Finances and financial statements

In 2023, the foundation distributed approximately DKK 1.1 billion divided into 275 grants. Over the years, the foundation has increased its grants. This is primarily due to the good results achieved by the VKR Group as well as a good return on its increasing assets. The foundation is liable for taxes on its income, with deductions for philanthropic grants and operating expenses.

Villum Foundation is co-owner of the VKR Holding A/S group, and the companies in the corporate group pay tax according to the rules for Danish and foreign public and private limited liability companies. The foundation receives annual dividends from VKR Holding A/S and is subject to technical co-taxation regarding the dividend (transparency rule). This means that the foundation is obliged to distribute an amount for philanthropic purposes, which corresponds to the dividends from the holding company.

Villum Foundation transfers an amount annually to VELUX FOUNDATION, which distributes funds for philanthropic purposes under the same conditions.

In recent year, the foundation’s grants have remained stable at around DKK 1 billion, 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 include 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 Villum Foundation 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 DKK 0.43 for every Danish krone (DKK) we distribute for purposes in Denmark and abroad – in 2023, this amounted to a total of DKK 385 million.

For a description of the basis and method for calculating taxes and duties on grants from Villum Foundation, see the statement and appendices prepared by PwC.