“The foundations under our aegis not only continued their activities but increased their existing commitments,” said Fondation de Luxembourg director Tonika Hirdman during the presentation of the organisation’s 2021 annual results Photo: Mike Zenari

“The foundations under our aegis not only continued their activities but increased their existing commitments,” said Fondation de Luxembourg director Tonika Hirdman during the presentation of the organisation’s 2021 annual results Photo: Mike Zenari

More than 40% of funds donated through foundations associated with the Fondation de Luxembourg in 2021 were given to health and research, with biodiversity and climate change a growing interest for philanthropists.

The Fondation de Luxembourg is an umbrella organisation for 100 foundations registered in Luxembourg. It facilitates setting up a foundation and administrative work that organisations might otherwise struggle to find resources for.

“Philanthropy is needed more than ever,” said Fondation de Luxembourg president Henri Grethen during a press conference on Wednesday. “We are in a difficult situation today,” he said, citing the ongoing impact of the pandemic combined with the war in Ukraine the full scale of which is yet to be seen.

Organisations affiliated with the foundation donated €10.5m last year, the Fondation de Luxembourg’s annual report shows. This marks a new record, up from €10m in 2020. Since the creation of the Fondation de Luxembourg in 2013, €65m have been given to good causes.

In total, the foundations have made commitments worth more than €300m, with a focus on long-term support. The Fondation de Luxembourg does not carry out fundraising for the organisation under its stewardship.

Under a new law, which remains to be voted in parliament, foundations for the first time will be able to hold real estate assets and use income, for example from rent payments. Grethen said that real estate could offer a stable source of income for foundations as a secure asset.  

The health and research sector saw a 12% increase in funding between 2019 and 2020 and last year still accounted for 41.2% of the funds allocated. This was followed by education (22.2%), poverty and social cohesion (20.7%), culture and diversity (10.8%), and biodiversity and climate change (5.1%).

While they account for a comparatively small share, interest in climate change-related projects is growing. In 2020, just 4.8% of funds went to projects in this field.

There is a growing interest in charitable giving, said Fondation de Luxembourg director Tonika Hirdman during the press conference. While in past years many donors waited until the end of their life to set up a foundation as a legacy project, these founders are becoming younger and more involved, Hirdman said. “Our work is to help them achieve their goals,” she said, adding that founders are looking for concrete, measurable impact.

“Despite all the uncertainties, we are proud that the foundations under our aegis not only continued their activities but increased their existing commitments,” she said of the covid-19 pandemic and its aftermath.

More than half (56%) of the founders who set up an organisation with the support of the Fondation de Luxembourg live in Luxembourg. But the reach of the foundation stretches as far as the UK or even South Africa.

Two third of the funds donated last year remained in Europe, followed by Asia (including the Middle East), Africa and the Americas. The foundations under the Fondation de Luxembourg supported projects in 52 countries last year.