TABLE OF CONTENTS The Baltic American Partnership Fund by jennyyingdi


History and Mission of the Baltic-American Partnership Fund    2

Introduction from the Chair                                    3

Executive Director’s Message                                   4

Overview of 2000 Activities                                    5

Baltic-American Partnership Program Lithuania in 2000          7

Baltic-American Partnership Program Estonia in 2000           11

Baltic-American Partnership Program Latvia in 2000            14

Lessons for the Future                                        18

2000 Grant List                                               20

2000 Audited Financial Statements                             29

Map                                                           35
                     T H E   B A L T I C - A M E R I C A N        P A R T N E R S H I P        F U N D

    The Baltic-American Partnership Fund (BAPF) was established in 1998 by the United States Agency for Interna-
    tional Development (USAID) and the Open Society Institute (OSI). Each organization provided $7.5 million to be
    spent over a ten-year period on the continued development of democratic institutions and market economies in
    the Baltic states by improving the sense of civic ownership and increasing individual capacity to participate effec-
    tively in political and economic decision-making.

    The founders defined three long-term objectives for the BAPF: 1) a clear, supportive legal and regulatory environ-
    ment for civil society, 2) the institutional development of non-governmental organizations (NGOs), and 3) finan-
    cial sustainability of the non-profit sector.

    The BAPF is governed by an independent board comprised of experienced and dedicated US citizens who provide
    policy and financial oversight and are responsible for the overall strategic vision of the program. In each Baltic
    country, subgrantees were selected to implement the BAPF programs: the Open Estonia Foundation, the Soros
    Foundation-Latvia, and the Open Society Fund Lithuania, each a national Open Society Foundation (OSF) in the
    Soros foundation network. These organizations are all locally registered, non-governmental organizations with
    professional and transparent financial systems. They are all experienced grant-makers with excellent long-term
    track records in civil society development programming. Finally, they are all leaders in their respective countries
    in promoting positive social change, and have built the necessary social and political relationships to be effective
    in their work.

    Each subgrantee established a Baltic-American Partnership Program (BAPP), advised by a local expert council
    (LEC), and managed by a local program officer. Each LEC is comprised of leading professionals from media,
    business, academia and non-governmental agencies with a deep commitment to building the non-profit sector,
    and increasing civic engagement in their countries. Based upon the overarching strategy established by the BAPF
    board and in dialogue with the Open Society Foundation boards, the BAPP local expert councils and staff develop
    the annual program plans for their countries.
                                                                                                        2000           3
                                                                            Annual Report

                              INTRODUCTION FROM THE CHAIR
                              I am pleased to introduce the second annual report of the Baltic-American Partner-
                              ship Fund, the creative and cooperative initiative of two funders, the Open Society
                              Institute and the United States Agency for International Development, to help
                              strengthen and sustain civil society in Estonia, Latvia and Lithuania.

                              Whereas 1999 was a year in which considerable time and energy were devoted to
William S. Moody              start-up activities, such as establishing working relationships and awarding initial
                              grants, in the year 2000 the BAPF board and staff, BAPP staff, and local expert
council members were able to reflect upon the initial accomplishments of the BAPF programs, and incorporate
them into strategic thinking and program implementation for our second year of work. As part of this process,
the BAPF convened its first strategic planning retreat in the winter of 2000, so that its own board and staff, along
with the BAPP staff and LEC members, could discuss together the key tasks of building an infrastructure for civil
society, strengthening NGO capacity, and fostering civic engagement in the Baltic countries.

One of the strategic themes that emerged from this retreat, and in the subsequent development and implemen-
tation of programs in the year 2000, was the importance of building partnerships that link government, business
and the non-profit sector (often referred to as the “third sector”) at the community level. The early success of
BAPP-Lithuania’s Local Government/NGO Cooperation program spurred the BAPPs in Estonia and Latvia to un-
dertake similar efforts. In each Baltic country, the BAPPs made grants, which were matched one-to-one by local
governments, to support community-oriented projects carried out by local NGOs. This type of joint venture
helped to increase understanding of the third sector’s role at the community level, including its involvement in
local decision-making processes. It is also hoped that local recognition of the value of such collaborative under-
takings between government and NGOs will help to stimulate additional support for the third sector from gov-
ernment, business and individuals in the future.

One of the challenges, however, of such an approach, as discussed by the BAPF board and staff with our Baltic
colleagues during the year 2000, is figuring out how to encourage collaboration between local government and
NGOs without inhibiting the third sector’s ability to act independently and speak critically of government policies
when necessary. The BAPF and its colleagues expect to explore this challenge further.

The BAPF’s accomplishments, as explained in this report, would not have been possible without the extraordinary
team effort of the BAPF board and staff together with the BAPP local expert councils and staff. I salute them all.

William S. Moody, Chair
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                                  EXECUTIVE DIRECTOR’S MESSAGE
                                  In November of 2000, with two cycles of grantmaking behind us, the BAPP pro-
                                  gram officers, LEC members and I gathered in Riga to take a closer look at what we
                                  hoped to see in the three Baltic countries by the time the BAPF’s support had ended,
                                  and to discuss how our programs might contribute most effectively to the realiza-
                                  tion of this vision.

    Abbey M. Gardner              Our discussion enabled us to articulate this vision in relatively plain terms—what we
    Executive Director
                                  hope for in the next eight years is for people to have acquired and developed the
    attitudes, skills, mechanisms, and structures which enable them to participate in public life and actively affect
    decisions at the community and national level. To maintain clarity of mission, we specified our definitions of the
    above-cited terms. By attitudes, we mean a sense of solidarity, connection and civic responsibility among individu-
    als. The skills we have in mind include advocacy, fundraising, management and public relations. Mechanisms for
    participation include town meetings, community events, access to public information and a favorable legal frame-
    work. The structures enabling participation in public life encompass a range of “third sector organizations,” includ-
    ing those which are already fairly common in the Baltics, such as service delivery NGOs, professional associations
    and umbrella organizations, as well as those which are not as prevalent, such as advocacy organizations, civic action
    groups and informal volunteer organizations.

    In 2000, the BAPPs continued to look for innovative approaches to the issues that we wish to address. All three
    countries have provided support to initiatives seeking to increase NGOs’ ability to participate in the policy develop-
    ment process, and to strengthen their position as advocates for the issues they care about. To cite a few examples,
    about which you will read more in the country summaries that follow, BAPP-Estonia has funded the development of
    an electronic forum that provides NGOs with the opportunity to submit comments on draft legislation to govern-
    ment; BAPP-Latvia has supported a project aimed at monitoring public procurement legislation and advocating for
    improvements in government procurement procedures; and BAPP-Lithuania has continued to expand a local gov-
    ernment/NGO cooperation program that provides the opportunity for increased transparency and civic participation
    in the policy-making process at the community level.

    Since our 1999 annual report, considerable progress has been made in the research and development of a pilot
    project that is focused on participatory planning and community philanthropy and will be implemented in two
    communities in each of the Baltic countries in the year 2001. We view this project as an important complement to
    other BAPP programs which aim to promote broad involvement in community life, strengthen links between sectors
    at the local level, and stimulate local giving. We hope it is a viable first step to the development of community
    foundations in the Baltics.

    The year 2000 was a period of continued learning and reflection for the BAPF. Our strategic vision and objectives
    have not changed since the BAPF’s inception, but we are constantly searching for innovative and maximally effec-
    tive ways to accomplish our goal of contributing to the consolidation of democracy and civil society in the Baltics.

    Abbey M. Gardner, Executive Director
                                                                                                         2000           5
                                                                             Annual Report

The year 2000 represented a time of progress and positive change for Estonia, Latvia and Lithuania. Each country
experienced solid economic growth and demonstrated clear signs of recovery from the damaging effects of
Russia’s financial crisis in the late 1990s. All three countries moved forward in their EU accession negotiations,
and worked to improve their prospects for NATO membership. Despite having to contend with complex, some-
times fractious, and often shifting political party alliances, the governments of each country remained firm in
their commitments to democratic, Western-oriented reforms. In Latvia and Estonia, officials continued to grapple
with the challenge of developing and implementing integration policies for their respective Russian-speaking
populations, with regard to language, education, culture and civic participation. In the year 2000, as a result of
these ongoing efforts, the Organization for Security and Cooperation in Europe confirmed that the language and
citizenship-related legislation of both countries was in conformity with international norms.

With the ten-year anniversary of their reestablishment as independent nations approaching, all three Baltic coun-
tries have clearly made great strides in dealing with the legacies of the Soviet era. At the same time, they are
faced with the long-term challenge of redefining their relationship to one another in a way that reflects both
their mutual interests and competitive realities, dispelling former assumptions about these countries as a single
unit: the “Baltics.” Moreover, each nation has had to contend with continued and, in some cases, increased
social problems in the course of the year 2000. Official unemployment rates for Latvia, Lithuania and Estonia
were, respectively, 8%, 11% and 14%, and these numbers are most likely even higher in rural areas, and in
regions previously dominated by the large scale industrial enterprises of the Soviet era. The gap in living stand-
ards between capital cities and the regions in all three countries is still wide, and the rate of HIV/AIDS infection,
crime, homelessness and drug abuse has increased considerably.

At the same time, there have been clear signs that an increasing number of individuals and non-governmental
organizations in Estonia, Latvia and Lithuania are finding their voices, getting involved and attempting to address
many of the above-cited issues. Through its subgrantees, the Baltic-American Partnership Programs, the BAPF
has sought to provide support for this process. In 2000, the BAPPs moved forward with efforts that they first
undertook in 1999 to improve the environment in which NGOs operate (including legal, tax and regulatory
reform), to contribute to the institutional development of NGOs, and to assist NGOs in their efforts to attain
financial sustainability. Based on the preliminary lessons of 1999, the BAPPs also unveiled a number of new
programs designed to promote civic engagement and cross-sectoral cooperation, to address more forcefully the
third sector’s continued need for training in the areas of advocacy, fundraising, management and public rela-
tions, and to develop mechanisms for influencing policy at the national and local levels in each country.

In 2000, the BAPF and its subgrantees also paid increased attention to the development of locally based philan-
thropy, in order to reduce the heavy dependence of the third sector on foreign and governmental sources of
funding. As part of this effort, the BAPF moved ahead with the development of a Pan-Baltic Participatory Plan-
ning and Community Philanthropy Initiative, through study tours in Poland, Canada and the United States, which
provided the BAPPs with an opportunity to discuss and learn more about successful civic engagement and com-
munity philanthropy efforts in these countries. These visits confirmed the BAPPs’ inclination to focus initially on
fostering and promoting successful community relationships and involvement, in order to establish a viable basis
                    T H E     B A L T I C - A M E R I C A N           P A R T N E R S H I P          F U N D

    for the subsequent initiation of community philanthropy efforts, and to pave the way for the potential establish-
    ment of community foundations. A pilot project to conduct participatory planning activities and community
    grantmaking activities was subsequently developed, and will be implemented in 2001-2002 in two local sites in
    each of the Baltic countries, assisted by an external consultant with expertise in this area.

    The following pages provide a more detailed summary of each BAPP’s work, and that of their grantees, in the
    year 2000.

    BAPF 2000 Expenditures (Accrual Basis)

     Category                              BAPP-             BAPP-              BAPP-        BAPF (New          Total 2000
                                          Estonia            Latvia         Lithuania      York Office)*      Expenditures

     External Environment              $223,500            $95,000           $84,000                             $402,500
     Development of NGOs                $50,420          $234,500           $172,500                             $457,420
     Civic Engagement and
     Cross-Sectoral Cooperation        $152,580            $97,000          $170,000                             $419,580
     Administrative Expenditures        $41,347            $56,501           $56,305          $332,945           $487,098
     TOTAL                             $467,847          $483,001           $482,805          $332,945         $1,766,598

    * While all BAPF NY office expenditures are broadly defined as “administrative,” a significant portion represents strategic
    oversight and technical assistance to the BAPPs in such areas as program development, organizational development and
    strategic planning, as well as its administrative responsibilities related to disbursement of grant funds.
                                                                                                       2000        7
                                                                             Annual Report

BALTIC-AMERICAN PARTNERSHIP                                                 “In the year 2000, partnerships
PROGRAM - LITHUANIA IN 2000                                                 among local government, NGOs
                                                                            and businesses have shown great
                                                                            promise not only in addressing
                               In 2000, BAPP-Lithuania continued to         specific community problems, but
                               direct considerable attention and re-        also in creating an indigenous
                               sources to the institutional develop-        base of support for future NGO
                               ment of the third sector, primarily          work. The three sectors have de-
                               through the provision of direct support      veloped a better understanding of
                               grants and tailored training programs        each other’s potential contribu-
                               to individual NGOs, operating at both        tions in the course of pursuing
                               the local and national level.                joint projects and receiving train-
Birute Jatautaite
Program Officer                                                             ing, and local private- and pub-
BAPP-Lithuania                 BAPP also sought to capitalize upon          lic-sector support of NGOs is be-
                               early momentum and interest gener-           coming more established. Thus a
ated at the local level by their first year of support for cross-sectoral   basis for community philanthropy
partnerships through a series of new and continued projects, high-          and civic activism is growing as a
lighted below. In addition, BAPP recognized the considerable defi-          direct result of BAPP support and
ciencies of the existing legal and political environment in which           involvement, which is consistent
Lithuanian NGOs operate, and provided support in 2000 for a set of          with the goal of improving the
initiatives designed to promote change in this critical area.               prospects        for     financial
                                                                            sustainability for NGOs. Moreo-
Direct Support and Training to NGOs                                         ver, the cross-sectoral work has
                                                                            had an additional and unantici-
In 2000, BAPP-Lithuania provided a combination of project-based
                                                                            pated result of stimulating several
and core support to twenty NGOs which had demonstrated a clear
                                                                            grass-roots public policy initia-
potential for long-term sustainability and impact in their work. Pri-
                                                                            tives, as this new dialogue
ority was given to those NGOs with a demonstrated commitment to
                                                                            sparked the realization that some
collaboration with other NGOs, and/or support from local govern-
                                                                            local problems were the result of
ment, business and/or citizen constituency. Many of the grant re-
                                                                            imperfect national policy, espe-
cipients were organizations working at the community level on is-
                                                                            cially in the area of social assist-
sues of social concern, such as the Beizionys Young Farmers Club
(see NGO profile, page 8). In 2000, BAPP also completed its support
                                                                            – Skirma Kondratas
for a two-year training program for ten NGOs in the areas of                LEC member
fundraising, public relations, management, and advocacy. Feedback           BAPP-Lithuania

from program participants indicated that this series of trainings did
much to strengthen their capacity and expertise in these areas, as
well as improve their organizational credibility and professional im-
age with potential funders.
                   T H E      B A L T I C - A M E R I C A N        P A R T N E R S H I P         F U N D

                                    NGO Profile:                grassroots level prove to be very meaningful and [are]
                                                                respected by the residents. Moreover, participation
                                    Young Farmers
                                                                in these projects facilitates the community’s influence
                                    Club, Beizionys,            on the municipal level.” Mr. Palciauskas further notes
                                    Lithuania                   the initiatives in Beizionys were a success primarily
                                                                because they mobilized community residents to work
                                    Beizionys, Lithuania is a
                                                                voluntarily and enthusiastically on compelling social
                                    rural community with a
                                                                issues. Of all the projects implemented, those focus-
                                    population of 500, lo-
      Vilmantas Palciauskas                                     ing on children and youth made the greatest contri-
      Chairman                      cated about thirty miles
      Young Farmers Club                                        bution to the community’s increased progress and
                                    west of Vilnius. Local
      industry consists only of a number of small farms and
      dairies. Many residents of Beizionys commute to work
                                                                More broadly, the Young Farmers Club project has
      in neighboring municipalities at wood processing in-
                                                                successfully developed a greater sense of community
      dustries or furniture factories. BAPP-Lithuania’s 2000
                                                                and civic responsibility in Beizionys, increased the gen-
      grant of $30,000 to the Beizionys Young Farmers Club
                                                                eral public’s level of trust in local government, stimu-
      has enabled the Beizionys residents to develop and
                                                                lated dialogue between older and younger genera-
      implement programs for the development of their
                                                                tions and increased youth participation in commu-
                                                                nity development initiatives. The councils, which pro-
                                                                vide an innovative method of communication be-
      With BAPP support, the Beizionys Young Farmers Club
                                                                tween local government and its constituents, and
      undertook the establishment of a number of infor-
                                                                stimulate cross-sectoral cooperation, have greatly fa-
      mal citizen councils, focusing on such local issues as
                                                                cilitated the task of local development. As a direct
      economic development, children’s rights, sport and
                                                                result of the cooperation, local government officials
      cultural events and the promotion of self-governance.
                                                                requested the community’s assistance in attracting
      In response to the issues and needs identified by lo-
                                                                EU structural funds. In response, Beizionys residents
      cal residents, the councils oversaw or implemented
                                                                nominated individuals for a working group, composed
      several community-based projects. The projects fo-
                                                                of local government officials, civil servants and com-
      cused on a range of community initiatives, including
                                                                munity representatives, which will design a project
      rural business development, expanded youth recrea-
                                                                for environmental improvement in the region and
      tion, better access to and distribution of information,
                                                                submit it for funding from the EU. In the future, this
      and the establishment of self-help groups. Vidmantas
                                                                working group will serve as a formal advisor to the
      Palciauskas, Chairman of Beizionys Young Farmers
                                                                municipal government on economic development.
      Club, maintains that “these projects built from the

    Creating Partnerships between NGOs, Local Government and Businesses

    Financial sustainability is one of the key ingredients for the survival of NGOs, and BAPP-Lithuania has worked in
    its first two years of activity to encourage NGOs to engage in creative fundraising and to court donors from all
    sectors of society. In particular, two projects from the 2000 program undertook work to diversify and strengthen
    the financial base for NGOs and to foster fruitful partnerships with the public and private sectors.

    The first project made initial advances in establishing cross-sectoral partnerships and in strengthening the finan-
    cial base of NGOs in five regions throughout Lithuania. In each locale, BAPP provided instruction on effective
                                                                                                              2000         9
                                                                                 Annual Report

local fundraising methods, and funded a series of meetings that included representatives from local NGOs,
businesses, government and news media, in an effort to demonstrate the benefits and mechanisms of commu-
nity-based philanthropy.

The second project was a continuation of BAPP-Lithuania’s NGO and Local Government Cooperation initiative, a
highlight of the 1999 program. In 2000, BAPP selected eleven new municipalities for participation in the project,
which provided support for the training of NGOs and local government representatives, as well as matching
grants with local governments to NGOs conducting projects promoting activism and participation within the
community. A new element encouraging local fundraising was introduced to the program in its second year,
pursuant to the ongoing efforts toward sustainable community development in Lithuania.

                                  NGO Profile:                 NGOs, such as legal issues, cross-sectoral cooperation,
                                                               and opportunities for volunteering. It has also published
                                  Women’s Activity
                                                               opinion pieces and interviews with local government
                                  Center, Utena,               officials, and with business representatives who have
                                  Lithuania                    lent support to NGOs and community initiatives. The
                                                               newsletter has been well received both by third sector
                                  The Utena Women’s
                                                               practitioners and by citizens of Utena. Most notably,
                                  Activity Center was es-
                                                               the newsletter has opened up a dialogue between the
                                  tablished in 1994 with
  Jolita Umbrasiene                                            Utena government and its citizens, as local government
  Director                        the goal of increasing
  Utena Women’s Activity                                       officials regularly ask its editors to publicize govern-
  Center                          women’s participation in
                                                               ment announcements and information on decisions
                                  the political, social, and
                                                               that might have an impact on or simply be of interest
  economic life of Utena County. Over the past six years,
                                                               to NGOs and the general populace.
  the Center has worked to promote and facilitate wom-
  en’s involvement in public service and their appoint-
                                                               Additionally, BAPP support has enabled the Center
  ment to decision-making positions; to support the ef-
                                                               to form a coalition of NGOs, which will develop and
  forts of local businesswomen; to promote gender equal-
                                                               implement programs of community planning and phi-
  ity; and to provide general resources and referrals for
                                                               lanthropy, with the ultimate aim of establishing an
  women’s health and safety issues. In recent years, in
                                                               Utena Regional Community Foundation. The coali-
  response to the needs of the NGO community, the
                                                               tion has assembled representatives from the public,
  Center has grown to encompass a wider scope of ac-
                                                               private and third sectors of Utena County, as well as
  tivities. It has launched a number of initiatives intended
                                                               from the neighboring regions of Vilnius and Panevezys
  to nurture civil society and grass roots democracy, and,
                                                               Counties, to discuss community development plans
  in the long run, to foster the development of a dy-
                                                               and to assess the feasibility of an endowed local com-
  namic and effective non-profit sector in Utena County.
                                                               munity foundation. The coalition’s initial work in
                                                               designing strategies for local development has fur-
  In 2000, BAPP provided the Center with both a direct
                                                               ther enhanced the dialogue between the local gov-
  support grant and a grant from the NGO and Local
                                                               ernment and its citizenry, and has stimulated even
  Government Cooperation program. Together, these
                                                               greater civic participation at the local policy-making
  grants provided sufficient funds for the publication of
                                                               level. The Utena local government requested the coa-
  a newsletter with information for and about NGOs,
                                                               lition’s input on such issues as the construction of a
  which was distributed throughout Utena County. The
                                                               new gas station for the town, and on strategies for
  paper addresses a variety of topics of relevance to
                                                               promoting small business development.
                    T H E    B A L T I C - A M E R I C A N         P A R T N E R S H I P        F U N D

     Increasing Civic Participation

     Many of the initiatives that BAPP-Lithuania introduced for the first time in 2000 aim at empowering local citizens
     with better advocacy skills and a greater awareness of local government practice, as well as putting the proper
     mechanisms in place to increase citizens’ impact on the local decision-making that affects their lives. To this end,
     BAPP-Lithuania supported two new programs aimed at increasing participatory planning and local community
     activism. The first program, implemented by a BAPP partner organization, the Center for Civic Initiatives, began
     with analyses of the demographics, indigenous problems and issue areas of five rural communities. The analytical
     work was followed up with training programs for community leaders in community development and leadership
     skills, and technical assistance in the development of strategies that address local issues of concern. A second
     new program in 2000 awarded grants to community-based NGOs for carrying out local community planning
     initiatives. The projects selected for this program were required to involve the participation of local youth and to
     demonstrate community engagement strategies, such as convening town meetings and organizing public de-

     Legal and Political Environment and Legal Capacity Building

     In the year 2000, BAPP-Lithuania continued with work begun in 1999 to provide support for improvements in
     the legal and political environment surrounding NGOs. Funding was provided to the NGO Information and
     Support Center, a key third sector actor involved in the reform of NGO legislation, for a comprehensive analysis
     of existing laws governing charitable donations, NGO registration and tax status, and for the preparation of
     formal statements of position on this legislation, which were presented at public hearings at the Lithuanian
     Parliament. Toward the end of the year, BAPP also provided support for the development of courses on NGO
     legislation at two local universities. Law students attending these courses are expected to offer consultations and
     assistance to NGOs at existing legal clinics and NGO resource centers in the future.

     BAPP-Lithuania also funded a number of smaller initiatives that target NGOs’ institutional development and
     financial sustainability and seek to improve the external environment surrounding the third sector, as detailed in
     the complete 2000 grant list on page 20.
                                                                                                       2000        11
                                                                             Annual Report

BALTIC-AMERICAN PARTNERSHIP                                                 “BAPP-Estonia’s priority at the
PROGRAM - ESTONIA IN 2000                                                   present time is to help create a
                                                                            solid base of public support for
                                Similar to its first year of programming,   the work and role of NGOs, as
                                BAPP-Estonia in 2000 placed a particu-      well as to facilitate the develop-
                                lar emphasis on initiatives to build        ment of information, consulting
                                public awareness of and support for         and training resources for the sec-
                                the third sector, and to create an in-      tor as a whole. In Estonia, laws
                                frastructure to strengthen the NGO          governing NGO activity, while far
                                community’s ability to serve as an ef-      from perfect, are adequate for the
                                fective force for change in Estonia, at     day-to-day operations of NGOs.
Katrin Enno                     both the national and local level. One      The impending adoption of the
Program Officer                                                             Concept for the Development of
BAPP-Estonia                    of the more significant developments
                                of 2000 was the elaboration of a Civil      Estonian Civil Society (EKAK)
Society Concept, a joint effort between representatives from the            should mark a new stage in the
NGO community, government and academic institutions. This docu-             development of legislation that
ment, which is intended as a conceptual and practical framework             truly nurtures civic participation
for future cooperation between government and the third sector, is          and the growth of a diverse and
slated for passage by the Estonian Parliament in 2001.                      sustainable civil society. EKAK is
                                                                            not a short-term or one-time
In 2000, BAPP-Estonia has supported the work done to develop and            project. It is a contract between
promote this Concept through its grant to the Network of Estonian           government and the third sector
Non-Profit Organizations, which convened roundtable discussions             that will affect this country’s de-
on this topic at the regional level. In addition, BAPP-Estonia directed     velopment for many years to
considerable resources toward a new program designed to stimu-              come. It is designed to replace for-
late meaningful cross-sectoral cooperation between local govern-            mal democracy with actual de-
ment and NGOs engaged in community development and service                  mocracy, and to provide the im-
provision at the local level. A description of this and other signifi-      petus for the further development
cant initiatives supported in 2000 follows.                                 of a democratic culture and mod-
                                                                            ern civil society in Estonia. “

Promoting Understanding of Civil Society and the                            – Tiina Randma
                                                                            LEC member
Non-Profit Sector through the Media                                         BAPP-Estonia

For the second year, BAPP-Estonia provided support for the publica-
tion of a monthly supplement to a major Estonian daily newspaper on
issues relating to civil society development and the non-profit sector in
Estonia. Readership surveys conducted by the newspaper have re-
vealed that the “NGO Special”, as the supplement is termed, ranks
among the most popular of the newspaper’s sections. In the year 2000,
in order to increase awareness of civil society issues among the Rus-
sian-speaking population in Estonia, BAPP provided support for a simi-
                    T H E     B A L T I C - A M E R I C A N          P A R T N E R S H I P          F U N D

     lar supplement in one of the major Russian-language newspapers. Toward the end of the year, BAPP also provided
     support for the initiation of weekly Russian-language television and radio broadcasts, which are expected to provide
     a lively and effective national forum for discussion of civic participation, volunteerism and philanthropy. All of these
     media projects enjoy considerable popularity among the general population, NGO practitioners and politicians alike,
     and have helped to stimulate interest in and support for the third sector’s work in Estonia.

     Developing a Network of Community-Based Resource Centers

     In 2000, BAPP-Estonia provided its second year of support for a network of regional NGO resource centers that
     provide much needed information, consultation and training to NGOs based outside of Tallinn, as well as con-
     vening roundtables and seminars with other community stakeholders, including local government officials and
     business representatives.

                                       “In the second year of support from BAPP, we have focused upon building the
                                       skills of the resource center staff so the centers can be effective resources to
                                       NGOs in the regions, and a credible partner to other actors at the local level.
                                       We envision them in the future as community centers that bring together NGOs,
                                       citizens, local government and business to share information and design solu-
                                       tions to issues of local concern. The year 2000 was a step in that direction, as
                                       the centers convened regional discussions on the draft of a Civil Society Con-
                                       cept. At the beginning of the year, the centers celebrated and honored local
       Kristina Mand
       Director                        NGOs, as well as recognizing the volunteer and donor of the year, a tradition
       Network of Estonian             initiated by NENO and now carried on by the centers.”
       Non-Profit Organizations

     Promoting Cooperation between the Public and Non-Profit Sectors on Policy Issues

     Media initiatives and the development of community-oriented resource centers are not the only ways in which
     BAPP-Estonia has sought to strengthen the voice of the third sector at the national and local level. In 2000, the
     Estonian Law Center (ELC) received a grant from BAPP to develop an electronic forum that would allow NGOs to
     interact with government in the process of drafting legislation in various policy areas. Michael Gallagher, advisor
     to the ELC and director of the European College of Tartu University, has emphasized that while the project is
     focused on law drafting, this is not its end point. “The intent is to spur a meaningful role for the NGO community
     in policy development and advocacy,” he explains.

     During the initial phases of this project, which will be continued in 2001-2002, efforts were undertaken to secure
     the agreement of key government ministries to make draft legislation in a wide range of issue areas available on
     a web site, to be developed and administered by the Estonian Law Center. As part of its preliminary efforts, the
     ELC developed an action plan to introduce and promote this initiative to lawmakers, the NGO community and
     society at large. The ELC plans to coordinate the responses of NGOs to draft laws, and ensure that these re-
     sponses are transmitted and taken into consideration by the relevant government bodies. The ELC also intends to
     conduct training for NGOs on the technical process of how to prepare comments to draft laws. The regional NGO
     resource centers will assist the ELC in organizing and conducting this training, as well as assisting in the process
     of collecting and communicating NGO comments on draft legislation once the project is fully operational.
                                                                                                         2000         13
                                                                             Annual Report

Building Effective Cross-Sectoral Relationships at the Local Level

In 2000, BAPP-Estonia initiated a new program designed to serve the dual goals of providing institutional support
to NGOs and strengthening cross-sectoral cooperation. Eight municipal governments were selected by BAPP,
including four in northeastern Estonia with a heavy population of non-Estonians (ethnic Russians), as were a
corresponding number of NGOs with a community service orientation. The BAPP grants to the NGOs participat-
ing in this project were designated to provide core support, while funding from participating municipalities
covered the costs of the services that the NGOs would then provide in their communities. BAPP allocated addi-
tional funds for joint training sessions and workshops for NGO and local government representatives in order to
facilitate their collaboration and clarify procedures for contractual work. The workshops are also intended to
provide the opportunity for sharing “best practices” in the development of collaborative partnerships between
local government and NGOs, and will be supplemented by a handbook of case studies to be prepared in the
course of the project’s implementation.

  NGO Profile: Helme Pensioners                            ance the needs of different target groups and, in turn,
                                                           to generate significant influence on the parish’s sys-
  Association, Helme, Estonia
                                                           tem of social service distribution. In addition, the As-
  The Helme Pensioners Association was established in sociation has proved to be an equal partner in nego-
  1997 with the goal of achieving better representa- tiations with local government over a variety of is-
  tion of the interests of the elderly people at local level. sues, from the design of the day center services to
  Since then it has played a significant role in influenc- the financing of additional social services in the par-
  ing Helme society. With the support of BAPP, the ish. The Helme Pensioners Association provides a good
  Helme Parish Association won a contract to manage example of an NGO that has been contracted for lo-
  two day centers over the course of one year in Helme cal service provision without having to compromise
  Parish, Valga County. The day center’s activities are its independence from the government. BAPP’s sup-
  tailored to accommodate different segments of the port has served to strengthen the Association’s abil-
  population, from children to pensioners. As of the ity to serve as an effective advocate for the interests
  close of 2000, the Association has been able to bal- of its constituents in the community.

BAPP-Estonia supported a host of smaller initiatives, which also seek to improve the external environment within
which NGOs operate, and to promote the institutional development and financial sustainability of the third
sector. These projects are summarized in the complete 2000 grant list, on page 22.
                  T H E   B A L T I C - A M E R I C A N     P A R T N E R S H I P         F U N D

     In my view, helping to strengthen      BALTIC-AMERICAN PARTNERSHIP
     the third sector’s advocacy skills     PROGRAM - LATVIA IN 2000
     is one of the most important
     things BAPP can do in Latvia. Far                                     In 2000, BAPP-Latvia was increasingly
     too often decisions on matters                                        oriented toward the task of strength-
     such as the environment, assist-                                      ening the voice of third sector organi-
     ance to the needy, the treatment                                      zations as policy advocates. As part of
     of disabled people and many,                                          this effort, BAPP-Latvia’s second round
     many other issues are made be-                                        of institutional grants to NGOs focused
     hind closed doors. This is in large                                   this year upon organizations seeking
     part because people are in many                                       to have greater influence in the policy
     instances still constrained by the     Igors Klapenkovs               decision-making process at the na-
     Soviet principle of never speaking     Program Officer
                                            BAPP-Latvia                    tional and local level. In addition, BAPP
     up for yourself, lest you be                                          continued to provide support to part-
     deemed a troublemaker. In a de-        ner organizations advocating for improvements in the legislative and
     mocracy, troublemakers are often       regulatory environment for NGOs.
     needed in order to stir up the pot,
     and even in cases where there is       In step with its colleagues in Estonia and Lithuania, in the year 2000,
     no need for a troublemaker, there      BAPP-Latvia also turned its attention to the interconnected issues of
     is an urgent need for those whose      civic engagement, cross-sectoral cooperation and local philanthropy.
     lives will be affected by the deci-    Major programs are highlighted below.
     sions that are taken on various
     matters to speak up and make
                                            Building a Transparent and Effective Legislative
     sure that the decisions will not
                                            Environment for NGOs and Society
     have a negative effect. By assist-
     ing non-governmental organiza-         In 2000, BAPP-Latvia continued to provide support to one of its
     tions in developing advocacy           partner organizations, the NGO Support Center, for its ongoing ef-
     skills, BAPP is empowering them        forts to develop and secure passage of a new umbrella law govern-
     to speak up and take action in an      ing NGO activities and charitable giving. By the end of the year, due
     effective way.                         in large part to the concerted efforts of the NGO Center, a govern-
     – Karlis Streips                       ment working group was set up in order to finalize a draft law in
     LEC member                             2001, with the participation of a Center representative. BAPP also
                                            provided support for projects focused on the critical issue of how
                                            laws are implemented in Latvia, as described in the NGO profile on
                                            the following page.
                                                                                                           2000         15
                                                                                 Annual Report

                                 NGO Profile:                 the forefront of Latvian social debate. Delna’s experi-
                                                              ence proved to be an effective advocacy campaign
                                 Delna, Transpar-
                                                              for civil rights, as well as a means of educating state
                                 ency Interna-                officials.
                                 tional, Riga, Latvia
                                                              In 2000, as preparation for European Union acces-
                                 The mission of Delna,
                                                              sion, Latvia adopted a new procurement law. In an
                                 the Latvian chapter of
                                                              investigation similar to the one it had conducted on
                                 Transparency Interna-
  Inese Voika                                                 access to information, Delna revealed that in most
  President                      tional, is to promote
                                                              cases, attempts to obtain meaningful information on
  Delna, Transparency            transparency and open-
  International                                               the expenditure of public money were unsuccessful.
                                 ness in society and to
                                                              The architects of the new law were not willing to
  reduce corruption on the national and international
                                                              amend the legislation in order to ensure greater trans-
  level. Delna is the sole NGO in Latvia addressing cor-
                                                              parency in public procurement procedures. With BAPP
  ruption issues on a national level, and the only NGO
                                                              support, and in cooperation with a coalition of eight-
  represented at the National Board of Corruption Pre-
                                                              een NGOs, among them professional associations
  vention. It is also an informal umbrella organization,
                                                              focusing specifically on procurement policies, Delna
  which has assembled local organizations that focus on
                                                              prepared and submitted amendments to the new law.
  consumers’ rights and on preventing corruption, and
                                                              Additionally, a special press conference was held to
  works in collaboration with the European Commission,
                                                              publicize the NGOs’ campaign for greater transpar-
  OECD, and the World Bank.
                                                              ency in procurement. Following five months of con-
                                                              sideration, the spokesman of the commission en-
  Delna’s Access to Information project, supported by
                                                              dorsed Delna’s proposal, and the Parliament approved
  BAPP in 1999 and 2000, tested the fair implementa-
                                                              four of the five proposed amendments.
  tion of the 1998 freedom of information law, which,
  on paper, ensured free access to public information.
                                                              Although Delna’s projects have equipped the public
  Operating under the maxim that “laws can work only
                                                              with a powerful means of monitoring fairness of pro-
  if we make them work,” Delna dispatched ten stu-
                                                              curement deals, there is still a significant degree of
  dents from the University of Latvia to more than 200
                                                              skepticism in Latvian society about the possibility of
  institutions, soliciting various types of public informa-
                                                              public control. Delna is working to establish a broader
  tion. In a number of instances, local officials were
                                                              NGO coalition to monitor procurement in the regions
  less than cooperative in sharing information that the
                                                              of Latvia, and is campaigning for further improve-
  students were legally entitled to obtain. This study,
                                                              ments to the legislation. These projects have enhanced
  the first of its kind in Latvia, exposed lingering and
                                                              Delna’s capacity to advance a legal agenda and its
  pervasive obstacles to freedom of information, and
                                                              next steps will include the development of a code of
  brought the issue of access to public information to
                                                              ethics for politicians.

Building a Network of Community-Oriented NGO Support Centers

As in Estonia, in the year 2000, BAPP-Latvia provided support for a pre-existing network of regional NGO re-
source centers, with the aim of strengthening the infrastructure of information and training available to the third
                    T H E    B A L T I C - A M E R I C A N         P A R T N E R S H I P        F U N D

     sector throughout Latvia. Future BAPP support to the resource centers will depend upon their ability to attract
     other sources of funding from the local communities in which they operate. The centers are envisioned not only
     as resources for NGOs, but also for the constituencies they serve. This orientation is evidenced in the work of the
     North Kurzeme regional center (see NGO Profile, page 16), which also received an institutional development
     grant from BAPP in 2000.

                                     NGO Profile:               The goal of the evaluation was to create a mecha-
                                                                nism by which NGOs and groups can actively partici-
                                     North Kurzeme
                                                                pate in local decision-making, and voice their con-
                                     Regional NGO               cerns about various aspects of community life. The
                                     Support Center,            issues of highest concern, as communicated to the
                                                                local government, were the following: all newly built
                                     Talsi, Latvia
                                                           or renovated buildings should be made accessible for
                                     The long-term goal of disabled people; all local government decisions should

       Mareks Indriksons
                                     the North Kurzeme Re- be available on the web; and there should be clear
       Director                      gional NGO support principles and criteria outlining how NGOs can apply
       North Kurzeme Regional
       NGO Support Center            center is to foster civil for local government support and contractual work.
                                     society in northwestern
       Latvia. This region currently has approximately 120 This evaluation has provided a wealth of information
       registered NGOs, and many more informal groups. for residents, potential investors, cooperation partners,
       The Center supports local NGOs and groups by pro- local NGOs, and decision-makers themselves. It also
       viding training and consultations, and by promoting serves as a resource for the Center and other NGOs
       cooperation among NGOs, the private sector and lo- for their advocacy and policy work in various issue ar-
       cal governments. The Center develops and promotes eas. Through their involvement in the decision-mak-
       opportunities for volunteering, and helps NGOs at- ing process, residents feel more responsible for the
       tract financial and in-kind support from sources both policy outcomes, and often want to take an active part
       local and outside the region. The Center also works in monitoring the implementation process. This evalu-
       to inform the general public of the development of ation serves also as a model for NGOs, municipalities,
       the NGO sector and civil society in the region.          civic groups and NGO resource centers in other regions
                                                            of Latvia on how to involve residents in local decision-
       In 2000, with BAPP’s support, the center evaluated a making and town development planning.
       proposed development plan for the town of Talsi,
       which was slated for implementation from 1998 to
                                                                BAPP’s support for this project has helped to create
       2010. The Center enlisted the assistance of approxi-
                                                                an independent pool of experts in various issue ar-
       mately fifteen local NGOs and civic groups, which have
                                                                eas. The project support strengthened the impact of
       focused in the past on local public policy. Together
                                                                the Center in local society, and helped the Center to
       with these collaborators, the Center evaluated the
                                                                gain new skills in influencing policy decisions and
       local government’s progress, identified potential
                                                                garnering support from local NGOs and advocacy
       weaknesses of the town development plan, and pro-
                                                                groups. Subsequent to the project’s completion, a
       vided the Town Council with recommendations for
                                                                number of NGO representatives were given seats on
       the plan’s improvement.
                                                                local government committees.
                                                                                                        2000           17
                                                                            Annual Report

Supporting the Institutional Development of NGOs

The largest proportion of BAPP-Latvia’s funding in 2000 went toward the provision of core and project support
to individual NGOs, together with a training program that was developed and implemented by the NGO Support
Center in Riga. BAPP chose several priority areas in which it felt that there was the greatest potential to have an
impact on NGOs’ ability to play a visible role in the development of public policy, as well as on their prospects to
secure sustainable long-term funding from a variety of sources. As a result, eleven NGOs were selected for
support, each of which was engaged either in advocacy for EU financing of NGO activities; monitoring state/local
government activities and procurement processes; implementing access to information projects; providing an
example or precedent in taking over state or local government functions; or implementing pilot projects aimed at
the establishment of public hearings.

Promoting Civic Engagement, Cross-Sectoral Cooperation and Local Philanthropy

In 2000, a new component in BAPP-Latvia’s strategy was the promotion of civic participation and cooperation
among civic organizations, local governments and the private sector. To that end, two new programs were
initiated. The first, following the example of a similar initiative supported by BAPP-Lithuania in 1999, was a
matching grants program with municipal governments in order to support local NGO/civic group activities, en-
courage innovative use of local resources, and foster cooperation and understanding across sectors. As of the
end of 2000, sixty local governments had applied for the first round of competition for this project, twelve of
which will be selected to participate in the project during 2001.

The second project designed to promote civic engagement was a small grants program for civic groups and
projects in areas that are likely to create important precedents for positive change in local communities. This
project began late in 2000, and will be implemented throughout 2001 in partnership with regional NGO support
centers, which are best positioned to evaluate local needs and expertise. Other projects supported by BAPP-Latvia
are summarized in the complete 2000 grant list on page 26.
                    T H E    B A L T I C - A M E R I C A N           P A R T N E R S H I P       F U N D

     In 2000, although the BAPPs developed programs that reflected the specific needs and resources of each indi-
     vidual country, it should be evident from the reports in these pages that there were common approaches to the
     challenge of creating a sustainable and vibrant third sector, and of fostering civic participation in the region.
     Most importantly, there are a number of lessons learned in the course of 2000 that apply equally to all three of
     the Baltic countries in which the BAPF operates.

     1. Grantmaking Criteria - During the year, the BAPF and its implementing partners had the opportunity to
     reflect upon their approach to providing support to NGOs in the Baltics. A set of grantmaking criteria were
     articulated in keeping with the BAPF’s intention to support the institutional development of the third sector as a
     whole, rather than particular issue areas in which individual NGOs might be working. These criteria for support of
     NGOs include the following:
     •   Connected and dedicated to a social issue or public benefit cause
     •   Working toward sustainability and self-sufficiency
     •   Supported by, representative of, and connected to a target group, and working to “motivate” that target
     •   Capacity to link with other NGOs and to larger civil society
     •   Clear commitment to values such as equality, human dignity and openness
     •   Possessing strong leadership
     •   Having the capacity and mechanisms to communicate to policy-makers why what they are doing is impor-
         tant, and to have an impact on policy decisions

     The BAPF recognized that there are certain issue areas, such as human rights and anti-corruption, which might
     merit particular attention and support. However, it was felt that the criteria articulated above would make it
     possible to support NGOs in any issue area, so long as they possessed the characteristics most likely to strengthen
     democracy and civil society in the Baltics for the long-term.

     2. Multi-Year Grants - Since its inception, the BAPF has sought to identify ways in which the unique ten-year
     nature of its support in the Baltics could contribute most effectively to the long-term goal of strengthening civil
     society. One of the lessons emerging out of the BAPPs’ work in the years 1999 and 2000 was that multi-year
     grants to qualified NGOs that include core support would enable these NGOs to spend a greater amount of time
     professionalizing their activities, engaging in strategic planning, and attracting additional long-term funding
     resources. Future BAPP programs will endeavor to provide these opportunities, as appropriate, to NGOs in all
     three countries.

     3. Advocacy Training - An additional lesson learned by the BAPF was that in order to increase the capacity of
     NGOs to successfully advocate and participate in the policy-making process, more advocacy training needs to be
     done. In 2000, a number of steps were taken to improve the NGO community’s ability to influence policy at both
     the national and local level, including the development of an e-forum for NGO input to government ministries on
     draft legislation in Estonia, and training for BAPP grantees in basic advocacy skills. However, this is an area where
     considerable work needs to be done, and the BAPPs’ future programs will seek to develop new ways of develop-
     ing advocacy capabilities in NGOs across issue areas, including a possible pan-Baltic approach to advocacy train-
     ing in order to take advantage of regional expertise.
                                                                                                       2000           19
                                                                            Annual Report

4. Collaborative Approaches at the Local Level - Activities supported by the BAPF in the year 2000 demon-
strated that while there is a clear potential to increase civic engagement and cross-sectoral cooperation at the
local level, government, business, NGOs and individuals still need considerable assistance in developing effective,
democratic and participatory partnerships. Future BAPP programs will seek to identify and support the most
promising means of strengthening such partnerships in each country.

This represents a sample of the lessons learned by the BAPF and its colleagues during the years 1999 and 2000.
We expect to discover and distill further insights as our work continues in the future.
                     T H E     B A L T I C - A M E R I C A N            P A R T N E R S H I P           F U N D

     2000 GRANT LIST

     Legal Environment
     NGO Information & Support Center, Vilnius                                                                         $17,000
     For core support and for a project monitoring and evaluating the legal and political climate surrounding NGOs and
     philanthropic activity.

     Lithuanian Law University, Vilnius                                                                                  $4,625
     For core support and for a project focused on designing a course for law students on laws relating to NGOs and
     the non-profit sector.

     The Department of International and EU Law of the Faculty of Law of Vilnius University, Vilnius                     $4,625
     For core support and for courses on international NGO laws, analysis of the rights and obligations of NGOs, and
     relevant legal consultations provided by law students to NGOs and businesses.

     Media Program
     Lithuanian State Radio 1st Program, Vilnius                                                                         $7,000
     For the radio program The Other Road, promoting public awareness of the third sector, of legal and tax issues
     relating to the third sector, and the importance of civic participation in decision-making and in NGO activities.

     Grants to NGOs
     Union of Kaunas Social NGOs, Kaunas                                                                        $26,000
     For core support and for a small grants and training program for ten NGOs in marketing, management, public
     relations, advocacy and fundraising.

     Center for Organizational Development, Vilnius                                                            $20,000
     For core support, and for the development of a means of NGO self-assessment, monitoring and institutional
     analysis for use by the third sector in Lithuania.

     Siauliai Chamber of Commerce, Industry and Crafts, Siauliai                                                      $10,000
     For core support and for the development of a network of small- and medium-sized enterprises in Siauliai County.

     Association of Lithuanian-Foreign Friendship Societies, Vilnius                                                     $8,750
     For core support and for art courses in prisons throughout Lithuania.

     Association Salpa, Vilnius                                                                                          $5,750
     For core support and for programs of prevention of domestic abuse.

     Lithuanian Center for Human Rights, Vilnius                                                                         $8,350
     For core support.

     Lithuanian Consumers Association, Vilnius                                                                           $4,500
     For core support and research on consumer rights issues.

     AMADE-Lithuania, Vilnius                                                                                            $7,500
     For core support and for training programs for volunteers working with children and young adults.
                                                                                                                   2000          21
                                                                                     Annual Report

European Institute for Dispersed Ethnic Minorities, Vilnius                                                             $3,600
For core support to an organization representing the interests of ethnic minorities in Lithuania.

Panevezys Business Advisory Center, Panevezys                                                                          $10,115
For core support and consultations to fifty start-up businesses.

Youth Guidance Center, Vilnius                                                                                          $8,260
For core support, for collaborative work with government institutions on youth crisis issues and for training volun-
teers to work with at-risk youth.

Youth Guidance Center, Klaipeda                                                                                     $12,760
For core support and training in crisis intervention for at-risk youth, and for strengthening a coalition of member
organizations in the Psychological Support Service Association.

House of Memory – Studies and Commemoration of the Jewish Heritage in Lithuania, Vilnius                                $5,408
For core support, and for a project researching the fate of the Jewish community in Lithuania and for promotion of
educational programs in Lithuanian Jewish studies.

Psychological Creative Youth Center, Siauliai                                                                           $5,250
For core support to an organization providing suicide and psychological crisis prevention.

Utena Women’s Activities Center, Utena                                                                                  $3,000
For core support, and for publication of a monthly bulletin on the third sector in Utena County.

St. Vincent de Paulo Community, Vilnius                                                                                 $7,500
For core support to an organization providing psychological support and shelter to Vilnius homeless youth.

Youth Center Babylon, Vilnius                                                                                           $7,518
For core support.

Network of NGO Resource Centers
Kaunas NGO Support Center, Kaunas                                                                                  $22,500
For core and project support to provide information, consultations, trainings, and assistance in building partner-
ships between the local government and Kaunas County NGOs.

Kaunas NGO Support Center, Kaunas                                                                                       $5,000
For overseeing the development of the network of Lithuanian NGO resource centers by strengthening their advo-
cacy capacity, familiarizing NGOs with the needs of their communities, and building their capacity to foster com-
munity philanthropy.

NGO Information & Support Center, Vilnius                                                                              $10,000
For core support, and for publication of a bimonthly bulletin.

Alytus NGO Information Center, Alytus                                                                                   $7,500
For core support, and for a project providing technical assistance, consultations and information on fundraising,
management strategies and public relations to Alytus County NGOs.

Civic Engagement and Cross-Sectoral Participation
Pasiause Village Community, Kelme region                                                                                $2,554
For core support to build a network of rural communities and encourage local community development and civic
participation in Kelme.
                     T H E      B A L T I C - A M E R I C A N            P A R T N E R S H I P           F U N D

     Beizionys Young Farmers Union, Elektrenai region                                                                      $8,250
     For meetings and training sessions in pursuit of community development and promotion of civic participation and
     public debate.

     European Union for Costal Conservation Baltic Office, Klaipeda                                                        $8,513
     For core and project support aimed at the strengthening of rural communities in the coastal areas along the
     Curonian lagoon through rural business development programs and programs encouraging community philan-

     Petrasiunai Community Center, Kaunas                                                                                  $8,400
     For core support, and for community development projects throughout Lithuania.

     Sakiai Community Center, Sakiai                                                                                       $2,284
     For core support and community development projects in the Sakiai region.

     Center for Civic Initiatives, Vilnius                                                                                $30,000
     For core support and for elaboration and implementation of a local community development model.

     The U.S. – Baltic Foundation, Vilnius                                                                                $30,000
     For core support and for development and implementation of a cross-sectoral cooperation model.

     NGO / Local Government Cooperation
     Kaunas Municipal Training Center, Kaunas                                                                               $10,000
     For core support and for training sessions to NGOs and local government officials in ten locales throughout Lithuania.

     Grants were made to the following local government offices, which were matched one-to-one and awarded to local NGOs for
     community service projects:

     Klaipeda City Government                                                                                              $3,750
     Mazeikiai Regional Government                                                                                         $2,500
     Marijampole Government                                                                                                $7,500
     Kupiskis Regional Government                                                                                          $4,000
     Siauliai City Government                                                                                              $7,500
     Kelme Regional Government                                                                                             $6,250
     Alytus Regional Government                                                                                            $5,000
     Utena Regional Government                                                                                             $7,500
     Skuodas Regional Government                                                                                           $2,500
     Akmene Regional Government                                                                                            $5,000
     Zarasai Regional Government                                                                                           $1,250


     Media Program
     Estonian Newspaper Association, Tallinn                                                                            $11,500
     & Eesti Paevaleht, Tallinn                                                                                         $21,148
     For preparation and distribution of a monthly supplement to an Estonian daily newspaper that focuses on the non-
     profit sector’s activities and issues of interest and brings the issues of civic participation, volunteer work and
     philanthropy to prominence in current public debate.
                                                                                                                 2000          23
                                                                                   Annual Report

Estonian Radio, Radio 4, Tallinn                                                                                     $3,596
For a biweekly Russian-language radio program consisting of discussions and interviews with non-profit and public
sector representatives.

Russian-language National Daily Estonia, Tallinn                                                                     $8,552
For a section of the paper devoted to publicizing civic initiatives in Estonia.

Estonian TV, Tallinn                                                                                                $22,436
For a weekly program on the non-profit sector and its activities.

Filmimees Productions, Tallinn                                                                                       $9,268
For a biweekly program on the non-profit sector.

Network of NGO Resource Centers
Network of Estonian Non-Profit Organizations, Tallinn                                                                $16,682
For the provision of materials and training to nine regional resource centers, which offer information, training and
consultations to NGOs in the regions, disseminate information on non-profit sector activities, publicize opportuni-
ties for volunteer work and facilitate cooperation between citizens, local governments and businesses. The centers
also received support grants, as listed below.

Narva NGO Support Center                                                                                             $6,036
Läänemaa NGO Support Center                                                                                          $9,948
Tartu and Jõgevamaa NGO Support Center                                                                               $8,034
NGO Support Center of South-Eastern Estonia                                                                          $8,545
Hiiumaa NGO Support Center                                                                                           $3,628
Saaremaa NGO Support Center                                                                                          $7,255
Virumaa NGO Support Center                                                                                           $7,911
NGO Support Center of South and South-Western Estonia                                                               $11,362
NGO Support Center of Heartland Estonia                                                                              $9,599

Promoting Cooperation between the Public and Non-Profit Sector on Policy Issues
Estonian Law Center Foundation, Tartu                                                                           $30,000
For core support and for the creation of an electronic network allowing NGOs to provide comments on legislation
to government ministries.

Non-Profit Management Education
Tallinn University of Educational Sciences                                                                           $8,000
For the development of a curriculum in non-profit management at Tallinn University of Educational Sciences.

Grants to NGOs
Peipsiveere Development Foundation, Tartu                                                                            $4,545
For core support and a program of economic development for Piirissaare Island.

Association of Ecological Tourism, Mustvee                                                                           $2,727
For core support to an organization working to attract tourism to the city of Mustvee by improving the natural
                      T H E     B A L T I C - A M E R I C A N            P A R T N E R S H I P           F U N D

     Tartu Farmers Association, Tartu                                                                                   $4,545
     For core support and programs providing training to local farmers in accounting and the entrepreneurial manage-
     ment of their farms, and apprising them of the laws and legislative issues affecting the farming community.

     Junior Achievement Development Foundation, Tallinn                                                                 $4,338
     For core support, for development of civic activity among youth and for cultivating partnerships among local
     schools, governments, businesses and NGOs.

     Small Islands Youth Association, Vormsi                                                                            $4,091
     For core support to an organization conducting cultural programs for local youth and sponsoring youth-lead
     community service projects.

     Järvamaa Educational Association, Paide                                                                            $3,939
     For core support and for promulgating the organization’s successful experience in expanding a converted manor,
     now serving as a school, to serve as a community center and tourist attraction.

     Association Tartumaa, Tartu                                                                                        $4,501
     For core support and development of civic engagement in a rural community through training programs for local

     NGO / Local Government Cooperation
     For core support to NGOs receiving funding from local governments for service provision in their communities. BAPP awarded
     grants to the following community organizations on a matching basis with local governments:

     Ulvi Women Association, Ulvi                                                                                $12,121
     For a women’s association in Northeastern Estonia focusing on community development and offering opportuni-
     ties for civic participation.

     Helme Parish Pensioners’ Association, Helme                                                                        $3,636
     For a community development organization advocating on behalf of pensioners and working to increase civic
     participation among the elderly.

     Väike-Maarja Parish Popular Sports Association, Väike-Maarja                                                      $12,121
     For an organization providing activities for and promoting healthy lifestyles among youth.

     NGO Koduväli, Illuka                                                                                               $8,273
     For a self-help group working primarily with the elderly.

     NGO Kunda Elulõng, Kunda                                                                                          $12,121
     For a local development organization.

     Virumaa Youth Counseling Center, Rakvere                                                                          $10,000
     For an organization focusing on services for youth and encouraging their constructive participation in society.

     Sangaste Heakorraselts, Sangaste                                                                                  $12,121
     For an environmental association working on heritage preservation in the community.

     Räpina Evangelical Congregation, Räpina                                                                            $3,030
     For an association focusing on youth issues and activities.
                                                                                                                 2000         25
                                                                                     Annual Report

Organizational Development
For grants enabling participation in professional trainings, internships, seminars and conferences in Estonia and abroad.

Network of Regional NGO Resource Centers                                                                             $7,678
For participation in the 2001 NGO Forum in Gõteborg, Sweden; the 7th European Social Economy Forum in Gävle,
Sweden; the European Foundation Centre Annual General Meeting in Stockholm, Sweden; and a study trip to
Poland on community philanthropy.

Anneli Säre, Very Special Arts-Estonia, Tallinn                                                                      $1,212
For participation in a conference in Tampa, USA for international chapters of an organization conducting educa-
tional art programs for people with disabilities.

Kertu Ruus, Estonian Newspaper Association, Tallinn                                                                  $1,036
For participation in the European Social Economy Forum in Gävle, Stockholm.

Agu Laius, Jaan Tõnisson Institute, Tallinn                                                                          $1,212
For participation in the World Alliance of Citizen Participation CIVICUS World Assembly in Vancouver, Canada.

Raul Heido, Tartu Child Support Center, Rakvere                                                                      $1,101
For participation in Project Harmony’s training course on family violence in Irkutsk, Russia.

Juhan Kunder’s Association, Rakvere                                                                                    $210
For a management training course in Lääne-Virumaa county, Estonia.

NGO Südamaa Vabavald, Paide                                                                                          $1,212
For a management training course.

Anu Jänes, Porkuni, Tamsalu                                                                                            $727
For participation in a seminar on networking and developing partnerships in Denmark.

Marko Kaldur, Ida-Viru.Net, Johvi                                                                                       $50
For a youth leadership training course in Great Britain.

Kaidi-Mari Kase, Estonian Rural Tourism, Tallinn                                                                     $1,120
For participation in the Scottish Agricultural College’s “New Directions in Managing Rural Tourism” conference in
Ayrshire, Scotland.

Livonia Development Center, Kilingi-Nomme                                                                              $667
For participation in the project “Cultural Villages of Europe” in Bystre, Czech Republic.

Viljandimaa Tourism, Viljandi                                                                                        $1,119
For participation in a training program on nature and ecological problems in Germany.

Katrin Viru, Estonian Debate Society, Tallinn                                                                        $1,480
For participation in the International Debate Education Association’s conference “Opening Minds, Borders and
Societies” in Prague, Czech Republic.

Aili Kogermann, Puruvanakesed, Tallinn                                                                                 $779
For participation in the European Pensioner Association’s seminar on volunteer work among elderly people in
Berlin, Germany.
                     T H E      B A L T I C - A M E R I C A N            P A R T N E R S H I P          F U N D

     Jõrgen Siil, Estonian Atlantic Treaty Association, Tallinn                                                             $661
     For participation in the Danish Atlantic Treaty Association’s seminar in Kolding, Denmark.

     Birgit Lao, Federation of Estonian Students Unions, Tallinn                                                          $1,212
     For a trip to the Danish Federation of Students Unions and participation in a seminar on involving students in
     decision-making in Copenhagen, Denmark.

     Liis Variksaar, Young European Federalists-Estonia, Tallinn                                                            $508
     For participation in the youth exchange and training program “Young European Citizens” in Athens, Greece.

     Riina Kuusik, Estonian Refugee Council, Tallinn                                                                      $1,017
     For participation in the International Institute of Humanitarian Law course on refugee law in San Remo, Italy.

     Urmas Loit, Independent Press Council, Tallinn                                                                         $605
     For participation in the Association of Independent Press Councils of Europe’s 3rd Annual Meeting in Dublin,

     Ave Lukas, Estonian Chamber for Agriculture and Commerce, Tallinn                                                    $1,410
     For participation in the United Nations Food and Agricultural Organization (UN FAO) conference in July 2000.


     Legislative Environment
     Delna – Transparency International, Riga                                                                       $11,910
     For a project monitoring and analyzing public procurement processes and existing legislation, and for develop-
     ment of and advocacy for improvements in laws and their implementation procedures.

     Lawyers and Legal Experts Association “Ratio Legis,” Riga                                                             $14,380
     For a project focused on transparency and combating corruption in the judicial system by monitoring the conform-
     ity of court decisions and procedures with existing legislation and by establishing legal precedents in the courts in
     areas involving public interest.

     Network of NGO Support Centers
     In 2000, BAPP awarded grants to regional NGO support centers that provide technical assistance, information, training and
     consultations to NGOs and groups covering the whole area of Latvia. In each case a portion of the grant was made as a
     challenge grant requiring NGO support centers to attract local funding for their operations. The following regional NGO
     support centers received grants:

     Cesu regional NGO support center, Cesis                                                                              $4,804
     Selijas regional NGO support center, Jekabpils                                                                       $4,804
     Liepajas NGO support center, Liepaja                                                                                 $4,804
     Madonas NGO support center, Madona                                                                                   $4,804
     Dienvidlatgales NGO support center, Daugavpils                                                                       $4,804
     Tukuma NGO support center, Tukums                                                                                    $4,804
     Zemgales NGO support center, Jalgava                                                                                 $4,804
     Ziemelkurzemes NGO support center, Talsi                                                                             $4,804
     Preilu NGO support center, Preili                                                                                    $4,804
     Viduskurzemes NGO support center, Kuldiga                                                                            $4,804
     Aluksnes NGO support center, Aluksne                                                                                 $4,804
     Rezeknes NGO support center, Rezekne                                                                                 $3,304
     Ventspils NGO support center, Ventspils                                                                              $1,804
                                                                                                                        2000         27
                                                                                         Annual Report

Grants to NGOs
Latvian Human Rights Committee, Riga                                                                                        $8,950
For core support and training; to fund a project analyzing the actions and regulations of the Riga municipality in
the field of social security; and to provide legal consultations to people who are entitled to receive social aid but are
prohibited by lack of information or bureaucratic procedures.

Sports Federation of Disabled Children and Youth, Jalgava                                                                   $6,508
For core support, training, and to fund a project promoting physical education classes in schools for disabled

Association of the Disabled and their Friends “Apeirons,” Riga                                                              $7,979
For core support and for a training and consultation program for an organization providing services for and
advocating on behalf of the disabled.

Educational Center for Families and Schools, Riga                                                              $23,280
For core support and training; to support a campaign against drugs and the spread of HIV; and to provide advo-
cacy for improvement of government drug and AIDS policies.

Ziemelkurzemes NGO support center, Talsi                                                                                    $4,779
For core support, training and the facilitation of public hearings and community development in the town of Talsi.

Latvian “Save the Children”, Riga                                                                                        $23,775
For core support and training in order to continue the organization’s work as an independent observer of govern-
ment policy and activities relating to children’s rights, and for issuing a report on the status of children’s rights in
Latvia that will be submitted to the UN independently of the government’s report.

Society of Flat-owners and Tenants, Ogre                                                                                    $3,174
For core support and training to an advocacy NGO working on consumer rights.

Youth Club “10 x 10,” Tukums                                                                                                $3,010
For core support to an NGO organizing various sports, culture and educational programs for youth in Tukums.

Delna –Transparency International, Riga                                                                          $13,660
For core support, training and for a project analyzing the decision-making process in state and local government
institutions from the point of view of businesses; to develop a code of ethics that will be adopted by business
associations; and to implement programs aimed at eliminating corruption in state procurement processes.

European Movement in Latvia, Riga                                                                                $14,517
For core support, training and a project establishing an Independent European Integration Council to analyze the
government’s preparations for EU accession, to monitor the implementation of EU programs in Latvia, and to
inform NGOs and the public of integration processes.

Vidzeme Tourism Association, Valmiera                                                                                       $9,254
For core support and training; to fund a project monitoring the work of government institutions and focusing on
advocating for changes in national policy for the development of tourism; for the allocation of state and EU
resources toward regional development; and for the introduction of transparent decision-making procedures in
the National Tourism Board.

NGO Center, Riga                                                                                              $50,000
For core support to continue implementing programs in areas of NGO legislation, philanthropy, and training of
NGOs within BAPP’s institutional support program.
                     T H E      B A L T I C - A M E R I C A N            P A R T N E R S H I P           F U N D

     NGO Center, Riga                                                                                                     $30,000
     To implement a training program for BAPP-supported organizations.

     NGO / Local Government Cooperation
     BAPP provided matching grants to fourteen communities that allocated funds for open grant competitions for support to local
     groups and their projects. Due to the budgetary processes in municipalities, the final decision on selection of communities was
     made in 2001. The following fourteen communities were selected by BAPP-Latvia’s Local Expert Council:

     Bauska Regional Municipality                                                                                          $3,500
     Madona Regional Municipality                                                                                          $3,000
     Saldus Regional Municipality                                                                                          $5,000
     Aluksne Region                                                                                                        $5,000
     City of Jekabpils                                                                                                     $3,000
     City of Ogre                                                                                                          $5,000
     City of Stende                                                                                                          $806
     City of Olaine                                                                                                        $3,500
     City of Tukums                                                                                                        $4,900
     Islice Municipality                                                                                                   $3,000
     Virga Municipality                                                                                                    $1,290
     Ligatne Municipality                                                                                                  $5,000
     Rucava Municipality                                                                                                   $4,900
     Vergale Municipality                                                                                                  $4,900

     Organizational Development
     Community Center “The White House,” Livani                                                                             $425
     For a study tour of German organizations in order to identify potential partners in the development of community

     Regional Support Center for NGOs of Selia, Jekabpils                                                                   $425
     For a study tour of German organizations in order to identify potential partners in the development of community

     Latvian Volunteer Center, Riga                                                                                         $449
     For participation in the training course “Management of Voluntary Organizations in the Age of Information Tech-
     nology” in Israel.

     North-Vidzeme Regional Development Foundation                                                                         $1,500
     For the participation of a Latvian advocacy NGO at the UN Food and Agricultural Organization conference in
     Portugal in July 2000.

     Kaija Gertnere, NGO Center, Riga                                                                                      $1,000
     For participation in the Civil Society Development Foundation’s conference “Sustainability of the Third Sector” in
     Budapest, Hungary.
                                                                                                     2000           29
                                                                          Annual Report



To the Directors of
The Baltic-American Partnership Fund, Inc.

We have audited the accompanying statements of financial position of The Baltic-American Partnership Fund,
Inc. (the “Fund”) as of December 31, 2000 and 1999, and the related statements of activities and cash flows for
the year ended December 31, 2000 and the period June 12, 1998 (date of incorporation) to December 31, 1999.
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the financial position of The
Baltic-American Partnership Fund, Inc. as of December 31, 2000 and 1999, and the changes in its net assets and
its cash flows for the year ended December 31, 2000 and the period June 12, 1998 (date of incorporation) to
December 31, 1999 in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

May 7, 2001
                      T H E      B A L T I C - A M E R I C A N   P A R T N E R S H I P       F U N D


     DECEMBER 31, 2000 AND 1999

                                                                                   2000                     1999
     CASH AND CASH EQUIVALENTS                                                  $ 65,189                $ 221,382
     ADVANCE TO GRANTEE                                                                  -                61,204
     INVESTMENTS - USAID ENDOWMENT (Note 4)                                    7,083,210                7,218,624
     OPEN SOCIETY INSTITUTE (Note 2)                                           7,038,189                7,015,069
     OTHER                                                                         3,309                   4,939
     TOTAL ASSETS                                                           $ 14,189,897           $ 14,521,218


      Accrued liabilities                                                      $ 137,889                $ 107,543
      Grants payable                                                           1,052,724                 366,616
             Total liabilities                                                 1,190,613                 474,159

      Temporarily restricted net assets                                       12,999,284               14,047,059
             Total net assets                                                 12,999,284               14,047,059

     TOTAL LIABILITIES AND NET ASSETS                                       $ 14,189,897           $ 14,521,218

     See notes to financial statements.
                                                                                      2000        31
                                                                   Annual Report



                                                                          2000            1999
 USAID endowment grant                                                      $ -     $ 7,500,000
 Income on endowment fund:
  Interest and dividends                                               322,399         226,029
  Investment gains - net                                                11,704          71,144
                                                                       334,103       7,797,173
 The Open Society Institute:
  Matching grant                                                       338,849       7,787,222
  Interest income on cash advanced by The Open Society Institute         1,691           9,951
                                                                       340,540       7,797,173
       Total temporarily restricted revenues                           674,643      15,594,346
 Net assets released from restrictions to
  cover current period expenses:
  Endowment Fund                                                       861,209         773,643
  Open Society Institute Fund                                          861,209         773,644
       Total                                                         1,722,418       1,547,287
 NET ASSETS                                                         (1,047,775)     14,047,059
  Donated services - The Open Society Institute                         44,180          39,753
  Net assets released from restrictions                              1,722,418       1,547,287
       Total revenue                                                 1,766,598       1,587,040
  Grants                                                            (1,433,653)     (1,264,852)
  Management and general                                              (332,945)       (322,188)
       Total expenses                                               (1,766,598)     (1,587,040)
CHANGE IN UNRESTRICTED NET ASSETS                                             -               -
CHANGE IN NET ASSETS                                                (1,047,775)     14,047,059
NET ASSETS, BEGINNING OF PERIOD                                     14,047,059                -
NET ASSETS, END OF PERIOD                                          $ 12,999,284    $ 14,047,059

See notes to financial statements.
                    T H E     B A L T I C - A M E R I C A N    P A R T N E R S H I P       F U N D



                                                                                  2000                     1999
      Change in net assets                                                $ (1,047,775)          $ 14,047,059
      Adjustment to reconcile change in net assets to net
       cash (used in) provided by operations:
       Depreciation                                                              1,823                      911
       Realized loss on investments                                             27,864                         -
       Unrealized appreciation of investments                                  (39,568)                 (71,144)
       Increase in accrued interest and dividends receivable                    (1,322)                 (68,442)
       Decrease (increase) in advance to grantee                                61,204                  (61,204)
       Increase in matching grant receivable from The Open
         Society Institute                                                     (23,120)              (7,015,069)
       Increase in other assets                                                   (193)                    (382)
       Increase in accrued liabilities                                          30,346                  107,543
       Increase in grants payable                                              686,108                  366,616

            Cash (used in) provided by operating activities                  (304,633)                7,305,888

      Purchase of investments                                               (1,702,824)              (7,079,038)
      Proceeds received from sale of investments                               800,334                         -
      Restricted cash used to purchase investments                           1,050,930                         -
      Purchase of fixed assets                                                         -                 (5,468)

            Cash provided by (used in) investing activities                    148,440               (7,084,506)

      EQUIVALENTS                                                            (156,193)                  221,382

     CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                            221,382                         -

     CASH AND CASH EQUIVALENTS, END OF PERIOD                                 $ 65,189                $ 221,382

     See notes to financial statements.
                                                                                                                    2000             33
                                                                                      Annual Report




The Baltic-American Partnership Fund, Inc. (the “Fund”) is a New York State not-for-profit corporation exempt from Federal
income tax under Section 501(c)(3) of the Internal Revenue Code.

The Fund supports and promotes efforts to stabilize democracy and market orientation in the Baltic states through increased
and better informed citizen participation in political and economic decision-making. It seeks to accomplish this purpose through,
among other things, efforts to promote legal and tax reform to support the development of indigenous non-governmental
organizations (NGOs), efforts to strengthen indigenous NGO management and technical capabilities, and efforts to develop
mechanisms to achieve financial sustainability of indigenous NGOs.


The Fund is jointly funded by the United States Agency for International Development (“USAID”) and The Open Society Insti-
tute (“OSI”), a charitable trust.

USAID has granted the Fund $7,500,000 to establish an endowment (“USAID Endowment”), all of which has been received
and invested by the Fund. Interest and other investment income and the endowment principal are to be expended over
approximately ten years, which is the anticipated life of the Fund program. OSI has awarded the Fund a matching grant of up
to $7,500,000, and, in addition, a match of interest and other investment income earned by the USAID Endowment. OSI funds
its grant to the Fund by matching withdrawals made by the Fund from the USAID Endowment. OSI’s obligation to the Fund is
collateralized by an irrevocable standby letter of credit. The amount to be received each year has not been determined.


Basis of Accounting - The financial statements are prepared on the accrual basis of accounting. The reporting of contributions
distinguishes among contributions received that increase permanently restricted net assets, temporarily restricted net assets
and unrestricted net assets. Recognition of the expiration of donor-imposed restrictions occurs in the period in which the
restrictions expire.

Net assets and revenue, expenses, gains and losses are classified based on the existence or absence of donor-imposed restric-
tions. When applicable, amounts for each of three classes of net assets - permanently restricted, temporarily restricted and
unrestricted - are displayed in the statement of activities.

The Fund has elected to present a statement of financial position (“balance sheet”) that sequences assets and liabilities based
on their relative liquidity.

The Fund considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

The Fund reports investments in equity securities with readily determinable fair values and all investments in debt securities at
fair value with gains and losses included in the statement of activities. Interest and dividend income is stated net of investment
management fees of $33,383 and $14,277 for 2000 and the period June 12, 1998 to December 31, 1999, respectively.

Other Assets - Other assets consists primarily of office equipment, furniture and fixtures. Depreciation is calculated using the
straight-line method based on an estimated useful life of the asset.
                     T H E        B A L T I C - A M E R I C A N          P A R T N E R S H I P            F U N D

     Grants Payable - Grants are awarded to the Baltic-American Partnership Programs in each of the Baltic states on a yearly basis,
     and paid as expenses are incurred by the Programs. Grants awarded for program activities can be carried over to subsequent

     Revenue Recognition - Unconditional promises to give that are expected to be collected in future years are recorded at the
     present value of their estimated future cash flows. Grants are recognized as revenue when they are received or unconditionally
     pledged. Grants made and unconditional promises to give are recognized as expenses in the period made at their fair value.

     In-Kind Contributions - In-kind contributions received from OSI consist primarily of donated rent and accounting services.
     The estimated value of these donations is reflected in grant revenue and in expenses in the Statement of Activities.

     Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles re-
     quires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclo-
     sure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
     expenses during the reporting period. Actual results could differ from those estimates.


                                                                                                  2000                      1999
     Cash equivalents                                                                         $ 106.692              $ 1.157.622
     Fixed income securities:
       U.S. Government and agency bonds                                                       2.321.899                1.893.435
       Domestic corporate bonds                                                               1.003.738                  967.895
       Eurodollar bonds                                                                         473.643                  469.200
       Asset backed securities                                                                1.002.495                  992.885

            Total fixed income securities                                                     4.801.775                4.323.415

     Domestic equity securities                                                               2.017.048                1.607.408
     Foreign equity securities                                                                   87.931                   61.737

           Total equity securities                                                            2.104.979                1.669.145

     Total investments, before accrued interest and dividends                                 7.013.446                7.150.182

     Accrued interest and dividends                                                              69.764                   68.442

     Total investments                                                                      $ 7.083.210              $ 7.218.624

     Effective July 9, 1998, the Fund entered into an agreement with OSI whereby OSI agreed to provide certain services to the
     Fund. Pursuant to the agreement, OSI maintains on its payroll and benefit plans certain employees who provide services to the
     Fund for which the Fund paid or accrued $147,196 and $161,932 for 2000 and the period June 12, 1998 to December 31,
     1999, respectively; $91,761 and $90,676, respectively, of these amounts are included in accrued liabilities at December 31,
     2000 and 1999, respectively. OSI also provides office space and other support services to the Fund in accordance with the
     agreement for which it is not reimbursed; in order to reflect these in-kind contributions, the Fund has recorded donated
     services and the related expenses in the amount of $44,180 and $39,753 for 2000 and for the period June 12, 1998 to
     December 31, 1999, respectively.

     As an organization described in Section 501(c)(3) of the Internal Revenue Code, the Fund is exempt from Federal income taxes.
                                                                                                                            2000   35
                                                                                                            Annual Report

                                             Gulf of Finland                              St. Petersburg

Baltic Sea                                                             Narva
                                             Estonia                           Lake

                                                Viljandi          Tartu                  Russia
                            Gulf                                                        Pskov

                   Jurmala              Riga      Latvia                                   Velikaya River

          Saldus                 Ogre                      Jekabpils
      Liepaja              Jelgava
                                                               Dauguva River
        Kretinga             Öiauliai
       Klaipéda                          Panevéûys

                     Lithuania                    Utena
                   Tauragé                     Ukmergé
                             Nemunas River
                                             Neris River
      Russia           Kaunas
 Kaliningrad                    Vilnius
          Poland                                                                Minsk
     T H E   B A L T I C - A M E R I C A N   P A R T N E R S H I P   F U N D

                                                                               This reports was designed and
                                                                               printed by RIC in Lithuania

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