1 / 10

SOURCES OF FUNDING FOR NGOs

SOURCES OF FUNDING FOR NGOs. Luben Panov Bulgarian Center for Not-for-Profit Law. Why is Funding Important?. It determines whether NGOs will have the resources to achieve their objectives It gives NGOs more independence in their activities

teneil
Download Presentation

SOURCES OF 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. SOURCES OF FUNDING FOR NGOs Luben PanovBulgarian Center for Not-for-Profit Law

  2. Why is Funding Important? • It determines whether NGOs will have the resources to achieve their objectives • It gives NGOs more independence in their activities • But very often donors can determine the agenda of NGOs • So it is important to have diversified funding both in terms of different sources but also different types of funding

  3. The Current Situation USAID Sustainability Index 2008: • With rare exceptions Financial Viability is the worst score for all countries; • Average score is 3.1 for Northern Tier, 4.6 for Southern tier and 5.2 for Eurasia • Among Black Sea countries the best score is 4.1 in Bulgaria, Romania and Ukraine. The worst score is 5.7 in Azerbaijan.

  4. Own income • Membership fees • Fees for services • Sale of products • Rent of property • Investment income • Endowment • Income from a separate business entity

  5. Philanthropy • Individual donations • Corporate donations • Contributions from private foundations • Volunteers

  6. Indirect State Support • Exemption from income tax for the nonprofit activity • Exemption from income tax for the business activity • Tax benefits for donors – companies and individuals • Free use of property • Benefits for volunteers • Exemption from customs duties, inheritance taxes, etc.

  7. Direct State Support • Budget subsidies • Budget grants • Contracting - for provision of services • Funding for international development (ODA) • Other mechanisms –1 % mechanism, lottery, vouchers Issue: Dependence of recipients from the state?

  8. Source of State Funding • Privatization • Special tax • State lottery • Fines • The general budget • Distributed by government, Parliament, a separate ministry, state fund, etc. Issue: For every NGOs or only public benefit?

  9. Contracting/Procurement • The state hires NGOs to provide certain services • It keeps its role in: • Funding; • Control of the spending • Control of the quality of the service. • Tender, negotiations or other • Contracting vs. Grants Issue: Should NGOs be treated preferentially in this process?

  10. Contacts: Bulgarian Center for Not-for-Profit Law (BCNL)www.bcnl.orgLuben Panovluben@bcnl.org

More Related