The founder of IKEA left half his fortune for charity

Ingvar Kamprad, the founder of IKEA passed away in January of this year at the age of 91 and left over $60 billion CAD (362 billion kronor) in assets behind. Half the wealth will go to his four children, Peter, Jonas, Mathias and Annika, and the rest will be given to charities to stimulate business in northern Sweden.

"The remaining part of my estate will go to the FKS foundation. These funds will be used for the development of business activity in Norrland," his will, last updated in 2014, said.

The businessman moved to Switzerland in the 1970s to get a better tax rate on his business, but returned to Sweden in 2014 to settle down in Älmhult, Småland, the town where his company was originally founded.

 

"Ingvar Kamprad always had an interest in Norrland and often visited the region. He wanted to make it possible for people to live there, and not have to leave," IKEA Foundation director Per Heggenes told Swedish newspaper DN.

Kamprad founded the Kamprad Family Foundation for Entrepreneurship, Research and Charity in 2011 and it is worth around $750 million CAD (4.7 billion kronor). Previously its activities have focused on the region of Småland, the rural region where he hailed from.

Due to the complexity of the business, most of his wealth will not go to his dependents because most stores are owned by the Stichting Ingka Foundation. The purpose of this entity is to donate money to charity and support innovation and design. It was founded in the 1980s by Kramrad and is not within the family's control, instead being a subsidiary of Interogo Foundation, which itself is the owner of Inter IKEA, the global IKEA franchisor.

“Interogo Foundation is managed by a Foundation Council consisting of at least two members and a Supervisory Council, as a principle consisting of seven members,” Anders Bylund, Interogo’s head of communications, wrote in a email. “The Kamprad family members in the Supervisory Councils have been and shall always be in minority.”

The foundation also allows for profits to be reinvested into the company, and the purpose of this complex structure is to ensure the company's long-term survival. It is now impossible for any person to take control of the company, even a heir of his.

Though his family is unable to have control over the company, they will still receive sums from Ikano Group, which is owned by the company and runs numerous businesses in the finance, real estate and retail industries.Remember to change the summary block to the correct category before publishing.

📸: Pixabay