Government Policy and the Nonprofit Sector: Switzerland - VMI

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Nollert and Budowski Government Policy and the Nonprofit Sector: Switzerland nonprofit sector are tax policies and financial support; thus, NPOs profit both from low taxes in comparison with for‐profit organizations and from subsidies if they provide a public service. Since the 1990s, the nonprofit sector is, however, confronted with new legal restrictions due to the critique of neoliberal economists that the significant constitutional influence of Swiss NPOs (consultation process, initiative, referendum, complaint right), prevent economic growth. Also, the process of European integration has entailed a shift in political decision‐making authority from national capitals to Brussels. For this reason, Swiss NPOs have recently become more committed to their European umbrella organizations. According to an online survey and interviews with nonprofit sector experts, the following five issues are most important at the moment: restructuring of Swiss politics, cooperation with commercial organizations, state financial support, professionalization, and legal framework. Despite a lack of explicit policies towards the nonprofit sector, the Swiss government is aware of the importance of NPOs and supports them with legal privileges and financial subsidies. However, since the 1990s, the nonprofit sector is continuously challenged by the neoliberal view that strong constitutional influence from Swiss NPOs is responsible for the low economic growth rate. Therefore, among others challenges NPOs are currently faced with attempts from the government at different levels to constrain their political influence and decrease their state financial support. Furthermore, competition from private organizations is growing. 24
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