Stichting INGKA Foundation
Encyclopedia
The Stichting INGKA Foundation is a Dutch
foundation founded in 1982 by Ingvar Kamprad
, the Swedish billionaire, who is founder and chairman of IKEA
. INGKA is one of the largest charitable foundations in the world. The name "INGKA" comes from a contraction of his name; "Stichting" is the Dutch language
word for foundation. The stated purpose is To promote and support innovation
in the field of architectural
and interior design
.
The foundation owns the private Dutch company INGKA Holding based in Leiden, which is the holding company
controlling 207 of the 235 outlets of IKEA
.
INGKA does not own the IKEA franchise and trademark; these are owned by Inter IKEA Systems B.V. in Delft
, also in the Netherlands, which receives 3% of all IKEA revenues in royalties. Inter IKEA Systems is owned by Inter IKEA Holding, registered in Luxembourg
. This company is controlled, in turn, by Interogo Foundation
, a Liechtenstein
foundation with a wealth of another $15bn controlled by the Kamprad family. In explanation, Ingvar Kamprad stated to the authors of a Swedish documentary that tax efficiency
was "a natural part of the company’s low-cost culture".
The Dutch Tax Service has declared both the Stichting INGKA Foundation and the associated Stichting IKEA Foundation "Institution for General Benefit" (algemeen nut beogende instelling
, ANBI).
is €19.7 billion
. Virtually all of the group's profit is reinvested; the foundation expects to spend 0.2% of its wealth (€45 million) on charitable giving
in 2010.
estimated that the foundation was worth US$36 billion
, making it the world's wealthiest at the time. In the same article, The Economist alleged that the Kamprad family uses the foundation structure as a corporate tax-avoidance and anti-takeover protection scheme for IKEA. The Kamprad family controls and benefits from IKEA through their ownership and control of Interogo Foundation Liechtenstein which owns Inter Ikea Holdings Luxembourg which in turn holds the Ikea trademark and intellectual property and receives royalties from all Ikea stores for their use.
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
foundation founded in 1982 by Ingvar Kamprad
Ingvar Kamprad
Ingvar Feodor Kamprad is a Swedish and the founder of IKEA, a retail company.According to Forbes magazine, as of 2011 he is the 162nd wealthiest person in the world with an estimated net worth of around US$6 billion in 2011...
, the Swedish billionaire, who is founder and chairman of IKEA
IKEA
IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories. The company is the world's largest furniture retailer...
. INGKA is one of the largest charitable foundations in the world. The name "INGKA" comes from a contraction of his name; "Stichting" is the Dutch language
Dutch language
Dutch is a West Germanic language and the native language of the majority of the population of the Netherlands, Belgium, and Suriname, the three member states of the Dutch Language Union. Most speakers live in the European Union, where it is a first language for about 23 million and a second...
word for foundation. The stated purpose is To promote and support innovation
Innovation
Innovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...
in the field of architectural
Architecture
Architecture is both the process and product of planning, designing and construction. Architectural works, in the material form of buildings, are often perceived as cultural and political symbols and as works of art...
and interior design
Interior design
Interior design describes a group of various yet related projects that involve turning an interior space into an effective setting for the range of human activities are to take place there. An interior designer is someone who conducts such projects...
.
The foundation owns the private Dutch company INGKA Holding based in Leiden, which is the holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
controlling 207 of the 235 outlets of IKEA
IKEA
IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories. The company is the world's largest furniture retailer...
.
INGKA does not own the IKEA franchise and trademark; these are owned by Inter IKEA Systems B.V. in Delft
Delft
Delft is a city and municipality in the province of South Holland , the Netherlands. It is located between Rotterdam and The Hague....
, also in the Netherlands, which receives 3% of all IKEA revenues in royalties. Inter IKEA Systems is owned by Inter IKEA Holding, registered in Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
. This company is controlled, in turn, by Interogo Foundation
Interogo Foundation
Interogo Foundation is a foundation registered in Liechtenstein. It owns Inter IKEA Holding S.A. registered in Luxembourg, which owns Inter IKEA Systems B.V, and thereby controls the intellectual property of the IKEA brand. Ingvar Kamprad, the founder of IKEA, and his family control the Interogo...
, a Liechtenstein
Liechtenstein
The Principality of Liechtenstein is a doubly landlocked alpine country in Central Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over , and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan...
foundation with a wealth of another $15bn controlled by the Kamprad family. In explanation, Ingvar Kamprad stated to the authors of a Swedish documentary that tax efficiency
Tax avoidance and tax evasion
Tax noncompliance describes a range of activities that are unfavorable to a state's tax system. These include tax avoidance, which refers to reducing taxes by legal means, and tax evasion which refers to the criminal non-payment of tax liabilities....
was "a natural part of the company’s low-cost culture".
The Dutch Tax Service has declared both the Stichting INGKA Foundation and the associated Stichting IKEA Foundation "Institution for General Benefit" (algemeen nut beogende instelling
Algemeen nut beogende instelling
The Dutch Tax Administration can declare an institution to be an "institution for general benefit" . Often this is a foundation, though not every foundation qualifies. It can also be a voluntary association , but not e.g. a sport club, or association of personnel...
, ANBI).
Finances
Stichting INKGA's group equityEquity (finance)
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...
is €19.7 billion
1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
. Virtually all of the group's profit is reinvested; the foundation expects to spend 0.2% of its wealth (€45 million) on charitable giving
Charity (practice)
The practice of charity means the voluntary giving of help to those in need who are not related to the giver.- Etymology :The word "charity" entered the English language through the Old French word "charité" which was derived from the Latin "caritas".Originally in Latin the word caritas meant...
in 2010.
Criticism
In May 2006, the magazine The EconomistThe Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
estimated that the foundation was worth US$36 billion
1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
, making it the world's wealthiest at the time. In the same article, The Economist alleged that the Kamprad family uses the foundation structure as a corporate tax-avoidance and anti-takeover protection scheme for IKEA. The Kamprad family controls and benefits from IKEA through their ownership and control of Interogo Foundation Liechtenstein which owns Inter Ikea Holdings Luxembourg which in turn holds the Ikea trademark and intellectual property and receives royalties from all Ikea stores for their use.
External links
- How IKEA Works - from the IKEA Group corporate site
- http://www.ikea.com/ms/en_IE/pdf/Welcome_Inside_2010.pdf