Financing

© MTAS
© MTAS

Worth mentioning within this context is the Acuerdo Marco del Tercer Sector / Frame Agreement of the Third/Social Sector for the Development of social interest programmes, ratified in October 2006 by the NGO and the Administration. This resulted in an increase of 0.5239 from 0.7 the percentage of Personal Income Tax (IRPF) earmarked to finance projects of social interest.

Such agreement covers one of the demands of NGOs, the achievement of which will make possible an increase in the number of projects carried out based on the funds channelled by the contributors by means of their tax returns and an improvement in the financial structure of entities.

The NGO Social Action Platform also works towards the following:

  • Achieving stable budgetary commitments with a multi-annual logic and new forms of relationship, arrangement and agreement.
  • Renegotiating law formulas in our legislation referring to the foundation and patronage law.
  • Achieving a subsidies law specific to the Third/Social Sector, which adjusts to its characteristics. In order to achieve this objective, the Comisión de Financiación de la Plataforma / Financing Commission of the Platform has participated in the elaboration of a preliminary draft project. However, given the terms and complexity required to achieve this legislation, we have worked side by side to improve some particular aspects of the Reglamento de la Ley General de Subvenciones / Regulations of the General Law on Subsidies. The Financing Commission has led the work of the Social Agents Forum, which concluded with significant improvements claimed by the sector, such as:
    • The abolition of the demand of guarantee deposits for the execution of social action or collaboration programmes.
    • The payment of subsidies in advance, which means that the organisations do not have to advance the funds for the execution of the projects.
    • The procedure of simplified justification for small subsidies and
    • The possibility to accredit being up-to-date with all tax obligations by sworn declaration.
  • To specify the role that subsidies must play, in order to avoid responsibilities of the authorities to be considered subsidies.
  • To guarantee freedom of speech, proposals and demands or criticism from social entities, without affecting the financing of their activities.
  • To modify the procedure for the Declaración de Utilidad Pública / Public Utility Declaration of associations. Our intention is for Regional Governments to be granted authority to simplify and provide subsidies in case of regional organisations.

On the other hand, the Platform takes part in the elaboration of different studies of interest for the sector, such as the report on 'La colaboración de los españoles con las ONG y el perfil del donante' / The collaboration of Spanish citizens and the profile of donors, 'Análisis del impacto del IVA en las entidades no lucrativas' / Analysis on the impact of the valued added tax on non-profit organisations and the 'Libro Blanco de la Responsabilidad Social de las Empresas' / White Book of Social Responsibility of Companies.

Financing