Russian charities hit hard by the recession
1 September 2009
Nearly two thirds (61
percent) of Russian charitable organisations say their funding has
dropped as a result of the recession and over half (52 percent) say
they have already lost a quarter or more of their funding. These
findings come from the first research, on the impact of the
recession on charities in Russia and are published in “Philanthropy
in the context of the economic crisis” - a report by CAF
Russia, Zircon Research Group, PricewaterhouseCoopers and the
Russian Donors Forum.
The report, which is based upon a survey of 440 non-governmental
non-profit organisations (NPOs), 36 companies and 11 foundations,
found that the majority of NPOs were prepared for the crisis and
are adapting their plans to enable them to carry on their work in
these difficult financial times. However, nearly a quarter (23
percent) of NPOs surveyed think they are likely to close as a
result of this recession and nine percent think they may have to
become state, or municipal owned institutions to survive.
Corporate donations have fallen most with Government funding and
income from membership fees remaining the most stable. The majority
(84 percent) of NPOs are expecting funding to drop further and the
59 percent who reported a growth in demand for their services
likely to feel the most stretched.
Maria Chertok, Chief Executive of CAF Russia, said: “In 1986
Russia only had 20 NPOs, today there are more than 217,000. They
are playing a key role in helping society through the recession and
are ambitious to do more. Half of them (51 percent) intend to
expand the scope of their services despite the current financial
climate.”
NPOs, companies and foundations were united in the view that the
State can play an important part in developing philanthropy in this
period of crisis.
The Russian Government has just approved a concept paper on the
development of philanthropy and volunteering in Russia which it
plans to implement by the end of 2010. This was developed alongside
a number of sector experts, including CAF Russia. The paper sets
out plans to support tax benefits for companies and individuals at
state level – currently such benefits are only available at a
regional level in two of the 83 Russian regions. The Government
also plans to introduce a tax exempt status for public benefit NPOs
in relation to profit tax and VAT.
Maria Chertok said: "The recession started later in Russia than
in many other major economies but charities in Russia have already
been severely impacted. This recession is the first for the fairly
new philanthropic and NGO sector and it will be a trying time for
charities and donors who are still to prove their commitment to
philanthropy. The support that the Government intends to give will
play a crucial role in strengthening the sector – both economically
and through demonstration of their appreciation of the role the
sector plays, but we need them to implement these changes quickly
and consistently."
Philanthropy in
the context of the economic crisis report >>
Notes to Editors
1. Research was carried out with 440 NPOs, 36 companies
and 11 foundations between April and May 2009.
2. The survey was carried out with financial support
from the Matra Programme of the Royal Netherlands
Embassy.
3. There are 248 branches of international NPOs in the
country.
4. CAF Russia is part of the Charities Aid Foundation
Group a registered charity. CAF has offices in America, Australia,
Brazil, Bulgaria, India, Russia, South Africa. Internationally CAF
supports charities by working with donors, companies and charities
to increase the value and impact of giving. They do this by
providing products and services that make giving easier, tax
efficient and easy for donors with global philanthropic
programmes.
Media contacts
George Leigh
Press Officer
Charities Aid Foundation
T: 0207 832 3072 (out of office - 07960 182 471)
E: gleigh@cafonline.org
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Charities Aid Foundation
T: 0207 832 3012
E: mpursey@cafonline.org