Government Policy and the Nonprofit Sector: Switzerland - VMI

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Nollert and Budowski Government Policy and the Nonprofit Sector: Switzerland are characterized by a strong link to the state through a long list of rights and responsibilities (Cattacin et al. 2003). As a result of this relationship with the state, legally recognized churches are not considered to be NPOs according to the Comparative Nonprofit Sector Project (CNP), whereas free churches are included. The rest of this paper is structured as follows: Section II addresses the Swiss political context with its particularities of a confederation and of direct democratic instruments that impinge upon the socio‐political environment for nonprofit organizations. Section III discusses the characteristics of nonprofit organizations and their influence on politics and policies. Current issues relevant for nonprofit organizations according to interviews with experts in the field are presented in Section IV. Finally, a brief summary of nonprofit organizations is offered in Section V. II. THE SWISS POLITICAL CONTEXT In this section we discuss the overall posture of the Swiss Government towards the nonprofit sector. We specify where this has led to specific policy changes. We further present and discuss the extent and the form of the governmental support for nonprofit organizations in general, on the local level and with respect to supra‐ national organizations, depict ideas underpinning the history of this specific relationship between the government and the NPOs, and look at the attitudes various political parties have towards the NPO sector. a) Overall Posture of the Government 1. General attitude of the government towards nonprofit organizations Switzerland has been described as a “Confederation” (Confoederatio Helvetica) since the end of its first attempt to found a unitary state, the Helvetic Republic in 1802, which shows that the government has adopted a generally positive stance toward the nonprofit sector. This is so because the old Swiss confederation was originally created as an alliance among the sovereign valley communities of the central Alps, and after its constitution in 1848 the Swiss state continued to assume that all social problems with the exception of defense, foreign affairs and the common currency should be managed by sovereign actors such as municipalities, cantons, families and commercial or nonprofit companies. Indeed, co‐operative associations played an important role even before the Federal state was founded in 1848. Organizations such as the Forest and Alp Co‐ operatives 5 recall traditions that are centuries old in organizing social relationships and their shared environments. The idea of “self‐help” developed during the industrial revolution, particularly in agricultural and wholesale co‐ operatives and in mutual savings banks and loan societies. NPOs later gained national importance by organizing in umbrella groups, unions and political parties, and the state began to rely on the many public services provided by these NPOs. This mutual dependency became institutionalized as NPOs and the government collectively engaged in the process of drafting and implementing political measures and coordinating economic processes (Wagner 1999, 2002). 5 Wald‐ und Alpenkorporationen 2
Nollert and Budowski Government Policy and the Nonprofit Sector: Switzerland Despite the state’s reliance on NPOs, the Swiss state’s resources for social spending are limited (as measured by the public spending ratio), which is undoubtedly the result of the powerful influence exerted by private interest associations (other than charitable) and by the Liberal‐Democratic Party (FDP) 6 . This might also explain why the government looks kindly upon nonprofit organizations that carry out charitable or relief tasks without or with scant state support. The strong network of varied relationships between politics and the nonprofit sector is further encouraged by the fact that many members of Swiss Parliament and former executive committee members hold mandates on boards of nonprofit organizations. Although the Swiss Government looks favorably on the NPO sector and relies on it to provide many services, it takes a hands‐off approach and does not pursue explicit policies in favor of nonprofit organizations. The June 2000 parliamentary stance on volunteer organizations that led to a request to the Federal Council for a comprehensive study of voluntary and honorary activity in Switzerland provides a good example of this approach. In its response, the Federal Council acknowledged the functions of volunteer work and welcomed the commission of a report. But when asked about the report on July 18, 2001 during the Federal Council’s question time by the National councilor from Tessin, Chiara Simoneschi, the Federal Council responded it did not have resources available to commission such a report. The Swiss Federal Statistical Office later funded and completed the requested report in the end with its own means (BFS 2004). 2. Specific Government Policy Towards Nonprofit Organizations As described above, though the Swiss government’s relationship towards NPOs has been more implicit and incoherent than explicit, it appreciates the programs and services that NPOs deliver and it has always been interested in good relations with the NPO sector. The state has been reluctant to regulate this sector because it considers the nonprofit sector an important component of society with a high level of activity that is anchored explicitly in independence from the state. Hence, unlike countries such as France or Germany, the autonomy of the nonprofit sector has generally not been questioned and therefore appears to require no special protection (Ermatinger 1936). This does vary somewhat as each department of the government takes its own approach towards NPOs. Consequently, various relationships between government and NPOs exist within and among fields. Overall, however, the nonprofit sector is considered by the state to be a resource and source of knowledge and expertise that can be drawn upon when governmental agencies are overcharged or lack resources. The relationship has led the “small state” Swiss government to entrust many public services to private social actors from the outset. This is evidenced by the role professional federations play in vocational training, the presence of public relief organizations in dealing with social problems, and the militia institution 7 requiring citizens to get involved in public services (e.g. school janitorial service, fire brigade) on an honorary basis (Beobachter 2000b). In recent years, however, some critical voices have challenged this partnership between government and NPOs by arguing that many NPOs function as quasi‐public agencies and are subsidized by the state (see section II.c). 6 Freisinnig‐Demokratische Partei (FDP) 7 Milizwesen 3
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Government Policy and the Nonprofit Sector: Switzerland - VMI

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