Tradi­tion meets innovation

His Serene High­ness (H.S.H.) Prince Max von und zu Liech­ten­stein combi­nes tradi­tion with inno­va­tion. Driven by joy and convic­tion, he uses the ‘Lebens­wer­tes Liech­ten­stein’ foun­da­tion to spark targe­ted change. As CEO of LGT – the bank is owned by the Prin­cely House – he stri­ves to conti­nue the values of the Prin­cely House’s long and successful history: sustaina­bi­lity, long-term thin­king and respect deter­mine the company’s culture, as do the courage to inno­vate, disci­pline and a holi­stic view of respon­si­bi­lity. H.S.H. Prince Max assu­mes that inves­tors are incre­asingly evalua­ting compa­nies and projects on the basis of their envi­ron­men­tal and social impact, not just their finan­cial success. Venture phil­an­thropy and impact inves­t­ing are the answers to this. 

The advan­tage of close proximity

Small, tightly networked, impactful: Liech­ten­stein combi­nes phil­an­thropy, inno­va­tion, tradi­tion and an inter­na­tio­nal focus. The coun­try, home to a mere 40,000 or so inha­bi­tants, offers work for around 43,600 people and makes use of close proxi­mity and flexi­ble struc­tures to quickly turn ideas into reality. This is also reflec­ted in the growing chari­ta­ble foun­da­ti­ons sector, which is gaining in importance and inter­na­tio­nal reco­gni­tion. The Verei­ni­gung liech­ten­stei­ni­scher gemein­nüt­zi­ger Stif­tun­gen und Trusts e.V. (VLGST) brings toge­ther around 140 chari­ta­ble foun­da­ti­ons as a plat­form for networ­king, but also for stimu­la­ting content on topics such as impact measu­re­ment and regu­la­tory issues. Its member­ship spans a hefty 10% of the 1,398 chari­ta­ble foun­da­ti­ons recor­ded as at the end of 2024.

The commit­ment to crea­ting an attrac­tive loca­tion for foun­da­ti­ons is having an impact: Liech­ten­stein took first place in the Global Phil­an­thropy Envi­ron­ment Index 2025 (GPEI 2025) for the second time. Indiana University’s Lilly Family School of Phil­an­thropy hono­u­red Liech­ten­stein as the coun­try with the best frame­work condi­ti­ons in the world for phil­an­thro­pic enga­ge­ment: open legal struc­tures with mini­mal hurd­les, stable poli­ti­cal and econo­mic condi­ti­ons, tax perks and flexi­ble private foun­da­tion models. The univer­sity surveys phil­an­thro­pic enga­ge­ment in 95 count­ries every three years.

Super­vi­sion and freedom

Due to – or perhaps despite – its long tradi­tion, Liechtenstein’s foun­da­tion sector has a great deal of poten­tial for ongo­ing deve­lo­p­ment. The foun­da­tion law reform in 2009 crea­ted a modern system of gover­nance that recon­ci­les super­vi­sion with free­dom. Segments within orga­ni­sa­ti­ons enable a clear sepa­ra­tion of liabi­lity and cost-effi­ci­ent umbrella struc­tures, crea­ting space for expe­ri­men­ta­tion, colla­bo­ra­tion and effec­tive projects. 

The 2009 reform signi­fi­cantly moder­nised the foun­da­tion space and crea­ted a solid bedrock for gover­nance. What matters now is how consis­t­ently these stan­dards are put into prac­tice. The sector as a whole is still seen as being fairly opaque – but this mainly rela­tes to private foun­da­ti­ons, whereas chari­ta­ble orga­ni­sa­ti­ons today operate in an open and profes­sio­nal manner. Private foun­da­ti­ons often keep their work under wraps. This discre­tion ensu­res flexi­bi­lity, but leaves ques­ti­ons of control and trust unans­we­red – an area of tension that charac­te­ri­ses Liech­ten­stein as a loca­tion for foundations.

Enab­ling real change

The coun­try is shaped by perso­nal commit­ment. Tina Weira­ther, the well-known former ski racer, supports talen­ted young athle­tes between the ages of 13 and 21 with the Top Talent Sport Foun­da­tion. She relies on will­power, passion and reflec­tion – not just athle­tic results. ‘Those who are in the thick of the fight need the most support,’ is her guiding prin­ci­ple. Her commit­ment combi­nes local support with global responsibility.

Inno­va­tion is also reflec­ted in new funding models such as blen­ded finance, which combi­nes public and private resour­ces to execute projects that would other­wise be unfe­a­si­ble. Deve­lo­p­ment agen­cies and foun­da­ti­ons assume the riskier tran­ches of funding, follo­wed by private inves­tors as soon as the basic cover is in place. This model opens up dialo­gues between the finan­cial world and deve­lo­p­ment coope­ra­tion stake­hol­ders, crea­ting new avenues for sustainable impact. One thing is clear: if you want to have a syste­mic impact, you need to be serious, willing to take risks, and give ever­yone invol­ved a seat at the table. Those who view success as a coll­ec­tive bene­fit for society can pave the way for real change.

The combi­na­tion of tradi­tion, legal flexi­bi­lity and inter­na­tio­nal connec­tions makes the coun­try a labo­ra­tory for modern phil­an­thropy, home to models that have a local impact, trig­ger a syste­mic effect and serve as inspi­ra­tion globally. Examp­les such as the FAST initia­tive to combat modern slavery high­light how coope­ra­tion between banks, foun­da­ti­ons and govern­ment can have an impact around the world. With local alli­ances between civil society, busi­ness, acade­mia and poli­tics, the Lebens­wer­tes Liech­ten­stein Foun­da­tion stri­ves to bring about tangi­ble change in the fields of energy, mobi­lity, nutri­tion and social cohesion.