VERBANDSMANAGEMENT INSTITUT (VMI)
Wealthy people may be willing to use part of their wealth for charitable purposes. These may be of cultural, charitable, ecological nature, or have a more innovative or preserving character. The choice can be left to the state and corresponding taxes paid. Or it can be taken into one’s own hands and made – for example through a foundation. This is facilitated by high taxes and high tax deductions for (sub-)foundations.
Interesting experiences from Switzerland
There are always large differences in the density of foundations between the cantons in Switzerland, when compared at the cantonal level. According to the Swiss Foundation Report (2025), there are 4.4 foundations per 1,000 inhabitants in the canton of Basel-Stadt and 3.4 in Zug, while in the cantons of Solothurn, Aargau and Thurgau, the number is less than 1.0. A few years ago, Blickenstorfer and Lichtsteiner from the VMI examined economic and political explanatory factors. They showed that the density of foundations is higher, among other things, the higher the national income and the higher the income tax rates. The findings were published in 2015 in the renowned journal “Voluntas”.
A state can become a centre of philanthropy with a skilful combination of settlement and tax policies. To achieve this, it should be willing to levy taxes and offer significant deductions for philanthropic self-realisation.
Network with international decision-makers on the topic of this issue – perhaps the next funding alliance will be born.
