Dutch right-wing leaders could make charitable giving harder

 

Bert Koopman

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It has often been said that philanthropy is socially indispensable and politically invisible in the Netherlands. With the arrival of a new radical right-wing cabinet led by former top civil servant Dick Schoof, the omens are not good. Remaining visible in The Hague is therefore the watchword.

The 365 united grant making foundations, the 700 recognised charities, and the dozens of denominations are deeply concerned about the tax deduction for donations that currently costs the government €458 million a year. This fiscal facility is likely to be cut by more than half. An alternative is a subsidy whereby the government multiplies the donation money. But not everyone who gives wants to be dependent on a donation subsidy by the Dutch government.

Charities have been watching politics in The Hague (the political heart of the Netherlands), with suspicion for months. What will happen to the tax deduction for donations? And will further requirements soon be imposed on the representativeness of interest organisations with an ideological goal? In other words, can they continue to bring legal actions to protect their interests? Consider the climate case of Urgenda, an organisation for sustainability and innovation against the state.

On 22 November 2023, a quarter of Dutch voters chose Geert Wilders’ radical right-wing Party for Freedom (PVV). This one-man party lacks the experience and the people to convert its election programme into political authority. The cohesion behind the soulless coalition agreement with the Farmer-Citizen Movement (BBB), New Social Contract (NSC), and the People’s Party for Freedom and Democracy (VVD) is fragile.

The positions within the right-wing alliance are well-known. The PVV keeps harping on asylum and migration, and pushed forward a controversial ministerial candidate for this post. The BBB is focused on the agricultural sector and nitrogen. NSC insists on administrative renewal, an ambition that the previous cabinet failed to realize. And the VVD, the party of outgoing Prime Minister Mark Rutte, sets its sights on prudent financial policy.

Wilders himself is not credible as prime minister, which is why he put forward top civil servant Dick Schoof. The new cabinet will soon need coverage for matters like ‘social security’ (which is more than just income, it also includes perspective) and tax relief. Cutbacks are inevitable. The number of policy civil servants must be reduced by 22 percent. The signals are also red for other sectors, such as philanthropy.

In The Hague, philanthropy and gambling fall under the coordination of the Ministry of Justice and Security. The State Coordinator for Philanthropy and Games of Chance, Odiel Evenhuis, is meanwhile working on a new policy vision. The new Minister of Justice and Security will be David van Weel, one of the closest advisors to Jens Stoltenberg, the outgoing Secretary-General of NATO, who is being succeeded by outgoing Prime Minister Mark Rutte.

Philanthropy is not in a rosy position in the Netherlands. Recent research by VU University Amsterdam in 2022 shows that the Dutch gave €5.3 billion to charities in that year, or 0.6 percent of gross national product. Two years earlier, this was still €5.6 billion, or 0.8 percent of GDP. The structural trend among households as a source of contributions is negative. Companies could not compensate for this. In fact, it is the first time since 2011 that a majority of companies did not contribute to charitable organisations.

There is work to be done for a sector that can connect the Netherlands from left to right. The Association of charitable organisations ‘Goede Doelen Nederland’ (GDN) is making significant progress. GDN takes note of the various forces and perspectives on the fringes and carefully walks the narrow middle path. The organisation visited The Hague politicians twice in recent months by organizing panel discussions that were well attended.

Recently, a clear brochure titled What makes charities indispensable to society was published. The brochure describes which social functions charities fulfil in society. Such as signalling and agenda-setting, innovating and changing, helping and solving. All this is illustrated with practical examples and seen through the eyes of administrators, scientists, and opinion leaders. Food for thought for policymakers and politicians in The Hague.

Bert Koopman is the Executive Editor of the Philanthropy Platform DDB, part of Amsterdam University Press.

 

 


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