Cso financial sustainability in bulgaria
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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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Cso financial sustainability in bulgaria

CSO Financial Sustainability in Bulgaria

Luben Panov

Bulgarian Center for Not-for-Profit Law


Bg cso sector

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


The international perspective

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.


Sources of income

Sources of Income


Current situation

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.


Cso dialogue with government

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.


Possibilities

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.


How to create local donors

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?


How can donors help

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.


Thank you for your attention

Thank you for your attention!

Information and contacts at:

www.bcnl.org


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