Government Policy and the Nonprofit Sector: Switzerland - VMI

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Nollert and Budowski Government Policy and the Nonprofit Sector: Switzerland subdivisions (SGG 2005). The Swiss Society of Public Utility was also a founder of Pro Juventute (1912), Pro Senectute (1917), Swiss Mountains Relief 50 (1942), Pro Mente Sana (1977) and was the driving force behind the ZEWO foundation by providing more than 400,000 CHF as start‐up capital. One of the current projects of the Swiss Society of Public Utility is the Volunteer Survey that complements the survey results provided by the Swiss Federal Statistical Office (Ammann et al. 2007). Finally, the website, freiwilligenarbeit.ch, should be mentioned. This platform was created in 1999 to promote volunteer work in Switzerland and Swiss volunteer work overseas (Markwalder 2005). It counts on the support of 85 organizations. In the past few years this forum has campaigned to institutionalize the social time card to document an individuals’ volunteer work. All of these umbrella organizations and national coalitions work together on many levels, such as in consultation processes, election campaigns, or, as in 2006, the creation of the Swiss NPO Code at the Large Swiss Relief Organizations Presidents’ Conference (KPGH). The Swiss NPO Code should guarantee responsible, transparent and timely good governance in NPOs for common welfare that rely on donations (Swiss NPO Code 2006). c) Involvement of Swiss Nonprofit Organizations in International or Regional Umbrella Groups Many NPOs, national umbrella organizations, and political parties are members of international umbrella organizations. In light of both the European integration process and the associated shift in political decision‐ making authority from national capitals to Brussels and the large dependence of the Swiss economy on the European markets, it is obvious that NPOs, even without membership in the European Union (E.U.), are increasing their commitment to umbrella organizations (Nollert 1996). On the one hand, Swiss associations transmit the meaning of decisions made by the E.U. to their members. Hence, enterprises exporting to the E.U. can, for example, adapt their production to new regulations and technical standards. On the other hand, despite lacking membership in the E.U., Swiss associations can still influence E.U. legislation by lobbying for their interests within the umbrella organizations. Furthermore, Swiss associations can ally with associations in countries with E.U. membership to fight against an objective of the E.U. Thus, in accordance with the initiative for the “Protection of the Alps Against Transit Traffic” Swiss and European environmentalist and public transport associations together are attempting to prohibit transit by trucks with a 60‐tons load on roads in the Alps. As this section has shown, the devices of Swiss direct democracy provide NPOs (as well as its citizens) considerable opportunities to intervene in public policy making and legislation (though networks with politicians or money considerably helps to support interests in the political arena). Umbrella groups have proven to be important players in politics and for policy issues. NPOs have gained interest in international or regional Umbrella groups, as international or regional (European) legislation are impinging on their situation in Switzerland and abroad. 50 Schweizer Berghilfe 18
Nollert and Budowski Government Policy and the Nonprofit Sector: Switzerland The following section will deal with current issues that NPOs and umbrella organizations are faced with presently. Apart from publications we draw the information from, we refer to a survey with Swiss experts for the NPO sector in section IV. IV. CURRENT ISSUES Looking at the publications of NPO umbrella organizations and large NPOs, the dominant topic is the government’s drive to economize. This has resulted in reduced or cancelled subsidies, more stringent conditions within service agreements, and increased competition between NPOs. An ongoing area of debate of considerable importance is the revision of the Foundation and Fiscal Law for Nonprofit Organizations in the Civil Code that has been in effect since 2006. This revision contains among other things the introduction of compulsory auditing, and the increase in Federal tax relief in respect of donations from 10 percent to 20 percent. The revision of the Stock Corporation and Financial‐Accounting Law (a part of the Swiss Code of Obligations) 51 has also prompted discussion, particularly as right of review 52 regardless of an association’s legal structure is also planned. In other words, foundations and associations are being put on a par with incorporated companies in terms of book‐keeping and financial accounting law. According to proFonds, this would make accounting unnecessarily complicated for the majority of small and medium‐sized foundations and associations. Many concerns have also been voiced with regard to the reform of value‐added tax (VAT), since – among other things – the Federal Council is proposing that revenue and membership fees of organizations concerned with common welfare should no longer be exempt (see section II.c). ProFonds considers this to greatly weaken Switzerland’s position as a hub for nonprofit organizations. The Swiss Council of States is also currently discussing a motion adopted on the 25 th of September 2006 that it would like to move the Federal Ombudsman for Foundations from the Federal Department of Home Affairs (FDHA) to another department. The motion was put forward because the Federal Ombudsman was criticized for having divided loyalties between the government’s political will and the right to autonomy of foundations and their donors, particularly because the FDHA is itself involved in so many foundations. The contentious Federation Complaint Right remains a controversial topic. Since 1990, more than 15 attempts have been made in Parliament to abolish this device that was originally introduced by environmental groups in 1966. Furthermore, development aid organizations such as Alliance Sud have demanded the implementation of the 1970 U.N. resolution requiring 0.7 percent of the Gross National Product to be invested in development aid. One final issue for consideration is the recently introduced social time card, which allows NPOs to certify the number of hours worked by volunteers. 51 Aktien‐ und Rechnungslegungsrecht im Obligationenrecht 52 Revisionsrecht 19
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Government Policy and the Nonprofit Sector: Switzerland - VMI

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