The Community Foundations in Latvia

1
The Community Foundations in Latvia

• 17 February, 2009
• Riga, Latvia

2
Programme

• Community foundations in Latvia
• Latvian Community Foundation Movement
• Strategy development for community foundations

3
Background (1)

• Lack of information about concept
• Lack of trust to NGOs
• Lack of initiative
• Disbelief in philanthropy
• Lack of leaders

4
Background (2)

• Community members are passive and pessimistic
• Lack of support from state
• Lack of free time
• Inhabitants think that all their needs should be
  solved by local municipality
• Local municipalities (LM) do not know about
  advantages of CFs

5
Legal enviroment

• Law on foundations and associations
• Public Benefit Law
• Tax deductions for donors
• Individuals 25
• Businesses 85

6
History

• 2000 research
• 2001 2003 pilot project
• International consultants, National support
  organization, 2 pilot sites Talsi, Lielvarde
• Study visits (Slovakia, Chech Republic),
  trainings, seminars, consultations, planning,
  Community Forums
• 2003 - establishement of first community
  foundation Talsi CF

7
CFs in Latvia

• 2003 - The Talsi Regional Community Foundation
  (50 000 inhabitants)
• 2003 - The Lielvarde Community Development
  Foundation (7 500 inhabitants)
• 2005 - The Aluksne Regional Community
  Foundation (25 500 inhabitants)
• 2005 - The Valmiera Regional Community
  Foundation (60 000 inhabitants)
• 2006 - The Madona Regional Community Foundation
  (30 000 inhabitants)
• 2007 - The Liepaja Regional Community
  Foundation (100 000 inhabitants)

8
Special features of Latvian CFs

• Covers towns and regions (e.g.Talsi town and
  region)
• People who pay annual fee have right to
  participate in supervisory boards or councils
• Supervisory boards or councils have a decision
  making function - vote about their donations and
  other unrestricted funds

9
Special features of Latvian CFs (2)

• Minimal annual fees of 28 140 EUR - to ensure
  annual funding
• Other decision making bodies boards, special
  grant making committees/experts
• Takes from for administration (5 10) and
  endowment building (25)

10
The Talsi Region Community Foundation

• February, 2003

11
Basic facts

• The first CF in Latvia
• Established by 45 individuals and 4 NGOs
• Covers region of 50 000 inhabitants
• From each donation 10 -administration 25 -
  endowment 65 - grant competition (2003
  2006) 90 - endowment 10 - administration
  (since 2007)
• The minimal fee to became a participant of the
  council EUR 42 (80 participants in 2009)

12
Sources for endowment

• Campaign 100 Friends of Talsi Region minimal
  donation 28 EUR, donor receives a honourable
  status of friend
• The first friend The President of Latvia Vaira
  Vike Freiberga
• Donations via internet charity site www.ziedot.lv
• Other income 25 from all donations

13
Grants awarded

• 2003 - 3 800 EUR for 7 projects (1 call)
• 2004 12 300 EUR for 30 projects (5 calls)
• 2005 6 000 EUR for 9 projects (2 calls)
• 2006 20 000 EUR for 27 projects (2 calls)
• 2007 8600 EUR for 12 projects (2 calls)
• Average grant - 535,87 EUR

14
Lielvarde CF (December 2003)

• The second CF in Latvia
• Established by 14 businesses and 1 individual
• Works in a small town 7 ,500 inhabitants
• 1 grant competition per year
• Minimal fee to became a participants of the
  council 140 EUR per year( 50 for unrestricted
  funds 50 for endowment ), in 2008 30
  participants

15
Aluksne CF (April, 2005)

• 21 founders (annual fee 28 EUR)
• Minimal fee to became a member of the council 28
  EUR
• In 2007 awarded 20 grants for total amount of
  18794 EUR

16
Valmiera CF (July, 2005)

• 13 founders
• Minimal fee to became a member of the council 140
  EUR
• In 2007 awarded 16 grants for total amount of
  8801 EUR

17
Keys for the success

• Regular grant competitions
• Transparency
• Good image at the local and national level
• Responsible and enthusiastic board
• Activity and support from council
• Good cooperation with donors and close ties with
  the community

18
Keys for the success

• Active boards and councils
• Consultants from the Charities Aid
  Foundation-Russia and coaching by national
  support organization (NGO Centre (Riga)/BAPP)
• Continuous learning and knowledge building
  (networking)
• Thanks to the support of Baltic American
  Partnership programme administrative support and
  development has been possible.

19
Challenges

• To achieve a significant amount of endowment
• To develop donor advised funds
• To develop other types of donor services
• To cover administrative expenses from local
  sources
• To follow the mission

20

• Community Foundation Movement in Latvia

21
Participants of CFM Latvia

• Participants 4 founders and Liepaja CF
• Associated participant 1 Tirza Community
  Develoment Association
• One of founders Madona CF - has been excluded
  from the CFM Latvia in 2008

22
CFM goal

• CFM goal is to promote philanthropy and
  community engagement in regions all over Latvia.
  CFM Latvia is a national competence centre in the
  field of community philanthropy, a partner for
  the government and business sector and
  international organizations. 

23
The main goals of CFM Latvia are

• to promote and develop community foundations
  nationally 
• to develop  and monitor National CF standards
• to strengthen the capacity of CFs Latvia 
• to develop the capacity of CFM Latvia 

24
National CF standarts

• Legal status foundation has a Public Benefit
  Status (accepted by Ministry of Finance)
• Endowment is at least 1400 EUR with an annual
  increase of 10
• Works in a defined geographic area which is
  smaller than the whole country city, district
  or region
• Grant making institution, which provides support
  for  all public benefit areas
• Promotes philanthropy and work with local donors
• Good governance
• Publicizes its annual report

25
Recent accomplishments

• Website www.kopienufondi.lv in Latvian and
  English
• Newsletter Latvian, English
• Consultations, meetings, seminars
• Conference 100 ways how to fundraise
• International conferences and meetings TCFN,
  Grantmakers East Forum, CF conferences in Canada,
  US, Russia.

26
Cooperation with Ziedot.lv

• National charity campaign School bag,which
  provided an opportunity to buy necessary goods to
  start the school year for pupils from poor
  families in amount of US 70 each. Totally 407
  children were supported for 28 7000 USD
• Opportunity to fundraise via internet
• Opportunity to make presents of theatre tickets
  for parents of disabled children.

27
Common supporters

• Latvian Mortgage Bank (Hipoteku banka) is
  supporting grant competitions for all 5 community
  foundations, with total funding of US 20,000
  that covers about 30 projects.
• Netherlands Corporate foundation KNHM is
  supporting grant competitions

28

• Participation in the State Program Civil Society
  Development 2008-2014 development working group.
  Programme includes community philanthropy as one
  of its priorities, which resulted in grant
  competition for CFs for about 20,000 USD.
• CFM Latvia brought into being a Day of Regions,
  which was included in the National Charitable
  Week, a campaign through which fundraising for
  regions was fostered

29

• Assistance in establishment of sixth community
  foundation Liepaja Region community foundation.
  
• Assistance in organization of Community Forum in
  Jaunpils and Liepaja
• Research about awareness of CF model and
  community forums in Latvia
• Participation in consultative programs in Ukraine
  and Moldova

30
In 2007 five foundations have fundraised EUR
193 757

• 10 grant competitions to support 74 local project
  for EUR 44 151
• EUR 20 350 to support 407 poor families
• EUR 6 600 scholarships
• EUR 20 305 - has been invested in endowement
• EUR 68 258 - CFs acitvities and administration

31
Strategic planning

• Why planning is needed?
• Whom to involve?

32
Structure

• Mission
• Vision
• Goals
• Target audience
• Results/ indicators
• Structure of the foundation
• Evaluation
• Activity plan (1 year)

33
Specifics of CFs

• Teritory, number of inhabitants CF serves
• Structure, decision making
• Relationship with NGOs, municipality, business
  sector
• Transparency and conflict of interest

34
Specific for CF

• Budget planning
• Support for community needs USD ?
• Activities of the foundation USD ?
• Administraive expenses USD ?
• Endowement (investment strategy) USD ?

35
Fundraising plan

• Funding sources
• Fundraising goals
• Fundraising methods
• Variety of fundraising sources
• variety of fundraising methods
• Financial Sustainablity

36
Fundraising plan
37
2007

• International foundations (Baltic-American
  Partnership Program, Netherlands corporate
  foundation KNHM) 28
• Corporations 27
• National foundations10
• National government 9
• European Union funds 8
• Local municipalities7
• Individuals 6
• Income for service provision5
• Total 100 ( 193 757)

38
Fundraising message

• Emotional vs. Rational
• Spontan vs. Planned
• Companies vs. Individuals
• Marketing vs. Donations
• Individuals vs. Mass

39

• Inese Danga
• Executive Director
• Community Foundation Movement in Latvia

Foundation Ziedot Bruninieku street 27 38,
Riga LV 1001, Latvia Ph. 371
27289339 info_at_kopienufondi.lv www.kopienufondi.lv