UBS, together with Fondation de Luxembourg, offers an efficient and cost-effective alternative to establishing a fully independent private charitable foundation. A Donor-Advised Fund (DAF), or "Sheltered Foundation," provides a tax-efficient means of creating a charitable account under the auspices of Fondation de Luxembourg with UBS as your wealth manager. This arrangement allows you and your family to support charities worldwide, including universities and other institutions. By utilizing a DAF, you can focus on giving.

 

Benefits of establishing a Donor-Advised Fund with UBS Luxembourg

  • Simplicity and flexibility

    The Fondation de Luxembourg handles all the administration (grant process, due diligence, annual accounts etc.) and you focus on your giving. UBS is your wealth management partner. You can choose the charities you want to support with grants of any size, as often as you wish.

  • Anonymity

    We protect your privacy with the option to make grants to charities anonymously.

  • Charity tax relief

    We'll add to your UBS DAF any tax we can reclaim on your charitable donations.

  • Family oriented

    Nominated family members, both during your lifetime and after you pass away, can run your DAF and make charitable donations from it.

How our Donor-Advised Fund works

A Donor-Advised Fund (DAF) provides a flexible set-up for making donations to your preferred causes. Whether you choose to donate funds immediately or allow them to grow for future distribution, a DAF allows you to manage your philanthropic activities with ease and effectiveness.

1. Setting it up

The Donor-Advised Fund (DAF) will be established on your behalf by Fondation de Luxembourg, with an account at UBS Europe SE, Luxembourg branch. A DAF can be created with a UBS account by any individual or company willing to open an account at UBS Europe SE, Luxembourg branch and complete the standard procedures for account opening.

UBS Philanthropy Services and Fondation de Luxembourg will provide joint advisory services regarding the strategic purpose of your DAF. We will assist you with all necessary topics and questions that may arise during the establishment of such a vehicle.

2. Making your donation

There are two Donor-Advised Fund (DAF) models available:

  1. Endowed Foundation: The Sheltered Foundations maintains an endowment, and the returns generated from these assets are utilized for the vehicle's purposes. 
  2. Spend-Down Model: You can establish your DAF and make contributions into the DAF account over several tranches.

You can contribute to your DAF account once established at any time, with no minimum or maximum limits on donations. Your DAF account also enables you to raise donations for your sheltered foundation’s cause by family and friends.

3. Reclaiming tax reliefs

UBS does not provide tax advice. Please consult with your personal tax advisor.

If you decide to donate cash to the Donor-Advised Fund, you may be eligible for tax relief. The UBS Optimus Foundation and Fondation de Luxembourg are members of Transnational Giving Europe, facilitating tax-efficient giving for founders and donors across Europe. Find out more here: https://www.transnationalgiving.eu/

4. Grant making

All grants must be allocated to charities that are registered and tax-exempt, whether they operate locally, regionally, or globally. Eligible recipients include universities and other qualifying organizations.

You have the flexibility to schedule grant distributions at your discretion and determine the donation amounts. Options include making regular payments, allocating income generated from your portfolio, or contributing lump sums.

How do I know if I need a UBS Donor-Advised Fund?

  • Are you interested in a charitable giving vehicle that eliminates administrative burdens, allowing you to concentrate exclusively on your philanthropic efforts?
  • Would you like the option to make charitable donations anonymously?
  • Would you like to involve your family in your charitable contributions and decisions?
  • Would you like a charitable fund that continues after your death?
  • Would you like the flexibility to review and change the charities you give to?
  • Are you unsure about which charities to support but know that you want to put money aside now for philanthropic purposes?
  • Would you like to have flexibility in your giving while having a structure in place for your and your family’s legacy?

For the next steps, please contact your Client Advisor for guidance on establishing your DAF tailored to your charitable giving preferences.

Why choose a Donor-Advised Fund

UBS has extensive expertise in wealth management and philanthropy. UBS Philanthropy Services has been globally recognized as a leader in social impact and philanthropy. Supported by over 100 specialists and the global presence of the UBS Optimus Foundation, we offer professional advice, valuable insights, and a curated portfolio of high-impact partners.

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Your capital is at risk. The value of an investment may fall as well as rise and you may not get back the original amount.

UBS does not provide tax or legal advice. You should consult your independent tax/legal advisor for specific advice before entering into or refraining from entering into any services or investments.

1See: https://www.ubs.com/global/en/wealth-management/about-us/awards.html

*Based on our understanding of current tax legislation and applicable rates. These may change in the future and may not apply to your individual circumstances. UBS does not give tax advice.

**The price and value of investments and income derived from them can go down as well as up. Capital held in this account is therefore at risk.

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