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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

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.
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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