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

“Model” of public financing

Main forms of financing Support

SubsidiesGrantsEndowments Free use of public property / infrastructure

ContractingDirect contracting (without tender)Tenders for service contracts

Third party paymentsPer capita supportVouchers

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.)

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

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?

Gov’t – NGO relationships inEurope

MORE INDEPENDENT

LESS INDEPENDENT

LESS INSTIT.

MORE INSTITUTION-ALIZED

LIBERAL

CORPORATIST

SOCIO-DEMOCRATIC

EMERGING(MED & CEE)

Relationships & public funding

MORE INDEPENDENT

LESS INDEPENDENT

LESS INSTIT.

MORE INSTITUTION-ALIZED

“Partnership” PF 35-55%

“Autonomy”PF 20-30%

PF under 20%“Regulatory”

“Subsidiarity”PF 60-70%

Guide to assembling the puzzle

Rationale

Mechanism

Principles

Procedures

Source

Forms Practice

Thank you!

For more information:

www.ecnl.org