• print version
• Click here to tip a friend about this page!

Wealthy individuals are becoming increasingly concerned about the environment and world poverty. Moreover the economic crisis, while putting a break on the sums donated, has clearly broadened the impact of this change of attitude.  Engaging in philanthropy is perceived as a way of taking responsibility in times of crisis and providing advice on how to go about it is likely to become a core service for private banks.

As a private banking centre, Luxembourg has witnessed this shift in demand. However, many financial advisers do not feel they have the right tools to advise their clients on philanthropic engagement. The Luxembourg Government has moved to support the sector by two initiatives:

• creation of the Fondation de Luxembourg, a centre of expertise that provides advisers with the tools to discuss philanthropic issues with their clients;
• introduction of tax changes that make it fiscally attractive to engage in philanthropy.

The Fondation de Luxembourg was created in December 2008. Its mission is to promote and facilitate long term philanthropic engagement by wealthy individuals. It acts as an intermediary between the private banks, law firms and notaries who are in direct contact with clients and beneficiary organisations and philanthropic projects around the world.

The foundation offers two services:

• Structure: it shelters foundations under an umbrella structure, thus offering the advantages of an independent public utility foundation while reducing to a strict minimum the creation, administration and management of the vehicle;
• Advice: it offers advice and due diligence on organisations and projects for the donor to engage with, and provides follow up and performance measurement of projects on behalf of its clients to evaluate the impact of their donations.