1 / 13

Direct State Funding for NGOs

Direct State Funding for NGOs. Luben Panov Bulgarian Center for Not-for-Profit Law. Why should NGOs be supported?. considered closer to the people’s needs and more trusted in their social activity provide services that the market cannot they are more efficient and serve the public good.

tam
Télécharger la présentation

Direct State Funding for NGOs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Direct State Funding for NGOs Luben Panov Bulgarian Center for Not-for-Profit Law

  2. Why should NGOs be supported? • considered closer to the people’s needs and more trusted in their social activity • provide services that the market cannot • they are more efficient and serve the public good

  3. Main types of indirect support • Exemption from income tax for the nonprofit activity • Exemption from income tax for business activities • Tax benefits for donors – companies and individuals • 1 % mechanism • Exemptions for volunteers • Free use of property • Exemption from VAT, customs duties, etc.

  4. Main types of direct state funding • Direct budget subsidies for specific organizations (most often representative organizations of people with disabilities) - resembles institutional grants • Budget grants after a competition • Contracting - for provision of services • Other mechanisms – 1 % mechanism, lottery, vouchers

  5. 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 NGO sector; • If it were a separate country - №7 in the world – before Italy, Spain, Canada and Russia.

  6. Sources of income (Bulgaria)

  7. Budget subsidies 2008 (Bulgaria) • 4,333mln. EUR; • Direct subsidies for 21organizations; • A competition for550 000 EUR; • Criteria for evaluation of the proposals: 1. In line with the public benefit areas under the NGO Law; 2. Effectiveness of the proposed activities with regard to the expected results and influence over the target groups; 3. Sustainability of results; 4. Effectiveness of the expenses; 5. Capacity of the candidate.

  8. Contracting • The state delegates the provision of services to private entities • It keeps its role in: • Funding; • Control of the spending; • Control of the quality of the services provided.

  9. What does contracting cover? • Public services • Through tender, negotiations or other (e.g. vouchers) • Contracting vs. Grants – scope of work is given • Contracting vs. Procurement – quality, not price

  10. 1% mechanism • Taxpayers designate 1 or 2 % of their income • Hungary (1+1%), Slovakia (2%), Lithuania (2%), Poland (1%), Romania (2%) • Not a donation but another mechanism for support • Recipients are usually NGOs and public institutions

  11. Separate funding entities • Foundation Investment Fund (Czech Republic) • National Civil Fund (Hungary) • National Foundation for Civil Society Development (Croatia)

  12. Issues to be considered • Clear and transparent mechanism (de-politicized) • Activity or institutional support • Good monitoring • Centralized or decentralized system • Practical implementation • Dependence (independence) of recipients from the state

  13. THANK YOU! Luben Panov Bulgarian Center for Not-for-Profit Law (BCNL) www.bcnl.org

More Related