Hanna Surmatz European Foundation Centre I mproving the Legal & Enabling Environment for Philanthropy A Window of Opportunities for Foundations in Europe

The Context (or Issue or Challenge) The European foundation sector is increasingly working across borders and growing dynamically – estimated 110,000 public benefit foundations in the EU. However, international foundation work even within the EU is hampered by civil and tax law barriers, which are costing European foundations some 100 million euros per year, according to a recent study: problems with transfer a foundation’s seat recognition of legal personality tax discrimination against foreign foundations and donors

Process EFC membership driven work: Mapping foundation laws in EU Benchmarking good rules – EFC Model Law Advocating for: a European Statute for Foundations as an additional and optional legal tool national law revisions to end discriminatory tax treatment of foreign foundations and their donors Co-operation with experts/practitioners Membership driven advocacy at level of: European institutions, Member States (in co- operation with DAFNE), other partners Time, patience and persistence Resources Involved

Results European Foundation Statute - We are not there yet: Final political decision at EU level awaited – further support from Member States sought Breakthrough for tax environment, e.g. 17 out of 27 Member States now allow the tax deductibility of cross-border donations - more to come Lessons Learned Co-operation with experts important - ownership of data and analysis with EFC Targeted advocacy campaigns at national and EU level together with DAFNE members / individual foundations FAQ document can include critical Q