The survey “Philanthropy in Central & Eastern Europe 2022” clearly indicates that with proper motivation, CEE citizens would be willing to donate twice as much as they donate at present. Moreover, companies are starting to operate in a responsible and sustainable manner, motivated by increasingly conscious employees, investors, and consumers. As many as 43% of Croatians are already willing to pay more for products and services offered by socially responsible brands.
One thing is certain – individuals and businesses have more and more resources and willingness to effectively support nonprofit organizations and public administration in tackling the most pressing social and environmental challenges. Making it easier for them is in the best interest of us all. It is our hope that the recommendations, prepared in collaboration with organizations that are shaping the Croatian impact ecosystem, will be helpful in establishing priorities and directing further action.
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Consultations’ Participants
Croatian Business Council for Sustainable Development
Croatian Chamber of Trades and Crafts
Croatian Employers’ Association
Global Compact Network Croatia
National Foundation for Civil Society Development
Social cooperative Humana Nova
Solidarna / Foundation for human rights and solidarity
The Government of the Republic of Croatia – the Office for Cooperation with NGOs
COUNTRY PROFILE
Croatia, like other countries of the CEE region, is still in a transition period. Because of the war in the 1990s, certain market processes started somewhat later than, for example, in the countries of the Visegrad group. There are challenges that constitute an important context for the efforts undertaken in the field of philanthropy. On the one hand, this includes significant inequalities between the rich west and north of the country vs. the poorer south-eastern regions, and on the other, the economy’s heavy reliance on tourism (approx. 30% of GDP), the scale of which was significantly reduced during the pandemic. As a result, so far the economy has been growing towards profit making, not towards being sustainable. However, the transition to more active social engagement is already visible in Croatia.
To read more, download the reportLEGAL & TAX
Barriers & Recommendations
Recommendation: Market participants should be provided with trainings and educations on frequent legal and tax questions important for their activities. Laws and procedures could be simplified, and authorities should be more approachable.
To read more, download the reportRecommendation: It is important to introduce higher tax breaks and more stimulation of the market. It will have a positive impact on higher funding and access to reliable data on giving. Tax incentives should be promoted widely among taxpayers.
To read more, download the reportRecommendation: Integration of the social criteria in the public procurement and providing additional benefits for companies meeting such criteria could provide advantages on a national level, since the companies would be pushed to engage in a social sphere more.
To read more, download the reportRecommendation: Having in mind the importance of pro bono services for the community, there is a need for more stimulation and education for companies to provide such services. The VAT system should be adjusted to encourage the provision of pro bono services. Supportive legal environment will result in legalizing cooperation between companies and nonprofits and a better documentation workflow.
To read more, download the reportRecommendation: It is important to initiate a dialogue between the government and civil society organizations on how to channel funds from the public to the social sphere in the most efficient and impactful way. Continuous education, easily accessible information, and promotion should be provided.
To read more, download the reportRecommendation: Creating a legal definition and promotion of Social Enterprises. Encouraging the establishment and development of such organizations through
stimulative tax treatment.
To read more, download the report“SOFT” ACTIONS
Postulates & Recommendations
Recommendation: Strengthen the role (among others by increasing funding) of infrastructure and networking organizations that build understanding between sectors and initiate cooperation within and between them. Indicate the need to build strategic support based on measurable goals (including qualitative) and outcomes.
To read more, download the reportRecommendation: More strategic and long-term approach to public and corporate giving. Reduction of bureaucratic obligations and administration related to public funding. Investing in capacity building of nonprofits by creating a pool of funds available for this purpose in the form of grants and donations. Transfer of fundraising and communication skills from business to the social sector. Diversifying sources of funding.
To read more, download the reportRecommendation: Introduce education in the area of social responsibility into curricula at every level, from the youngest age (schools, universities). Higher demand must go hand in hand with the preparation of educators and securing funding for such activities.
To read more, download the reportRecommendation: Promoting socially responsible activities in the media and with the support of public administration. More media engagement through positive narration and a growing presence of social issues in the public space. Encouraging large donors (companies and individuals) to actively promote the actions they take – for smaller companies it would be a source of knowledge and ideas on how to engaged, while for individuals – an indication that it is worth doing.
To read more, download the reportRecommendation: Promoting cooperation between business and the social sector. Introducing tools for companies to easily find and assess the impact of nonprofits. Improving social offers to business. Building the capacity of nonprofits to establish relationships with corporate donors. Creating a space for sharing best practices and experiences.
To read more, download the reportRecommendation: Training social purpose organizations in the new methods of fundraising. Securing funding for capacity building of nonprofits in this area.
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