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Endowment Contract

Endowment Contract Template for Germany

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Key Requirements PROMPT example:

Endowment Contract

"I need an Endowment Contract for establishing a charitable foundation in Berlin, focused on providing educational grants to underprivileged students, with an initial endowment of 鈧�5 million to be transferred by March 2025."

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Document background
The Endowment Contract is a crucial legal instrument used in Germany to establish and structure foundations (Stiftungen). This document is essential when individuals or organizations wish to dedicate assets permanently to specific purposes, whether charitable, private, or corporate. It must comply with the German Civil Code (BGB) and relevant state foundation laws, requiring official recognition from state authorities. The contract details the foundation's purpose, initial endowment, organizational structure, and governance rules. It's particularly important for wealth planning, charitable giving, and creating lasting institutional structures. The document typically requires notarization and may need pre-approval from tax authorities if charitable status is sought. Once established, the Endowment Contract serves as the foundation's constitutional document and can only be modified under specific circumstances defined by law.
Suggested Sections

1. Parties: Identification of the founder(s) (Stifter) and initial foundation bodies

2. Background: Context and motivation for establishing the foundation

3. Definitions: Key terms used throughout the document

4. Name, Registered Office, and Legal Form: Official designation, location, and legal classification of the foundation

5. Purpose of the Foundation: Detailed description of the foundation's objectives and intended beneficiaries

6. Initial Foundation Assets: Description and valuation of the initial endowment assets

7. Organization and Management: Structure and responsibilities of foundation bodies (Board of Directors, Advisory Board, etc.)

8. Asset Management Principles: Guidelines for managing and preserving the foundation's assets

9. Use of Funds: Rules for distributing foundation funds and fulfilling the foundation's purpose

10. Accounting and Reporting: Requirements for financial documentation and reporting to authorities

11. Amendment Provisions: Procedures for modifying the foundation's statute

12. Dissolution Provisions: Conditions and procedures for foundation dissolution and asset distribution

Optional Sections

1. Tax Provisions: Specific provisions for maintaining charitable status - required for charitable foundations

2. Scientific Advisory Board: For foundations with scientific or research purposes

3. International Activities: Required for foundations operating across borders

4. Conflict Resolution: Detailed procedures for resolving internal disputes - recommended for larger foundations

5. Founder's Rights: Special rights reserved for the founder(s) during their lifetime

6. Business Operations: Required for foundations engaging in commercial activities

Suggested Schedules

1. Schedule 1: Initial Asset Inventory: Detailed list and valuation of all initial foundation assets

2. Schedule 2: Management Rules: Detailed procedures for foundation management and decision-making

3. Schedule 3: Investment Guidelines: Specific rules and limitations for asset investment

4. Schedule 4: Distribution Policy: Detailed criteria and procedures for fund distribution

5. Schedule 5: Compliance Guidelines: Procedures for ensuring regulatory compliance

6. Appendix A: Founder's Declaration: Formal declaration of intention to establish the foundation

7. Appendix B: Tax Office Pre-Approval: For charitable foundations, preliminary approval from tax authorities

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴短视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






























Clauses






























Relevant Industries

Non-Profit & Charitable Organizations

Wealth Management

Education

Healthcare

Cultural Heritage

Scientific Research

Environmental Protection

Social Services

Private Banking

Family Offices

Religious Organizations

Arts & Culture

Relevant Teams

Legal

Tax Advisory

Wealth Management

Compliance

Finance

Philanthropy Advisory

Investment Management

Grant Administration

Corporate Governance

Risk Management

Relevant Roles

Foundation Director

Legal Counsel

Tax Advisor

Wealth Manager

Philanthropic Advisor

Compliance Officer

Trust Officer

Board Member

Foundation Manager

Charitable Giving Specialist

Estate Planner

Non-Profit Executive

Investment Manager

Grant Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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