Creation of endowment funds and their tax regime for donations

Article 140 of the economic modernisation act creates the endowment fund, a private non-profit legal entity that receives and capitalises assets given free of charge and uses the income for a public-interest mission or passes it on to other non-profit bodies. Donations to endowment funds give entitlement to the income tax reduction (Article 200 of the General Tax Code) and the corporate donation tax reduction (Article 238 bis), when the fund meets public-interest conditions or passes its income to eligible bodies. Endowment funds benefit from the tax regime of non-profit bodies. Article 141 exempts gifts and bequests to them from transfer duties (Article 795).