Bridging Borders: The Evolution of International Development and Cooperation Grants in the DACHLI Region

1. The Landscape: DACHLI vs. European Philanthropy

According to Philea’s latest report, "The Fabric of Giving 2025", the European philanthropic sector comprises approximately 175,000 foundations with annual expenditures of €76 billion (with assets totalling €516 billion). Within this landscape, the DACHLI region serves as a primary engine:

• Switzerland: Known for having one of the highest foundation densities in the world (approx. 15.4 foundations per 10,000 inhabitants).
• Liechtenstein: Consistently ranks #1 in the Global Philanthropy Environment Index (GPEI) 2025. With over 1,500 charitable foundations for a population of 40,000, it functions as a global hub for cross-border giving.
• Germany: Remains the largest individual market in terms of foundation numbers (over 25,000) and volume, with a strong focus on "Development projects grants."
• Austria: Has seen recent growth due to improved legal frameworks (2020/2024 reforms) aimed at increasing government support for philanthropic organizations.

2. Focus on International Cooperation Grants

Philanthropy in these four countries is increasingly outward-looking. While many European foundations remain domestic-focused, DACHLI foundations are leaders in international cooperation grants.

• Global Impact: In Liechtenstein, only 3% of foundations restrict their activities to the domestic market; the vast majority operate internationally reports the first comprehensive philanthropy report published by the Center for Philanthropy at the University of Liechtenstein.
• Thematic Shift: There is a move away from traditional "charity" toward systemic change. Keywords like Development projects grants now often encompass climate justice, health equity, and "participatory grantmaking," where local partners in the Global South have a seat at the decision-making table.

3. Comparison to Other European Funding

The GPEI notes that international philanthropy has grown more constrained in many countries, as governments tighten oversight of cross-border giving in the name of security and transparency. As a result, scores in this category have declined across several regions compared with earlier editions of the Index. Liechtenstein stands in contrast: it applies largely the same rules to international donations as to domestic ones, distinguishing itself as a jurisdiction where global philanthropists encounter no additional regulatory barriers. For cross-border actors, this regulatory simplicity represents a clear competitive advantage.

At the same time, Switzerland continues to modernise its foundation framework, while the Netherlands and Germany position themselves as increasingly assertive alternatives, and the United Kingdom remains an important hub despite the frictions introduced by Brexit. This dynamic has created an intensely competitive landscape in which each jurisdiction must continually justify its appeal.

Feature	DACHLI Philanthropy	General EU Philanthropy
Regulatory Climate	Highly favorable (Liechtenstein & Switzerland rank highest in GPEI 2025).	Varies; some Eastern European countries face "systemic issues" in registration.
Cross-Border Flows	High ease of movement; Liechtenstein treats international and domestic donations equally.	Higher barriers; Philea reports difficulty in establishing "comparability" for tax benefits.
Grant Flexibility	Increasing focus on "unrestricted funding" and "bridge funds" (SwissFoundations initiative).	Often more rigid/project-bound, particularly when linked to EU-centralized grants.
Keywords	International cooperation, social innovation, trust-based philanthropy.	Regional development, cohesion, social inclusion.

4. Relevant Keywords and Trends (2024-2025)

To align with the modern funding environment, the following keywords are critical for understanding the DACHLI sector:

• Trust-based Philanthropy: A shift toward providing flexible, multi-year funding rather than micro-managed project grants.
• Moral Ambition: A term popularized at the Philea Forum 2024, describing foundations that use their capital to dismantle systemic barriers rather than just treating symptoms.
• Climate-Development Nexus: Foundations in the region are increasingly integrating "mitigation" (CO2 reduction) with "adaptation" (supporting vulnerable communities in development projects).

Summary of Key Sources

• Philea (2025): Highlights that while the sector is vast (€516bn in assets), it remains fragmented, and the "European Philanthropy Manifesto" calls for a single market for cross-border giving.
• SwissFoundations: Emphasizes the "Future-Proof Funding Initiative" (2025), focusing on collaboration and the use of scientific findings to guide international grants. GPEI 2025: Confirms Liechtenstein, Switzerland, and Germany as the top three most favorable environments for philanthropy globally.