1 Czech Foundations now – between the past and future Pavlína Kalousová

2 2 Nadace Property given forever Financial institutions

3 3 Czech foundations today 405 registered endowed foundations - permanent capital 1098 non-endowed foundations – temporary, limited mission Over 250 million EUR of registered endowment – obligatory, tax exempt. 40 million EUR of annual grants to hundreds of NGOs, individuals and projects

Enthusiasm Engagement Public credit

5 5 Public - Foundations can be controlled by the public – audits, annual reports, % for overhead. - Foundation registry (Ministry of Justice), digitalized financial documents. ________ 90% of the Czech public understands the financial role of foundations 83% of people think that foundations support issues that are at the outskirts of the main interest and improve the quality of life. Over 50% of the Czech public - foundations improved their communication with the public and also their financial management.

Law on Foundations 227/1997 Coll. - Strict conditions - Grantmaking as a „must“ - Board members personally responsible - Tax exemptions (endowments, income from grants)

7 7 Contributions of the law Foundations – role and position defined Transparency and cleared sector – - 97 foundations and 1205 non-endowed funds (5238 before) 1% Privatization contributions Cooperation and self regulation – Czech Donors Forum (Association of foundation) Partner to the government – council, tax exemptions.. Governmental Council for NGOs.

8 8 Future – Progress or risks? New Civil Code - All legal types newly defined - Flexible operations (including operating own programs) - Family and public benefit foundations - Donor advised funds

9 9 Good/better/public benefit? Law on Public benefit organizations Definition types for pb organization Legal form does not matter Transparency and reinvestment of resources Fiscal advantages (100% for public benefit = 100% exemption from income tax) Increased tax benefits for donors

10 Future.. The right direction?

11 Thank you!