Opinion
—
Are the rich favored by tax deductions for philanthropic organizations? This is a question that constantly comes to the surface as soon as we approach “taxation and philanthropy”. This is the title of the recently published OECD (Organization for Economic Co-operation and Development) Tax Policy Study No. 27.
An in-depth report presenting on almost 160 pages the results of extensive research carried out on several countries, in collaboration with the Center for Philanthropy of the University of Geneva. Good research for good reforms and a wish for success. Indeed, it was high time to make available to legislators and governments, also in Switzerland (Confederation, cantons and municipalities), a research which examines the advantages and disadvantages of the panoply currently practiced by the OECD countries in this domain.
A dozen final pages help the politician with a list of possible measures in favor of a preferential tax treatment of philanthropy, examining all the practical possibilities, including tax exemption, also from VAT, partial or total, the tax credit and fixed or percentage caps.
An important chapter is rightly devoted to corporate donations and sponsorship payments. The updating and revision of current standards and practices are becoming more and more urgent. This takes into account the new forms that have emerged ten years ago, with the aim of measuring and ensuring the social impact of philanthropy. As well as the sustainability of investments, to go so far as to consider the mixed forms of “profit for nonprofit” and “venture philanthropy”, which adapt to the needs of the philanthropic sector the principles of selection and development of companies with high growth potential.
The OECD wants to promote an international perspective rather than a strictly national one faced with the global dimension of the many issues of a political nature: poverty, the pandemic, environmental protection, digitalization in education, migration, prevention of conflicts, etc.
Many countries have made structures more suited to its new forms available to philanthropy, while Swiss law remains attached to the foundation. This is therefore an area of activity where parliamentarians should be able to show their capacity for reform for the future, on condition that their political party does not remain clinging solely to the strategy of maintaining power until the next elections.
It would suffice for them to take into account the priority themes launched by the Confederation as part of the “2030 Dialogue for Sustainable Development”. Also the promotion of the “Third Sector” through structural reforms and financial measures must be coordinated with the Federal Agenda 2030.