Transcript Public Funding of CSOs in Slovakia

Public Funding of CSOs in
Slovakia
Boris Strečanský
Center for Philanthropy n.o.
This Presentation
• Context & Role of CSOs
• Basic Overview of Public Support to
CSOs
• Major Trends, Issues and Challenges
• Lessons Learned
CSOs in Slovakia
• From outside: Impression of a strong
“third sector” that needs to get more
support from the citizens
•
Period 1994-1998: Opposition to autocratic government
•
Elections 1998 - Role of NGOs
•
1998 - 2006 = Democratization -> FOIA, Transparency, Reforms
•
=> Increased Profile of Public Policy, Advocacy and Watchdog Role
of the CSOs (paid by external donor funding)
•
Sufficient funding: 2% Tax Assignation
•
Sometimes closed, untrasparent or elitist
CSOs in Slovakia
• CSOs perspective:
•
Poor institutional capacity (low levels of internal organizing among
CSOs to platforms and coalitions, low levels of employment, low
levels of volunteering, low levels of own assets)
•
CSOs sector is at margins of interest of the state (low level or lack of
data, ad-hoc policy making, poor communication with the state)
•
Size and scope of services provided by CSOs to citizens is low and
needs to defend against the pressures of public sector (Law on Social
Services preferring public providers over non-profit ones, traditional
(suspicious) public sector attitude towards active citizens)
CSOs - State Relationship
• CSOs vs.State = Underdeveloped
Relationship
•
Autocratic, nationalistic and illiberal movements (Mečiar, Fico)
disliked the CSOs and preferred governmentalistic attitudes(19941998, 2006-2010)
•
Free-Market Liberal and/or Christian-Democratic political elites did
not see hope or role for CSOs Societal Role in Reform-making,
innovation of service provision (1998-2006)
•
ONLY 1 staff person (!!!) in the whole government – administrative
secretary of the Governmental Council of NGOs (Advisory Body to
the Government) => reflects limited interest and ability of
government to address CSO-Gov. issues
•
2010 - .....: Opportunity for Improving the Relationship?
Continuous Growth of NGOs
Source: Slovak Statistical Office
Employement in Non-Profit
Sector
Source: Slovak Statistical Office
CSOs Sector in Perspective
7%
6%
5%
4%
OECD
Slovakia
3%
2%
1%
0%
CSO Employment as % of total
CSO % on GDP
Role of Public Funding in
CSO Income
Direct Public Funding
Support to CSOs
•
Transfers from state budget - grants from different
ministries (social affaires, education, culture...)
•
Subsidies from the lottery revenues (Ministry of
Finance)
•
Subsidies from central sectoral agencies
thematically earmarked (Anti-Drug Fund,
Environmental Fund)
•
EU Structural Funds / Norwegian / Swiss Funds (Slovak government co-funding)
State Subsidies to NonProfits (1996-2007)
Procedures
•
High degree of variations among ministries
•
State subsidies follow governmental strategies in general
•
Focus is often too narrow – inadequate commensuration with the pace
of changes in the society
•
Typical Process: The Process: Applications --> Expert Committee
Review --> Minister’s Decision on Support  Agreement signed and
€transferred
•
Low level of transparency
Issues to be addressed
•
To open the pool of applicants and abolish the tradition of
pre-determined beneficiaries
•
To improve and publicize the selection and rules for expert
committee members and address conflict of interest policies,
criteria for appointment, etc.)
•
To increase the degree of autonomy of the committee
•
To publish the names of the committee members
•
To publish the procedures and rules of committees
•
To open the decision-making process and invite experts from
outside of the ministries
•
To publish criteria for selection in advance, to publish results
and applicants
•
To justify the non-support to applicants
•
To review limitations on eligible expenditures
Issues to be addressed
• To Change the Set-up of the Subsidies
System from Legalistic to Performancebased
• i.e. To prioritize impact/results
accountability and review over
formalistic reporting/monitoring
• Fight the corruption and clientelism in
the system – built-in checks
EU Structural Funds
•
2007-2013 period = missed opportunity for NGOs Capacity
Strengthening in Slovakia from SFs.
•
2006 Change of government = changes in the programming
and implementation of measures relevant to NGOs - no
outsourcing, no progressive capacity building, coalition
building or network strengthening
•
€28 million spent for education and training of NGO
employees as “capacity building” from ESF
•
NGOs voice for correction was ignored/Formal feedback
•
Partnership principle preached but not implemented
Norwegian/EEA Funds
• €5,5 million to NGO Fund
• Sub-contracted implementation to grantmaking foundations serving as a filter to
recipients = good practice but need a lot of
improvement.
• A lot of red-tape and bureaucracy,
intermediaries in pressure from the top and
the bottom
• EU and/or EEA funding is considered as
burdensome for CSOs
Indirect Public Funding
• 2% Income Tax Assignation Individuals
• 2% Income Tax Assignation Corporations
• Tax Free Income of Non-Profits from
Mission-Related Activities
• Some other Tax, Customs and Fees
Benefits
Registration for “2% Tax”
2% Tax Assignation
(mil.EUR)
Lessons Learned/Questions
•
Who wants to see the results? Who cares about the impact? BBH.
•
Missed Opportunity to Invest SF into REAL Capacity Building - Lack of
Understanding of Needs
•
Poor Implementation of SFs aimed at strengthening CSOs (politics,
clientelism, incompetence, systemic barriers)
•
Decentralized vs. Centralized Approaches: Decentralized ones (2%)
seem more resistant to management incompetence, hi-jacking or misuse
(undesirable incentives)
•
CSOs Support Policies require Political Interest
•
Lack of Data => No Good Policies vs. Some Data => Policy-Making is
Possible
•
Untapped potential in CSOs for improving the life of people (social
services, innovation, anti-corruption/transparency, participation)
Thank you!
[email protected]
Center for Philanthropy, n.o.
www.cpf.sk