Bayerische Landesstiftung

The Bayerische Landesstiftung (Bavarian State Foundation) is a public-law foundation (Stiftung des Öffentlichen Rechts) based in Munich, Bavaria, Germany. It was established in 1972 out of the merger of Bayerische Staatsbank with Bayerische Vereinsbank, and it pursues charitable and benevolent purposes in the social and cultural fields. Its endowment originally consisted of restricted registered shares of Bayerische Vereinsbank valued at approximately €141.1 million at the time, plus a cash amount of €7.7 million — representing the entire stake the Free State of Bavaria received for Bayerische Staatsbank in the merged bank. The foundation's grant-making focuses heavily on construction-related measures. In the cultural sphere, this means preservation and restoration of significant architectural and artistic monuments and construction work at non-state museums of supra-regional importance. In the social sphere, it supports significant social-policy building projects, especially in care for the elderly and for people with disabilities. Since its founding, the foundation has approved more than €500 million in grants and loans, supporting roughly 8,000 projects. In the 2024 reporting year alone, it spent nearly €20 million on 379 individual projects, including personnel and material expenses, with the majority going to cultural projects and the remainder to social initiatives. The foundation is governed by a Stiftungsrat (foundation council) chaired by the Bavarian Minister-President, with the State Minister of Finance as deputy chair, alongside representatives of the Bavarian State Parliament and the supreme state authorities of Bavaria. It awards an annual Culture Prize and Social Prize (since 1980) and an Environment Prize (since 1985), each currently endowed with €30,000, typically with two laureates per prize. The foundation's endowment has been invested largely in a single bank stock, which drew repeated criticism from the Bavarian Supreme Audit Office (Oberster Rechnungshof) in 1996 and 2005. The 2007–2008 financial crisis severely affected the foundation after a planned sale of all shares was withdrawn at the request of the Bavarian Finance Ministry; the audit office later reported a loss of €152 million in foundation assets. In 2013 the foundation responded by transferring about 40% of its assets (€390 million) to Allianz SE for conservative management, while about 60% was placed with external asset managers seeking higher-yield, more risk-oriented investments.

The Bayerische Landesstiftung was established in 1972 as a public-law foundation, arising from the merger of Bayerische Staatsbank with Bayerische Vereinsbank. At its founding it was endowed with restricted registered shares of Bayerische Vereinsbank with a then market value of approximately €141.1 million, plus a cash amount of €7.7 million. This represented the entire stake that the Free State of Bavaria received for Bayerische Staatsbank in the bank created by the merger. Until 1995, the foundation received a further €101 million from the Bavarian state budget so that it could participate in capital increases of Vereinsbank and maintain its shareholding. The foundation's grant-making has focused on construction measures: in the cultural field, preservation and restoration of significant architectural and artistic monuments and construction at non-state museums of supra-regional importance; in the social field, significant social-policy building projects, especially in elderly and disability care. Since its founding it has approved more than €500 million in grants and loans, supporting approximately 8,000 projects. The Süddeutsche Zeitung noted that smaller grant sums for projects deemed especially important by state parliament members in their constituencies are typical of the foundation. Governance rests with the Stiftungsrat (foundation council), composed of the Bavarian Minister-President as chair, the State Minister of Finance as deputy chair, and representatives of the Bavarian State Parliament and the supreme state authorities of Bavaria. Since 1980 the foundation has awarded an annual Culture Prize and Social Prize, and since 1985 an additional Environment Prize; each is currently endowed with €30,000, with typically two laureates per prize. The foundation's asset management drew criticism. It held its endowment largely in a single bank stock, and the Bavarian Supreme Audit Office criticized this financial conduct in 1996 and again in 2005, saying the foundation had not built its own asset-management competence and exposed itself to considerable risk through its continued concentration in one investment position. The foundation capital stood at €885.6 million as of 31 December 2005, with the equity share still at 68%; by the end of 2006 it had been reduced to 39%. Only in 2003 and 2004 did the foundation first sell shares from its holdings and partially reallocate assets into fixed-income securities. As of 31 December 2004, more than 80% of foundation capital was still in shares of the merged HypoVereinsbank and the spun-off Hypo Real Estate. The foundation was therefore hit hard by the financial crisis from 2007. A sale of all shares — already planned in 2005 for 2007, by then transferred through merger to UniCredit — was withdrawn at short notice on the express wish of the Bavarian Finance Ministry. In the wake of the financial crisis the bank's share price collapsed. In its 2012 annual report the Supreme Audit Office found a loss of €152 million in foundation assets; foundation capital had fallen below €800 million and the previous grant volume could no longer be maintained. Responsibility was attributed to the two chairs of the foundation council, the Minister-President and the Finance Minister. Critical decisions fell during the terms of Edmund Stoiber and Kurt Faltlhauser on the one hand, and most recently Horst Seehofer and Markus Söder. Faltlhauser in particular was said to have caused damage by withdrawing the complete share sale in mid-2007. In 2013 the foundation responded to the criticism and suggestions of the audit office. It transferred about 40% of its assets, €390 million, to Allianz SE, investing it in a conservative combination of a fixed-income investment and a fund developed individually with Allianz. About 60% of foundation capital was handed to external asset management to seek more risk-oriented investments with higher returns.

• 2024

  Foundation spends nearly €20 million on 379 individual projects, mostly cultural, with the remainder for social initiatives.

• 2013

  Foundation transfers about 40% of assets (€390 million) to Allianz SE for conservative management; about 60% goes to external asset managers.

• 2012

  Supreme Audit Office reports a €152 million loss in foundation assets; capital falls below €800 million.

• 2007

  Planned sale of all shares is withdrawn at the request of the Bavarian Finance Ministry; financial crisis follows.

• 2006

  Equity share reduced to 39% by year-end.

• 2005

  Audit office criticizes asset management again; foundation capital stands at €885.6 million with equity share at 68%.

• 2004

  As of 31 December, more than 80% of foundation capital was still in HypoVereinsbank and Hypo Real Estate shares.

• 2003

  Foundation sells shares from its holdings for the first time and partially reallocates assets into fixed-income securities.

• 1996

  Bavarian Supreme Audit Office criticizes the foundation's asset management for the first time.

• 1995

  By this year the foundation had received a further €101 million from the Bavarian state budget to participate in Vereinsbank capital increases.

• 1985

  Foundation adds an annual Environment Prize.

• 1980

  Foundation begins awarding an annual Culture Prize and Social Prize.

• 1972

  Foundation established as a public-law foundation from the merger of Bayerische Staatsbank and Bayerische Vereinsbank, endowed with Vereinsbank shares worth about €141.1 million and €7.7 million in cash.

A public-law grant-making foundation supporting cultural heritage and social welfare projects across Bavaria, funded by an endowment derived from the merger of Bayerische Staatsbank and Bayerische Vereinsbank.

1. 1Bayerische Landesstiftung | Startseitelandesstiftung.bayern.de
2. 2Bayerische Landesstiftung – Wikipedia (German)de.wikipedia.org
3. 3Bayerische Landesstiftung – Wikidatawikidata.org