FAQ

They are founded via donation agreements or usufruct agreements between the donor/usufructuary and the Rütli-Foundation. This agreement sets out the sub-foundation’s desired purpose. The assets contributed are listed separately from the other agreements in the Rütli-Foundation’s accounts.

The main steps involved are:
1) A deed of foundation and set of regulations are drawn up, stipulating the foundation's purpose, assets and foundation board.
2) The registered office and supervisory authority are chosen.
3) The deed of foundation and regulations are voluntarily submitted to the supervisory and tax authorities for preliminary approval.
4) Notarisation.
5) Application for adoption by the supervisory authority.
6) Application for tax exemption from the tax authorities.
Source: Swiss Foundation, Founding a Foundation

We recommend that any funds donated for projects over the next two to three years be kept as liquid assets. For the foundation's remaining assets, an investment strategy is devised in collaboration with the donor. This strategy should match the donor’s risk capacity and risk tolerance. The relevant assets in the sub-foundation or in returns for charity are administered by the private bank of Reichmuth & Co or, if desired, by another Swiss bank.

A sub-foundation can be opened very cost-effectively and with fewer assets. A sub-foundation opened under the Rütli-Foundation will be tax-exempt from the outset. The administrative fees are set by the Rütli-Foundation. Donations can be made anonymously or mentioning the donor’s name, as preferred.

With returns for charity, the added value (revenue and capital gains) from the assets invested is donated to charity, but the assets themselves are not. In contrast to deathbed gifts (bequests, etc.), the effects of the donation can be witnessed. After a minimum of three years, the capital - a maximum of the nominal amount originally contributed - reverts to the usufructuary’s private assets.

Donations must be made to charitable organisations. In other words, donations serve the common good. Donors and usufructuaries can set the amount and date of their donations by sending an instruction to the Rütli-Foundation board.

After a minimum period of three years, the usufruct agreement may be terminated at the end of that year, providing six months’ notice is given. When the agreement is terminated, the usufruct capital - a maximum of the nominal amount originally contributed - reverts to the usufructuary’s private assets.

The foundation board will respect the donor's wishes even after their demise, which means that the chosen recipients will continue to be supported until the capital is exhausted.

Following the usufructuary’s demise, the stipulations of their will or of the law will be followed.

If this occurs during your lifetime, it can be done via a gift. If it is to occur after your death, it must be stipulated in your will. The statutory compulsory portion must be observed in both cases.

Sub-foundations and returns for charity under the Rütli-Foundation umbrella are exempt from income and wealth tax. If your own foundation is tax-exempt, this also applies.