Docstoc

Compendium_on_the_NSA_Sector_in_the_EU_draf_November_2006

Document Sample
Compendium_on_the_NSA_Sector_in_the_EU_draf_November_2006 Powered By Docstoc
					          EUROPEAN COMMISSION
DEVELOPMENT DIRECTORATE-GENERAL




DRAFT – NOT TO
BE QUOTED

Compendium of
Non-State Actors in
the European Union


November 2006


Produced by IDC
This report was financed by and prepared for the use of the
European Commission Directorate General for Development. It does
not necessarily represent the Commission’s official position.

Reproduction is authorised provided the source is acknowledged.
Neither the European Commission nor any person acting on its
behalf is liable for any use made of the following information.

Report prepared by Tamsin Rose, Isabelle Brossas, Sonia
Decaminada
Preface


Purpose of the Compendium
Target audience
Link to EU development agenda and better implementation of aid process




European Commission
                                         Table of Contents
Section 1: An introduction to the Non-State Actor Sector ........................... 5
  The global associational revolution ................................................................ 8
  Overview of the breadth and size of NSA Sector globally .............................. 8
  The factors influencing the growth of the sector ............................................. 9
  What is meant by non-state actors? ............................................................. 11
  The right of association ................................................................................ 12
  The link between freedom of association and legal personality .................... 13
  Organisational forms of non-state actors ...................................................... 14
  Some views on the function and value of non-state actors .......................... 16
  The role of non-state actors in development ................................................ 17
  Civil society development in Central and Eastern Europe ............................ 18
  UN bodies and non-state actors ................................................................... 19
  Case studies: UNDP and World Bank relations with NSA ............................ 20
  How the EU could support the NSA sector ................................................... 21
Section 2: Country information .................................................................... 23
  European Commission contribution to development NSAs .......................... 24
  Austria .......................................................................................................... 26
  Belgium ........................................................................................................ 28
  Cyprus .......................................................................................................... 30
  Czech Republic ............................................................................................ 32
  Denmark ....................................................................................................... 34
  Estonia ......................................................................................................... 36
  Finland.......................................................................................................... 38
  France .......................................................................................................... 40
  Germany....................................................................................................... 42
  Greece.......................................................................................................... 44
  Hungary ........................................................................................................ 47
  Ireland .......................................................................................................... 49
  Italy ............................................................................................................... 51
  Latvia ............................................................................................................ 54
  Lithuania ....................................................................................................... 56
  Luxembourg ................................................................................................. 59
  Malta ............................................................................................................ 61
  Poland .......................................................................................................... 63
  Portugal ........................................................................................................ 65
  Slovakia ........................................................................................................ 68
  Slovenia........................................................................................................ 70
  Spain ............................................................................................................ 72
  Sweden ........................................................................................................ 74
  The Netherlands ........................................................................................... 76
  United Kingdom ............................................................................................ 78
Section 3: Aid flows ....................................................................................... 80
  Net ODA by EU Member States in the DAC ................................................. 81
  EU15 percentage to NGOs as share of total ODA ....................................... 83
  Net grants to NGOs of DAC countries .......................................................... 83
  Snapshot of some of the largest development NGOs in Europe .................. 84
  EU NSAs access to the budget-line B7-6000 (1994-1999) .......................... 85
SECTION 1: EXECUTIVE SUMMARY




Compendium of the Non-State Actor sector in the EU, Section 1   5
Compendium of the Non-State Actor sector in the EU, Section 1   6
SECTION 2: AN INTRODUCTION TO THE
NON-STATE ACTOR SECTOR




Compendium of the Non-State Actor sector in the EU, Section 1   7
The third sector has, in recent years, grown significantly both in quantitative
and qualitative terms. This growth is reflected in the numbers of organisations
and in their importance and influence on the policy agenda. The increased
visibility and role of non-state actors (NSAs) in global policy issues has also
had an impact on international aid and development initiatives. In order to
increase understanding of size and diversity of non-state actors across the EU,
this document starts with a review of the evolution the NSA sector. The second
section covers the basic framework and functions of non-state actors in each of
the twenty-five EU Member States. Finally, section three provides some insight
into the involvement of the NSA sector in development funding and projects
from the EU 15 countries.

The global associational revolution
The Union of International Association (UIA), established in 1910, collects
information on international non-profit organisations throughout the world in a
‗Yearbook of International Organisations‘. In 1959 there were 985 entries in the
yearbook, by 2003 this had risen to almost 21,000 organisations. The World
Bank estimates that the number of international NSAs has increased from
6,000 in 1990 to 26,000 by 1999. Some commentators have called this a
‗global associational revolution‘1.


Although non-state actors have been established throughout the world, there is
a very high degree of income concentration and inequality within the sector,
with the top 20% of NGOs accounting for 90.5% of total income, the middle
60% accounting for 9%, and the bottom 20% accounting for less than 0.5%.

It should be noted that 60% of all international NGOs concentrate on economic,
scientific and technical issues, representing a core of relatively ‗invisible‘
organisations. The most prominent and visible non-state actors which many
described as ‗Individual Rights/Welfare‘, and ‗World-polity‘ organisations,
including many rights-based organisations, relief and charity organisations, and
environmental groups, account for only 14% of the total2.


Overview of the breadth and size of NSA Sector
globally
The lack of an agreed definition of this sector has hampered the collection of
data on the size and importance of non-state actors. However, the John
Hopkins Comparative non-profit project has gathered information from 35
developing and developed countries for the period 1995-1998. The statistics
point to the overall importance of the non-state actor sector:

         1.3 trillion dollars in expenditure, equivalent to 5.1% of combined
          expenditure.
1
    Matthews 1997; Rosenau 1997; Boli and Thomas 1999
2
    Ibid


Compendium of the Non-State Actor sector in the EU, Section 1                      8
         The world‟s seventh largest economy.
         39.5 million full-time equivalent employees or 4.4% of the economically
          active population. In fact this represents 10 times the number of
          employees in the utilities and textiles industries and 5 times the food
          manufacturing industry in these countries.
         190 million people volunteer for the sector. This represents more than
          20% of the population or the equivalent of 221 volunteers per 1,000 of
          the adult population.

These figures underline the centrality of the non-state sector to the economy
and society. It shows their ability to mobilise volunteers and contribute towards
social capital.

The John Hopkins research divides the non-state sector into two broad
categories of functions: service (education, health, housing, social care) and
expressive (advocacy, cultural, policy values, interests or beliefs).

According to data from 32 countries, the service function dominates the work of
the sector. Excluding religious organisations (where data is lacking) an average
of over 60% of the total paid and volunteer workforce is primarily engaged in
service functions. Of these, education and social services account for more
than 40% of the workforce.

The NSA sector has grown significantly in all European countries where the
sector‘s share of total employment could be compared for 1990 and 1995. The
Johns Hopkins data found growth rates of 20–30% over five years — rates that
exceed the rest of the economy. In some countries the above average growth
of the NSA sector was a trend that started in the early 1970s3.


The factors influencing the growth of the sector
The growth in size and importance of the non-state actor sector can be viewed
from the top-down perspective of institutionalisation of civil society and an
acknowledgement of the bottom-up engagement of individuals in structures
that further their values, interests and concerns.

International political opportunities in the form of funding and political access
have expanded in the post-war period and provided a structural environment
conducive to NGO growth. The proliferation of trans-national institutions and
policy processes has created a complex environment with new arenas for
activism, international allies, resources and media attention. Experts have
identified a correlation between the creation of international governmental
bodies and NGO formation. This link is strongest in policies areas such as the
environment, health and women‘s issues4. The early 1960s saw the creation of



3
    Salamon et al 1999, Anheier and Seibel, 2001
4
    Boli and Thomas, 1999


Compendium of the Non-State Actor sector in the EU, Section 1                       9
special Ministries or Offices for Development Co-Operation5, and the formation
of the Development Assistance Committee (DAC) of the OECD. All of these
new structures began to allocate money towards international non-state actors
and, more importantly, to provide a greater legitimacy for ‗development‘ as a
publicly debated concept in the developed world. The process of decolonisation
during the same period stimulated new thinking about aid and development.
This led to new organisations and networks and the radicalisation of others
(notably some church groups), with a much greater emphasis on social change
and the need to switch from relief of poverty to a focus on the underlying
structural causes of poverty.

The decades of growth
The 1970s and early 1980s saw a strong expansion of non-state actors in
development, fueled by significant increases in funding, largely from public
sources, a high domestic profile assisted by new communications technologies;
a polarised global climate; and the massive growth of Southern NGOs and
social movements6.

By the late 1980s and 1990s, a firmly pro NSA culture was widespread among
donor states, foundations and international organisations. Analysts note that
key factors in the creation of a strong civil society sector include enabling legal
regulations, funding opportunities and access to influential political actors and
institutions. A correlation can be identified between the openness of political
structures and the emergence of non-state actors.

Many NSAs are founded against a backdrop of democracy, as a response to
economic development and integration into the global economy. A decline in
confidence in the traditional representative structures such as political parties
or trades unions has been accompanied by engagement with NSAs and other
interest groups. Social scientists can predict the emergence and growth of
international NGOs using a set of socio-economic variables including GDP per
capita, levels of secondary education and of trade7. Developments in
information and telecommunications technology have broken down barriers to
activism and contributed towards the networking of civil society.

The emergence of development organisations
The modern concept of international development is a post-war phenomenon.
Data from the International Union of Associations indicates that 80% of
development organisations have been created since 1946.

Historical patterns can be identified. Organisations established before World
War 1 fall into three groups: missionary organisations; specialised humanitarian
organisations (most notably the International Committee of the Red Cross
founded in 1863); and professional, labour and political solidarity groups. Of
particular relevance is the point that over two thirds of the development

5
  Biekhart (1999) Ministries were created in France, Germany and Switzerland in 1961;
Belgium, Denmark and Sweden in 1962; the Netherlands in 1963; Great Britain in 1964; and
Canada in 1968.
6
  Biekhart, 1999
7
  Kim D Reimann, 2006


Compendium of the Non-State Actor sector in the EU, Section 1                          10
organisations established before 1900 and still operating in the early 1990s
explicitly mention a religion in their titles .

In the inter-war period, three types of development organised emerged: private
philanthropies (Carnegie, Rockefeller and Ford foundations were established
earlier but did not become active until the late 1940s), sectoral organisations,
particularly focused on health and population issues. The third group were
emergency relief organisations such as the Committee for the Relief of
Belgium, established in 1914, and Save the Children, UK founded in 1919.
Another surge in the founding of development NSAs occurred during World
War 2 with a number of groups founded which would later become some of the
biggest development international NSAs, such as Oxfam, Catholic Relief
Services, CARE, and Lutheran World Relief8.

A review of 1,620 international development NSAs studied states that 1,088
were actively engaged in providing funds, personnel and materials for
operations in low-income countries. The remaining 532 organisations were
limited to advocacy and awareness raising about development issues within
the high-income countries9.


What is meant by non-state actors?
Civil society is widely acknowledged to be a key feature of a modern,
functioning pluralistic state.

In general terms, bodies or institutions that are neither statutory, nor seek to
maximise profit, have been variously called the voluntary, third, non-profit, or
more recently, civil society, sector. But the concept of civil society also includes
individuals, households, social movements, cultural and religious groups. It
encompasses the activities of grassroots protest groups, independent media,
trade unions, sporting bodies and youth organisations.

Although historically rooted in national histories and traditions, in recent
decades the activities of civil society have become increasingly international in
nature. As the European Union has developed, civil society has been identified
by the European Commission as the „essential bridge between the EU
institutions and the citizens‘10.

A lack of commonly agreed definition
However, there is no standard definition of what is meant by the term ‗civil
society‘.

The European Commission‘s Secretariat General11 notes that ‗civil society‘ can
nevertheless be used as shorthand to refer to a range of organisations which

8
  Chabbot, 1999,
9
  Chabbot 1999
10
   http://europa.eu.int/scadplus/leg/en/cha/c10717.htm
11
   http://ec.europa.eu/comm/secretariat_general/sgc/consultation/index_en.htm -
_Toc46744741


Compendium of the Non-State Actor sector in the EU, Section 1                      11
include: the labour-market players (i.e. trade unions and employers federations
– the "social partners"); organisations representing social and economic
players, which are not social partners in the strict sense of the term (for
instance, consumer organisations); NGOs (non-governmental organisations),
which bring people together in a common cause, such as environmental
organisations, human rights organisations, charitable organisations,
educational and training organisations, etc. CBOs (community-based
organisations), i.e. organisations set up within society at grassroots level which
pursue member-oriented objectives, e.g. youth organisations, family
associations and all organisations through which citizens participate in local
and municipal life; and religious communities.

The Johns Hopkins Comparative Non-profit Sector Project (JHCNSP)
concluded that the ‗third sector‘ occupies a distinctive social space outside of
both the market and the state12. The researchers created an operational
definition of civil society organisations based around five key characteristics:

     1. Organised, i.e. institutionalised to some degree in terms of their
        organisational form or system of operation;
     2. Private, i.e. institutionally separate from government;
     3. Non-profit-distributing, i.e. not returning any profits generated to their
        owners or directors but ploughing them back into the basic mission of
        the agency;
     4. Self-governing, i.e. equipped with their own internal apparatus for
        governance; and
     5. Voluntary, i.e. involving some meaningful degree of voluntary
        participation, either in the operation or management of the
        organisation‘s affairs.

The civil society sector is therefore defined as organisations which make a
―reasonable showing‖ on each of the above five criteria.

The ‗Third Sector European Policy Network‘ (TSEP) funded by the European
Commission‘s Framework Research Programme identifies the third sector as
organisations situated between the market and the state in terms of ownership
and control. For its research, TSEP selected to include organisations that are
self-governing and constitutionally independent of the state; do not involve the
distribution of profits to shareholders; and benefit to a significant degree from
voluntarism.


The right of association
The right of association is one of the fundamental freedoms recognized and
guaranteed under international and European law13. Restrictions to this right

12
  Salamon and Anheier, 1997
13
  Article 22 of the UN of the International Covenant on Civil and Political Rights (ICCPR),
Article 11 of the Council of Europe Convention for the Protection of Human Rights and
Fundamental Freedoms, Article 12 of the Charter of Fundamental Rights of the European
Union


Compendium of the Non-State Actor sector in the EU, Section 1                                 12
are only accepted for reasons of national security or public safety, for the
prevention of disorder or crime, and/or for the protection of health or morals.
However, these restrictions must be in accordance with the law and necessary
in a democratic society.

The European Court of Human Rights (ECHR) has ruled that restrictions to
freedom of association must be narrowly interpreted and that it is not sufficient
that a state acts ‗reasonably, carefully and in good faith‘. The Court applies a
strict proportionality test to any restriction and has required governments to
justify if the reasons for restricting the right of association are relevant. The
ECHR has also considered the right of association to have a negative freedom
as well meaning that individuals cannot be required to join an association if this
measure is not required in a democratic society.

Organisations that work with or provide services for particularly vulnerable
groups such as children or older people are subject to additional specific
regulations.

In the post-September 2001 environment, regulators and governments are
scrutinising more closely the activities and financing of non-state actors. There
have been a number of initiatives aimed at preventing misuse of charity funds
and potential support for violent or terrorist organisations. In October 2002, the
OECD Financial Action Task Force on Money Laundering launched an initiative
to ‗combat the abuse of non-profit organisations for the financing of terrorism‘.
This includes maintaining accurate databases of charities with details of their
trustees, accounts and tracking their activities. A list of ‗risk indicators‘ was
developed to assist national authorities in assessing which organisations may
have links to terrorist networks. In July 2005, the European Commission also
undertook a consultation on the abuse of non-profit organisations and financing
of terrorism.


The link between freedom of association and legal
personality
The rights of the individual citizen are secured by the human rights defined at
international level by the United Nations in 1948. The Council of Europe
adopted these rights in 1950.

These rights include individual autonomy and the freedom to associate, as well
as a commitment in favour of general purposes beyond one's particular
interests. The concept of freedom of association signifies and envisages the
emergence, expansion and stabilisation of a dynamic ensemble of legally
protected and non-governmental institutions that tend to be non-violent, self-
organizing, self-reflexive, and permanently in tension with each other and with
government institutions that 'frame', construct and enable their activities.

The right to freedom of association affects many issues relating to the
establishment and functioning of organisations, such as the right of
associations to raise funds freely, to gain tax-exempt status, to affiliate with


Compendium of the Non-State Actor sector in the EU, Section 1                    13
other national and international organisations, and to operate freely without
unreasonable governmental interference.

Legal personality, which confers the right to open a bank account, to hire and
fire employees, and to rent or own premises, is frequently essential to the
effective operation of an NGO. Refusal to grant it can therefore effectively
undermine the right of association. Yet the relationship between forming an
association and obtaining legal personality is not a straightforward one. Wide
disparities exist in national law, even in a relatively homogenous grouping of
countries such as the European Union. Particular differences can be seen
between common law systems (law based on uncodified principles developed
by the courts) and the civil law system (based on written law codes) which is
more common in continental Europe. Under the more numerous civil law
systems, registration is often a very formal process involving a decision by the
courts or a government department. Registration procedures are often more
complex in common law systems14.

Registration procedures
The registration process for non-state actors needs to be a balance between
the role of the state in ensuring accountability and transparency of the sector
and control which undermines the ability of the civil society to operate
independently.

The concept of public benefit is central to the non-state sector. The benefits of
active citizenship and social engagement that derive from a flourishing non-
state sector can provide positive externalities for all of society. This public
benefit is often the basis for a privileged legal and fiscal framework for non-
state actors. In order to qualify for these advantages, most jurisdictions apply a
‗public benefit‘ test which is commonly a list of eligible purposes for an
organisation. This principle can be found in both common and civil law
systems. In common law regimes such as the UK, the scope and definition of
public benefit has been established on a case-by-case basis. Lord
MacNaghten ruled in the 1891 Pemsel case in England that charities could be
defined as ‗the relief of poverty, the advancement of education, the
advancement of religion and other purposes beneficial to the community‘. This
definition became the basis of charity regulation in a number of common law
countries. Civil law systems tend to have a more precise list of purposes that a
non-state actor can adopt in order to prove public benefits. These are most
commonly themes such as promotion of health, education, social welfare,
environmental protection, cultural heritage, animal welfare etc. Because public
benefit status confers tax advantages, in many European countries it is the tax
authorities that make the decision about whether a non-state actor passes the
public benefit test.


Organisational forms of non-state actors



14
     The legal environment of civil society, Richard Freis


Compendium of the Non-State Actor sector in the EU, Section 1                    14
Broadly speaking, the format of non-state actors fall into two categories – those
with members and those without. Membership associations are formed by a
group of individuals or organisations which come together to pursue a specific
objective or purpose. The focus of the organisation is therefore the members
and their joint endeavour.

In contrast, foundations or trusts are created by committing resources, usually
in the form of a capital sum, to be used to meet identified goals. These
structures usually do not have members but tend to have a group of individuals
that have responsibility for ensuring that the objectives of the foundation are
met.

The European foundation landscape is characterised by a high degree of
heterogeneity, which is reflected in their organisation, governance, operating
conditions, legal status, tax treatment and regulation. According to the
European Foundation Centre, in the EU 15 countries there are more than
200,000 organisations that are labeled as foundations. However, a mapping
exercise to identify non-profit entities that are independent of government or
private industry, with their own governing board and income, using its
resources to meet public benefit brings this number down to 62,000
foundations active in the EU 15 in 2001. These have a varied geographical
distribution and act both as grant making and operating foundations with assets
and expenditures heavily concentrated in a number of large foundations. In
recent years, there has been a new momentum for the foundation sector; it has
grown rapidly over the last decade. Most foundations place themselves as
national, rather than European or international actors. However, there is a
growing trend towards cross-border activity, both within and outside the EU.
Two fields clearly dominate the profile of foundation activity: education and
research (30%) and social services (25%). Jointly these fields account for more
than half of foundation activities. Adding health care, with an average of 11% of
foundation activity, pushes the total share up to 71%. This indicates a close
correlation between the focus of foundation activities and fields that also
predominate in the NSA sector15.

Foundation sector Country
by size
Small             Austria, Belgium, France, Greece, Ireland,
                  Luxembourg, Central and Eastern European countries
Medium-small      Portugal, Spain, Turkey
Medium-large      Britain, Denmark, Finland, Germany, Netherlands,
                  Norway
Large             Italy, Liechtenstein, Sweden, Switzerland

NGO Typologies

Individual operational NGOs vary enormously according to their purpose,
philosophy, sectoral expertise and scope of activities. A number of different
NGO typologies exist. For example, NGOs have been classified according to
whether they are more relief or development-oriented; whether they are
15
     Salamon et al, 1999


Compendium of the Non-State Actor sector in the EU, Section 1                   15
religious or secular; whether they stress service delivery or participation and
whether they are more public or private-oriented.

Civil society organisations rely on a range of fund-raising activities and diversity
of funding sources is an important guarantor of the independence of the non-
state actors. The ability to obtain resources from international donors and
foundations provides a counterweight to national public or private funding.
However, some regimes have viewed overseas funding with some suspicion
and have changed the legal environment to control the flow of international
monies to non-state actors. This trend has been recently noted in Asia, Africa
and the New Independent States16.

A final aspect of non-profit organisations is not based on either their inputs, or
their outputs, but the way in which their financial resources are distributed.
Some entrepreneurial activities may be undertaken specifically to generate a
profit in order to enable the organisation to meet its primary purpose. In the
United States, the legal definition of a non-profit organisation is one that is
prohibited from distributing profits or financial returns to the individuals or
members that control it17. Most jurisdictions do allow non-state actors to
engage in commercial or entrepreneurial activities as a means of generating
revenue but the legal status of the „trading‟ and „campaigning‟ arms of
registered NSAs or non-profits can be complex.


Some views on the function and value of non-state
actors
The diversity of roles that non-state actors play is a characteristic feature of this
sector. These functions are ensuring integrity and accountability of the state
and cooperating with the public sector to deliver services and meet unmet
community needs.

An important aspect of the function of non-profit organisations is to produce
public, or collective type goods for society. Some analysts argue that
governments and non-profit organisations are better than market institutions at
supplying public goods18.

As providers of goods and services, non-state actors may differ from for-profit
or statutory agencies in terms of the efficiency and effectiveness, particularly in
situations of ―contract failure‖19. This may be because of information
asymmetries caused by a purchaser/provider split, or because the good has
collective type benefits. Consumers may prefer non-profit distributing
organisations where there is less incentive for suppliers to act opportunistically
to exploit their informational advantage.

Building social capital
16
   LSE Yearbook of Civil Society, USAID sustainability index
17
   Hansmann, 1986; and Steinberg and Gray, 1992
18
   Weisbrod (1988)
19
   Hansmann, 1986


Compendium of the Non-State Actor sector in the EU, Section 1                       16
This analysis of non-state actors argues that the defining characteristics of the
sector are the positive externalities that they create for society. This focuses
less on the goods or services provided but rather on the process that non-state
actors use. It can be argued that non-state actors have a particular role in
fostering social capital - ―the features of social organization, such as trust,
norms and networks, that can improve the efficiency of society by facilitating
co-ordinated actions‖20.

A report on associational life in Sweden by the Swedish Statistical Bureau
identified the ways that non-state actors contribute towards the wellbeing of
society:

     Associations contribute to the production of general welfare by facilitating
      valued activities and providing a source of social contacts, personal identity,
      information and collective support.
     Participation in associations develops a social capital of interpersonal
      relationships and mutual trust.
     Associations help to develop democratic skills essential to representative
      democracy, including tolerance and experience of collective decision-
      making.
     Associations provide an alternative arena for political action.

As service providers, NSAs can utilise their knowledge and proximity to
excluded groups to identify new needs and better ways of meeting existing
needs. They may build into the service an emphasis on promoting equity,
tackling exclusion and empowering the service users.


The role of non-state actors in development
The United Nations Development Programme (UNDP) identifies the following
roles for non-state actors in development:

         Advocacy: change public opinion with regard to a given issue.
         Watchdog: measure progress towards commitment made at United
          Nations world conferences and to assess the current state of aid and
          development cooperation programmes.
         Networking: coordinating other NSAs that work in a particular sector.
         Research: research issues which are important to the NSA, often linked
          to an advocacy function.
         Serve as umbrella NSA: perform a coordinating and representative
          function.
         Federations: NSAs in one area or sector federate together for goals
          they can best achieve through greater numbers. NSAs interested in a
          particular issue also federate together with specific joint objectives.




20
     Putnam


Compendium of the Non-State Actor sector in the EU, Section 1                       17
Non-state actors play an increasingly influential role in setting and
implementing development agendas throughout the world. Many have also
been in the forefront of advocating principles of social justice and equity.


Civil society development in Central and Eastern Europe
The new EU countries from Central and Eastern Europe have had a relatively
short history as pluralistic societies. During the Soviet era, the state managed
social welfare services and prohibited or discouraged the creation of
independent organisations. A small number of formal associations existed in
traditional areas of civil society such as youth, women, culture or sporting
activities but these were rarely independent of the state. There were also
informal networks people who, at considerable personal risk, undertook social
welfare activities or alternative education and training. Notable exceptions
include Charter 77 in Czechoslovakia, Civic Forum in Hungary and
Solidarnosc, an independent trade union in Poland.

Since 1989 and the transition to democracy in Eastern Europe there has been
a huge growth in civil society organisations. Many of the new structures were
small and largely built on volunteer input. Early in the transition period the
legislative framework was put in place to allow the creation and registration of
non governmental organisations. A large inflow of money from the European
Union, international and bilateral donors as well as foundations was invested in
civil society development initiatives. Many international or European networks
encouraged the development of national organisations in these countries by
delivering training, capacity building and other technical suppport. The 1990s
saw a transition towards larger, professional civil society organisations with
paid employees and increasingly funded by central government to deliver
public services. Non-state actors in the new Central and Eastern countries
show similarities with western Europe, with a division between service
providers and advocacy groups. The growing importance of the role of civil
society has been acknowledged by national authorities: legislation in Hungary,
Lithuania and Poland allows a percentage of income tax to be designated for
registered charities.

The sustainability of the NSA sector
For a number of years, USAID21 has tracked the legal, economic environment
for non-state actors through a sustainability index. In most of the countries in
the European region, the NSA sectors are now relatively mature and so there is
limited opportunity to make dramatic improvements in sustainability. An
exception is Slovenia, which remains in the mid-transition phase, as the failure
to close a planned agreement between the NSA sector and the government
has led to a decrease in the overall sustainability score.

However, scores for the legal environment recently declined in several
countries. The 2005 report makes clear that even in countries that have
reached the consolidation stage, vague laws and undefined terms can interfere
with NSA activities, and that ongoing attention to the legal framework is
necessary. In some countries, basic framework legislation has not been
21
     http://www.usaid.gov/locations/europe_eurasia/dem_gov/ngoindex/2005/index.htm


Compendium of the Non-State Actor sector in the EU, Section 1                        18
addressed since the early 1990s, and is often incomplete or ambiguous.

In a key development affecting the advocacy dimension, several countries put
in place mechanisms to increase public participation. In Hungary, the
dimension score increased, as NSAs were involved with drafting and passing a
new Law on E-information that gives the public greater access to government
information online, allowing for more informed participation, and NSAs engaged
in a number of ambitious sector wide advocacy initiatives. Similarly, in Poland,
the Public Benefit Association Act requires that NSAs be included in
government decision-making, and they have been invited to consult on
legislation, and elect members to a council that advises the government, and
have improved cooperation with local governments. In Latvia, the National
Programme for Strengthening Civil Society requires that all ministries have an
official that is responsible for involving NSAs in the Ministry‟s decision-making
process. The Lithuanian government similarly created lobbying mechanisms
that led to greater participation.

How is civil society perceived?
Civil society enjoys a high level of public trust within the European Union and
this can be seen through a number of surveys. The global trust survey carried
out by the Edelman Consultancy company through interviews with 1,950
selected opinion leaders globally shows that trust in NGOs is higher in Europe
than in Asia or the United States.

How much do you trust each institution to do what is right?

            Business          Government            Media       NGOs
USA         49                38                    30          54
EUR*        42                33                    30          57
ASIA**      56                54                    56          48

*Europe=UK, France, Germany, Italy and Spain
**Asia=Japan, China, and South Korea


UN bodies and non-state actors
The role of NSAs in the context of official diplomacy is a recent phenomenon.
The wartime negotiations that led to the establishment of the United Nations
featured strong advocacy by civil society organisations. Their rights were
eventually guaranteed by Article 71 of the UN Charter and affirmed by many
subsequent decisions. By 2000, about 2,500 NGOs had consultative status
with the UN and many thousands more had official arrangements with other
organs in the UN system and other intergovernmental bodies.

UN agencies have been an important factor for increased NSA activities from
the mid-1940s until the 1960s, very much led by the relief and refugee




Compendium of the Non-State Actor sector in the EU, Section 1                   19
assistance areas22. In 1951, the newly established UN High Commissioner for
Refugees relied heavily on NGOs for service provision. Other UN agencies that
have included NSAs as project implementers from their inception are the
UNFPA, UNESCO and UNICEF23. There has been an exponential growth in
UN support for NSAs since the 1980s. In addition to financing projects through
NSAs there are funds to attend UN conferences, training and capacity building
programmes, and support for NGO networking. By the late 1990s, UN agencies
were spending more than 2 billion dollars a year on NSA programmes. At the
same time the World Food Programme, with its links to over 1,100 NSAs and
the UNHCR were disbursing between 1.5 and 2.2 billion dollars a year through
NSAs24.

A UN-NGO liaison service was established in 1975 to enhance the relationship
between the UN bodies and the NSA sector. New UN bodies such as UNEP
and IFAD25 were created with formal and informal mechanisms for NSA
participation. In the decades that followed, NSA access to many UN bodies has
been significantly improved. There is strong institutional embedding of NGOs
as they are able to attend UN conferences, various committees and working
groups. By the 1980s, UN bodies that had previously been closed to civil
society participation such as the World Bank and UNDP set up new
programmes to support the growth of NSAs. This support has benefited service
providers as well as advocacy NSAs with special emphasis on Southern
organisations. In 1997, the UN Secretary-General sent a directive to all
departments asking them to designate an NGO liaison officer. A number of
jointly-run UN programmes have involved NSAs as partners including the
Global Environmental Facility, the UN Joint Programme on HIV/AIDS and the
Partnership for Poverty Reduction.

Case studies: UNDP and World Bank relations with
NSA
       “CSOs are non-state actors whose aims are neither to generate profits nor to
       seek governing power. CSOs unite people to advance shared goals and
       interests”. 26

The United Nations Development Programme (UNDP) has developed a
systematic relationship with partners that it classifies as civil society
organisations (CSO). This concept includes the full range of formal and
informal organisations within civil society: NGOs, community-based
organisations (CBOs), indigenous peoples‘ organisations (IPOs), academia,
journalist associations, faith-based organisations, trade unions, and trade
associations, for example.


22
   UN Relief and Rehabilitation Administration (ENRAA) and the UN Relief and Works Agency
(UNRWA)
23
   UN Population Fund (UNFPA), UN Education, Science and Culture Organisation (UNESCO)
and the UN Children‘s Fund (UNICEF)
24
   Kim Reimann, 2006
25
   UN Environment Programme, International Fund for Agricultural Development
26
   UNDP, Policy of Engagement with CSOs (2001)


Compendium of the Non-State Actor sector in the EU, Section 1                               20
The range of partners is indicative of the changing role of civil society actors.
CSOs are no longer restricted to the role of service delivery but are significant
actors in the development of a society, participating in policy-making and
performing watchdog functions. UNDP actively encourages all its offices to
engage with a wide range of organisations and associations whose goals,
values and development philosophies are in accordance with its own.

The World Bank defines NGOs as "private organizations that pursue activities
to relieve suffering, promote the interests of the poor, protect the environment,
provide basic social services, or undertake community development".

Since 1981, the World Bank has been committed to strengthening its
engagement with civil society. An NGO-World Bank Committee has met since
the 1980s which held regular meetings to discuss Bank policies, programmes,
and projects. Reflecting this greater appreciation for the role of civil society in
development, projected CSO involvement in Bank-funded projects has risen
steadily over the past decade, from 21 percent of the total number of projects in
fiscal year 1990 to an estimated 72 percent in fiscal year 2003. As CSOs have
become more influential actors in public policy and in development efforts, the
rationale for the Bank‘s civil society engagement strategy continues to grow
stronger and is becoming recognized as an integral part of an effective
institutional strategy for poverty reduction and achieving the Millennium
Development Goals (MDGs).

The World Bank classifies operational NGOs into three main groups: i)
community-based organisations (CBOs) - which serve a specific population
in a narrow geographic area; ii) national organisations - which operate in
individual developing countries, and; iii) international organisations - which
are typically headquartered in developed countries and carry out operations in
more than one developing country. Throughout the 1970s and 1980s, most
examples of World Bank-NGO collaboration involved international NGOs. In
recent years, however, this trend has been reversed. Among projects involving
NGO collaboration recorded in FY94, 40% involved CBOs, 70% involved
national organisations and 10% involved international organisations.


How the EU could support the NSA sector
The NSA sector needs an enabling legal environment, sustainable funding and
access to policy-makers in order to function effectively. Increasing numbers of
NSAs operate at national, European and global levels. This compendium
provides soma data about the diversity and range of NSAs across the
European Union. However, it also reveals the huge gaps in research and
analysis of the sector because of the lack of a coherent concept of what
constitutes an NSA and what criteria it should fulfill in order to qualify for a
privileged fiscal and administrative regime.

A European approach to the NSA sector would create standard concepts and
frameworks that could be implemented at national level. It would simplify data
collection and research on this important element of European society. It would


Compendium of the Non-State Actor sector in the EU, Section 1                     21
enhance transparency for partners in the developing world, contribute towards
the effectiveness of aid by creating ensuring that all NSAs have similar
requirements for accountability, visibility and the fiscal environment. A standard
legal framework would facilitate cross-border fundraising and giving by building
confidence among corporate, public and individual donors. There would also be
considerable administrative and efficiency gains for many associations that
operate in partnership, consortia or through networks.

A proposed Statute for European Associations
The first steps towards a statute for European Associations were taken by the
European Parliament which passed a Resolution in 198427 and submitted a
draft statute to the Commission on 14 April 1985. A further Resolution on 13
March 1987 called for the adoption of a Statute for Associations 28. In 1991, the
European Commission published a draft regulation on the Statute for European
Associations which established a standard legal framework for NGOs.

The draft statute for a European Association proposed the following definition:
"permanent grouping of natural or legal persons whose members pool their
knowledge or activities either for a purpose in the general interest or in order to
directly or indirectly promote the trade or professional interests of its members”.
The Commission‘s proposal also noted that ―the profits from any economic
activity shall be devoted exclusively to the pursuit of its objects, and may not be
divided amongst the members." 29 The proposal passed the first reading in the
Parliament in 1999 but became blocked at Council level. In 2005, the
Commission withdrew the text because of a lack of political progress. Since
then there have been no plans to re-introduce a draft Regulation.

Conclusions
This document outlines the growing size and importance of the NSA sector in
the international arena and development issues. For policy-makers at national
and European level, there is a need to know more about the NSA sector in
order to establish effective and transparent partnerships. The diversity of civil
society across Europe is a key asset, but there is no accepted definition of
what constitutes a non-state actor. What is not adequately defined cannot be
measured, monitored, compared or analysed. The informality and diversity of
the NSA sector is no longer seen as a key strength but increasingly perceived
as a vulnerability to terrorism or fraud.

Harmonising and standardizing the complex different legal standards for NSAs
across the EU is a time-consuming process and requires political commitment
by the European and national legislators. As the EU institutions explore ways of
bringing the Union closer to the citizens, a legal framework to enshrine the
fundamental ‗right of association‘ would be a positive step. It is therefore vital
that the European Commission re-initiates the process of developing a
European statute for Associations.


27
   MEP Louis Eyraud, November 1984, on "the mission, administration and regulation of
associations in the European Communities‖
28
   MEP Nicole Fontaine March 1987, on "Non-profit associations in the European Communities‖
29
   http://ec.europa.eu/enterprise/entrepreneurship/coop/statutes/statutes-association.htm


Compendium of the Non-State Actor sector in the EU, Section 1                             22
SECTION 2: COUNTRY INFORMATION
On the following pages you will find brief overviews of civil society in each of
the 25 EU Member States and some information about key elements of
development policy.

Two key sources of information were used for the data in the box at the
beginning of each country section. This information is separated because the
information is comparable and has been gathered according to standardised
definitions of the indicators.

   The 2004-Global Civil Society Yearbook, 2005/2006 produced by the
    Centre for the Study of Global Governance at the London School of
    Economics
   http://www.lse.ac.uk/Depts/global/researchgcspub.htm

   Data on 35 countries from the Johns Hopkins Comparative Nonprofit Sector
    Project managed by the Centre for Civil Society Studies at the John
    Hopkins University.
   http://www.jhu.edu/%7Ecnp/research.html

Detailed research was carried out on each jurisdiction and any statistics
gathered in this way have been integrated into the descriptive text. However,
the enormous diversity of legal systems across the EU and the differing
concepts of what is meant by civil society mean that this data is informative but
not objectively verifiable or accurate enough for comparative analysis.




Compendium of the Non-State Actor sector in the EU, Section 2                   23
European Commission contribution to development NSAs
The European Confederation of relief and development NGOs, CONCORD, has 21
national associations and 19 international networks which represent more than 1,600
NGOs. It is estimated that these organisations have more than 23 million individual
supporters and donors across the European Union.

In September 2006, CONCORD published the results of a survey of their member
organisations. The report notes that according to their data, less than 11% of the external
aid in the EU budget (excluding the EDF) is directly intended to support civil society in the
framework of development or humanitarian actions. When examined further EU funding
specifically for NSAs is just 8% of the external aid budget. Of these funds, only 9% are
allocated to activities supporting development and the promotion of democracy and human
rights. 30

In particular for actions of development education and raising awareness of the European
Citizens on development issues, the EC awards 0.0026% of the total of its external aid 31

In brief, the survey shows that the EC aid represents only 13% of European NGOs funding
while 51% of their resources come from private donors. The study also notes that “for
every euro of development aid financed through an NGO, one additional euro is provided
by the NGO out of its own funds, thanks to the solidarity of Europe‟s citizens‖.




30
     The truth behind the figures, Concord, www.concordeurope.org
31
     ibid, page 1

Compendium of the Non-State Actor sector in the EU, Section 2                    24
European Commission funding for NSAs and NGOs (2004 budget)

                            7.7 Billion Euros
                            Total EC external aid




                         3.7 Billion Euros          0.5 Billion Euros          3.5 Billion Euros
                         administered by            administered by            managed by other
                         EuropeAid                  ECHO                       Commission DGs




       867 Million Euros via the Non State Actors                 1.3 Billion Euros through
       (including universities, professional                      International Organisations
       associations, NGOs, foundations…)




         542.8 Million          324.7 Million Euros
         managed by             administered by
         EuropeAid              ECHO



                  TOTAL = 681 Million Euros for NGOs




357 Million Euros for      324.4 Million Euros for
development actions        humanitarian and emergency
                           actions
Instruments to support NGO actions

The European Commission established an NGO co-financing scheme to
support NGOs actions for development. In 2005, this involved 200.233 Million
Euros. A further 23 Million Euros were allocated raising awareness on
development issues and actions in developing countries undertaken by NGOs
and their partners.

A number of budget lines are now open to participation by NGOs e.g. food aid
and food security, environment, tropical forests, human rights and
democratisation.




Compendium of the Non-State Actor sector in the EU, Section 3                         25
Austria
Key figures on the NSA sector 32
NSA workforce is 4.9% of the economically active population
NSA revenue 40% public sources, 55% private giving, 5% fees and charges
NSA Secretariats in 2003 = 272, 84% growth since 1993
National members of international NSA = 4,741, 50% growth since 1993
Main NSAs purposes are research, economic development and policy
advocacy

Brief overview of the NSA sector
The civil society sector is weak in comparison with other European countries,
despite a high number of NSAs (90,000 NGOs operating in 199933). In 2003,
the Austrian development cooperation allocated funds to 50 NSAs.

Legal framework
There is no uniform legal framework for NSAs. Of the 90,000 NGOs, only 200
fulfil the ―public benefit‖ criterion included in the new tax law.

        The Association Law of 1/07/2002: updates legislation from 1951 with a
         faster registration procedure and a division of associations into two
         categories i.e. small (budget inferior or equal to 1,000,000 Euros) and
         large associations (budget superior to 1,000,000 Euros)
        The tax law specifies that only organisations of ―public interest‖ or those
         pursuing beneficial or religious purposes (for foundations in particular)
         can benefit from tax incentives.

Type of NSAs
    Foundations pursuing charity purposes: in 1999 there were 803 such
      foundations, none were identified as working on international
      development.
    Cooperatives
    Associations

      A European Volunteer Centre study on volunteerism in Austria reveals
       the following number of volunteers in the period 2000/2001:
               Associations: 104,203
               Private foundations: 2,200
               Public foundations: 648
               Cooperatives: 1999

         However, only associations undertake actions in developing countries.


NSAs operating in the development aid sector

32
  Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
33
  Figures from a study on ―Ngos, civil society and the government in Austria‖ by Christian
Pichler-Stainern‖ from the organisation World of NGOs, 1999


Compendium of the Non-State Actor sector in the EU, Section 3                                26
According to a study made by Trialog in 2003, the first development NGOs
established by the Catholic Church still play a prominent role in the
development sector.

Horizont 3000:
Horizont 3000 is the result of a merger between three Catholic organisations.
Its size provides economy of scale. Some 300 projects are managed worldwide
on rural and urban development, agriculture, fishery and forestry, democracy,
human rights, education and health. Less than 5% of its funds are allocated to
social services, water, reproductive health or commerce support. The funds are
spent in Latin America, Africa and Asia. A small budget (3%) is spent
domestically and in nearby Albania. Total budget managed in 2004: 16 million
Euros - 73.3% from public fund and 26.7% from private sources.

KOO is a specialized institution of the Austrian Bishop's Conference with 24
member organisations as well as 68 missionary congregations. Its purpose is
to promote cooperation for development and pastoral work as well as relief and
rehabilitation in Africa, Asia and Latin America. In 2003, KOO and its members
allocated 82.3 million Euros to projects in the developing countries. Out of the
total budget, only 23% come from public funds.

Light for the World – Christoffel Development Cooperation:
A large NSA with a total budget of 7.6 million Euros in 2005. It supports 75
projects for blind people in Africa, Latin America, and Asia.

In addition, the NSAs belonging to larger European NSA families e.g. Austrian
Red Cross, Doctors without borders, SOS Kinderdorf are among the largest
NGOs in Austria.

Brief overview of Austrian Development Cooperation
    Development cooperation is under the responsibility of two main
       ministries i.e. Ministry of Foreign Affairs and the Ministry of Finance.
       Federal, provincial and local levels of government also have input.
    In January 2004, the Austrian Development Agency was created to
       increase the efficiency in aid programme delivery. The agency is
       responsible for administering the bilateral aid programme.
    Net ODA/GNI in 2005 was 0.52% compared to 0.25% and 0.26%
       respectively for year 2003 and 2004.
    The Austrian development cooperation supports NSA activities through
       a co-financing scheme. However, the amount of ODA channelled
       through NSAs is extremely low. In 2002, it was 1 million USD for an
       ODA of 520 million USD34. The 2004-2006 Austrian development policy
       proposed to allocate almost 50% of core development budget through
       NSAs.




34
 Statistical Annex of the DAC 2004 Development Cooperation Report, volume 6, n° 1,
www.oecd.org


Compendium of the Non-State Actor sector in the EU, Section 3                        27
Belgium
Key figures on the NSA sector 35
NSA workforce is 10.9% of the economically active population
NSA revenue 33% public sources, 58% private giving, 9% fees and charges
NSA Secretariats in 2003 = 1,855, 180% growth since 1993
National members of international NSA = 5,841, 36% growth since 1993
Main NSAs purposes are economic development, research, social
development and law, policy advocacy

Brief overview of the NSA sector
Belgium is a federal country with many key policy areas such as healthcare,
culture, education, training, environmental protection, housing, public transport
and urban planning delegated to regional or linguistic community levels of
government. These are also the areas covered by the most active civil society
networks. Increasingly, NSAs networks have decentralized to mirror the
regional or community government levels.

Within the NSA sector, provision of non-profit schools and hospitals mobilise
more than 50% of the resources of the sector and are largely financed from
public funds. Without hospital and school revenues, total cash income for the
sector is just over 14 billion Euros.

Types of NSAs
International non-profit organisation (AISBL)
Non-profit organisation (ASBL)
Private Foundations
Public Utility Foundations

Approximate number of NSAs in Belgium
Almost 16,000 NSAs are registered with the Belgian authorities. In 2003, the
NSA sector accounted for 4.5% of GDP, up from 4.0% in 200036. There is
strong volunteer presence in the NSA sector, whose time input is the equivalent
of 100,000 full-time jobs.

Although there are numerous associations active in the cultural, recreational, or
international relations sectors, the domestic Belgian NSA sector is essentially
involved in the production of collective services delegated by the state, e.g.
health, education, and social work. Public service providers and the nonprofit
associations share responsibility in these particular areas.

NSAs operating in the development aid sector
 ACODEV is the Federation of 90 French-speaking, bilingual and German-
  speaking NGOs working on development cooperation.
 Coprogram is the Federation of Flemish and bilingual NSA for development
  cooperation.

35
     Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
36
     L‘Institut des comptes nationaux, Belgique


Compendium of the Non-State Actor sector in the EU, Section 3                              28
Belgium also has national members of the large development families such as
Oxfam, Action Aid, Médecins Sans Frontières, Red Cross, Caritas etc.

Brief overview of the Belgian Development Cooperation
Belgian development policy involves multilateral and bilateral governmental
cooperation and support for NSA activities.

   Belgian Development policy is managed by the Directorate-General for
    Development Cooperation (DGDC), which is part of the Federal Ministry of
    Foreign Affairs, Foreign Trade and Development Cooperation.
   Bilateral cooperation is managed by the Belgian Technical Cooperation
    (BTC) with 18 partner countries, 13 of which are located in Africa and 10
    belong to the group of Least Developed Countries (LDCs). The BTC is a
    limited company with the Federal government as the only legal shareholder.
   Framework agreements for 5-year work programmes are negotiated
    between the Ministry and the NSA partners and other indirect cooperation
    actors. 98.7 million Euros was earmarked for 82 action plans in 2006. 135
    authorised Belgian NSA, the Association for the Promotion of Education
    and Training Abroad (APEFE) and the Flemish Society for Development
    Cooperation and Technical Assistance (VVOB), the Inter-University Council
    of the French Community (CIUF) and the Flemish Inter-University Council
    (VLIR), the Antwerp Institute of Tropical Medicine, the Tervuren Royal
    Museum of Central Africa, the Royal Belgian Institute and Museum of
    Natural Sciences

According to OECD figures, Belgian ODA was €1.58 billion in 2005, an
increase of 17.2% compared to 2004. In terms of proportions of GDP this
represents an increase from 0.41% to 0.53%. Further increases in the
development budget are foreseen in 2006.

Registration and Regulation
The Ministry of Justice is responsible for regulating NSAs. Accounts and official
documents have to be submitted to the National Bank of Belgium (large
organisations) or the Ministry of Justice (small organisations). A database of all
required information about NSAs can be consulted on the Moniteur Belge
website (http://www.moniteur.be).

The Law on Non-Profit Associations, International Non-Profit Associations and
Foundations (2002) modernises and amends legislation from 1919 and 1921.




Compendium of the Non-State Actor sector in the EU, Section 3                    29
Cyprus
Key figures on the NSA sector 37
NSA Secretariats in 2003 = 17, 22% growth since 1993
National members of international NSA = 1,421, 66% growth since 1993

Brief overview of the sector
Although the island of Cyprus is officially a member of the European Union, the
acquis is suspended in the northern part of the island because it is not under
the effective control of the government. The divided nature of the island has
had an impact on the non-state actor sector. The data below refers to the
Southern part of the Island except where indicated. Factors which contribute
towards a weak civil society in Southern Cyprus are:
   A short history as an independent country (since 1960);
   the lack of a solution to the inter-communal conflict since 1974;
   the dominance of political parties over most aspects of the public sphere;
   the high levels of intolerance.

Although the environment for civil society is considered ‗relatively enabling‘ 38,
the close connection to political parties undermines their autonomy. In general
financial resources are poor, mainly state subsidies to a limited number of
NSAs.39 63% of NSAs say their financial resource base is inadequate or
completely inadequate. The Joint Memorandum on Social Inclusion of Cyprus
drafted in 2003 shows that the government programmes for NSA programmes
in 2001 cost 6.7 million Euros. 40 According to Civicus data just 231
organisations or just 6% of the registered NSAs received state grants in 2002,
although this figure rose in 2004 to 41%.41 However, almost 20% of
respondents to a Civicus survey indicated they had received business
donations.42 The majority (87%) of individuals interviewed by Civicus had
donated money or goods to charity within the past year. The average value of
donations to charities represented around 1.3% of individual annual income.43
Participation in NSA by the population in Southern Cyprus is at 43 % 44, but the
active population is in fact lower. Only 35% of NSAs have paid staff.

Legal framework
     The Company Law Cap 113 (for the case of Non-profit companies)
     Law on Associations and Foundations (1972) requires associations to
      register with the Ministry of the Interior.
     Law on Clubs


37
   Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
38
   Civicus, Civil society index report for Cyprus. An assessment of civil society, 2005
39
    There is limited data available or state monitoring of the NSA finances as well as of
transparency in the mode of allocating state funds to NSAs.
40
   Civicus, page 74
41
   ibid, page 74
42
   ibid, page 75
43
   ibid, page 41
44
   ibid


Compendium of the Non-State Actor sector in the EU, Section 3                           30
         2002 Income Tax Law, the income of charities, religious or educational
          foundations of a public nature is tax exempt. Donations to approved
          charities are deductible for companies and individuals.
      
Type of NSAs
      Foundations
      Associations
      Not-for-profit company
      Sport or hobby organisations, existing but not clearly specified
      Social enterprises
      Religious or faith organisations
The majority of NSAs are social organisations, recreational associations and
sports clubs (30% of estimated NSAs).

Number of NSAs
There are about 3,608 NSAs: 2,842 registered associations; 766 non-
registered. Most NSAs operate at local level. The two largest cities of Nicosia
and Limassol account for 80% NSAs. The main themes are health issues and
welfare services, while ethnic minority organisations have the smallest
membership. There are over 100 active NSAs on development, of which
Médicins du Monde and Red Cross are the most important.

Networks
137 networks, of which 107 are registered. The 47 largest federations have a
total of 1,006 member organisations.

Pancyprian Welfare Council: established in 1973 for coordination among the
voluntary organisations, social policy consultation with the voluntary sector and
cooperation with governmental authorities. It has recently been re-named as
the Pan Cyprian Volunteerism Coordinative Council. It has 310 NGO member
organisations.

Overview of Southern Cypriot development cooperation:
     No access to ODA for NSA
     A mid-term strategy for development cooperation, but no laws
     ODA/GNI was 0.020% in 2001
     The focus of Cypriot ODA is the Mediterranean region
     Four geographic departments of the Ministry of Foreign Affairs deal with
      bilateral ODA which makes coordination difficult.

Northern Cyprus, Turkish Republic
The ‗Turkish Republic of Northern Cyprus‘ (TRNC) administers the North of the
island. The regime is only recognised by Turkey, which limits access to
international legal and institutional instruments.45 Civil society has been a key
element of political opposition among the Turkish Cypriot community,
supporting peace and bi-communal political unification. But, civic participation
remains limited. Over 1,000 NSAs are registered but only 350 are considered
active.


45
     Civicus, page 11


Compendium of the Non-State Actor sector in the EU, Section 3                   31
Czech Republic
Key figures on the NSA sector 46
NSA workforce is 2% of the economically active population
NSA revenue 37% public sources, 52% private giving, 11% fees and charges
NSA Secretariats in 2003 = 47, 21% growth since 1993
National members of international NSA = 3,460
Main NSAs purposes are research, economic development, social
development and law, policy advocacy

Brief overview of the sector
The civil society sector has improved considerably over the past five years, with
revised legislation and efficient communication channels between NSAs and
the government.

The percentage of volunteers in civil society workforce is of 35.5%47, the
highest rate among the new Member States. Unlike most western European
countries, Czech NSAs are more engaged in expressive activities 48 (54% of the
NSAs) rather than in service activities (42% of the NSAs). A large percentage
of NSAs‘ revenues come from private sources with 61% against 39% 49 from
public funds.

Legal framework
 The constitution of the Czech Republic of 1993 and in particular the
   constitutional list of freedom and rights
 The Association law amended in 1993
 The Law on Foundations amended in 2002 and 2004
 The Law on Public Benefit Corporations amended in 2002 and 2003
 Income tax law amended in 2005. Tax exemptions on income and
   donations for foundations, funds, PBCs and other public benefit NSAs
 Law on Donations amended in 2005

The Ministry of Interior is responsible for regulation and registration of NSAs.

Type of NSAs
    Associations
    Foundations
    Funds
    Public benefit corporations




46
   Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
47
   From Global Civil Society, an overview by L.M. Salomon, S.W. Sokolowski, R. List, the
Centre for Civil Society Studies, the John Hopkins University
48
   ibid, page 26 expressive activities are those involving expression of cultural, religious,
professional or policy values, interests or beliefs while service activities involve delivery of
direct services such as education and housing.
49
   ibid


Compendium of the Non-State Actor sector in the EU, Section 3                                      32
Approximate number of NSAs
There is no official figure about the number of NSAs in the country. The USAID
2005 NGO sustainability index reports that around 95,000 NGOs are registered
in the country50. 58% of these organisations are civic associations while the
remainder are foundations, public benefit organisations and church-related
organisations51. The national platform of development organisations (FORS)
has 22 member NSAs. Some of them are active nationally and do advocacy
and awareness raising on issues like human trafficking. Other organisations
work nationally and globally.

NSAs operating in the development aid sector
People in need (P.I.N): http://www.clovekvtisni.cz
Provides relief aid and development assistance in a wide range of developing
countries and administers social inclusion, information and education
programmes in the Czech Republic and in Slovakia. Its budget was 10.7 million
Euros, almost 80% of which came from international or national institutions.
Over 5% was raised from individuals and companies and less than 1% from
national television. Half of the money raised was spent on domestic
programmes, 25% of the funds were allocated to Chechnya and Ingushetia and
9% to Afghanistan.

The Via Foundation: www.nadacevia.cz
The largest foundation established in 1997 as successor to the Czech office of
the American Foundation and of the Foundation for a civil society. It gives small
grants and expertise to non-profit community initiatives in the Czech Republic.
In parallel, the Foundation carries out advocacy, particularly on effective
inclusion of NSAs in the decision-making process e.g. for the draft of the new
Civil code. The total budget for 2004 was 380,000 Euros, 18% came from
public funds and the rest from private sources.

Brief overview of the Czech Republic Development Cooperation
 The Ministry of Foreign Affairs is responsible for the coordination of ODA.
   Other Ministries are responsible for development projects in their respective
   sectors e.g. environment, health, education, social services.
 The Development Centre of the Institute of International Relations is the
   main expert body of the MFA.
 In 2005, ODA was 100 million Euros. Net ODA/GNI = 0.11% while the
   government targeted 0.142% by 2010.
 In 2004 NGOs implemented 11% of bilateral cooperation (17 million Euros)
   the remaining budget was allocated via private companies (41%) and
   government agencies (47%). A grant scheme system for development
   NSAs is administered by the Development Centre of the IIR. The budget for
   this activity has risen from 70,000 Euros in 2004 to 325,000 in 2006.
 A trilateral programme funded by the MFA and the CIDA (50% each) exists
   for development NSAs focusing on MDGs and Czech priority countries. In
   2005, the total budget was 275,000 Euros.



50
     USAID 2005 NGO sustainability index, p. 81
51
     ibid, p. 81


Compendium of the Non-State Actor sector in the EU, Section 3                   33
Denmark
Key figures on the NSA sector 52
NSA Secretariats in 2003 = 246, 8% growth since 1993
National members of international NSA = 5,010, 34% growth since 1993

Brief overview of the sector
Danish NSAs play significant roles in a domestic context and this is mirrored in
development policy where there is a strong emphasis on civil society. Danish
NSAs have a long tradition of partnership with the global South both with and
without government funding53.

The OECD highlights that Danish NSAs undertake little traditional fundraising
activities and receive most of their financing through the government and little
come from traditional fundraising54. In 1999, a DANIDA study revealed that
NSAs had capacity problems to administrate and manage large funds.
Consequently the government reduced its development funding through NSAs
and urged NGOs to focus on the coherence and efficiency of their activities. In
2005, just 8% of ODA was channelled through NSAs.

Legal framework
There is no specific law or regulation governing the associations in Denmark
nor is there a statutory definition of associations.

        Article 78 of the Constitution guarantees freedom of association
        Law on foundations and certain types of associations, 1984
        The Company tax act foresees that NSAs are only taxable on income
         derived from business activities involving non-members. Income from
         business activities with members is not taxable. Most NSAs benefit from
         this because the majority do not work much with non-members
        Non profit organisations are generally exempt from VAT

Type of NSAs
    Associations
    Foundations

Approximate number of NSAs
It is difficult to have an accurate picture of the number of associations because
under Danish law, associations pursuing a public, humanitarian, environmental
or research-related aim may choose to register voluntarily according to the Act
on the Registry of Associations (1987).55



52
   Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
53
   NGO participation in development policy, a survey of the situation in Finland, Ireland, the
Netherlands, Denmark, Austria and Sweden, by Daniel Spichtinger, www.trialog.or.at
54
   ibid, page 13
55
   The NGO legislation in the countries in the Baltic Sea Region, a survey with
recommendations by Ms. Outi Ojala, www.norden.org


Compendium of the Non-State Actor sector in the EU, Section 3                                    34
There are about 14,000 foundations in Denmark, one of the highest number in
Europe just behind Sweden with 20,000 to 30,000 foundations56. Few of these
foundations have paid employees and none of them are among the leading
private foundations that donate internationally57.

NSAs operating in the development aid sector
DanChurchAid: one of the major humanitarian NSAs working with churches
and non-religious civil organisations to assist the poorest of the poor. It
operates in three main areas: advocacy (mines, AIDS, MDGs, olive trees),
emergency aid and development assistance. In 2004 its budget was 59 million
Euros of which 42% was from private donations, 38% from public funds and
19% from international donors.

IBIS: a membership-based and independent Danish development organisation
working globally, nationally and locally to secure equal access to education,
influence and resources for people in Africa and Latin America. In 2004 it had
an income of 20 million Euros which was almost exclusively from the
government (98%).

Danish Refugee Council: a private, humanitarian organisation covering all
aspects of the refugee cause. The aim of the organisation is to protect refugees
and internationally displaced people against persecution and to promote
sustainable solutions. The 2005 budget was 73 million Euros, up from 58
million in 2003.

Brief overview of Danish Development Cooperation
 A specific unit has been established within the MFA‘s South group to
   provide advice and guidance to small and medium-sized NSAs.
 NSAs must meet strict criteria to access government funds; e.g. be a private
   organisation registered in Denmark, exist for at least one year, have at least
   50 members or sponsors, independently audited accounts, pursue no
   commercial interests and have a Danish support base.
 The MFA drew guidelines on the implementation of a civil society strategy
   and came up with important changes in government-NSA interaction:
   - NSAs shall coordinate among each other (and with other relevant
       actors) to avoid duplication of efforts.
   - In parallel, the government decided that the six largest Danish NSAs
       should find 5% co-financing. This measure is meant to encourage NSAs
       to engage new partners for development assistance.




56
   Foundations in Europe : a comparative perspective, by Helmut K Anheir, Civil Society
Working Paper n° 18, Centre for Civil Society at the London School of Economics
57
   Philanthropic foundations and development cooperation, off-print of the DAC journal 2003,
Vol 3, n° 3, OECD DAC.


Compendium of the Non-State Actor sector in the EU, Section 3                                  35
Estonia
Key figures on the NSA sector 58
NSA Secretariats in 2003 = 5, 400% growth since 1993
National members of international NSA = 1,673, 356% growth since 1993

Brief overview of the sector
NSAs sector in Estonia is large and rapidly increasing. Compared to other new
Member States, Estonian NSAs have quite a well-developed infrastructure.59
Recent years have seen positive developments with regards to public opinion,
public and private financial support, organisational and advocacy capacity.
Excluding the largest NSAs from the housing, environment, water and housing
associations, the sector had a turnover of 140 million Euros in 2003. In the
same year they received 17 million Euros in income tax and 24 million Euros in
social taxes.60 Financing comes from direct support from the state and local
governments, grants from local and international foundations, programmes of
the EU, membership fees, fees for services, donations from private persons
and businesses, volunteer work, and state funds.

It is estimated that about 27,000 people61 - or 4% of the Estonian workforce -
were employed in the NSAs sector. The salaries are generally lower than
average and more than half NSAs have no paid employees.62

Legislative Framework:
 Estonian Constitution 1992
 Civil and Commercial Code
 Non-profit Associations Act 1996
 Foundations Act 1995
 Churches and Congregations Act 2002
 Law of Obligations Act 2002 for non registered organisations
 Income Tax Act 1999; Value-Added Tax Act 2003; tax incentives can be
   granted to non-profit associations and foundations, whose activities include
   support to charity, science, culture, education, sports, health care, social
   welfare, environment protection, or religious congregations in the public
   interest. This covers 7% of registered associations.

Type of NSAs
    Foundation
    NGO
    Contract of partnership
    Religious or faith organisations

NSAs in Estonia can be community organisations, advice services, service
providers, voluntary organisations, self-help groups, social cooperatives, NGO

58
   Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
59
   NENO, www.ngo.ee
60
   Active Citizenship Network Survey 2003“Citizens for the New Europe” Project Survey
61
   Questionnaire submitted by the Estonian Statistical Office
62
   Active Citizenship Network Survey 2003“Citizens for the New Europe” Project Survey


Compendium of the Non-State Actor sector in the EU, Section 3                            36
institutes, local development and community organisations, professional
groups, foundations, interest and hobby groups, advocacy groups, think
thanks, institutes, clubs, network and umbrella organisations. Half of the
registered NSAs are home-owner associations dealing with housing, water,
gardens and garages. Next are the membership NSAs (30%) followed by
culture (16%), education (1.5%), local development, hobbies and interests,
trade unions, religion, science, security, social care (2%).

Number of NSAs
In 2005 there were 22,498 associations and 680 foundations registered. By
April 2006 this had risen to 23,840 NSAs which includes 12,000 housing
associations. Of the remaining 11,000 organisations only about 1,200 are
actual public benefit organisations. An estimated 15,000 of Estonian NSAs are
active and report their financial activities to the Tax and Customs Board.
Although most organisations are registered in the capital, Tallinn, the
percentage of registered organisations in the 15 counties corresponds to the
population densities of these countries.63

Networks
Most NSAs in Estonia belong to the 120 different umbrella bodies and
networks.

NENO, the Network of Estonian Nonprofit Organizations (www.ngo.ee) is the
largest Estonian organisation of public benefit NSAs. Founded in 1991 it has 85
members. NENO works for increasing public awareness and advocating in the
interests of its members.

Estonian NGO Roundtable (www.emy.ee/roundtable.html) is not registered
officially but is a well-known coordination body for the NSA sector.

AKÜ – Estonia Roundtable for development cooperation is a forum of NSAs
and experts for advocacy, public awareness and joint development projects.
AKÜ takes part in the Trialog project and in CONCORD working groups.

Brief overview of the Estonian Development Cooperation
 The Ministry of Foreign Affairs is responsible for development policy and
   implementing the policy approved by the Parliament in 2003. This
   emphasizes the important role of NSAs.
 Overall development cooperation budget: 0.08% of GNI in 2004.
 The Estonian Development Co-operation Roundtable is the government‘s
   designated forum for partnership with civil society organisations.




63
     www.ngo.ee


Compendium of the Non-State Actor sector in the EU, Section 3                 37
Finland
Key figures on the NSA sector 64
NSA workforce is 5.3% of the economically active population
NSA revenue 30% public sources, 8% private giving, 61% fees and charges
NSA Secretariats in 2003 = 141, 38% growth since 1993
National members of international NSA = 4,733, 51% growth since 1993
Main NSAs purposes are economic development, research, law, policy
advocacy, social development and education

Brief overview of the sector
The NSA sector is well established in Finland, although there is a lower
concentration of paid employees in social welfare fields than in most other
countries. The share of salaried employees engaged in social service delivery
is smaller and the Finnish NSA sector is more reliant overall on volunteer input
than elsewhere in western Europe. This volunteer participation makes the NSA
sector in Finland a significant social, political, and economic force.

Legal framework
Assembly Act (1999, 2001)
Associations Act (1989, amended 2002)

Type of NSAs
Associations
Religious Communities

Approximate number of NSAs in Finland
In 2005, the Register of Associations contained 124,400 associations, and
nearly 2,400 new associations were entered in the Register. The Register of
Religious Communities comprised almost 300 communities and registered
congregations

Similar to other western European countries, education and research is the
largest field of nonprofit activity in Finland as measured by its share of nonprofit
employment. Consistent with its relative smallness, its strong reliance on
voluntary work, and its more balanced composition, the Finnish non-profit
sector receives the bulk of its cash revenue not from private philanthropy or the
public sector, but from private fees and charges and membership dues. This
source alone accounts for nearly three-fifths, or 57.9 percent, of all nonprofit
revenue in Finland. The NSA sector in Finland in 1996 represented USD 4.7
billion in expenditures or 3.8 percent of GDP. There were 62,848 paid
employees or 9.5% of total service employment and almost 13% of public
sector employment.65 The health field accounts for 23 percent of non-profit
employment and social services comprise 17.8 percent. Altogether, the three
core welfare fields (education, health, and social services) account for 65.8
percent of all non-profit employment in Finland.


64
     Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
65
     John Hopkins Centre for Civil Society Studies


Compendium of the Non-State Actor sector in the EU, Section 3                              38
NSAs operating in the development aid sector
KEPA, the Service Centre for Development Cooperation which gathers over
200 Finnish NSAs engaged in development cooperation. It is financed by the
Ministry of Foreign Affairs.

NGO projects mostly focus on the education, social and health service sectors.
Population growth and civil society strengthening are also funded. Over half of
the projects are located in Africa, but other regions are also well represented.
The Ministry of Foreign Affairs funds projects in over 70 countries.

Brief overview of the Finnish Development Cooperation
Since the end of 2003, approximately half of NGO‘s development cooperation
governmental aid has been channelled into 10 partnership organisations.
These are based on workplan and financing agreements. The criteria for
partnership organisations include the following: a coherent policy in parallel
with the Finnish Government‘s development cooperation policies, reliable and
strong relations with partners in the project countries, well-established financial
administration and fund-raising, being well-known in Finland and broad
expertise in development cooperation. The partnership organisations are: Fida
International, FinnChurchAid, Finnish Evangelical Lutheran Mission, The
Finnish Red Cross, Frikyrklig Samverkan, International Solidarity Foundation,
Plan Finland Foundation, Save the Children, Trade Union Solidarity Centre of
Finland, and World Vision Finland.

The Government aims to increase the overall share of NSA involvement in
development to 14% by 2007. There are also plans to reduce the co-financing
requirement for NSAs to 15%.

Three special funds support NSA development cooperation. These distribute
money to relevant local NSAs in developing countries and international NSA
operating internationally. The funds are the Siemenpuu Foundation, an
association of environmental and non-governmental organisations, Abilis, an
organisation promoting the position of the disabled, and KIOS, the Finnish
NGO Foundation for Human Rights.

Registration of NSAs
Registration of an association is not obligatory. Unregistered associations have
no legal capacity and so can not enjoy the rights or undertake obligations that
registered associations are entitled to. Registration is made through the
National Board of Patents and Registration of Finland (NBPR). All registered
NSAs are entered into the Register of Associations, maintained by the NBPR
and publicly accessible. NSAs can receive funding from government based on
the conditions in the Act on State Aid (2001). NSAs are allowed to receive
foreign funding. Relevant tax legislation is applicable when funds are being
transferred from one country to another. Registered NSAs are exempt from
paying certain taxes. In cases of special significance for public well-being an
NSA may be exempt from paying all taxes (Act on the Tax Relief of Certain
Non-profit Associations, 1976).




Compendium of the Non-State Actor sector in the EU, Section 3                     39
France
Key figures on the NSA sector 66
NSA workforce is 7.6% of the economically active population
NSA revenue 38% public sources, 8% private giving, 35% fees and charges
NSA Secretariats in 2003 = 1,405, 84% growth since 1993
National members of international NSA = 6,755, 5% growth since 1993
Main NSAs purposes are economic development, research, law, policy
advocacy, social development and culture.

Brief overview of the sector
    In 2003, the civil society workforce represented 7.6%67 of the
       economically active population. Out of the total civil society workforce,
       the share of volunteers was 51%, one of the highest rates in EU
       countries, behind Sweden with 75.9% and Finland with 54.3%68. The
       civil society sector is more service dominant with 56% of NSAs active in
       direct service delivery e.g. social services69.

         But it seems that for NSAs operating abroad (Associations de Solidarité
         Internationale, ASIs), the pattern is slightly different. A survey from the
         Commission on Development and Cooperation70 shows that only 40% of
         ASIs total revenues come from public sources while 60% come from
         private sources (donations from the public or support from private
         companies and foundations, ASIs own revenues)71. In 1995, the total
         revenue of the associative sector amounted to 44 billion Euros72.

        The foundation sector lags well behind other countries, both in the
         number of foundations and their means. Nevertheless, the Fondation de
         France (FDF) 73 finds encouraging trends in French foundations as
         charitable giving is increasing and corporate foundations are taking up
         global issues74. To further encourage foundation development, the FDF
         joined with other French foundations in 2001 to create the Centre
         Français des Fondations75.

Legal framework
66
   Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
67
   From Global Civil Society, an overview by L.M. Salomon, S.W. Sokolowski, R. List, the
Centre for Civil Society Studies, the John Hopkins University
68
   ibid, page 19
69
   ibid page 26, expressive activities are those involving expression of cultural, religious,
professional or policy values, interests or beliefs while service activities involve delivery of
direct services such as education and housing.
70
   This Commission is attached to the Ministry of Foreign Affairs
71
   http://www.hcci.gouv.fr/lecture/synthese/sy007.html#annexe2
72
   Archambault, E. (1999). Le secteur associatif en France et dans le monde [The non-profit
sector in France and in the World]. In F. Bloch-Laine www.fdf.org/download/1999_sbutluc.pdf
73
   The Foundation was created in 1969 to serve as a catalyst and intermediary between the
government and private philanthropy. Now it is an umbrella to more than 415 foundations
74
   ―Actualité novembre 2002 : Les dons déclarés des Français en 2000‖ at https://www.fdf.org/:
Observatoire du don, and ―Nouvelles alliances dans la sphère privée : entreprises et ONG‖ at
https://www.fdf.org/: Observatoire des entreprises mécènes.
75
   Philanthropic foundations and development cooperation, off-print of the DAC journal 2003


Compendium of the Non-State Actor sector in the EU, Section 3                                      40
Law on Association and the decree of application, 1901
Law on Foundation, Public utility and Non-profitable status, 1987 amended in
1990
The Ministry of Interior is responsible for the registration of NSAs and has the
final say for Foundations.

Type of NSAs
   - Associations
   - Foundations
   - Religious organisations
   There is a national platform - www.coordinationsud.org - as well as more
   than 30 regional and thematic platforms/advocacy groups.

Approximate number of NSAs in France
Although accurate data is lacking, one study estimates that there are 700,000
or 800,000 associations in France76. The National Institute of Statistics gathers
data on associations in a special file. Of the organisations listed in this file, only
0.4% operate internationally employing 1.8% of the NSA workforce77.
There is an annual directory of international NSAs. It gathers information
(budget, human resources, sectors and countries of operation) for more than
400 associations78.

NSAs operating in the development aid sector
The Commission for cooperation and development conducts regular surveys
on ASI‘s financial resources and expenses. Figures from 1999 reveal that:
    only 2 associations have a budget over 45 million Euros (Médecins Sans
      Frontières, Médecins Du Monde)
    5 have a budget of 30-45 million Euros (Action contre la Faim, CCFD, le
      Comité Français pour l‘UNICEF, Handicap International and Caritas)
    6 have revenues of between 15 and 30 million Euros (ACTED,
      Association Française des Volontaires du Progrès, la Croix-Rouge
      Française, Première Urgence, Pharmaciens sans frontières, Solidarités)
    5 associations manage between 7 and 15 million Euros (Ecoliers du
      Monde, Aide et Action, GRET, les oeuvres hospitalières françaises de
      l‘Ordre de Malte, Partage et Raoul Follereau)79.

Brief overview of the French Development Cooperation
 The Ministry of Foreign Affairs is in charge of development. There is a Unit
   for international cooperation and development and another for non-
   governmental cooperation which supervises the NSA-cofinancing scheme
   which encompasses two types of actions: awareness raising on
   development issues and poverty reduction actions in developing countries.
 In 2003, 1.11 % of ODA or 71 million Euros was channelled through NSAs.




76
   ibid page 3
77
   ibid, page 4
78
   http://www.ritimo.org/H/h1_annuaire_asi.html
79
   http://www.hcci.gouv.fr/lecture/synthese/sy007.html#annexe2


Compendium of the Non-State Actor sector in the EU, Section 3                        41
Germany
Key figures on the NSA sector 80
NSA workforce is 5.9% of the economically active population
NSA revenue 51% public sources, 41% private giving, 8% fees and charges
NSA Secretariats in 2003 = 987, 84% growth since 1993
National members of international NSA = 6,652, 55% growth since 1993
Main NSAs purposes are economic development, research, law and policy
advocacy, social development and culture

Brief overview of the NSA sector
 Service delivery dominates the NSA sector, 61% against 30% for
   expressive activities81. The sizeable public investment in the NSA sector led
   to an agreement between the State and civil society on the principle of
   ―subsidiarity‖ for social welfare laws. This principle requires the authorities
   to turn first to the ―free welfare associations‖ for social problems82.

    As well as NGOs, there are two other key NSAs in development activities:
      Churches have been working for more than 40 years within the
       framework of the Federal Republic of Germany‘s development policies.
       With their own funds and donations totalling some 500 million Euros a
       year, the churches largely fund their own activities Through the
       Protestant Association for Cooperation in Development (EZE) in Bonn,
       and its Catholic counterpart, the Catholic Central Agency for
       Development Aid, the churches also received subsidies of 160 million
       Euros in 200383.
      Political foundations promote institutions within society in developing
       countries and the former Eastern bloc. A focus of their work is
       strengthening trade unions and political processes. In 2003, the German
       government provided 187 million Euros to political foundation projects in
       partner countries (including the former Eastern bloc)84.

Legal framework for NSAs
    Article 9 of the Constitution
    German Federal Civil Code
    Laws on Foundation of German Länders
    Law on Associations of 1964
    General Fiscal Law of 1976
    Corporate income tax law of 1999
    Income tax law of 1997
    Inheritance and gift tax law of 1997
    VAT tax law of 1999

80
   Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
81
   ibid page 26, expressive activities are those involving expression of cultural, religious,
professional or policy values, interests or beliefs while service activities involve delivery of
direct services such as education and housing.
82
   ibid, page 40
83
   German Federal Ministry for Economic Cooperation and Development www.bmz.de
84
   ibid


Compendium of the Non-State Actor sector in the EU, Section 3                                      42
Type of NSAs
    Associations
    Churches
    Federations
    Foundations
    Non-profit companies
    Civic associations

Approximate number of NSAs in Germany
There are several thousand NGOs working in the field of development -
associations, action groups, federations, solidarity groups, twinning
arrangements, foundations, development-policy networks, etc.85 Most are
private, church-funded or politically-oriented groups. The key areas of work are
poverty reduction, social welfare, food aid, emergency and refugee aid, and
development-policy awareness raising. VENRO is a voluntary association of
some 100 German NGOs, most of which work nationwide and globally. Local-
level initiatives are represented within VENRO through NGO networks on a
regional level. There are some 8,312 foundations, of which 50% are grant-
making86. In addition there are more than 35,000 church foundations.

NSAs operating in the development aid sector
Three German foundations are among top ten private European Foundations
that give internationally: the Volkswagen Foundation, Stifterverband für die
Deutsche Wissenschaft and the Robert Bosch Foundation87

MEDEOR: German Medical Aid Organization founded in 1964 to provide
essential medicines and medical equipment to the poor in developing
countries. In 2005 it spent 9.6 million Euros largely in Africa and Asia.

Konrad Adenauer Foundation: offers political education, conducts research,
scholarships, supports European unification, international understanding and
development. Its budget of 100 million Euros is almost entirely public (97%).

Brief overview of the German Development Cooperation
Development policy is the responsibility of Federal Ministry for Economic
Cooperation and Development (BMZ). The KfW Entwicklungsbank (KfW
development bank) is responsible for financial cooperation, while technical
cooperation with partner countries is managed by the Deutsche Gesellschaft
für Technische Zusammenarbeit (GTZ). The German Development Service
(DED) handles volunteers, and further training is the specialty of Internationale
Weiterbildung und Entwicklung gemeinnützige (InWEnt).

BENGO is an advisory centre for NGOs. On behalf of the BMZ it supports and
advises providers of development cooperation services on their requests for
BMZ funds. The BMZ gave almost 53 million Euros to such projects in 200288.

85
   German Federal Ministry for Economic Cooperation and Development www.bmz.de
86
   Foundations in Europe: a comparative perspective, by Helmut K Anheir, Civil Society
Working Paper n° 18, Centre for Civil Society at the London School of Economics
87
   Philanthropic foundations and development cooperation, off-print of the DAC journal 2003


Compendium of the Non-State Actor sector in the EU, Section 3                                 43
Greece
Key figures on the NSA sector 89
NSA Secretariats in 2003 = 94, 147% growth since 1993
National members of international NSA = 3,854, 48% growth since 1993
Main NSAs purposes are research, economic development, law and policy
advocacy, culture and social development

Brief overview of the sector
Historical and structural reasons, such as a strong state and a few dominant
political parties mean that civil society is weak.90 Three factors are key:
 Major role of the state and Orthodox Church in providing social services;
 Weak government support for NGOs;
 An individualist society dependant on strong family ties.91

Participation in civil society has increased in the past 25 years to a peak in the
1980s when 60% of NSAs were created. In 2003, 75% of associations were
subsidised by the government for up to 25% of their budget92. In addition, many
associations were created by local authorities to win EU funds. NSAs are
generally small, two thirds have 50 members or less.93 It is estimated that
around 10,000 people work in the NSA sector but only 10-20% full time.94
Eurostat figures show that in 1998, 24% of the active population participated in
an association. There is no specific legal framework for volunteers which
means that there is no legal protection.95 In 2005, a law established a
governmental institution under the supervision of the Ministry of Culture for ―the
mobilization and co-ordination of the country‘s voluntary potential‖. Although
equipped with staff and offices, to date it has shown no significant activity. 96

Legal framework
There is no unified legal framework to regulate the status of NSAs.
 Greek Constitution
 Articles 78-126 of the penal code and the Presidential Decree 456/1984.
 Laws covering voluntarism and NSAs: 111/1972, 1951/1991, 2074/1992,
   2231/1994 (Consumer Protection Organisations) and 2074/1997
 Law 2646/1998 on ―Development of a National System of Social Welfare‖
   regulates for the first time the relationship between the state and non-profit
   organisations or voluntary organisations within the welfare sector.



88
   www.bmz.de/en/approaches/bilateral_development_cooperation/players/ngos/index.html
89
   Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
90
    Discussion Paper No. 16 Formal Weakness and Informal Strength: Civil Society in
Contemporary Greece, Dimitri A. Sotiropoulos, February 2004, The Hellenic Observatory, The
European Institute, The London School of Economics and Political Science
91
   2005 Avso Country Report On The Legal Status Of Volunteers In Greece, page 7
92
   Discussion Paper No. 16, Dimitri A. Sotiropoulos , February 2004
93
   ibid
94
   Questionnaire submitted by Citizens Union PAREMVASSI, a non-profit citizens‘ association,
founded in 1995 and focusing on research and activities on citizens‘ rights
95
   2005 Avso Country Report On The Legal Status Of Volunteers In Greece, page 5
96
   Questionnaire submitted by Citizens Union PAREMVASSI


Compendium of the Non-State Actor sector in the EU, Section 3                              44
    Law 3390/2005, ―Organization ‗Citizens‘ Work‘ and other regulations‖
     creates a governmental body to encourage voluntarism.
    Law 2731/1999 and 2238/1994 specify conditions under which donations to
     NSAs are tax deductible. The Tax Code is the tax framework for NSAs.
    ‗Public Interest‘ is defined thematically. For example, within the framework
     of social welfare (Law 2646/1998) and development aid (Law 2731/1999).

Type of NSAs
Three types of NSAs exist: Associations (the most significant proportion of
NSAs), Foundations and Not-for-profit companies. The majority of associations
are sports organisations, followed by cultural and social care.

Approximate number of NSAs
In Greece today there are many informal groupings or collectives which are the
functional equivalent of formal associations in other Western societies.97 There
is no official data on the NSA sector because registries are created thematically
by different Ministries. Registers maintained by the prefectures only include
associations. The largest NSAs may be registered with several Ministries. Two
very different estimates put the number of NSAs in Greece at 35,000; another
study suggests 80,000.98 However, only about 800 NSAs have a significant
level of organisation and activity.99

NSAs operating in the development sector
The Ministry of Foreign Affairs had 390 development NSAs listed in 2005.
Hellenic Red Cross, founded in 1877 has a budget of 18 million Euros a year of
which 1 million is spent internationally. In 1998, its revenue sources were public
(53%) and EU funds (37%). Core activities are rehabilitation, disaster relief and
development. Regional focus: Balkans, Eastern Europe and the Mediterranean.
Hellenic Federation of NGOs100 founded in 1996 as a coordination body.
Members work on human rights, civil protection, development, social solidarity,
environment, culture, sports, youth, welfare. There are about 12,000 active
members funded through membership fees, subsidies and private donations.
Hellenic Committee of NGDOs works on poverty, human rights, sustainable
development, relief, rehabilitation, role of civil society in development.

Brief overview of Greek development cooperation
A substantial recipient of ODA until the 1980s, since 1999, the Ministry of
Foreign Affairs, Directorate "Hellenic Aid", is responsible for supervising
projects in development cooperation, humanitarian aid and education
implemented by Greek NSAs (new humanitarian portal www.anthropos.gr).

Law 2731/1999 sets the legal framework for International Development Aid and
creates a register of NSAs. The law increased to 13 the number of
ministries/agencies able to implement development actions. ODA/GNI
increased from 0.17% in 1999 to 0.26% in 2003 but has fallen to 0.24% in


97
   ibid, page 17
98
   Questionnaire submitted by Citizens Union PAREMVASSI http://www.paremvassi.gr
99
   Questionnaire submitted by Citizens Union PAREMVASSI http://www.paremvassi.gr
100
    www.hellenicfederation.gr


Compendium of the Non-State Actor sector in the EU, Section 3                      45
2005. About 349 million Euros as bilateral and multilateral ODA, 391 million
Euros to private operators and 6 million Euros to NGDOs.101




101
      website of Greek Ministry of Foreign Affairs


Compendium of the Non-State Actor sector in the EU, Section 3              46
Hungary
Key figures on the NSA sector 102
NSA workforce is 1.1% of the economically active population
NSA revenue 66% public sources, 14% private giving, 20% fees and charges
NSA Secretariats in 2003 = 64, 60% growth since 1993
National members of international NSA = 3,630, 68% growth since 1993
Main NSAs purposes are research, economic development, culture, law and
policy advocacy

Brief overview of the sector
Civil society in Hungary is extremely diverse consisting of officially registered
NSAs, ―informal communities‖ and ―individual initiatives‖.103 The greatest
proportion of the NSA sector are private foundations, associations and public
benefit organisations, but most of them are financially weak. Public subsidies
tend to be allocated to Budapest-based organisations (26% of the NSA sector
but gaining 63% of the revenue in 2004) and professional organisations closely
linked to central or local authorities.104

In 2004, the sector had a total income of around 3 billion Euros:
 State support of 1 billion Euros, revenues from 1% of personal income tax
    and revenues from reclaimed VAT (value-added tax);
 Private support of around 362 million Euros from companies, banks, private
    individuals, foundations, churches, associations, advocacy groups and
    international donors;
 1 billion Euros generated by basic services such as membership fees,
    services for governmental agencies, organisations and individuals;
 Investment and unrelated business income 423 million Euros.105

The Hungarian NSA sector employed 86,501 people in 2004, three quarters of
whom worked full time.106 The NSA workforce represents just 1.1% of the
active population, with a very low percentage of volunteering. 107

Legal framework
 Act IV of 1959 as amended by Act XCII of 1993;
 Act II of 1989 on Freedom of association;
 Act CLVI of 1997 on Non-Profit Organisations, considered as public benefit;
 Act CXXVI/1996 on public application of a portion of personal income tax
   allows taxpayers to designate 1% of their tax for a chosen not-for-profit
   organisation. Amendment Act CXXIX (1997) allows the 1% to go a church.
 Act LXXXVI/1991 on Corporate Tax. Hungarian NSAs are exempt from
   corporate income tax for incomes obtained from grants, donations,
   membership fees, as well as statutory or related economic activities.
102
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
103
    Strategy Paper Of The Government Of Hungary On Civil Society 22, October 2002. Informal
translation NIOK
104
    ibid
105
    Data provided by the Hungarian Central Statistical Office
106
    Figures of NSAs based on ―statistical definitions‖ of the Hungarian Central Statistical Office
107
    John Hopkins Comparative Non-profit Sector Project


Compendium of the Non-State Actor sector in the EU, Section 3                                        47
   Act CXXV/2003 on Equal Treatment and Promotion of Equal Opportunities

Type of NSAs
The Hungarian Central Statistical Office (HCSO) uses internationally
recognised criteria to identify a total of 52,391 NSAs in 2004.108
   Foundations (19,242)
   Public foundations (1,563)
   Voluntary Associations (26,345)
   Public law associations (492)
   Interest representation (1,103 Trade Unions, 2,224 professional groups)
   Public benefit companies (1,360 Non-profit Companies) (this type of NSA
    will disappear in 2007; existing companies must select another NSA format
   Non-profit institutes (46)
   Professional associations (16).109

Networks
The Nonprofit Information and Training Center founded in 1993 to strengthen
civil society in Hungary. Provides capacity building, contributes towards a
sustainable NSA sector. Manages an information portal www.nonprofit.hu.

The Hungarian Association of NGOs for Development and Humanitarian Aid
(HAND), registered in 2003, has 23 members including 7 development and
humanitarian 7 NGOs. Others work on democracy, capacity building,
environment, cross-cultural relations, social sciences, and voluntarism. HAND‘s
mission is to contribute to ―the formulation of an effective, transparent and
sustainable development cooperation policy‖ and raise public awareness.

The largest development NGOs are the Hungarian Interchurch Aid, Hungarian
Baptist Aid, and Hungarian Caritas. Priority geographic focus are neighbouring
countries, such as Romania, Ukraine, former Yugoslavia and the Balkans.

Brief overview of Hungarian development cooperation
 In 2002, International Development Cooperation Department created within
   the Ministry of Foreign Affairs (MFA) to formulate and implement
   development and humanitarian policy. The Hungarian International
   Development Assistance HUN-IDA is a liaison non-profit entity that
   administers funding on behalf of the MFA. The first call for proposals in
   2003 was for 1.2 million Euros or 20% of ODA budget. The majority of funds
   (800,000 Euros) was dedicated for Iraq, and open to profit and non-profit
   organisations. 400,000 Euros was given to NGO projects in 15 countries.110
 ODA/GNI in 2004 was 0.07 % (around 50 million Euros, 12% came from the
   MFA budget) and 0.09% in 2005 (70 million euros).


108 These are: prohibition of profit distribution, organisational independence from government,
institutionalised status (independent legal entity), public service nature, elements of voluntarism
and the exclusion of a party-like operation. Hungarian Central Statistical Office questionnaire
109 The following organisations do not fall under the category of non-profit sector in the
database of HCSO: voluntary mutual insurance funds (fails the non distribution test); political
parties (since their mission is to acquire power);and Churches or monasteries (the regulation
that defines the operational framework for secular NSA). HCSO questionnaire
110
    Country Report Development NGOs in Hungary, TRIALOG, September 2005


Compendium of the Non-State Actor sector in the EU, Section 3                                     48
Ireland
Key figures on the NSA sector 111
NSA workforce is 10.4% of the economically active population
NSA revenue 24% public sources, 76% private giving
NSA Secretariats in 2003 = 62, 41% growth since 1993
National members of international NSA = 3,790, 50% growth since 1993
Main NSAs purposes are economic development, research, law and policy
advocacy, social development, education

Brief overview of the sector
Non-profit organisations have a long history in Ireland. In the twentieth century,
civil society growth has accompanied political developments. The last 20 years
has seen an explosion in the number of NSAs established. Older organisations
tended to be larger than younger ones in terms of income, employee and
volunteer numbers.

The 2000 White Paper ―Supporting Voluntary Activity‖ outlined the core
principles shaping the relationship between the State and the non-profit sector.
These are the recognition of NSAs as a core component of a vibrant civil
society, the need to consult non-profit service providers and other groups in
receipt of state funding about service design and delivery, the diversity and
autonomy of the sector, the role of the sector in contributing to policy and
relevant legislation and the legal obligation that rests with the state for the
delivery of services.

There is no nationally complete database of NSAs. A survey undertaken by the
Centre for Nonprofit Management in 2006 indicated that the majority of NSAs
culture and arts, recreation and social activities, environmental, sports,
economic, social and community development and education.

Legal framework
There is no statutory definition of charity or legal charitable status as such.
Organisations can apply to the Revenue Commissioners for CHY numbers
which then grants or withholds exemption from certain taxes. The granting of a
Charity (CHY) number remains a tax designation although many organisations
assume a CHY number confers a particular legal status. The criteria under
which non-profit organisations have been granted charitable recognition date
from 1891 (Pemsel Criteria) and include relief of poverty, advancement of
education, advancement of religion and ‗other purposes beneficial to the
community‘. The 1967 Income Tax Act updated these to include ‗any body of
persons or trust established for charitable purposes only‘.

In March 2006, a proposed ‗Charities Regulation Bill‘ was published. This
includes measures to provide a legal definition of charity, a system of
registration of charities and the introduction of more formal procedures with
regard to financial and performance accountability.


111
      Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)


Compendium of the Non-State Actor sector in the EU, Section 3                               49
Type of NSAs
Unincorporated Association: a membership-based organisation without legal
personality. Members are jointly and severally liable for the association‘s debts.
An association is created by oral or written agreement of its members. Its
governing instrument, usually termed its constitution or rules, is normally
interpreted according to contract law.

Trusts: one or more persons operating under the authority of a ―deed of trust‖
hold funds or property on behalf of other persons. The governing instrument is
a trust deed or will, and executive power rests with the appointed trustees. A
trust has no legal personality; the trustees themselves must enter into legal
relations and accept personal liability.

Companies Limited by Guarantee: an alternative type of corporation, used
primarily for NSAs that require legal personality. The company has no share
capital, the members are guarantors of a nominal amount (typically €1) towards
closing the company in the event of a debt upon cessation of business. Profits
cannot be distributed to its members. The governing instruments consist of a
memorandum and articles of association.

Public Benefit Status: NSAs are not necessarily for public benefit. Many are
designed to benefit their members such as sports and recreation clubs,
professional bodies, political parties, trade unions, cooperatives and credit
unions. Tax exemption is available for NSAs that provide public benefit. All
forms of NSAs can apply for charitable status.

An organisation seeking charitable tax exemption must also have a constitution
or other governing instrument.

Approximate number of NSAs in Ireland

NSAs operating in the development aid sector
Dóchas was formed in October 1993 and is an umbrella organisation of 33 Irish
NSAs involved in development and relief overseas and/or in the provision of
development education. Other leading NSAs are Active Link, Concern, GOAL,
GORTA, Irish Red Cross Society, Oxfam Ireland, Self Help Development
International, Trócaire, Volunteer Mission Movement, and World Vision Ireland.

Brief overview of the Irish Development Cooperation
Emergency relief was a key factor in the growth of the Irish aid sector during
the 1970s. Previously, there were few Irish NSAs working on development.
However, the rise of television with greater live coverage of humanitarian crises
and Ireland‘s entry to the EU in 1973, meant that development issues received
greater attention. A number of new NSAs were formed and the official Irish
governmental aid programme, Irish Aid, was set up in 1974. The Voluntary
Agencies Liaison Committee (VALC) a collective platform for interaction with
the new state body and to advocate for sufficient resources for overseas aid
programmes was created.




Compendium of the Non-State Actor sector in the EU, Section 3                    50
Italy
Key figures on the NSA sector 112
NSA workforce is 3.8% of the economically active population
NSA revenue: 35% public sources, 35% private giving, 30% fees and charges
NSA Secretariats in 2003 = 544, 32% growth since 1993
National members of international NSA = 6,085, 39% growth since 1993
Main NSAs purposes are research, economic development, law and policy
advocacy, social development, religion

Brief overview of the sector
The Italian NSAs sector is extremely heterogeneous, due to the huge
expansion that civil society registered in the 1990s, when half of the existing
NSAs were created, especially in the culture, sport and recreation fields.113
Although civil society in Italy has a tradition dating back to the Roman Empire,
its evolution has been closely connected with the welfare system. The NSA
sector increasingly replaces the state in the delivery of social services. At least
18% of social sector employees are from the private NSA sector.114

The total amount of income in 2001 was 73 million Euros, mainly for culture,
sport and recreation (12 million Euros), health and social services (28 million
Euros). The human resources of many NSAs are mainly volunteers (80%) and
about 170,000 NSAs have no paid employees. There are 629,412 employees
in the NSA sector, of which 10,774 are part time and 3,345,021 volunteers.115

Legal framework
The NSAs legal framework is quite complex as legislators have tried to respond
to the rapid evolution of Italian civil society in the last 15 years.
 Constitution 1948
 Civil code
 Non profit Associations and sport associations Laws 342/2000, 133/1999,
    398/1991, Ministerial decree 473/1999
 Social associations, text unifying laws159, 285, 577,1167, 2674 and 3300
 Voluntary Organisations 266/1991 and Social Promotion Associations Law
    383/2000 considered ―public benefit associations‖
 Social cooperatives Law 381/91, 266/97
 Foundations Laws 218/1990 and 461/1998
 Laws for field of activities and regional laws
 Law decree 460/1997. ONLUS (organizzazioni non lucrative di utilità
    sociale) is a tax category that gives tax benefits to associations if conditions
    of democracy and transparency are met. Social cooperatives, voluntary
    organisations or NGOs are automatically ONLUS, no registration needed.



112
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
113
    Statistical figures are mainly gathered by Istat 2001 report on not for profit organisations
114
    ISTAT 2001 Report on Social sector
115
    These figures include project workers and detached people as employees as well as
conscientious objectors and ―men of the church‖ as volunteers


Compendium of the Non-State Actor sector in the EU, Section 3                                      51
     A new regulatory framework for "social utility enterprises" (impresa di utilità
      sociale) is in the process of being implemented.116

Type and number of NSAs
In 2000, ISTAT recorded a total 221,412 NSAs. Geographically, half of all
active NSAs can be found in Northern Italy.
 Registered associations: 61,309
 Not registered associations 140,752
 Foundations: 3,008
 Committees 3,832
 Social cooperatives 4,651

Main field of activities
140,391 culture, sport and recreational; 11,652 education and research, health
9,676; social services 19,344; environment 3,277; development and social
cohesion 4,338; civil and advocacy groups 6,842; 1,246 philanthropy;
development cooperation 1,433; religious 5,903; trade unions, business and
professional 15,651.

NSAs in the development sector
The Ministry of Foreign Affairs recognises around 150 development NSAs but
there may be as many as 1,000 NSAs active on development issues. 117
 Coopi: Income of 35.6 million Euros, almost half of which is EU money.
   International organisations provide 23% of the revenue, national and local
   public funds account for 18% of the funds. The remainder are other
   governments or individuals. There is a strong geographical focus on Africa
   (75 %) with 17% for Asia and the Middle East. The remainder is spent in
   Eastern Europe, the Balkans and Latin America.
 Caritas: Total expenditures of 35 million Euros in 2005 spent in descending
   order of magnitude: Asia, Europe, Africa, the Middle East and Latin
   America.
 ActionAid: 26 million Euros of revenue in 2004, 95% of which were private
   donations, 92% from individuals. Focus is Asia, Africa and Latin America.
 Medici Senza Frontiere: income of 40 million Euros in 2004, 80% from
   private donations.

Networks
Piattaforma ONG italiane: founded in 2000, it brings together 160 NSAs with at
least 3 years experience in development cooperation. The mission is to
promote coordination among development NSAs, raise awareness and to
contribute to national and European development policies. The key liaison for
the Ministry of Foreign Affairs (MFA). Many development NSAs also belong to
other development platforms: FOCSIV (Federation of 60 Christian development
NSAs), CIPSI, (Coordination of 33 NSAs and 3 Associations) and COCIS.

Brief overview of the Italian development cooperation

116
    Fondazione Giovanni Agnelli questionnaire
117
    This figures includes project workers and detached people as employees as well as
alternative militare service and ―men of church‖ as volunteers


Compendium of the Non-State Actor sector in the EU, Section 3                           52
   The Law n. 49/87 states that the MFA can only finance registered NSAs
    that have identified development cooperation as an aim in their statutes.
   2002 ODA/GNI 0.20%, or around 2.4 billion Euros (MFA data)




Compendium of the Non-State Actor sector in the EU, Section 3               53
Latvia
Key figures on the NSA sector 118
NSA Secretariats in 2003 = 14, there were none in 1993
National members of international NSA = 1,456, 454% growth since 1993

Brief overview of the sector
In Latvia there is no clear definition of the NSA sector, but a new law governing
the NSA sector in Latvia came into force in 2004 and is a first step towards a
clear legal framework and definition for NSAs. Until 2004, public organisations
and private not-for-profit organisations were considered to be non-
governmental organisations in Latvia119. According to data available to the
NGO Centre, 55% of organisations were public benefit, 24% were mutual
(small group) benefit and 21% were member benefit.120

Most NSAs in Latvia are still small, underdeveloped and have limited
governance structures. 121 Staff are often linked to projects and voluntary input
is not officially recognised. Only a small number of Latvians are involved in
social activities.122 The Ministry for Society Integration, responsible for the NSA
sector, has a Strategy for Civil Society Development and a draft Law on
Volunteers which needs to be implemented.123

The key hurdle for sustainability of the NSA sector is the reliance on
international donors or project-based funding. The State Revenue Service data
for 2002, notes that total sector income was 82.5 million Euros made up of
donations and gifts (37%), government funds (16% or around 13.6 million
Euros in 2002), memberships (15%) and economic activities (10%). 124 National
and local government grants increased by 103% over 2001 but it is still only a
small proportion of NSAs that benefit (15% in 2002). Overall NSA sector
income is growing, up 46% from 2000-2001 and 20% from 2001-2002 until it
reached 1.3% of the national GDP.125

Legal framework
 The Constitution of the Republic of Latvia (Arts 91, 99, 100, 101, 102, 104);
 The Law on Associations and Foundations (AFL) of 2003, in force in 2004;
 The Law on Public Organizations and their Associations, 1992.

Type of NSAs
    Foundations,
    Associations or membership organisations,
    Religious or faith organisations.

118
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
119
    Phare project LE01.03.02, THE DEVELOPMENT OF CIVIL SOCIETY IN LATVIA 2002/2003
Secretariat of the Minister for Special Assignments for Society Integration Affairs Riga 2004
120
    ibid
121
    The USAID 2004 NGO Sustainability Index for Central and Eastern Europe and Eurasia
122
    THE DEVELOPMENT OF CIVIL SOCIETY IN LATVIA
123
    ibid,
124
    ibid, page 27
125
    ibid, page 27


Compendium of the Non-State Actor sector in the EU, Section 3                               54
Before the new law was applied, the NSA sector was split as follows: Public
organisation 63.7%; sporting organisation 17.3%; open social fund 13.1%;
trade union 1.7%; fraternity (professional society) 1.4%; sporting association
1.1%; political organisation (party) 0.7%; association 0.7%; professional artist
organisation 0.2%.

Number of NSAs
The Ministry of Justice maintains a Register of Enterprises including NSAs.
Officially in 2004, 8,376 NSAs were registered, but not all may be active. Only
65% of NSAs submitted their obligatory annual financial report in 2002. 126
Moreover, some organisations are still in the re-registration process after the
2004 legal reform. Geographically, 60% of NSAs are based in the capital with
the remainder spread throughout the country127, especially in larger cities.

Networks
A number of thematic networks were created in 2004. There is a network of 13
NSA support centres across the country established with international funding.

NGO Centre (NVO Civic Alliance): Founded in 1996 as a resource and
education body for NSAs. Its aims are to support new NSAs and to encourage
established NGOs to engage policy processes. It has 14 member organisations
and is largely independent of government or EU funds (15%).

Latvian Platform for Development Cooperation (LAPAS): 24 member
development NSAs. The goal is to create a favourable environment for Latvian
NSAs and opportunities for development.128 Members have expertise in
education, anti-corruption, HIV/AIDS, children‘s rights, gender and reproductive
health. Funded by private donations (90%) and membership fees (10%).

Brief overview of Latvian Development cooperation
 ODA/GNP in 2004 was 0.06% or approximately 7 million Euros. 97% of
   which was payments to international organisations and their programmes.
 A development programme for 2006-2010 with an annual workplan,
   Georgia and Moldova are priorities for 2006. The lead structure for
   development is the Development Cooperation Council, consisting of
   Ministries of Foreign Affairs (MFA), Economics, Finance, Regional
   Development and Local Governments, and the State Chancellery. 129
   Regulations for grants and tenders are currently being developed by the
   MFA. 213,000 Euros is available for development cooperation and
   awareness raising.130 The Development Cooperation Policy Advisory Board
   is the forum for MFA-NSA dialogue.




126
    The USAID 2004 NGO Sustainability Index for Central and Eastern Europe and Eurasia
127
    Ibid, p. 161
128
    http://www.mfa.gov.lv/en/DevelopmentCo-operation/#3
129
    http://www.mfa.gov.lv/en/DevelopmentCo-operation/Projects/
130
    Information by Lapas


Compendium of the Non-State Actor sector in the EU, Section 3                            55
Lithuania
Key figures on the NSA sector 131
NSA Secretariats in 2003 = 5, there was just 1 in 1993
National members of international NSA = 1,606, 403% growth since 1993

Brief overview of the sector
Legislation does not define the concept of an NSA. The Law on Associations
(No. IX-1969, January 2004) states that including in the name of an NSA the
words ―association‖, ―public organization‖, ―confederation‖, ―union‖, ―fellowship‖,
―club‖ etc, is sufficient to identify an NSA in common understanding.132

In the last few years the NSA sector, thanks to the attention of national media,
has improved its public image: Lithuanian society is beginning to acknowledge
its importance in public life.133 This is critical now that taxpayers have the
option to give 2% of their taxes to registered NSAs. Financing is one of the
main challenges facing Lithuanian NSAs. In fact, foreign donations have been
severely cut recently from approximately 68 million Euros in 1996 to 34 million
Euros in 2002.134 Nonetheless, the overall NSA sector income in the same
period has risen from 78 million Euros to 92 million thanks to the growth in local
donors.135 Government funding for NSAs is not a significant share of overall
funding.136 Some NSAs have successfully diversified their funding sources,
receiving in-kind support and private contributions from companies and
individuals. The gap between larger NSAs which can still access international
money – particularly the EU – and smaller NSAs is growing.137 Small NSAs
cannot win EU funds and have to survive on the limited levels on local
philanthropy and membership fees, which account for only 0.13% of total
giving.138 Many NSAs have joined European or international NSA networks in
order to gain funds. The new 2004 legislation finally allows NSAs to carry out
economic activities.139

According to research in 2000, there were 15,272 people employed by NSAs
but there is low participation of volunteers140.

Legal framework
 Constitution, Article 35 guarantees freedom of association;
 Civil code 2002;
 The new Law on Associations (22 January 2004) replaces two previous
   laws – the Law on Public Organisations and the Law on Associations.

131
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
132
    Questionnaire submitted by the State Enterprise Centre of Register
133
    2004 USAID Sustainability Index (USAID), page 166
134
    www.nisc.lt, these data comprise also think tanks
135
    Ibid
136
    USAID
137
    Ibid, page 166-168
138
    ―Public opinion survey that the philanthropic behaviour of Lithuanians has not changed in
the past six years, less than 12% of respondents said they have given to charity.‖ www.nisc.lt
139
    ―A public opinion survey on NGOs (June 2002) revealed that only 6.5% of the Lithuanian
population object to the idea of non-profits earning money, 68.7% welcome it‖ www.nisc.lt
140
    www.nisc.lt


Compendium of the Non-State Actor sector in the EU, Section 3                                    56
      According to the Law on Associations of 22 January 2004 (No. IX-1969),
      NGOs are registered in the Register of Legal Persons, which is held by the
      State Enterprise Centre of Registers and not the Ministry of Justice;
     Law on Charities and Sponsorship defines public benefit;
     Law on Foundations;
     Law on Non-profit companies;
     Law on Religious communities;
     Law on Social enterprises;
     Individuals paying income tax can designate up to 2% of their taxes for
      public interest organisations. It is estimated that nearly 30% of Lithuanians
      citizens did so in 2004. From 2004, in order to benefit from tax exemptions,
      NSAs must have special status at the Centre of Registers. Those having a
      turnover of less than 1 million LTL are exempt from income tax;
     Two decrees on voluntarism.

Type of NSAs:
    Foundation,
    Association,
    Not-for-profit company,
    Social enterprise,
    Religious or faith organisations,
    Condominium,
    Gardener‘s community,
    Charity and sponsorship fund.
There is a regulation on artists‘ organisations but no legal format.

Number of NSAs
Official statistics are scarce. The State Enterprise Centre register has 11,347
associations and 1,030 charity and sponsorship funds, some of which are
state-controlled. The NGO Centre estimates that there are 15,000 NSAs, while
the NGO Law Institute believes that only 5,000 associations are active. 141

Networks
NISC (www.nisc.lt): The mission of the Non-Governmental Organization
Information and Support Centre is the development of NSA sector through the
provision of information, technical assistance, consultations and training.

Lithuanian NGDO Platform aims to register officially in 2006. It consists of 18
NSAs sharing common values and advocacy goals.142

Overview of Lithuanian development cooperation
 Development cooperation is managed by the Ministry of Foreign Affairs. A
  Division for Development Assistance was created in 2001.
 ODA/GNI of 0.042% in 2004, 7.6 million Euros. This figure rose in 2005 to
  13 million Euros or 0.065 % of ODA. A geographic focus on neighbouring
  states such as Belarus, Ukraine, Moldova and South Caucasus.
  Humanitarian aid: Afghanistan and Iraq.

141
  Information provided through questionnaires
142 Seminar for NGDO Platforms of New MS, Budapest, March 2006 Lithuania country report


Compendium of the Non-State Actor sector in the EU, Section 3                             57
   NSAs are not involved in the MFA ODA policy guidelines for 2006-2010.




Compendium of the Non-State Actor sector in the EU, Section 3               58
Luxembourg
Key figures on the NSA sector143
NSA Secretariats in 2003 = 43, down from 45 in 1993
National members of international NSA = 2,167, 26% growth since 1993

Brief overview of the sector

In 1999, the NSA sector represented 4.16% of the total civilian employment
and 6,740 full-time equivalent employment144.

Since the 1960s, several new non-sectarian initiatives have benefited from
governmental support and there has been an increasing interest in the third
sector, and in particular the social economy sector since the beginning of the
1990s. However, there is little information available on the number of
associations, their main fields of activities and the number of employees. In
1999, more than 4,200 associations were legally recognised. The agency
RESOLUX manages a directory that compiles social services and non-profit
organisations engaged in activities serving general interest.

Legal framework
    Law on Associations and Foundations (1928)
    Law on Development cooperation (1996)
    Law on Non-profit organisations (1928) was amended in 1994 to adjust
      the tax regime for foundations.

Type of NSAs
    Non-profit organisations
    Foundations

Approximate number of NSAs in Luxembourg
   Around 4,200 associations legally recognized in 1999;
   Around 143 foundations are registered. However, foundations have not
     been a subject of public debate, there is also a lack of statistical data to
     measure their impact on society. It is estimated that the majority of
     foundations are operating bodies rather than grant-making
     organisations;
   There are around 90 NSAs, 82 of which are officially registered145;
   51 Development NSAs are members of the national platform Le Cercle.

NSAs operating in the development aid sector

Médecins Sans Frontières Luxembourg : a sister association to Médecins
Sans Frontières France. The annual budget in 2005 was 18.25 million Euros.


143
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
144
    Figures based on data compilied by CIRIEC, 1999, pp, 17-18 and quoted in The non-profit
sector in a changing economy, OECD 2003, www.oecd.org/publications/e-book
145
    From the questionnaire answered by the National NGO platform, le Cercle Luxembourg


Compendium of the Non-State Actor sector in the EU, Section 3                                 59
More than half of this was from public sources (52%) and the remainder (48%)
from private sources.

Brief overview of the Luxembourg Development Cooperation

      Development cooperation is under the responsibility of the Ministry of
       Foreign Affairs.
      There is a genuine partnership with NSAs in terms of development
       cooperation with the creation of a NSA-MFA working group that
       convenes several times a year. In 2004, there were 5 meetings. One of
       the objectives is to identify and develop complementary and harmonised
       approaches.
      There is a co-financing scheme for development projects and
       awareness raising on development issues actions.
      There is also a system of framework agreements and micro-financing
       conventions with some NSAs.
      In 2004, the Ministry of Foreign Affairs allocated 11.64% of total ODA to
       79 NSAs through the Cooperation Fund.




Compendium of the Non-State Actor sector in the EU, Section 3                  60
Malta
Brief overview of the sector
Despite a longstanding culture of assistance, Malta has no formal undertaking
to provide humanitarian aid due to limited financial means. Recent examples of
aid interventions were made possible because of financial contributions raised
from the public by local charity organisations (usually linked to the Roman
Catholic Church) or donation of useful items such as clothing and foodstuffs. A
number of Maltese generally also volunteer to go overseas and give their
services to people in need146.

There is little literature about the civil society in Malta. In October 2006, a new
Forum of Civil Society Organisations was launched by 6 founding members:
the Consumers‘ Association, National Council for the Elderly, National Council
of Women, Alliance of Pensioners‘ Organisations, Malta Federation of
Professional Associations, and the National Youth Council. The initial focus is
to bring together NSAs to improve coordination on policies such as
environment, rural development, consumer protection, culture and heritage,
gender equality, age, poverty, persons with disability and human rights. The
Forum aims to be as representative as possible of different sectors of civil
society and other NSAs are invited to join the Forum.

The National NGOs platform (KOPIN) filled in a questionnaire and provided
some information on the number of NGDOs in existence and on the legal
framework. 147

Legal framework

At the moment, there is a deadlock in NSAs‘ legislation. Some discussions
were held last year on the subject, but no final agreement has yet been
reached.

Type of NSAs

NSAs are not regulated by law except for Social Enterprises that are regulated
by the Cooperative Law.

Approximate number of NSAs in Malta
There are about 20 Non-Governmental Development Organisations: 10 are
members of the National Platform KOPIN, 1 is an affiliate member and 9 are
not members.

NSAs operating in the development aid sector
Although there is little data about their financial and human resources, they
play important functions in Maltese society.


146
    Country Report, by Hubert Theuma, Malta Ecological Foundation (ECO), Malta (Seminar on
EUdevelopment policy, April 2-4, 2001)
147
    the questionnaire is attached to this paper


Compendium of the Non-State Actor sector in the EU, Section 3                                61
Koperazzjoni Internazzjonali (Kopin) is a voluntary organisation working in
the field of North-South cooperation. Focusing on the social situation of the
poor and marginalised in the least developed countries, Kopin‘s mission is to
alleviate poverty through development and effective empowerment of
communities. Kopin engages in dialogue with civil society organisations in
Europe and the South and upholds advocacy and campaigning strategies
directed at local and EU development policies. Kopin is also coordinating the
National Platform of Maltese NGDOs.

Malta Red Cross: the NGO is active in assisting asylum seekers and refugees.
www.redcross.org.mt

Jesuit Refugee Service: www.jrsmalta.org
JRS Malta has a mandate to accompany, serve and defend the world‘s
forcibly displaced people. JRS Malta gives priority to asylum seekers in
detention, offering legal assistance and social work services inside
detention centres, and lobbying to change the government‘s detention
policy. The JRS Malta also works at raising awareness on the situation of
refugees. It is heavily reliant on volunteer input to provide services which
are often delivered in collaboration with other NSAs.

SOS Malta (Solidarity & Overseas Services) founded in 1991 to aid people
overseas experiencing times of crisis and empowering them by providing
support services and opportunities to implement development and change in
their country to ensure a better quality of life. It has undertaken projects in
Albania and Kosovo as well as offering free medical services in Sri Lanka to
the victims of the Tsunami. SOS Malta also supports the Malta Resource
Centre for Civil Society NGOs, aimed at providing capacity building as a means
to help NGOs and groups working for social change, development, and the
fight against poverty and social exclusion become more effective and efficient
and better equipped to operate through sharing of best practices, and provision
of training and consultation. http://www.sosmalta.org/

Brief overview of the Maltese Development Cooperation
 There is no Ministry or branch which is devoted to development per se. The
   different aspects of development are dealt with by other Ministries.
 Malta‘s development policy is still under discussion and in particular the
   framework for humanitarian assistance. Discussion papers are available on
   the Ministry of Foreign Affairs‘ (MFA) website, www.foreign.gov.mt
 The MFA, whose structure has been strengthened during 2005, is
   responsible for the definition and implementation of Malta's development
   policy. In its action, the Ministry recognises the importance of the
   partnership with NSAs and civil society, both in implementing projects on
   the ground and in raising awareness of development. Examples of these
   activities are the assistance programmes in support of Sri Lanka after the
   2004 Tsunami and the Stop Poverty campaign, carried out by a platform of
   nine Maltese organisations as part of the Global Call to Action against
   Poverty.148

148
      Euforic website , www.euforic.org


Compendium of the Non-State Actor sector in the EU, Section 3                 62
Poland
Key figures on the NSA sector 149
NSA workforce is 0.8% of the economically active population
NSA revenue: 19% public sources, 36% private giving, 45% fees and charges
NSA Secretariats in 2003 = 47, 57% growth since 1993
National members of international NSA = 3,768, 68% growth since 1993
Main NSAs purposes are research, law and policy advocacy, education, culture

Brief overview of the sector
Civil society has grown exponentially since the end of the Communist regime in
1989. A legal framework on freedom of association enabled NSAs to be formed
and registered. The vast majority of NSAs are very small, without paid staff and
reliant on volunteers (20.8%). It is estimated that today around 64,000 persons
work in the NSA sector150.

Civil society in Poland, like many other CEE countries, is led by NSA service
providers (49%) and there are still significant numbers of expressive NSAs
(46%)151. This pattern is similar to patterns in the Czech Republic (42%) and
40% in Hungary152.

In 2003, one fifth of NSAs had an income of up to 260 Euros. 26% of NSAs
have a budget of up to 2,575 Euros, 31.4% up to 25,700 Euros, 17.4% up to
257,000 Euros. A tiny proportion, 3.6%, achieved budgets of 2.5 million Euros
or above153.

Legal framework
 The Constitution (1997)
 The Act on Foundations (1984)
 The Law on Associations (1989)
 The Act on Public Benefit Activities and Volunteering of April 2003

A very small number of NSAs were established and operate according to
'individual' acts, for example Polish Red Cross or Federation of Voluntary Fire
Brigades.

Type of NSAs
    Foundations
    Associations


149
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
150
    Questionnaire sent to and answered by the National NGOs platform, May 2006, Zagranica,
www.zagranica.org.pl. The total population was estimated to 38,536 millions in July 2006
151
    From the Global Civil Society, an overview by L.M. Salomon, S.W. Sokolowski, R. List, the
Centre for Civil Society Studies, the John Hopkins University page 26. Expressive activities are
those involving expression of cultural, religious, professional or policy values, interests or
beliefs while service activities involve delivery of direct services such as education, housing
152
    ibid, page 26
153
     From the questionnaire sent to and answered by the National NGOs platform, May 2006,
Zagranica, www.zagranica.org.pl


Compendium of the Non-State Actor sector in the EU, Section 3                                  63
          Federations (association of organisations defined in Law on
           Associations)
          Social cooperatives (in the Law on Promotion of Employment and
           Institutions of Labour Market)

Approximate number of NSAs in Poland
   It is estimated that there are 79,225 NSAs but only 53,101 are officially
     registered154,
   In 2002, there were about 5,000 foundations155,
   A study conducted in 2002 by the KLON/Jawor association on NGOs in
     Poland shows that out of the 36,500 associations registered at that time,
     2% operated only on international development and 6.9% on
     development and other sectors156.

Database of NGOs: www.ngo.pl
    3,963 are registered among NGOs operating in the international
      development sector

NSAs operating in the development aid sector

MONAR: One World Association is a non-governmental organisation, which
carries the mission of promoting peace and mutual understanding by means of
international and national voluntary programmes and education. It is the largest
NGO in Poland but there is no information available in English about the
budget and the human resources.

The National platform of Polish NGOs: www.zagranica.org.pl

Brief overview of the Polish Development Cooperation
    Development cooperation is under the responsibility of the Ministry of
       Foreign Affairs, Ministry of Finance (financial assistance), and Ministry of
       Education and Sport (scholarships)
    Policy framework: strategy for Poland‘s development cooperation
       designed in 2003 and a multi-annual Aid Plan for 2006-2008
    NGO-cofinancing scheme had a budget of 554,842 Euros in 2004157




154
    From the questionnaire to and answered by the National NGOs platform, Zagranica, May
2006 www.zagranica.org.pl
155
    http://badania.ngo.pl/x/25546
156
      http://portal.engo.pl/files/badania.ngo.pl/public/NGO_research/NGO_Poland_research_2002.pdf
157
      2004 annual development cooperation report, www.mfa.gouv.pl


Compendium of the Non-State Actor sector in the EU, Section 3                                       64
Portugal
Key figures on the NSA sector 158
NSA Secretariats in 2003 = 66, 83% growth since 1993
National members of international NSA = 4,206, 46% growth since 1993

Brief overview of the sector
The end of the authoritarian regime in 1974 led to an explosion of associative
movements concerned with all aspects of social life. The Constitution of the
Republic in 1976, created a legal framework that favoured certain sectors of
civil society159. Over the past 30 years, the sector has evolved significantly.
While strong historical roots for civil society remain, new NSAs have been
created in modern policy fields such as environment, rights of women and
immigrants and international aid.160 The Portuguese NSA sector is financially
very strong: the turnover of the NSA sector was around 5.4 billion Euros or
4.2% of GNI in 2002.161 40% of funding comes from government (reflecting the
trend of delegating social service delivery), 12% from philanthropy and 48% of
own resources (fees and economic activities)162. Estimates in 2002 claim that
the NSAs involve around 227,292 people, 70% of whom are employed and the
remainder are volunteers. The value of voluntary contribution has been
estimated to be 675 million Euros, more than 0.5% of GNI.163

The civil society sector is mainly engaged in service activities (66% of workers
and 44% of volunteers), rather than in expressive activities (27% of workers
and 21% of volunteers)164. NSAs are mainly focused in the social, cultural,
environmental, civic and/or economical sectors, while the majority of workforce
is involved in social services.

Legal framework
There is no single legislation which governs the establishment and operation of
the NSAs. Instead there is a legal framework which is extremely complex.165

     Portuguese Constitution and Civil Code;
     Several Laws and Decrees address specific NSAs or categories of NSAs;
     The definition of Public Interest or Public benefit is within the discretionary
      power of the Public Administration (either Central or Local Administration);
     The legal framework provides tax benefits for entities that donate to NSAs,
      specifically for Private Institutions of Social Solidarity, Collective Persons of
      Public Interest which pursue charity and social solidarity objectives, and
      NSAs which work on environmental issues and cultural cooperatives.

158
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
159
    Defining the Nonprofit Sector: Portugal Working Papers of The Johns Hopkins Comparative
Nonprofit Sector Project – Campos Franco - September 2005, page 13
160
    Ibid, page 29
161
    O Sector Não Lucrativo Portugues numa perspectiva comparada, Campos Franco,
Sokolowski, Hairel, Salamon, Universidade Catolica Portugesa, John Hopkins, 2005
162
    Ibid, page 18
163
    Ibid, page 12
164
    Ibid, page 17
165
    John Hopkins, p. 20


Compendium of the Non-State Actor sector in the EU, Section 3                                 65
Type of NSAs
The diversity of NSAs are covered by specific legislation or overlapping laws:

     Foundation,
     NGO (Portugal is a Party to the European Convention on the Recognition of
      the Legal Personality of International Non Governmental Organisations,
      open to signature in Strasbourg, on 24 April 1986),
     Association (the legal system, usually under the category of associations,
      recognises NSAs, religious or faith organisations, sport and hobby groups,
      as well as associations of students, parents, military and police, voluntary
      firemen, association for consumers‘ defence or popular education, families,
      immigrants, juveniles, women, parents and disabled associations, and
      environment and leisure or cultural associations),
     Social Enterprise/Cooperatives,
     Local development organisations,
     Not for profit company,
     Religious and faith organisations,
     Sport and Hobby groups,
     Private Institutions of Social Solidarity may take the following forms: social
      solidarity associations, social action voluntary associations, mutual
      associations, social solidarity foundations, or Holy Houses of Mercy.

Number of NSAs
The variety of NSAs and lack of a centralised registry means that no accurate
data on NSAs is available. Estimates from 2006 are 43,117 associations and
728 foundations. NSAs are concentrated in Lisbon and in the northern part of
the country. There are 110 officially registered development NSAs by MFA (up
from 88 in 2003). There were about 2,752 paid staff in 2005. Time input is split
between employees 44.2%, and 56% volunteers. 166

The Social Platform for the Non-Governmental Organizations for Development
www.platformaongd.pt created in 1985 by 13 development NSAs, now has 49
members. It aims to develop relationships between NSAs, public authorities
and relevant organisations and promote good practice.

Overview of Portuguese development cooperation
 IPAD (Instituto Público de Apoio ao Desenvolvimento), delegation of
  responsibility from Secretary of State for Foreign Affairs and Cooperation;
 Law 66/98 on NGDOs/Cooperation Protocol MFA and NGDOs Platform;
 Foundations, Associations, Cooperatives, Religious Organisations, and
  NSAs can register as development NSAs;
 Overall ODA/GNI has dropped from 0.63% in 2004 to 0.21% in 2005;
 ODA implemented through development NSAs during 2002-2004 was 7.8
  million Euros or 0.54% of total aid for that period. These figures exclude
  humanitarian aid and public awareness projects which began in 2005;
 NSA co-financing is up from 1.7 to 3.2 million Euros (from 2002 to 2005);


166
      European volunteer Centre ―Voluntary Action In Portugal Facts And Figures‖ 2005, page 5


Compendium of the Non-State Actor sector in the EU, Section 3                                   66
   Geographic focus on former colonies. Project themes include health,
    poverty eradication, education, training and institution-building.




Compendium of the Non-State Actor sector in the EU, Section 3         67
Slovakia
Key figures on the NSA sector 167
NSA workforce is 0.8% of the economically active population
NSA revenue: 22% public sources, 21% private giving, 57% fees and charges
NSA Secretariats in 2003 = 12, 200% growth since 1993
National members of international NSA = 2,226

Brief overview of the sector
In the context of development cooperation policy, the Slovak Republic is one of
the most advanced new Member States. This can be seen in the development
of NSA activity and government initiatives168. The NSA development sector is
diverse. There are 29 organisations that are currently members of a platform of
development and humanitarian NSAs. Other NSAs from related sectors are
also undertaking international development work, e.g. on environment or
gender issues169.

The civil society workforce represents 0.8%170 of the total economically active
population, against 2% in the Czech Republic. The volunteer share NSA
workforce is 30%. But many Slovak NSAs are chronically understaffed because
of a lack of funds. Many of those who work for NGOs are volunteers or part-
time.171. Like in most Eastern and Central European countries, the sector is
predominantly expressive, 59%, with 34% of the sector operating in social
services172. The resources come mainly from fees (55%) while 23% come from
philanthropy and 22% from government subsidies173.

Legal framework
A code of non-profit law is in preparation
 The Constitution of 1992 and amended in 2001,
 Law on Associations (1990),
 Foundation law (2002),
 Law on Non-investment funds (1997),
 Law on Non-profit organisations with publicly beneficial services, updated
   2002,
 Tax law of 2004: NSAs are exempt from income tax on donations and
   inheritance, and a provision allows individuals and legal entities to award
   2% of their income tax to NSAs,
 Act 13/2002 on Conditions of Transformation of Some Budgetary
167
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
168
    Development NGOs in the Slovak Republic, Country Report, Trialog
169
    ibid, page 3
170
     From Global Civil Society, an overview by L.M. Salomon, S.W. Sokolowski, R. List, the
Centre for Civil Society Studies, the John Hopkins University
171
    USAID NGO 2004 index report, page 230,
http://www.usaid.gov/locations/europe_eurasia/dem_gov/ngoindex/2004/slovakia.pdf
172
    From Global Civil Society, an overview by L.M. Salomon, S.W. Sokolowski, R. List, the
Centre for Civil Society Studies, the John Hopkins University, page 26. Expressive activities are
those involving expression of cultural, religious, professional or policy values, interests or
beliefs while service activities involve delivery of direct services such as education, housing…
173
    ibid, page 32


Compendium of the Non-State Actor sector in the EU, Section 3                                   68
      Organisations and Subsidiary Organisations to Certain Non-Profit
      Organisations Providing Generally Beneficial Services, as amended by Acts
      457/2002 and 429/2003, amending Act. 92/1991 on Conditions of Transfer
      of the State Property to Other Persons, as amended ("Law on
      Transformation"),
     Act 595/2003 as amended by other acts on Income Taxes (―Income Tax
      Law‖),
     Act 554/2003 on the Tax on the Transfer of Real Estate,
     Act 222/2004 on the Value Added Tax, as amended by Acts 350/2004,
      351/2004, and 340/2005 (―VAT Law‖).

Type of NSAs
    Foundation
    Civic association
    Non-profit organisation providing publicly beneficial services
    Non-investment fund

Approximate number of NSAs in Slovakia
 There is little information about the number of NSAs in Slovakia.
 There are 25 development NSA members of the National NGDOs platform
  (www.mrvo.sk) and 6 observers.

NSAs operating in the development aid sector
Organisations which are known in Slovakia for their humanitarian aid
programmes are People in Peril Association, Caritas Slovakia, Slovak
ADRA, the Slovak Red Cross and UNICEF Slovakia. As in other countries,
organisations linked to churches (ADRA, Caritas etc.) regularly fundraise
significant private funds for development projects abroad174.

People in Peril Association: NGO that works in the humanitarian and
development aid sectors. Its 2005 revenue was 700,621 Euros spent 55%
internationally and the remainder domestically. It has a fast response to global
disasters and is capable of raising significant money for humanitarian relief 175.

Brief overview of the Slovakian Development Cooperation
 Development cooperation is led by the Ministry of Foreign Affairs (MFA) but
   Ministries of Interior, Environment, Education and Agriculture are also
   involved.
 In 2003, the first budget for development cooperation was adopted and
   ODA contributions have grown from 0.024% of GNI (2002) to 0.074% of
   GNI (2004).
 In 2004, the Slovak MFA introduced a bilateral mechanism for the delivery
   of aid through NSAs, the business or the state sector.
 In development education, in 2004 8 grants were awarded for 80,000
   Euros.


174
    Development NGOs in the Slovak Republic, Country Report, by Anita Bister, Trialog
information Centre, www. http://www.trialog.or.at/docs/ngdostudy_slovakrepublic.pdf
175
    ibid, page 3


Compendium of the Non-State Actor sector in the EU, Section 3                           69
Slovenia
Key figures on the NSA sector 176
NSA Secretariats in 2003 = 17, 133% growth since 1993
National members of international NSA = 2,169, 462% growth since 1993

Brief overview of the sector
In Slovenia, there is no legal definition of the concept of NSAs and they are
variously called non-profit, voluntary, humanitarian, charity, solidarity, self-
support organisations, etc177. In contrast to other CEE countries, transition in
Slovenia did not result in a growing NSA sector apart from sports, culture and
social welfare groups. Not all registered associations are active. In 1996 only
56% submitted an annual financial account. Over 80% of professional NSAs
(with paid staff and the majority of the funds) work for the public benefit.
However, this is just 5% of the NSA sector.178 Slovenian NSAs have over one
million members out of a total population of two million 179 but they have weak
organisational structures as well as the smallest number of employees
compared to other countries. Associations have 2,541 employees and 53
foundation employees which is just 0.4% of workforce. Volunteering is an
extensive phenomenon in Slovenia.180 NSAs sector in Slovenia has few
financial resources and this is linked to the low employment rate in the sector.181

In 2005, association income was 420,029 Euros and 48,500 Euros for
foundations.182 NSAs, especially within the development sector, are dependent
on decreasing funds from foreign donors. State resources (subsidies or project
financing) was 20% of income, down from 30% in 2000. Membership fees
provided 20% of revenue, commercial activities 18%, corporate donations 14%
and individual gifts 9%.183 Public funding procedures are complex and there is
a widening gap between large and smaller NSAs, with aggressive competition
in the latter group.184 In 2001, more than 80% of NSAs had revenues of less
than 12,525 euros. Only 8% earned above 42,000 Euros.185

Legal framework
Slovenia has no civil code and, therefore, no general provisions on legal
persons. Primary legislation are Laws on Associations and on Foundations.186

     Constitution of the Republic of Slovenia, December 23, 1991,
     Associations Law, 60/95, 49/98, 89/99,
     Foundations Law, 70/2005,

176
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
177
    National Report: Third Sector In Slovenia, Simona Hvaliè, Jože Ramovš, Ksenija Ramovš
178
    ibid. page 8
179
    Slovenian Ministry of Interior‘s questionnaire. Only registered associations and foundations.
180
   (Èrnak-Megliè, 2000:142-144, Bernik and Kolariè, 1998 in: Ronèeviæ, 2001:33) ibid, page 8
181
    95% of NSAs with the income < 12,500 Euros had no employees (Èrnak-Megliè, 2000:149)
182
    Information provided by AJPES
183
     The structure of income of third sector organisations in 1996 Source: Bernik and Kolariè,
1998, Ronèeviæ, 2001, National Report: Third Sector In Slovenia
184
    (Èrnak-Megliè, 2000), ibid page 11
185
    Šporar (2001:159), ibid p. 11
186
    Slovenia country report, Verica Trstenjak, Ministry of Science and Technology


Compendium of the Non-State Actor sector in the EU, Section 3                                   70
     Institutes Law, 12/91, 45/94, 8/96,
     Law on Humanitarian Organizations, 98/2003,
     Corporate Income Tax Law, 2005: Institutes, associations, and foundations
      pay no corporate income tax, except for income from for-profit activities,
      even if these activities are linked to its statutory purpose,
     An association ordinarily lacks public benefit status. An association that
      engages in public benefit activities may apply for the status of an
      ―association in the public interest‖ from the Ministry that oversees its
      activities. Foundations are required to engage in public benefit activities.

Type of NSAs
Slovenia is a civil law country with three primary forms of NSAs: Associations,
Institutes (private or public), and Foundations (private foundations are not
developed in Slovenia). Other types are humanitarian, disability or religious
bodies.187 Associations form the largest number of NSAs, 59% focus on sports,
fire fighting and culture.

Number of NSAs
In 2005, there were 19,686 registered associations and 162 registered
foundations. 1,000 new associations are created annually (Ministry of Interior).
There are 40 development NSAs but little information about them and their
work. Generally NSAs are small with limited financial capability and not focused
on development cooperation except for NSAs involved in missionary work188.
Most international NSAs work in South Eastern Europe on human rights,
particularly for children and women; social and health care, refugees, Roma,
awareness raising on development issues, and cultural diversity.

The major global donors and key partners of the Slovenian Government are:
 Red Cross: 346,000 Euros of international assistance from 2002-2004.
 Caritas: 550,000 Euros of international financial assistance, 2002-2004.
 UNICEF: 3,166,000 Euros of international financial assistance, 2002-2004.

Networks
Networking between NSAs is limited, especially in the development sector.
The Legal Information Centre for NGOs – PIC (www.pic.si) was established in
1997 to improve the situation of NSAs through training and advice.
SLOGA platform (http://www.sloga-platform.org): SEECRAN – South East
European Child Rights Action Network www.seecran.org initiated the Slovenian
NGDO platform that is now established by a consortium of 14 NSAs.

Overview of Slovenian development cooperation
 Projects are implemented primarily through the Stability Pact for South East
  Europe. MFA data indicates ODA in 2004 was 0.10% of GNI. NSA co-
  financing lacks transparency. Different Ministries manage funds for
  development cooperation, even if the MFA coordinates development policy.
  In 2004, government and NSAs discussed civil society participation in
  development and humanitarian programmes. The MFA plans to build
  capacity of development NSAs and raise public awareness.

187
      Questionnaire submitted by PIC (Legal information centre for NGOs)
188
      ibid


Compendium of the Non-State Actor sector in the EU, Section 3                    71
Spain
Key figures on the NSA sector 189
NSA workforce is 4.3% of the economically active population
NSA revenue: 56% public sources, 36% private giving, 8% fees and charges
NSA Secretariats in 2003 = 301, 130% growth since 1993
National members of international NSA = 5,782, 44% growth since 1993
Main NSAs purposes are economic development, research, law and policy
advocacy, social development, culture

Brief overview of the sector
Civil society in Spain has a long history but the recent expansion of the sector
is linked to the post-Franco decentralisation process, the growth of the
Autonomous Communities and the ―cultural evolution‖ of the 1960s.190 The
NSA sector in Spain is a growing economic, social and political force. 191 As in
Italy, public distrust of the state has led the authorities to subcontract large
proportions of social and health service delivery to NSAs.192 This means that
the NSAs sector is progressively more financially dependent on the state.

In 2002, the total income of the NSA sector was 24.6 billion Euros or 5.2% of
the GNI. Membership fees and income for services were still the most
important sources of income in 2002 (38%); followed by private donations 36%
and public subsidies accounting for 25%. In 2002, there were 475,179 full-time
paid workers (4.52% of the total employment) and around 253,179 volunteers
(9.8% of the adult Spain population).193

Legal framework
In Spain there is no single legal framework, but a variety of laws regulating
NSAs. There are two levels of laws: state legislation is applicable to NSAs
working nationwide; while some parts of state regulation are also applicable to
NSAs working at regional level. Regional legislation targets local bodies but
has not been enforced in all regions. In those cases, state legislation applies.
     1978 Constitution
     Royal Decree 1740/2003: procedure for public benefit associations
     Law 50/2002, Foundations
     Law 1/2002, Associations
     Law 6/1996, Volunteering
     Law 49/2002, tax regime
     Various regional laws

Type of NSAs
     NGOs,
     Cooperatives
     Mutuals

189
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
190
    The Spanish Non profit Sector: Escuela de Trabajo Social, Escuela de Educación Social
Universidad de Deusto, Bilbao Barcelona, April 2002
191
    Ibid, page 10
192
    Ibid
193
    Ibid, page 12


Compendium of the Non-State Actor sector in the EU, Section 3                               72
         ESAL (Enterprises without Profit purpose)
         ENL (Non Lucrative Entities )
         Foundations
         Associations
         Corporations
         Entities of Social Interest

A third of all Spanish NSAs work in the field of social services. There are also
large numbers of organisations active in culture, education and research,
development and social cohesion. Smaller proportions of NSAs work on policy,
health or the environment194.

Number of NSAs
Without a central registry, various ministries and local authorities maintain
records so accurate data is rare. In 2002, there were 253,507 NSAs. These
were Associations (174,916), Sports clubs (58,085), Cooperatives (7,822),
Teaching Centres (6,392), Foundations (5,698 - growing fast, by 2005 there
were 10,000 foundations), Mutuals (400), and Health Centres (144).

Platforms and development NSAs sector in brief
Congde: A platform of development NSAs with a 20-year history. It includes
100 NGDOs and 14 regional platforms for a total of 400 NSAs. In 2004, it
carried out a survey on the development NSA sector:
  Development NSAs income rose from 60 million Euros in 1991 to 975
   million Euros in 2003, over half of this came from public funds (35% from
   Autonomous Communities, 23% from MFA, 20% from local authorities). 530
   million Euros were private funds memberships (50%) and gifts (34%).
  Around 3,800 paid employees and 24,700 volunteers (not including some
   key actors such as Caritas and the Red Cross).
  Spending: development 79%; humanitarian aid 15%, awareness raising 6%.
   Priority area: Latin and Central America, Caribbean.

Major Development NSAs (2003 Data)
Spanish Red Cross: 53 million Euros (42% private, 58% public), 151,412 staff
overwhelmingly volunteers (94%), Manos Unidas: 46 million Euros (71%
private, 29% public), 4,831 staff almost entirely voluntary (98%), Intermon
Oxfam: 44 million Euros (63% private, 37% public). 1,635 staff, unpaid (80%).

Brief overview of Spanish development cooperation
  Law 23/1998 on Development Cooperation defines NGDOs as legally
   established non-profit entities of private law that expressly state their
   development aims in their statutes. To access public funds and fiscal
   benefits, NSAs must register at national or local level in specific registers.
  Register of NGDOs http://www.aeci.es/05registro/02registro/5.2.3.asp.
  The MFA and Spanish International Cooperation Agency manage
   development. A Development Cooperation Council for state-NSA dialogue.
   2003 ODA/GNI was 0.23% or 1.7 billion Euros. In 2004, 0.24% or 1.98
   billion Euros.

194
  2002 Figures from the study of Escuela de Trabajo Social, Escuela de Educación Social,
Dpto. de Pedagogía Fundación Pere Tarrés, Universidad de Deusto, Universidad Ramon Llull


Compendium of the Non-State Actor sector in the EU, Section 3                              73
Sweden
Key figures on the NSA sector 195
NSA workforce is 7.1% of the economically active population
NSA revenue: 49% public sources, 37% private giving, 14% fees and charges
NSA Secretariats in 2003 = 331, 30% growth since 1993
National members of international NSA = 5,413, 47% growth since 1993
Main NSAs purposes are economic development, research, social
development law and policy advocacy

Brief overview of the sector
A key characteristic of the NSA sector in Sweden is the high level of formal
membership. On average every citizen is a member of four NSA
organisations196. More than 50 percent of the population volunteers at least
once a year. The Swedish sector is self-financed to a large degree through
money earned from member dues and fees, second-hand sales or entrance.
As much as 60 percent of its income comes from the organisations‘
own/independent activities, while only 29 percent comes from government
sources (average across the sector)197. Sweden has been referred to as a
‖popular-movement democracy‖ in which NSAs perform a key role in linking a
homogenous culture to an egalitarian system of general welfare198.

Legal framework
The different Swedish legal forms in which non-profit actors can operate are:
non-profit associations, registered religious communities and foundations.
Religious communities may request to be registered with The Legal, Financial
and Administrative Services Agency (―Kammarkollegiet‖). Foundations must,
under certain conditions, be registered with the County Administrative Board
(―Lansstyrelsen‖). Not-for-profit limited companies must be registered with The
Companies Registration Office.

Since January 1 2006 limited not-for-profit companies can also be created.
Economic associations are entitled to promote a charitable purpose in addition
to their primary purpose of promoting the interests of their members. Trusts
cannot be set up under Swedish law. Charitable contributions are not tax
deductible in Sweden for private individuals or for companies.

NSAs and religious communities must meet the ‗public benefit‘ criteria in order
to qualify for tax advantages.

     Freedom of association is ensured in the Swedish Constitution (1974)
     Law on Common Insurance (1962)
     Act on Identification Designation for Legal Entities (1974)
     Bookkeeping Act (1999)
     Foundation Act (1994), Regulation for Foundation (1995)

195
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
196
    Lundström and Svedberg, 2003
197
    Lundström and Wijkström, 1997
198
    Associational Life in Sweden, Swedish Statistical Office, 2003


Compendium of the Non-State Actor sector in the EU, Section 3                             74
      Economic Associations Act (1987:667) (in English)
      Cooperative Societies Act (1987)

Number of NSAs in Sweden
It is estimated that there are more than 200,000 NSA (of which approximately
30,000 are foundations, 60 are registered religious communities and the rest
are non-profit associations). There is no data available yet on whether any
Companies Limited by Guarantee have been established.

110,000 NSAs are registered with the Tax Authority or by some other authority.
According to a recent study, the annual turnover of the NSA sector, including
trade unions, in 2002 was approximately 15 billion Euros199 According to the
same study, the total number of staff, excluding the trade unions, in 2002 was
133,000.

NSAs operating in the development aid sector
In addition to the Swedish chapters of the major development NSA families,
church organisations are significantly involved in international development.

Forum Syd has more than 200 member organisations and cooperates with
organisations and networks worldwide. The common aim is global justice. It
works to strengthen civil society via development cooperation, advocacy and
public awareness, as well as skill development. Largely funded by SIDA, in
2003 it channelled 12.87 million Euros into the Swedish development NSA
activities. Forum Syd created a directory of development NSA.

Swedish Fundraising Council (FRII) a self-regulatory body with 80 members.
The mission of the Council is to promote ethical and professional fundraising
and improve the conditions for fundraising through political lobbying and
negotiating with commercial suppliers.

Brief overview of the Swedish Development Cooperation
In December 2003, the Swedish Parliament adopted a new Policy for Global
Development to contribute towards equitable and sustainable global
development. Development policy is the responsibility of the Ministry of Foreign
Affairs. The Swedish International Development Agency (SIDA) is the financial
and technical agency. In 2004, ODA was more than 2.2 billion Euros,
approximately two-thirds was allocated to bilateral support through SIDA and
one-third to multilateral cooperation spent primarily through the UN system,
World Bank, development banks and the EU Budget. Swedish ODA is
delivered through projects (75%), humanitarian assistance (14%), sector
programmes (6%) and budget support (5%). Sida has more than 120 partner
countries in Africa, Asia, Latin America, Eastern Europe and Central Asia and
in-depth programmes with 50 countries. In 2004, Sida funded 13 large
development NSAs with 119 million Euros.




199
      Wijkstrom et.al., Fran nationalstat till naringsliv, Stockholm School of Economics, 2006


Compendium of the Non-State Actor sector in the EU, Section 3                                    75
The Netherlands
Key figures on the NSA sector 200
NSA workforce is 14.4% of the economically active population
NSA revenue: 45% public sources, 35% private giving, 20% fees and charges
NSA Secretariats in 2003 = 817, 56% growth since 1993
National members of international NSA = 6,005, 39% growth since 1993
Main NSAs purposes are economic development, research, law and policy
advocacy, social development

Brief overview of the sector
Civil society is extremely vibrant and plays an important role in Dutch society. It
is involved in the design of the Dutch development aid, and not only includes
NSAs but also private enterprises, municipalities, research institutes and
universities.

The civil society workforce is the highest in the EU countries with 14% of the
economically active population201. The share of volunteers is 37.1%.202

As in most Western European countries, the civil society sector is service-
dominant with 75% against 24% for expressive activities 203. Similarly, the public
sector is the main resource provider for the non-profit sector with 59% of
government funds, 39% from fees and 2% from philanthropy.

Legal framework

         Article 8 of the Constitution of 1983 sets out the right to associate except
          in the event of violation of public order
         New Civil Code, part 2, title 2 on associations and section 285 of book 2
          on foundations
         Corporation tax law
         Turnover tax act (list of services exempt from tax)

Type of NSAs
    Foundations
    Associations
         o associations with limited legal competence (informal associations)
         o associations with full legal competences
    Cooperatives
    Public benefit organisations: organisations that pursue religious,
      ideological, charitable, cultural, scientific or public interest objects



200
    Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
201
    From Global Civil Society, an overview by L.M. Salomon, S.W. Sokolowski, R. List, the
Centre for Civil Society Studies, the John Hopkins University
202
    ibid, page 19
203
    ibid page 26, expressive activities are those involving expression of cultural, religious,
professional or policy values, interests or beliefs while service activities involve delivery of
direct services such as education, housing…


Compendium of the Non-State Actor sector in the EU, Section 3                                      76
Approximate number of NSAs in the Netherlands

     There is almost no information available about the number of associations,
      foundations or public interest organisations,
     14 cooperatives and 86 associations204,
     The difference between foundations (asset-based) and associations
      (member-based) has become largely indistinguishable in key field of
      education and social services. Officially there are more than 131,000
      foundations – predominantly in the field of health, social services, education
      and culture. However, many of these services are subsidized by the state
      and fully integrated into the welfare, education and health system.
      Therefore some experts argue that 130,000 of the operating foundations
      should be considered as associations and that there are really only 1,000
      traditional style foundations205. Although most foundations operate in the
      education and health sector, 14% operate in the international development
      sector206.

NSAs operating in the development sector

     OXFAM Novib: dedicated to fighting poverty across the world. Novib
      recently joined the Oxfam family and is now called Oxfam Novib. In 2004
      199 million Euros was spent largely on projects in Asia and Africa.

     ICCO (Protestant-Inter-church Organisation for Development Organisation)
      Finances activities which stimulate and enable people, in their own way, to
      organise dignified housing and living conditions. ICCO is active in countries
      in Africa and the Middle East, Latin America, the Caribbean, Asia, and
      Eastern Europe. In 2005 revenue was 157 million Euros, three quarters of
      which were provided by national and international public funds.

Brief overview of the Netherlands Development Cooperation
 Development cooperation is the responsibility of the Ministry of Foreign
   Affairs
 NSAs highly influence the formal shaping of Dutch development aid
 Dutch ODA is implemented through the NSA and corporate sectors
 There is a grant-scheme system both for national and international NGOs
   (upon conditions for the latter)
 Part of the ODA is disbursed through specific private sector development
   programmes. In 2004, 15% of total ODA was channelled through NSAs




204
    based on study by CIRIEC, 1999, quoted in The Non Profit Sector in a Changing Economy,
OECD 2003, www.oecd.org/publications/e-book
205
    Foundations in Europe : a comparative perspective, by Helmut K Anheir, Civil Society
Working Paper n° 18, Centre for Civil Society at the London School of Economics and Social
Sciences,
206
    Ibid, page 13


Compendium of the Non-State Actor sector in the EU, Section 3                                77
United Kingdom
Key figures on the NSA sector 207
NSA workforce is 8.5% of the economically active population
NSA revenue: 40% public sources, 33% private giving, 27% fees and charges
NSA Secretariats in 2003 = 1,923, 51% growth since 1993
National members of international NSA = 6,509, 43% growth since 1993
Main NSAs purposes are economic development, research, law and policy
advocacy, social development

Brief overview of the sector
The NSA sector throughout the United Kingdom is vibrant and growing. There
has been a significant expansion in terms of numbers, roles and responsibilities
since the first benchmarking of general charities in 1991. The overall numbers
of active NSAs has jumped from 98,000 in 1991 to 169,000 in 2004. More than
three quarters (78%) of the NSAs are based in England although the other
regions of the UK have also seen an increase. The bulk of the NSA sector is
small organisations, which has also represented much of the growth in the past
decade. 56% of the NSAs have annual income of less than 15,000 Euros.208

Legal framework
The “Statute of Charitable Uses” Act of 1601 provided the foundations for
modern charity law under common law. The Act established a body of
Commissioners with powers to supervise and inspect charitable trusts. As a
common law system, the UK has relied on case law to refine the definitions and
frameworks for the NSA sector.

A landmark ruling in 1891 (Commissioners for Special Purposes of Income Tax
v Pemsel) defined a charity as having one of the following types of purposes:
(i) Trusts for the relief of poverty
(ii) Trusts for the advancement of education
(iii) Trusts for the advancement of religion
(iv) Trusts beneficial to the community not falling under any of the above points.
The judge added that a gift must be “beneficial to the community”. This
accompanying point was developed in subsequent case law as the „public
benefit test‟. In the past 40 years, however, changes have occurred and
continue to unfold in all other UK jurisdictions except in Northern Ireland.

1960, Charities Act (applies to all of the UK)
1992, Charities Accounts (Scotland)
1993, Charities Act (England and Wales)
1925, amended 2000 Trustees Act (England and Wales)

Type of NSAs
Much of the data presented here is on ‗general charities‘. This is based on the
definitions used by the national councils of voluntary organisations in England,
Scotland and Northern Ireland. However, this excludes housing associations,

207
      Global Civil Society 2004/5, Anheier, Helmut, Marlies Glasius and Mary Kaldor (eds)
208
      The UK Voluntary Sector Almanac 2006: The State of the Sector, NCVO


Compendium of the Non-State Actor sector in the EU, Section 3                               78
independent schools, government controlled charities (such as NHS charities
and non-departmental public bodies), and organisations whose primary
purpose is the promotion of religion. If these types of bodies were included, the
NSA sector would be even greater in terms of numbers, funds and jobs.

The UK is a common law jurisdiction with four primary formats of NSA:
- Companies limited by guarantee;
- Unincorporated associations;
- Trusts;
- Industrial and provident societies.

An NSA in any of these categories can qualify as a ―charity‖ and be eligible for
significant tax benefits (exempt from income tax on grants, donations, and
similar sources of income).

Data on the NSA sector
The NSA sector has successfully taken on a greater role in the delivery of
public services, with significant growth in areas such as care for the elderly,
specialist health care, advice and counselling. Approximately 608,000 people
were working in the NSA sector in 2004, making up 2.2% of the paid workforce
in the UK. Two-thirds were employed full time. Key statistics for 2003/04: an
income of 38 billion Euros and total assets of 98 billion Euros. The biggest
source of funding since is the government (38% of income).209 There is a
widening gap between the best resourced and smaller NSAs. Sector revenue is
concentrated in a small number of organisations. Just 2% of the sector
generates more than two thirds of the income. Fourteen organisations, with
globally recognised brands, enjoy annual incomes of more than 150 million
Euros.

NSA networks operating in the development aid sector
BOND (British Overseas NGOs for Development) is the UK's broadest network
of voluntary organisations working in international development. Founded in
1993, it aims to improve the UK's contribution to international development by
promoting the exchange of experience, ideas and information.

Brief overview of the UK Development Cooperation
In 1997, Department for International Development (DFID) was established to
manage the technical aspects of development cooperation. The focus of the
programmes are MDGs and poverty reduction. In 2004, ODA was 6.4 million
Euros or 0.36% of ODA/GNI. 80% of the aid was implemented through DFID,
split between bilateral assistance (56%) and for multilateral organisations
(39%). Bilateral assistance is targeted towards Africa, Asia and particularly to
low income countries. In 2004/05 347 million Euros of bilateral aid was
channelled through UK NSAs such as the British Red Cross, VSO and Oxfam.




209
      National Council for Voluntary Organisations (NCVO)


Compendium of the Non-State Actor sector in the EU, Section 3                   79
SECTION 3: AID FLOWS
The Development Assistance Committee (DAC) of the Organisation for
Economic Cooperation and Development (OECD) is a key forum of major
bilateral donors. They work together to increase the effectiveness of their
common efforts to support sustainable development.

The Development Assistance Committee was established in July 1960. A key
objective of the DAC was reaching agreement on the basis of which
comparable data could be collected on the flow of funds to developing
countries.

The DAC concentrates on two key areas: a) how international development co-
operation contributes to the capacity of developing countries to participate in
the global economy, and b) the capacity of people to overcome poverty and
participate fully in their societies.

The DAC publishes statistics and reports (www.oecd.org/dac/stats) on aid and
other resource flows to developing countries and countries in transition and
related matters, based principally on reporting by DAC Members.




Compendium of the Non-State Actor sector in the EU, Section 3                 80
Net ODA by EU Member States in the DAC


            Net ODA by EU Member States members of
                            the DAC

  United Kingdom

          Sweden

            Spain
          Portugal

      Netherlands

      Luxe mbo urg

              Italy                                                             2004
                                                                                2003
           Ireland
                                                                                2002
         Germany

           Fran ce

           Finlan d

         Denmark

          Belgiu m

           Austria

                      0    0.2       0.4          0.6           0.8   1   1.2
                                           pe r ce nt o f GNI




Compendium of the Non-State Actor sector in the EU, Section 3                          81
                                                   NGOs net financial flows to developing countries
    per c ent of reporting country's GN I   0.25

                                             0.2

                                            0.15                                                      20 02
                                                                                                      20 03
                                             0.1                                                      20 04


                                            0.05

                                              0




                                                       ng n
                                                       Fr nd




                                                         Sp l
                                                               nd



                                                        rla g




                                                 te Sw in
                                                     D ium




                                                      er e
                                                      Be tria



                                                       Fi rk




                                                               ga
                                                       Ire y




                                                               m
                                                      Po ds
                                                               ly




                                                     Ki ede
                                                     he r
                                                     G a nc
                                                             an




                                                              a
                                                   et ou
                                                              a
                                                              a




                                                           do
                                                           It a
                                                            la




                                                          rt u
                                                             n
                                                           m
                                                            s




                                                          nl
                                                          lg




                                                         m
                                                       Au




                                                  N mb
                                                      en




                                                    xe




                                                   d
                                                  Lu




                                              ni
                                            U
No data has been included from the new EU Member States because external
development aid is a very new concept and little information has been reported
to the OECD.

Source: Annexes of the 2004 and 2005 DAC reports




Compendium of the Non-State Actor sector in the EU, Section 3                                                 82
EU15 percentage to NGOs as share of total ODA

                     EU Member States' percentage contribution to NGOs as a share of total ODA

  18%
  16%
  14%
  12%
  10%                                                                                                                                          2002
                                                                                                                                              2003
   8%                                                                                                                                         2004
   6%
   4%
   2%
   0%
                                                                                       Luxembo Netherla                              United
           Austria   Belgium Denmark Finland France Germany Greece   Ireland   Italy                    Portugal   Spain   Sweden
                                                                                         urg     nds                                Kingdom
    2002    0%         0%     0%      1%      0%      0%      0%      12%      1%        1%      12%       0%       0%      4%        4%
   2003     0%         0%     0%      1%      0%      0%      0%      14%      1%        13%     16%       0%       0%      4%        3%
   2004     0%         1%     0%      1%      0%      0%      0%      15%      1%        11%     15%       0%       0%      5%        5%




France, Italy, Portugal and Spain did not report their data to the DAC
Denmark did not report figures for year 2002


Net grants to NGOs of DAC countries
                                           Ne t grants to NGOs of DAC countrie s

  12000                                                                                                  11307
                                                                                       10162
  10000
                                                                     8765
    8000                             6934            7289
                      6715
    6000                                                                                                                     in USD million

    4000

    2000

           0
                      1999           2000            2001            2002               2003             2004




Source: Annexes to the 2004/2005 DAC reports




Compendium of the Non-State Actor sector in the EU, Section 3                                                                                         83
 Snapshot of some of the largest development NGOs in
 Europe
                      Oxfam            Save the         ADRA         Terres des     Plan
                      International    Children                      homes          International
                                       International
Total budget          528.03           991.15 Million       159      137.85         501.4 Million
                      Million Euros    Euros (2005)       Million    Million        Euros (2005)
                      (2004)                              Euros      Euros
                                                          (2004)     (2005)
                                        rd
Central and           16.8 %           3 Recipient                                  26%
South America
Africa                38.26%           Top recipient                 25%            48%
Meda countries        3.9%                                           16%
                                        nd
Asia and Pacific      24.2%            2 Recipient                   17%            23%
                                        th
Former Soviet         3.34%            4 Recipient                   36%
Union and
Eastern Europe
Others (domestic      13%              A tiny share                  6%             1% to
programmes,                            for actions in                               Tsumami
activities in the                      North America
North)

Sectoral              27.43% to        Overseas         97% to       83.4% field    47% in social
Distribution of       livelihood       programmes       direct       projects       sector
funds                                  (estimated to    humanitari                  (health,
                                       more than        an                          education,
                                       70%)             services                    livelihood and
                                                                                    habitat)

                      13.88% to        Small share to   1% to        4.37%
                      basic social     domestic         support      advocacy
                      services         programmes       services     and
                                                                     information
                      35.76% to life   Smaller share    2% to        9.78%
                      and security     to admin         admin        admin and
                                                                     fund-raising
                                                                     costs
                      7,38 % to the    Smallest                      2.46% other
                      promotion of     share to other
                      democratic       costs
                      rights

 The above NSAs are the largest in Europe, both in terms of income (above 100 Million
 Euros) and in terms of human resources mobilised (paid staff and volunteers).

 However, the evaluation report of the EC co-financing operations with European NSAs
 with show that the above NSAs are not necessarily those attracting EC funds and in
 particular funds under the co-financing budget line B7-6000210




 210
       http://ec.europa.eu/comm/europeaid/evaluation/reports/other/951568_en.pdf


 Compendium of the Non-State Actor sector in the EU, Section 3                                      84
 EU NSAs access to the budget-line B7-6000 (1994-
1999)211

                       Number     Number       Number     EC-          Share of   Share of
                       of         of           of         contribution budget     budget
                       projects   projects     projects   (€)          line (in   line (in
                                  (in %) (*)   (in %,                  %) (**)    %,)
                                               cum.)
DWHH (DE)              82         2.30         2.30       21,823,101   2.46       2.46

Misereor/KZE           44         1.23         3.53       15,228,459   1.71       4.17
(DE)

Kindermission 70                  1.96         5.49       15,052,741   1.69       5.87
(DE)

Interaide (FR)         29         0.81         6.30       11,280,349   1.27       7.14

ICCO (NL)              35         0.98         7.28       11,056,318   1.24       8.38

Intermon (ES)          33         0.92         8.20       10,554,545   1.19       9.57

KFS (AU)               48         1.34         9.55       10,235,348   1.15       10.72

Oxfam UK               36         1.01         10.55      9,735,074    1.10       11.82
(UK)

Bilance (NL)           43         1.20         11.76      9,158,812    1.03       12.85

Manos             32          0.90        12.65       8,706,706      0.98       13.83
Unidos (ES)
Source:EC statistics (Griot)
(*) In % the total number of projects funded via the budget-line in the period 1994-99
(**) In % the total amount granted by the EC via the budget-line in the period 1994-99




211
      ibid, page 107


Compendium of the Non-State Actor sector in the EU, Section 3                                85

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:11/21/2011
language:English
pages:85