Health and research received over 40% of funding provided through foundations affiliated with the Fondation de Luxembourg in 2021, with climate change and biodiversity gaining philanthropic attention.
The Fondation de Luxembourg is an umbrella organization for 100 Luxembourg-registered foundations. It makes it easier to establish a foundation and perform administrative duties that organizations might otherwise find it hard to get resources for.
“Philanthropy is more essential than before,” said Henri Grethen, president of the Fondation de Luxembourg, at a media briefing on Wednesday. “We are in a tough position today,” he said, quoting the pandemic’s continuing effect as well as the war in Ukraine, the full scope of which is unknown.
According to the Fondation de Luxembourg’s yearly report, organizations associated with the foundation donated €10.5 million last year. This is a new high, up from €10 million in 2020. Since the Fondation de Luxembourg’s inception in 2013, €65 million has been donated to charitable causes.
The foundations have signed deals totaling over €300 million, with a focus on long-term assistance. The Fondation de Luxembourg does not raise funds for the organization under its care.
The proportion of funds allocated to various sectors
Foundations will be capable of holding real estate assets and using earnings, such as rent payments, for the very first time under new legislation that has yet to be voted on in parliament. Grethen believes that real estate can provide foundations with a steady source of revenue as a safe asset.
The research and health sector got a 12% funding increase between 2019 and 2020, accounting for 41.2 percent of all funds allocated last year. This was preceded by biodiversity and climate change (5.1 percent ), culture and diversity (10.8%), poverty and social cohesion (20.7%), and education (22.2%).
Owing to their small proportion, attention to climate change-related initiatives is increasing. In 2020, only 4.8 percent of funds were allocated to projects in this field.
The origins of the founders
During the media briefing, Fondation de Luxembourg director Tonika Hirdman stated that there is a rising focus on charitable donations. Previously, many donors chose to wait until the time of death to establish a foundation as a legacy project, but younger founders are becoming involved, according to Hirdman. “Our job is to help them accomplish those goals,” she explained, adding that founders want tangible, measurable outcomes.
“Notwithstanding all the complexities,” she said of the covid-19 pandemic and its aftereffects, “we are grateful that the foundations under our auspices not only sustained their operations but enhanced their existing commitments.”
Over half (56%) of the founders of organizations under the Fondation de Luxembourg live in Luxembourg. However, the foundation’s reach extends as far as the United Kingdom and South Africa.
Last year, Europe received two-thirds of all donations, followed by Asia (including the Middle East), the Americas, and Africa. Also, the Fondation de Luxembourg foundations assisted initiatives in 52 nations.