Foundations in Norway account for over 58 billion in annual value creation, as revealed by a comprehensive survey conducted by Oslo Economics on behalf of the Norwegian Gaming and Foundation Authority (Lotteri- og stiftelsestilsynet). This is the first time the contribution of Norwegian foundations has been examined. The survey uncovers that foundations create numerous job opportunities, make significant contributions to Norwegian voluntary work, and have positive ripple effects, such as improved public health, increased sustainability, and reduced social exclusion for low-income households.
A foundation is a self-owned legal entity with the objective of realizing a set of statues. Foundations are typically utilized as a legal form to work towards long-term goals, and they can operate on a commercial or non-profit basis. The scope of activities can range from large commercial foundations with many employees to smaller endowments that distribute yearly grants. There are 6,300 foundations in Norway.
The value creation of foundations occurs through the activities and services they provide to fulfill their purpose. However, foundations differ from the most common corporate forms in that non-commercial objectives often lie at the core of their activities. This means that significant economic values are created that cannot be solely identified through the analysis of the foundations’ financial statements. We calculate these added values by analyzing the value of volunteer work within the foundations and the potential returns that could have been realized if the foundation’s capital were invested elsewhere.
To read the full summary in English, please see the report.
