Enable cross-border philanthropy before deadline, Philea urges EU states

The clock is ticking: EU member states have only a few months left to implement the European Council’s recommendations on developing the social economy.

Enacting these measures could remove hurdles which currently provide a “significant obstacle to the free flow of philanthropy across borders”.

This is according to the Brussels-based philanthropy organisation Philea. Last year, a report by Philea outlined six key ways in which cross-border philanthropy is thwarted, including what it called “discriminatory tax treatment”; difficulty in accessing banking services, and the “worrying phenomenon” of restrictions being placed on so-called foreign agents.

As Fundraising Europe has highlighted previously, there are growing concerns about the ‘foreign agent’ narrative in a range of countries including Slovakia, Hungary, Georgia and more.

Philea says that foundations and philanthropy organisations should advocate for change by engaging with governments to ensure implementation of the recommendation by the deadline of November this year.

The council’s recommendation, made in 2023, covers a broad range of issues relating to the social economy, rather than just to donations to registered charities. The legal text includes this explanation:

“Social economy entities and their definition can vary slightly between the Member States, and can take various legal forms and statuses, such as cooperatives, mutual societies, associations, foundations and social enterprises. They share the common principles of reinvesting all or most of their profits to pursue their social or environmental purposes and practicing democratic or participatory governance.”

Hanna Surmatz, head of policy at Philea, tells Fundraising Europe that the council’s recommendation, alongside upcoming Commission-led training on social economy topics, will “create a real momentum” to support better cross border philanthropy. She adds:

“Legislative changes and simplification of procedures are essential to create a functioning cross-border philanthropic space. We call on member states to implement them swiftly.”

Picture by Aron Visuals on Pixabay