Civic sector in England
Rooted, supported, recognized
About the English civil sector
The third sector in England is various, active and enthusiastic. Organizations are run by values. The sector consists of associations, voluntary and community organizations, organizations of public interest, organizations with common interest, social enterprises, cooperations and big and small common funds.
The overall number of civil society organizations is over 400.000, out of which 190.000 (47,5%) are organizations of public interest and 55.000 are social enterprises. In England there are about 8 civil society organizations on 1.000 citizens and in Macedonia this figure is 2,85 on 1.000 citizens. The overall annual revenue of the civil society organizations in the fiscal 01.04.2006-31.03.2007 is planned to be 2,25% of the gross domestic products, that is about 37 billion pounds. This budget is implemented by about 600.000 associates (2% of the UK labor force) and they are managed by 1 million managers that have to be led only by the organization’s interest.
The study visit enabled the participants to get familiar with the English system of governmental cooperation and financial support for the civil society organizations. Learned lessons in the compared experience and the best practices are to support the reform process in the Macedonian legislation.
The cooperation between the Government and the civic sector in England is based upon an agreement in which the following principles are defined: strengthened civic sector; functional partnership that can result in better policy and services and bigger benefits for the community and integrity and openness.
The Office of the Third Sector
The Office of the Third Sector was created in May 2006 when the Active Communities Directorate in the Home Office, and the Social Enterprise Unit, in the Department for Trade and Industry, amalgamated. Its aim is to develop an environment which enables the third sector to thrive, growing in its contribution to Britain's society, economy and environment. The Office develops partnership with third sector’s organizations by providing support for their activities, particularly acting and campaigning in the community, long-term investing in the third sector and improvement of local partnerships.
Its activities are focused on strengthening people’s awareness and capacity, particularly marginalized ones, strengthening communities, transforming public services, enabling and developing social enterprises, combining business and social objectives. The Office provides better cooperation between the government and third sector by promoting the Compact, funding programs to support the sector's development, such as Capacity builders and Future builders, informing the public on the Government’s work and the third sector and providing better control environment of the sector.
In Macedonia
The Unit for Cooperation with Civil Society Organizations was established in November 2004 and is part of the Sector for Policy Analysis and Coordination in the General Secretariat of the Government. Its establishment defines government’s clear policy for continuous cooperation with the civic sector and its development, as well as encouraging active involvement of the civil society organizations in the process of policy making. The establishment of a partnership relation between the Government and the civic sector, as well as strengthening inter-institutional cooperation, enabling the state administration, are the concrete directions to recognize the role of the civic sector and develop a partnership. The cooperation is built on the basis of the principles of mutual trust, partnership, transparency, independence and responsibility.
HM Treasury
HM Treasury, or the UK Ministry of Economic and Finance directly finances civil society organizations. On annual level, it is about 150.000.000 pounds. Funding is in forms of grants and loans.
For improving public services (hospitals, education etc.), the organizations of public interest, that enjoy people’s bigger trust, especially the poor and socially isolated, receive three-year support. The Government exempts civil society organizations from many taxes and donations for them are exempted, too. There is no VAT exemption as a result of the regulation established in the EU.
Charity Commission in England and Wales
Charities in Britain range from small groups meeting local needs with few resources to the well-known major charities with budgets of millions. Whatever their size or purpose, an essential requirement of all charities is that they operate for the public benefit and independently of government or commercial interests. Charity is defined in the fields of poverty, education, religion and other fields useful for the society. The Commission is a regulator and of charities in England and Wales and it registers them. It has been existing for more than 150 years. With the 1993 Act, it has a status of a non-ministry governmental body and it responds directly in front of the Parliament Reporting Commission. Effectiveness, expertise, honesty, innovation and accountability are the values that the Commission’s work is based on.
The Commission registers charities, supports them, enabling maximization of their effect in the society, provides work in direction of legal obligations and check-up of negative phenomena, encouraging innovation and effectiveness, supports public interest within charities and promotes public trust.
National lottery
The National Lottery (NL) was founded by Act in 1993. Its profit supports art, sport, cultural heritage, charity and voluntary organizations and projects that celebrated the millennium. In 1998 health, education and environment were added to the list.
15 million pounds have been spent since its establishment for charity. Over 150.000 projects with high influence in the society have been supported.
Big Lottery Fund (BLF) is responsible for giving out half the money (about ?630 million a year) from the National Lottery, for charity. Big Lottery Fund is committed to bringing real improvements to communities, and to the lives of people most in need, implementing the principles of fairness, equality, strategic partnerships, involving the people from the very beginning. Expected results are: studying opportunities, strengthening communities, environment and health. BLF was established in 2004 by merging the New Opportunities Fund and the Community Fund. The new fund distributes funds for projects that improve health, education and environment, as well as those who give support for voluntary groups helping people in need.
BLF distributes 50% of the National Lottery. In the period 2006/07, ?429 million have been distributed in form of grants. The civic sector is the biggest user of the funds. Since its establishment, ?548 million (78% of the grants) have been given. The organization of BLF is on a level of a non-sector independent governmental body financed by the Ministry of Culture, Sports and the Media. BLF has the role of complementing the Government’s policy and the ministries give directions for the policy and financial instructions and directives taken into consideration. They report to the Parliament, through the Reporting Committee and answer questions in the Parliament, while the national auditor is responsible for the audit. According to the big lottery fund, every day ?2 million is distributed for good causes, which means that together with the other distributors of the lottery’s revenues, most of the people in the UK are a few miles from a project financed by the lottery.
In Macedonia the basis for allocation of the gained finances from games of chance and entertainment games has been the Law on games of chance and entertainment games since 1997. These funds are used for financing “certain annual programs and tasks of citizens’ associations” (programs of associations of handicapped people, sport and the Red Cross of the Republic of Macedonia). With a special decision it is determined that “50% of the overall revenue from the games of chance and entertainment games from the previous year” is allocated for that purpose. These funds cannot be “smaller than 60 million denars, nor higher than 120 million denars”.
In accordance with the Decision for allocating revenues from the games of chance and entertainment games in 2007, the projected 75.000.000 denars is allocated to: the Association of invalid organizations of the Republic of Macedonia and its 7 members 48.304.000 MKD (64.5%), the National coordinative body projected with standard rules for equaling handicapped people’s opportunities, formed in accordance with the UN Resolution 48/49, 1.072.000 (1.43%), the project “Peking 2008) organized by the association “Venera” from Prilep 1.839.999 (2.45%), the Agency for Youth and Sport 17.464.000 (23.29%) (for massive sport and top sport), the Red Cross of the Republic of Macedonia 6.321.000 denars (8.43%).
Participants of the study visit
Mr. Dusko Minovski, State Secretary, Ministry of Labor and Social Policy
Mr. Numan Limani, State Secretary, Ministry of Justice
Mr. Irfan Odai, State Secretary, Ministry of Local Self-Government
Mr. Sali Ajdini, Under-Secretary of the Minister of Environment and Physical Planning
Ms Tanja Kostovska, Manager, Ministry of Finance
Ms Anita Dimitrovska, Counselor, Ministry of Finance
Ms Snezana Stefanovska, Manager, Agency of Youth and Sport
Ms Olivija Popeska, State Counselor, General Secretariat of the Government
Ms Suzana Nikodijevic-Filipovska, Manager, General Secretariat of the Government
Ms Irena Brzanova, Counselor, General Secretariat of the Government
Mr. Miho Vladimirov, Counselor, General Secretariat of the Government
Ms Esma Adilovic, Junior Associate, General Secretariat of the Government
Mr. Saso Klekovski, Executive Manager, Macedonian Center for International Cooperation
Ms. Emina Nuredinoska, Project Team
Mr. Aleksandar Stamboliev, Project Team
The study visit was part of the project “Technical support to the Civil Society Department in the Government”, financed by the European Union and run by the European Agency for Reconstruction and implemented by COWI A/S from Denmark, the Macedonian Center for International Cooperation and INTRAC from England.
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