Unchecked Empires: Who Watches Geneva's Million-Franc Foundations?
Date
5/24/2024 2:45:55 PM
(MENAFN- Swissinfo) Wealthy donors come from around the world to create their non-profit foundations in Geneva, where they benefit from a flexible legal framework. Where does their money come from, and where does it go? It is the job of supervisory authorities to find out. But Geneva's philanthropists could easily slip through the system's many cracks.
This content was published on May 24, 2024 - 17:00 8 minutes Claire-Marie Dikanska
Français fr Empires hors de contrôle: comment tracer les millions des fondations genevoises? Read more: Empires hors de contrôle: comment tracer les millions des fondations genevoises? Italiano it Imperi senza controllo, chi vigila sulle fondazioni milionarie di Ginevra? Read more: Imperi senza controllo, chi vigila sulle fondazioni milionarie di Ginevra? Español es Imperios sin vigilancia: ¿Quién supervisa a las millonarias fundaciones de Ginebra? Read more: Imperios sin vigilancia: ¿Quién supervisa a las millonarias fundaciones de Ginebra? العربية ar المؤسسات الخيرية في جنيف... إمبراطوريات بلا حسيب أو رقيب؟ (جزء 2) Read more: المؤسسات الخيرية في جنيف... إمبراطوريات بلا حسيب أو رقيب؟ (جزء 2) Русский ru Женева и ее ((внутренняя империя)) некоммерческих фондов - часть 2 Read more: Женева и ее ((внутренняя империя)) некоммерческих фондов - часть 2
Part 2: Who monitors Geneva's foundations and why that matters
In Geneva, two authorities are in charge of monitoring foundations: the Federal Supervisory Authority and the Cantonal Supervisory Authority. Foundations report either to one or to the other, depending on the area they cover. Structures that operate nationally or internationally are supposed to report to the federal authority. Those that work locally should be attributed to the canton. However, the goals declared by foundations are flexible, and this logic can be manipulated to best serve the donors' interest.“For example, some foundations declare a national or international scope in their goals because they plan to expand but end up only working in Geneva. Still, they report to the federal authority,” says Jean Pirrotta, director of Geneva's cantonal supervisory authority.
These two institutions follow different legal procedures and requirements. Between them, there is no coordination and barely any communication. This fragmented landscape creates the perfect loopholes for foundations wishing to exploit the system.“Some foundations may hire specialised lawyers to advise them on the authority that proposes the easiest supervisory process,” says Laurent Crémieux, an expert of the Swiss Federal Audit Office.
'You could operate a business and pass it off as a non-profit.' More More Unchecked empires: who watches Geneva's million-franc foundations?
This content was published on May 22, 2024 Wealthy donors come from around the world to create their non-profit foundations in Geneva. Where does the money come from?
Read more: Unchecked empires: who watches Geneva's million-franc foundations?
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