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 38% of Hungarians 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 tackle 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 Hungarian social impact ecosystem, will be helpful in establishing priorities and directing further action.
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Consultations’ Participants
Family Business Network Hungary
Gauder Milan / Mastercard
Györkő Zoltán
Hungarian Association of Executives
Hungarian Environmental Partnership Foundation
Nagygyörgy András
COUNTRY PROFILE
Hungary, like other countries in the region, has been creating its new identity since the early 1990s. Since then, there has been dynamic economic and social development, resulting in the emergence of civil society. Thirty years after the political upheaval, however, Hungary still faces numerous challenges and obstacles hindering the creation of a stable social sector. Analysis of the results of the Civil Society Organization Sustainability Index suggests that Hungary has the lowest scores in Central and Eastern Europe.
To read more, download the reportLEGAL & TAX
Barriers & Recommendations
Recommendation: Undoubtedly, modifying the mechanism of the 1%+1% tax transfer would be a positive change. It would be important to simplify and unify rules for both 1% options, especially when it comes to the auto-complete option.
To read more, download the reportRecommendation: Introducing tax breaks for private donors could encourage their motivation to support social causes more actively or with higher amounts. It would be worth considering widening the list of social causes that enjoy higher tax breaks.
To read more, download the reportRecommendation: It is important to educate companies and promote tax exemptions on pro bono activities among companies to increase this form of engagement in a transparent form as the legislation might be difficult for companies to get to know and understand these criteria.
To read more, download the reportRecommendation: Introducing better defined criteria for qualifying as a nonprofit organization falling within the scope of the new legislation and defining in more detail the exact reporting obligation of the nonprofit organization could encourage compliance with the new legislation.
To read more, download the reportRecommendation: It is important to set clearer guidelines with respect to (i) the scope of those economic activities nonprofit organizations are permitted to carry out; and (ii) the legal solutions available for such organizations so that they can safely engage in economic activities and gain more financial self-sustainability.
To read more, download the reportRecommendation: Introducing benefits to companies that engage in social activities and support the nonprofit sector could incentivize donations and thus result in more funds / donations made available to nonprofit organizations.
To read more, download the report“SOFT” ACTIONS
Postulates & Recommendations
Recommendation: Increase the number of long-term public grants to support capacity building of nonprofit organizations. Promote community engagement among other funders and donors: companies, society, wealthy individuals. Allow the social sector to conduct for-profit activities without additional limits and restrictions.
To read more, download the reportRecommendation: Promote impact investing as a form of support for social goals. Improve the offer to investors and point out the benefits of this form of engagement.
To read more, download the reportRecommendation: Introduce more dialog and consultations between sectors when laws are modified or changed. Strengthen the role of infrastructure and networking organizations dedicated to combining business and social goals, and building relationships between sectors.
To read more, download the reportRecommendation: Increase the exchange of experience between corporations and SMEs. Promote good practices in business. Improve social sector offerings for long-term cooperation with business. Wove social and environmental issues into everyday business operations.
To read more, download the reportRecommendation: Promotion of competence volunteering and pro bono services among business as an attractive form of engagement. More activity of the social sector in asking for this type of support from business.
To read more, download the reportRecommendation: Conduct educational activities and awareness building campaigns connected to social engagement and philanthropy at multiple stages of education. Implement training and courses to educate ESG/CSR specialists. Secure funding for the social sector to recruit fundraising specialists.
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