Philanthropic Giving by US Expats Set for a Boost Through One of Switzerland’s First Dual-Qualified Charities
With recent figures showing that almost 40,000 American expats live and work in Switzerland, one of the country’s first-ever dual-qualified charities has been launched to meet growing demand from donors looking for innovative solutions to achieve tax efficiency alongside philanthropic giving.
Swiss American Giving GmbH (SAGG) was recently authorized by the Swiss government and will allow donors to receive tax receipts for their charitable donations in both Switzerland and the US.
The launch of SAGG follows a recent report by Henley and Partners projecting that Switzerland will receive 1,500 new millionaire US expats in 2024, with a 2023 report from UBS and Credit Suisse forecasting a 39% rise of millionaires in Switzerland by 2027 to 1.5 million.
Bob Collins, co-founder and CEO of SAGG, said: “Despite Switzerland having one of the highest densities of charitable foundations in the world, with six times more foundations per capita than in the U.S. or Germany, SAGG is the first and only charity of its type in the country. We’re excited to enable donors access to greater tax relief opportunities just as we approach the annual giving season.
“To receive tax receipts for the same gift in both countries is essential to get a tax deduction instead of no deduction at all. The reason for this, is the way the American tax system works, unless a donor can get credit in both countries for the gift, there may be no tax deduction for the gift at all.”
Dual or multi-qualified charities are organizations that are recognized as charities in two or more nations and are becoming more commonplace in the global philanthropic landscape. In 2023, TrustBridge Global Foundation launched a similar partnership with IGF TransAtlantic, a dual-qualified charity spanning the US and UK. As SAGG and IGF TransAtlantic demonstrate, countries like the UK and Switzerland are leading the way, showcasing innovative shifts in European financial services and charitable giving solutions.
Marc Baumann, Co-founder of SAGG and founder of Fundación Générosité, said: “The act of giving originates in selflessness and sacrifice and increasingly we see donors giving to solve poverty and other causes around the world. Swiss American Giving GmbH and TrustBridge Global believe generosity has no borders. We're excited to serve and guide those who give sacrificially and selflessly, navigating the complexities of cross-border giving, and are eager to help donors find solutions.
“Partnering with Swiss American Giving GmbH, a new dual-qualified organization, enables U.S. citizens earning in Switzerland to maximize their generosity, freeing up additional resources and expanding their impact. Nonprofits in Switzerland and the donors they serve can now achieve maximum tax efficiency in their giving, ensuring greater support flows into their programs.”
TrustBridge Global and SAGG are committed to making global giving easy and helping donors maximize the impact of their charitable gifts. Undoubtedly, Swiss charities and philanthropic advisors will also benefit from these innovations in financial services. Charities in particular will benefit from the additional funding available for programs by helping their donors work with SAGG and anticipate and plan for major gifts.
Contact us to learn more about Swiss-American dual taxation and how TrustBridge Global and SAGG can help maximize your charitable giving.