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CSO Financial Sustainability in Bulgaria

CSO Financial Sustainability in Bulgaria. Luben Panov Bulgarian Center for Not-for-Profit Law. BG CSO Sector. Officially registered – more than 25 000 Public Benefit – more than 4500 Active – somewhere between 2000 and 4500

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CSO Financial Sustainability in Bulgaria

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  1. CSO Financial Sustainability in Bulgaria Luben Panov Bulgarian Center for Not-for-Profit Law

  2. BG CSO Sector • Officially registered – more than 25 000 • Public Benefit – more than 4500 • Active – somewhere between 2000 and 4500 • Income – varies somewhere between 50 and 250 mln. euros per year

  3. The International Perspective • Sources of funding: • 34 % - from the state (26 %); • 12 % - donation (31 %); • 53 % - from fees (42 %). • 1,3 trillion USDis the GDP of the CSO sector; • If it were a separate country - №7 in the world – before Italy, Spain, Canada and Russia.

  4. Sources of Income

  5. Current Situation • Traditional foreign donors are moving out; • EU Funds are not targeting CSOs per se; • Lack of local Bulgarian donors; • Government grants for CSOs – less than 500 000 euro in 2007; • Social contracting is developing slowly; • Philanthropy still not a real source for most CSOs.

  6. CSO Dialogue with Government • No regular dialogue on CSO sector development; • Government has no clear strategy how/whether to deal with CSO problems; • No representative structures of CSOs; • Because of shrinking funding CSOs are: – partners or opponents; – project or mission based.

  7. Possibilities? • Economic activity – no tax incentives for CSOs because of bad image; • Increase of budget grants and clear rules for their spending; • Development of CSO contracting – social area, healthcare, education, culture; • Creation of local donors; • Innovative mechanisms – 1% mechanism, state foundation to support CSOs; • Philanthropy – incentives are not everything but are a sign of support.

  8. How to create local donors? • Building local endowments – where will the money come from? • Supportive measures for passive investments e.g. no tax on bank interests or on dividends; • Can the state devote funds for creation of a special fund/foundation; • Restitution of foundation property – a myth?

  9. How can donors help? • Support/assist a real dialogue with the government on CSO development; • Support the creation of sustainable mechanisms for CSO financing; • Help keep the CSO legal issues on the agenda of governments; • Make sure CSO legal reform is on their agendas as long as needed.

  10. Thank you for your attention! Information and contacts at: www.bcnl.org

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