight. The LDS monitors whether a foundation operates in accordance with its purpose and whether the assets that were available at the time of its establishment are preserved.

The distinctive feature of a so-called perpetual foundation is that it can fulfill its purposes only through the use of its endowment—for example, through interest or dividends. In the case of a consumable foundation, the endowment does not have to be preserved permanently. It may be entirely expended for the foundation’s purpose within a specified period. 

Foundation Purposes Often Include Art, Culture, and Historic Preservation

Charitable foundations must serve purposes that benefit the public good. The most common purpose of these foundations in Saxony is the promotion of art and culture, followed by education and training. The promotion of science and research ranks third. Many foundations also pursue multiple purposes. Historic preservation and conservation are particularly common motives in the Dresden area.