Global Chal­lenges, Coor­di­na­ted Solu­ti­ons: The Impact of Inter­na­tio­nal Philanthropy

Inter­na­tio­nal phil­an­thropy has become part of our ever­y­day life. Inter­na­tio­nal phil­an­thropy has been a key actor to address the COVID-19 pande­mic, severe natu­ral disas­ters, and armed conflicts. Simul­ta­neously, inno­va­tive giving vehic­les, such as crowd­fun­ding plat­forms and inter­me­diary orga­niza­ti­ons, have made inter­na­tio­nal giving more conve­ni­ent and approacha­ble for many. Howe­ver, regu­la­tory barriers and limi­ted tax incen­ti­ves hinder inter­na­tio­nal phil­an­thropy. How can chari­ta­ble orga­niza­ti­ons navi­gate in this ever-chan­ging regu­la­tory and tech­no­lo­gi­cal land­scape as the world calls for more effec­tive inter­na­tio­nal philanthropy?

Switz­er­land: A pree­mi­nent desti­na­tion for inter­na­tio­nal phil­an­thropy and global partnerships

Switz­er­land has a highly favorable envi­ron­ment for phil­an­thropy, inclu­ding sending and recei­ving cross-border dona­ti­ons. Appro­xi­m­ately 23% of Swiss chari­ta­ble foun­da­ti­ons are active inter­na­tio­nally and in 2020, Switz­er­land ranked as the fifth largest donor coun­try in the Global Phil­an­thropy Tracker, contri­bu­ting CHF 1.05 billion in inter­na­tio­nal donations—an increase of 20% since 2018.

Addi­tio­nally, various inter­na­tio­nal chari­ta­ble orga­niza­ti­ons and global part­ner­ships are head­quar­te­red in Switz­er­land. The presence of these global actors not only attracts cross-border dona­ti­ons and the estab­lish­ment of new chari­ta­ble orga­niza­ti­ons, but also encou­ra­ges colla­bo­ra­tion within and across the phil­an­thro­pic sector.

Switz­er­land is not only a hub for inter­na­tio­nal phil­an­thropy but also a hub for inter­na­tio­nal phil­an­thropy rese­arch. In August 2024, the Center for Philanthropy Studies (CEPS) at the Univer­sity of Basel named its first Assistant Profes­sor for Global Phil­an­thropy, Prof. Dr. Domi­nik Meier, marking Europe’s first and the world’s second profes­sor­ship focu­sed on inter­na­tio­nal philanthropy.

How to enhance inter­na­tio­nal phil­an­thropy further?

Inter­me­diary organizations

While there is no govern­ment inter­fe­rence in inter­na­tio­nal phil­an­thropy, inter­na­tio­nal dona­ti­ons do not qualify for tax bene­fits, unless they run through a Swiss chari­ta­ble orga­niza­tion, which serves as an inter­me­diary orga­niza­tion. The Trans­na­tio­nal Giving Europe network, via the Swiss Phil­an­thropy Foun­da­tion supports dona­ti­ons in Europe, while the Myriad alli­ance faci­li­ta­tes chari­ta­ble contri­bu­ti­ons to North America, Ocea­nia, and China.

Enab­ling legis­la­tion and advocacy

Switz­er­land became one of the first count­ries, where chari­ta­ble foun­da­ti­ons are eligi­ble for tax-exempt status even if they only run acti­vi­ties outside of the coun­try. The Canton of Zurich has recently amen­ded its poli­cies to ease tax exemp­ti­ons for inter­na­tio­nal acti­vi­ties of chari­ta­ble foun­da­ti­ons (see here). This may inspire policy chan­ges in other Swiss cantons too.

Know­ledge-driven decision-making

Data is key to know­ledge-driven decis­ion-making. Due to the lack of data on inter­na­tio­nal phil­an­thropy in Switz­er­land, it is hard to see its actual scale, scope, and impact. Increased data acces­si­bi­lity and colla­bo­ra­tion between rese­arch insti­tu­ti­ons and chari­ta­ble orga­niza­ti­ons is essen­tial to drive inno­va­tive solu­ti­ons in prac­tice and impactful rese­arch in academia.