Fundraising in Switzerland
The term fundraising is closely related to charitable projects and non-profit organizations. The literal meaning of the word can be derived as follows: the fund (sum of money, capital fund) and to raise (procure) together give the definition of fundraising: quite simply raising money or capital.
And even though fundraising serves these aspects and is essential for more and more foundations in Switzerland, this classification clearly falls short. This is because it does not reflect the complex reality of fundraising in Switzerland. What exactly is meant by fundraising, how fundraising works in principle and in Switzerland, and who is involved in it, we explain here.
Fundraising – What is it?
The commonly held understanding of fundraising, raising funds for a charitable or non-profit purpose, is not fundamentally wrong. However, this view is incomplete and misses the focus of modern fundraising in Switzerland. Fundraising, broadly speaking, can be understood as the professional acquisition of resources for the work of a non-profit organization (NPO). This can be financial resources in the form of monetary donations, which the organization uses to pay for employees, materials and services. Often, donations also involve direct services, such as volunteer labor and in-kind donations.
Definition:
The term fundraising comes from the English language and means raising money or capital. In terms of the non-profit sector, fundraising is the professional and systematic raising of funds for the work of a non-profit organization.
Funds & Resources that are the Subject of Fundraising:
- Financial Resources: monetary donations & grants distributed to a non-profit organization.
- Services: Pro bono consultations, transportation of goods & helpers, and marketing efforts provided by a business or individual to the non-profit at no cost or at a reduced rate.
- Work Performance: This mainly includes volunteer work that directly contributes to a charitable project or organization without receiving a salary for it.
- In-kind Contributions: These are tangible goods that a non-profit organization needs to perform its work. Donations in kind often come from companies, but also from private individuals.
Fundraising Players
Successful fundraising usually involves three parties: fundraisers, donors and recipients. It is not uncommon for Swiss grant giving organizations, operating foundations, and non-profit organizations to hold multiple positions simultaneously. For example, a foundation can act as a fundraiser and pass on the donations to a donation recipient and at the same time be a donation recipient itself, such as being provided with new office furniture free of charge by a company.
- Fundraisers: Fundraisers include all non-profit organizations that collect donations and use them for a charitable purpose (donation recipient). Grant giving organizations can also be fundraisers, but often they pass the donations on to a non-profit project that also acts as a fundraiser.
- Donors: These are grant giving organizations, companies and individuals who provide resources for philanthropic, altruistic reasons.
- Donation Recipient: The donation recipient is the final charitable purpose for which the donation is used, e.g.: the people who benefit from a charitable project. An organization does not automatically become a fundraiser when it collects donations.
Fundraising Opportunities
In Switzerland, there are countless opportunities for fundraising. One option that has received public attention is to collect donations directly from private individuals. The donation box in the pedestrian zone or at the supermarket checkout are just as much a part of this as the clothing store. Other tried and tested methods include appeals for donations by mail, e-mail, telephone or marketing measures such as TV commercials and posters.
In times of increasing digitalization, fundraising is becoming more digital: crowdfunding or appeals for donations via social media channels and platforms that arrange volunteers and all other forms of donations are now part of the daily business of every fundraiser. Philanthropy platforms and foundation directories such as stiftungschweiz.ch provide guidance to non-profit organizations and connect all fundraising stakeholders.
Communication and work in fundraising is always a combination of different channels and approaches. Companies as well as grant giving organizations are contacted and approached as well as individuals. This is because the majority of donations still comes from private individuals. In the case of companies, these are often not donations but sponsorships. If advertising is provided for the company in return for an expense, this is referred to as sponsorship, comparable to sponsorship in professional sports.
Special Features & Regulations in Fundraising in Switzerland
Philanthropy and community service are firmly anchored in Swiss society. The so-called third sector makes a decisive contribution to the economic success and overall social well-being of the Swiss people. Donations and fundraising have a long tradition in Switzerland, not least because of the favorable legal and tax framework.
Swiss tax law defines donations as follows: voluntary contributions to charitable institutions and legal entities exempt from tax liability. Private donors can deduct donations of 100 francs or more per tax year from your taxable income, but no more than 20 percent of your income. Entrepreneurs and legal entities can deduct up to 20 percent of your net profit when you donate. However, sponsoring does not fall under this rule.
In addition to monetary donations, donations in kind have also been tax-deductible since 2006. The decisive factor here is the current market value. Volunteering and honorary positions cannot be deducted from taxes in Switzerland. However, there are already people and groups who are campaigning for a corresponding regulation: volunteers should be able to claim a kind of expense allowance in their tax returns. The exact tax regulations on donations in Switzerland change every year and vary from canton to canton.
Fundraising in Switzerland is subject to legal regulations, which differ slightly from canton to canton. Furthermore, there are also ethical guidelines issued by the professional associations of fundraisers (e.g. Swissfundraising) and the Swiss certification body for non-profit fundraising organizations (ZEWO).
Ethical Values and Guidelines for Fundraising in Switzerland
You would like to collect donations in Switzerland? In addition to legal and tax aspects, the following ethical values and guidelines must be observed:
- The 5 ethical pillars (across countries & associations): Honesty, Respect, Integrity, Empathy, Transparency
- The Swiss Codes: (esp.) Professionalism & Efficiency
- The 21 ZEWO standards: non-profit status, integrity, commitment to interests, separation of powers, etc. in the area of service provision and finances.
The Zewo standards serve as orientation for donors as well as for non-profit organizations and grant giving organizations. The Zewo seal of approval identifies those NPOs that act purposefully and economically and are regularly audited by ZEWO.
Fundraising in Switzerland – Quite Uncomplicated
Are you surprised what fundraising encompasses and how many aspects have to be considered? Don’t let paragraphs, regulations and requirements scare you away. They protect against misuse for unfair purposes and protect fundraisers from reputational damage. Foundation directories and platforms with information and news facilitate fundraising. Tax breaks can also be another incentive for philanthropically minded people to donate.
Entdecken Sie unser Angebot für Fundraiser!
Finanzieren Sie mit wenig Aufwand und kostengünstig ein Projekt bei Förderstiftungen und Privatspendern. Oder bauen Sie ein systematisches digitales Fundraising bei Stiftungen, Firmen und Privatspendern auf. Mit StiftungSchweiz haben Sie die Wahl.
Modern fundraising is enormously facilitated by foundation directories and digital platforms. As a Swiss platform for digital philanthropy, stiftungschweiz.ch serves different aspects of fundraising. More transparency, more efficiency and more dialog: non-profit organizations and grant giving organizations can find each other easily and efficiently in the foundation directory thanks to useful filter and search options. Private donors and companies discover projects and organizations worthy of support on the associated largest Swiss donation platform: specifically via our category and filter functions – or via inspiration in the blog articles, social media posts and event notices.
