Seizing opportunities together: Canton and foundations lead the way

Today, the canton of Zurich is an important location for foundations: around 2,200 charitable foundations manage assets of over CHF 18 billion here. To ensure that the canton remains attractive for new start-ups in the future, the Zurich cantonal government is creating optimal framework conditions. In February 2024, for example, the practice of tax exemption for charitable foundations was relaxed.

"We have pulled off a coup with the change in tax practice," said Government Councillor Carmen Walker Späh at the opening of the 2nd Foundation Talk on October 1 at the Kraftwerk/Impact Hub in the city of Zurich. Other cantons would already like to follow suit. Initial measures have been successfully implemented with the relaxation of the tax exemption practice, the new "foundations.zuerich" online portal and a series of events. "But it is clear to me that we are only at the beginning," continued Walker Späh.

No progress without risk

Foundations play a central role in the development of new technologies. Emphasizing this was an important concern for Councillor Martin Neukom. "We need people who take risks with their ideas that politicians cannot afford," he said, citing foundations as important drivers in the targeted further development of innovative projects. As soon as a project proves to be effective, it also needs the public sector as a supporter to scale it up - and this is where the canton comes into play.

Britta Friedrich, Head of the Migros Pioneer Fund, also emphasized the interplay between ideas and risks: "If we want to change something as a society, we need ideas that challenge the status quo." Foundations often form the launch pad for such high-risk ideas. Speed and agility are essential for innovations, but substance and stamina are also needed for the great journey across the sea. It is important to create the best synergies with the different roles: "Depending on the situation, one or the other is the right captain."

Pulling in the same direction

According to Andrew Holland, Managing Director of the Mercator Foundation Switzerland, an important success factor for cooperation between the canton and foundations is the timing: "The foundation and canton must communicate as early as possible in order to establish a common understanding of a project." He believes that both the foundations and the canton have a duty in this regard. If you want to get someone on board, it has to be clear that you are pursuing the same interests. This is precisely the challenge: creating an efficient interface between foundations and the canton. "This brings everyone involved together at the right time," Holland is convinced. His experience shows that foundations should approach the canton more openly and directly than is usual today.

Further intensifying cooperation

Proactive communication was at the heart of all presentations and discussions. There was also agreement on the topic of interfaces: There is currently no standard solution. However, the government council's measures are heading in the right direction and there is a strong will on the part of all those involved to intensify cooperation. This was also expressed in the closing words of the Director of Economic Affairs, Walker Späh: "I hope that we will have achieved even more next year at the third foundation meeting. Anything else would be a missed opportunity."