Finances and financial statements
Over the years, the foundation has increased its grants. The reason for the increase is a combination of strong returns on its growing endowment and annual transfers from Villum Foundation, the main shareholder in the VKR Group, which receives profits from the business operations.
The foundation is liable for taxes on its income, with deductions for philanthropic grants and operating expenses.
Financial statements 2023
In recent year, the foundation’s grants have remained stable at around DKK 250-300 million, except for 2021, when the foundation’s 50th anniversary was celebrated with an extraordinary dividend from VKR Holding with a correspondingly high level of grants. Expectations for the next 1-3 years are that the foundation’s total grants and the distribution among the current grant areas will be maintained at the current level.
The foundation has broad discretion in how philanthropic grants are made. It is therefore up to the sitting board at any given time to assess how to prioritise between and within the grant areas outlined in the articles of association — projects with scientific, artistic, cultural, social and environmental purposes.
The annual financial statements have included a sustainability report for the foundation’s internal operations.
The foundation’s activities are subject to tax liability and the payment of taxes in several ways, and the foundation is therefore subject to various tax rules.
The foundation is liable to tax on any surplus, and its grants result in the payment of taxes and duties on the recipient’s side. Additionally, the financial relationship between the foundation and the corporate group is subject to a range of special tax rules.
Tax liability
The foundation is subject to tax under the same rules as Danish public and private limited liability companies, and it is also covered by the Danish Foundation Taxation Act. This means that it is liable to tax on its income, with deductions for philanthropic grants and operating expenses.
Consolidation deduction
A foundation can hedge its capital against inflation, thereby ensuring its distribution basis. Currently, the consolidation deduction is 4% of the amount the foundation distributes for philanthropic purposes.
Taxes and duties on VELUX FOUNDATION’s grants
When used by the grantees, our grants generate significant payments to the Danish state in the form of taxes and duties. Calculations conducted by PwC show that the Treasury receives 42 øre for every Danish krone (DKK) we distribute – in 2023, this amounted to a total of DKK 120 million.
For a description of the basis and method for calculating taxes and duties on grants from VELUX FOUNDATION, see the statement and appendices prepared by PwC:
Note on the foundation’s tax contribution
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Contact us if you wish to view financial statements from previous years.
