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Comparative analysis of systems of state funding for
CSOs
Goran Forbici
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6 countries
• Croatia• Estonia• Hungary• Scotland• Serbia• Slovenia
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6 segments• Quantitative overview• Types of resources • Distribution channels • Legal framework• Specific instruments for higher sustainability and
efficiency of public funding
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Quantitative overview (2014)
• Croatia: 52.000 NGOs, 223m € = 34% of overall budget, national level: 40 %
• Estonia: 31.000 NGOs, 147m €• Hungary: 64.000 NGOs, 554m € = 31%• Scotland (2013): 45.000 NGOs, 18.000 registered,
2,16bln € = 34%, national level: 50%)• Serbia (2013): 23.000 NGOs, national level: 50m € = 20
% of overall budget• Slovenia: 25.000 NGOs, 291m € = 38%, national level:
65%
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Types of resources
• State budget – usually by far the largest resource on national level (Slovenia 85%, Serbia 85%, Croatia 45%)
• Lottery & gambling funds (Serbia: 40% of income to charities, UK: 28% of income = 70 % of all profit, Estonia: entire gambling tax (10-18 %))
• Other taxes and excise duties (e.g. Estonia: 3,5% of Alcohol excise duty to the Cultural Endowment)
• Percentage system: Slovenia: 0,5%, Hungary: 1%,
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Distribution channels
- essentially decentralized system in all countries (ministries & other independent budget users: agencies, public funds etc.)
- Scotland & Estonia: increasingly delegating the distribution of funds from ministries to specialized “implementing agencies” (Scotland: 12 Non-Departemental bodies (Creative Scotland, Sportsscotland etc.) + 2 national lottery funds (The Big Lottery fund, Heritage Lottery fund)
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Big Lottery Fund
- lottery arm- non-lottery arm (Big fund)
Example: In 2013 Big fund run a 20m ₤ programme on behalf of Scottish government to support voluntary organisations to deliver national strategic objectives related to young people and children
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Legal frameworkNo uniform rule:• Slovenia: Public Finance Act + Rules on the procedures
of implementing the budget of the Republic of Slovenia, but also some sectoral legislation and regulations (e.g. in culture, sports, youth)
• Hungary: Non-profit Act & Law on Transparecy of Public Funding (general framework, however no universal set of rules with detailed procedural provisions)
• Estonia: scattered around different regulation for specific areas. From 2012 (non-binding) governmental Guidelines for funding CSOs from public budget.
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Legal framework• Scotland: no single regulation or policy due to highly
decentralized system• Serbia: governmental Regulation on the means for
fostering programs in the public interest implemented by associations + Guide for transparent financing of CSOs from the local self-government budget
• Croatia: Regulation on criteria, standards and procedures of financing and contracting of projects of general interest implemented by associations (2015, replacing the previous Code of good practice …) + Manual for Implementation of the Regulation on the Criteria, Standards and Procedures for Financing and Contracting Programmes and Projects of Public Benefit Interest Implemented by Associations
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Legal framework• However: although no single rule, as examples of
Slovenia, Estonia and Croatia show the trends go towards standardisation and unification
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Regulation of strategic approach to public funding
= how the wider policy context and existing policy strategies are used in the processes of public funding
Mandatory & recommended: - Croatia (Regulation: “priorities for public financing must
be defined based on strategies, national programmes and other strategic documents at the national or local level.
- Estonia (Guidelines: “funding from the state budget has to be in accordance with the public interest, which is defined in national strategies”)
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Specific instruments for higher sustainability and efficiency of public
funding & CSOs • Operational grants• Prepayments• Multiannual grants• In-kind financing with voluntary work• Co-financing of EU-funded projects
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Operational grants
Known in mayority of anallysed countries:• Hungary: via National Civil Fund (60% of all resources
which total 16m EUR)• Estonia: via National Foundation for Civil Society (2008)
– 2,48m EUR• Croatia: via National Fundation for Civil Society
Development (2016-18: 1,7m EUR; 75 organisations)
Slovenia & Scotland: more of an exception. Scotland: The Thrd Sector Early intervention Fund. Slovenia: FIHO
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Prepayments
Rather usual practice except in Hungary.
Slovenia: up to 30% (150 days to spend, then next instalment)
Estonia: operational grants usually 100 % prepayments, project funding up to 90%
Croatia: 5 models of payments, 4 include prepayments
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Multiannual grants
• Slovenia: Majority of ministries for funding of established programmes or larger projects
• Estonia: Ministry of Foreign Affairs, Ministry of Interior• Scotland: commonplace, Big Lottery Fund grants up to 5
years, the Heritage Lottery up to 10 years• Serbia: 7% of projects are multiannual.• Croatia: regulated by the Regulation, 3 % of grants in
practice in 2014
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Co-financing of EU-funded projects
Croatia: Office for Cooperation: calls for co-financing of projects of CSOs
co-funded 450 EU funded since 2011
Slovenia: (only) Ministry for Culture, Agency for Youth and Ministry for Foregn Affairs
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In-kind co-financing with voluntary work
Slovenia: defined by law for all registered voluntary organisations, possible for all CSOs
Recognised value of voluntary work is defined by a special Regulation:
• 13 EUR for organisational work• 10 EUR for substantive (expert) work• 6 EUR for other volunteer work