to donate / to cause
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to donate / endow
To provide or establish something (often money, a prize, or an institution) for a charitable, cultural, or social purpose.
Der Unternehmer stiftete eine große Summe für den Bau der neuen Bibliothek.
The entrepreneur donated a large sum for the construction of the new library.
The meaning of 'stiften' (to donate/to cause) depends strongly on the object. If it is something positive and valuable (money, a prize), it means 'to donate'. If it is something negative (unrest, confusion), it means 'to cause'.
Ein anonymer Spender stiftete 10.000 Euro für das Projekt.
An anonymous donor donated 10,000 euros for the project.
The verb 'stiften' (to donate/to cause) is closely related to the noun 'die Stiftung' (foundation). A foundation is an organization that was often established through a large donation (eine Stiftung) in order to support a good cause.
Er möchte eine Stiftung zur Förderung junger Künstler gründen.
He wants to establish a foundation to support young artists.
In its negative meaning, 'stiften' (to cause) is used almost only with abstract nouns. Typical combinations are 'Unruhe stiften' (to cause unrest), 'Verwirrung stiften' (to cause confusion), or 'Unheil stiften' (to cause harm/mischief).
Seine widersprüchlichen Anweisungen stifteten große Verwirrung im Team.
His contradictory instructions caused great confusion in the team.
The combination 'Frieden stiften' (to make peace) is a fixed expression. It means actively ending an argument or conflict and creating harmony.
Der Mediator half den beiden Parteien, Frieden zu stiften.
The mediator helped the two parties make peace.
to found / be based on
'gründen' and 'stiften' can both mean that an institution or something new comes into being. 'gründen' is the normal word for companies, clubs, organizations, or even a family. 'stiften' is used more when someone provides or establishes money, a prize, or an institution for a social, cultural, or charitable purpose. The words can be confused because both can describe a beginning. But 'stiften' often includes the idea of donating or supporting, while 'gründen' is more general.
Eine ältere Dame hat der Schule einen Preis für besonders hilfsbereite Schüler gestiftet.
An elderly lady donated a prize to the school for especially helpful students.
Die Ärztin will eine Praxis in ihrem Heimatort gründen.
The doctor wants to open a practice in her hometown.