Opening Up to Charity

There are other kinks in Europe's fledgling philanthropy as well. There are strict limits in some countries on the amount of donations that companies can deduct from their taxes. In the U.S. foundations must disburse 5% of their assets annually to qualify for not-for-profit status. In Europe there's no such stipulation. For example, the Robert Bosch Foundation, Germany's largest, gave just over 1% of its $6 billion in assets last year.

But the philanthropy bug continues to spread. In Regensburg, Johann Vielberth, a real estate developer, set up a foundation earlier this year to finance a new institute of real estate studies with four professorships at the university. Next year he will put up a new building to house it. Vielberth, 72, says that although his family has backed local causes for 150 years, he is formalizing that tradition and taking the generosity to a new level: the donation to the university exceeds $10 million. "It's time for a culture of philanthropy to begin again," he says. Given Europe's growing funding needs, it's happening not a moment too soon.