Philanthropy
Philanthropy has become an increasingly prominent part of the wealth conversation, with families incorporating it ever earlier into long-term planning. It now sits firmly within the broader advisory offering of wealth managers, supported by dedicated expertise and growing client demand. In parallel, the rise of sustainable and impact investing has blurred traditional boundaries between financial and philanthropic capital.
Today’s landscape is also being reshaped by shifting geopolitical dynamics and evolving government priorities, prompting a re-appraisal of established initiatives, but also making space for philanthropy to contribute where public funding is retreating. The next generation is bringing fresh momentum, with heightened expectations around transparency, sustainability, and measurable impact, supported by an expanding role for data in shaping philanthropic decisions.
Luxembourg has built a compelling base for philanthropic activity, combining legal clarity, cross-border efficiency and a deeply integrated wealth management infrastructure. Clients benefit from a multilingual environment, access to world-class advisory firms, and the ability to align philanthropic intent with the full suite of investment, legal, and tax solutions already in place for their wealth.
Some will give a modest share of their wealth each year while others look to philanthropy as a legacy in itself, often shaped by personal experiences - from life-altering illness to the desire to help solve a challenge they have witnessed or have themselves overcome. Whether through one-off donations, recurring contributions, or the creation of a dedicated structure, Luxembourg ensures that philanthropic ambitions are channelled with care, structured for longevity, and delivered with measurable impact.
Philanthropic efforts in Luxembourg address many of the world’s most pressing challenges including:
- Sustainability and environmental protection, furthering both green and blue finance
- Education and opportunity, such as specific initiatives for girls, for youth at risk of exclusion, or for refugee communities
- Medical research and access to care, often linked to the donor’s own personal journey
- Social cohesion, helping communities bridge generational and economic divides
- Cultural heritage and diversity, safeguarding tradition and promoting inclusion
"Luxembourg’s dynamic ecosystem and international outlook make it a natural hub for philanthropy, empowering individuals and organizations to drive meaningful change across borders."
Mischa Eckart Head Global Wealth Management Luxembourg & Nordics, UBS Europe SE, Luxembourg Branch and Board Member, UBS Optimus Foundation Europe
A Trusted Centre for Structured Giving
Over time, Luxembourg’s wealth management offering has grown in breadth and depth, with dedicated philanthropic advisory teams now in place who help clients select causes, set up the appropriate giving structures, and measure the impact of their contributions. With donors increasingly seeking ongoing confirmation that their gifts are used effectively, Luxembourg meets this need, providing:
- Guidance in selecting high-integrity partner organisations
- Support with project due diligence and reporting
- Mechanisms for site visits and structured field engagement
- Assistance in aligning giving with family values and next-generation involvement
- Tax-optimised cross-border structuring where needed
Recognising the crucial role that Philanthropy plays in today’s wealth management ecosystem, the Luxembourg government has also eased barriers to philanthropic giving, introducing a tax regime that recognises cross-border donations made by Luxembourg residents in up to 31 markets as tax-deductible.
For clients seeking simplicity, flexibility, and clarity, Luxembourg offers a uniquely effective environment in which to plan and deploy their philanthropic capital.
Fondation de Luxembourg: A Leading Platform for Donors
A flagship organisation within this ecosystem is the Fondation de Luxembourg. The Fondation was established in 2008 by the State of Luxembourg and the Œuvre Nationale de Secours Grande-Duchesse Charlotte as an independent umbrella foundation which supports donors seeking to make long-term commitments to meaningful philanthropic projects. It offers a simple, efficient route to setting up a personal foundation.
The Fondation provides the legal structure for donors to establish their personalised foundations with its support. Once the vehicle is in place, the Fondation handles the day-to-day administration for the hosted foundation, identifies charitable initiatives in line with the donors’ personal aspirations, and oversees continuous project monitoring of the supported projects. Founders can play an active role through participation in board meetings and visits to beneficiaries.
The Fondation de Luxembourg also benefits from specific fiscal arrangements in key jurisdictions. In France, for instance, the Fondation is one of the few umbrella foundations in Europe to be officially recognised as a French foundation of public utility, ensuring French residents the same tax benefits as if they were giving in France. A similar recognition has been granted in the Netherlands. For donors based in other EU Member States, Giving Europe helps facilitate cross-border donations and tax recognition in 19 countries. Further abroad, American residents can also benefit from tax-deductibility via a dedicated “Friends of the Fondation de Luxembourg” fund based in the United States. These arrangements create new donation and legacy opportunities for founders based in these countries and make the Fondation de Luxembourg an attractive player in the international philanthropic landscape.
Turnover foundation
Donations are distributed promptly to selected causes. Ideal for those seeking immediate impact and flexibility without prioritising an endowment.
Endowment foundation
Capital is invested and the returns are used to fund projects. Designed for long-term or perpetual giving, with lasting support for chosen themes.
Hybrid foundation
Combines both approaches: part of the capital is distributed immediately, while the remainder is invested for future impact.
Since its inception, more than 132 foundations have been established, collectively deploying over €437 million to mission-aligned causes across 57 countries.
Foundations may be structured as turnover foundation, endowed, or hybrid, with donation sizes and models adapted to the preferences of each donor, and donors can retain access to their preferred discretionary investment managers for management of foundation assets.
Early, Structured Conversations
Today, philanthropy is no longer an afterthought but a conversation that begins early alongside discussions on succession planning, wealth transfer, and family governance. This ensures alignment between financial and non-financial goals, and provides space to incorporate the perspectives of all generations.
For many families, philanthropy becomes part of a long-term strategy to shape how wealth is used and remembered. It can support continuity across generations, reflect core values, or open a new chapter focussed not only on financial outcomes, but also on broader purpose.
With its trusted infrastructure, world-class advisory base, and recognised philanthropic platforms, Luxembourg offers individuals and families the ideal setting to transform wealth into lasting, global impact discreetly, efficiently, and with purpose.
Creating a Foundation with the Fondation de Luxembourg
