Conditions of Investment

The term "foundation" means that assets are used to generate returns in order to fulfill the objectives of the foundation, specified in its statutes. The assets of an officially recognized foundation have to be preserved and invested in order to generate earnings that have to be spent promptly. These are the regulations by German law, generally exempting non-profit, charitable organizations from federal taxation. Foundation’s donations and assets contributing to increase the capital reserve are being granted considerable tax concessions, particularly since the respective laws were modified in 2007.

Due to investment safety, the funds of the Threshold Foundation are predominantly invested in investment bonds such as mortgage bonds, government bonds and other similar bonds. To a smaller extent investments are also made in corporate bonds and since 2011 also in stocks and shares. In this case we make sure that we only invest in companies that do not produce economic goods which go against our ethical principles, such as weapons or nuclear power. For this reason, we have developed a negative catalogue specifying which investments should be excluded.

For our investments we exclude companies which...

1. …permanently violate employees´ fundamental rights (e.g. breach the principal standards of the ILO –International Labour Organization – et.al. the right to unionize, the ban on forced and child labour, the breach of the right to a living wage),
2. …continuously violate environmental and social law, international agreements and conventions,
3. …violate the principles of animal protection in essential business practice,
4. …mainly produce and trade in military goods and weapons,
5. …produce, use and research nuclear power or supply services to make this possible,
6. …employ or develop genetic engineering, chloride organic (? not sure what this is or if there is a better translation) mass products and embryonic research.

Investment forms of the Threshold Foundation (status January 2011)