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European models and practices in public financing of NGOs

European models and practices in public financing of NGOs. Nilda Bullain European Center for Not-for-Profit Law (ECNL). Elements of a puzzle. Form of support Funding mechanism Source of support Rationale of support Principles of support Procedural rules Implementation practices.

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European models and practices in public financing of NGOs

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  1. European models and practices in public financing of NGOs Nilda Bullain European Center for Not-for-Profit Law (ECNL)

  2. Elements of a puzzle Form of support Funding mechanism Source of support Rationale of support Principles of support Procedural rules Implementation practices “Model” of public financing

  3. Main forms of financing • Support • Subsidies • Grants • Endowments • Free use of public property / infrastructure • Contracting • Direct contracting (without tender) • Tenders for service contracts • Third party payments • Per capita support • Vouchers

  4. Main financing mechanisms • Parliament • Government (e.g. cabinet office) • Ministries • Independently operated special funds • Public foundations • Authorities (e.g. health authority) • Local level (council, mayor, local funds etc.)

  5. Possible sources • General budget (central or local) • Ministry budgets • Designated taxes & public revenues: e.g., unemployment contributions, pollution fines, cultural tax, license fees • Lottery proceeds • Commitments, e.g. matching the 1% or 2% designations • Joint public funds (e.g. with EU, multilateral agencies) • Privatization revenues • Local budgets

  6. Basic Questions • Why would the government support NGOs? • What role is the NGO sector expected to fulfill in social development? • What is the guiding principle of the relationship between NGOs and government? • To what extent government finances NGOs?

  7. Gov’t – NGO relationships inEurope MORE INDEPENDENT SOCIO- DEMOCRATIC LIBERAL MORE INSTITUTION- ALIZED LESS INSTIT. EMERGING (MED & CEE) CORPORATIST LESS INDEPENDENT

  8. Relationships & public funding MORE INDEPENDENT “Autonomy” PF 20-30% “Partnership” PF 35-55% MORE INSTITUTION- ALIZED LESS INSTIT. “Regulatory” PF under 20% “Subsidiarity” PF 60-70% LESS INDEPENDENT

  9. Guide to assembling the puzzle Rationale Principles Mechanism Source Practice Forms Procedures

  10. Thank you! For more information: www.ecnl.org

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