Fs Sample

DG Health and Consumers
Feasibility study on funding arrangements for

the voluntary and not for prot public health
activities at EU level
June 2010
COWI A/S
Parallelvej 2
2800 Kongens Lyngby
Telefon 45 97 22 11
Telefax 45 97 22 12
www.cowi.dk
DG Health and Consumers
Feasibility study on funding

arrangements for the
voluntary and not for profit
public health activities at
EU level
June 2010
The research described in this report was prepared for the

European Commission. The opinion expressed in this
study are those of the authors and do not necessarily
reflect the views of the European Commission.
Feasibility study on funding arrangements for the voluntary and not for profit public health activities at EU level
Tabl
cont
1
1.1
1.2
1.3
1.4
Executive summary
Background 2
Review, inventory and analysis
2
4
Three options of a blind trust

7
Cost estimate of operating the blind trust options
11
2
Conclusion 13
Table of Appendixes
Appendix 1: Inventory, review and analysis
Appendix 2: Options for voluntary and not for profit
foundations/arrangements
Appendix 3: Roadmap and cost estimate related to the establishment
of
a blind trust
O:\A005000\A008601\Grafik\1101_old\@_Projekter\DG-SANCO_flyttet til 1114\Final_Report_Blind_trust\Blind trust - final report June_ 2010.docx
summ
1.1 Ba
The not for profit and voluntary sectors, also referred to as the third sector,
play an increasingly important role in public health and other fields, in many
EU Member States and at EU level. However such organizations face a
number of practical challenges to operations at a European level which are
partly related to the different arrangements in place across the EU for making
and receiving do- nations1 .
Modern approaches to public health go beyond the traditional, medical
interventions. Increasingly, comprehensive strategies and approaches
across traditional policy boundaries, settings and target groups are
developed. Concepts such as 'health for all policies' underline the potential
for action in non-health areas to address health concerns more effectively.
At the same time, new stakeholders take an interest in health issues and
"public private partnerships" are increasingly being considered as a means
to take forward public health objectives, projects and activities.
In terms of funding actions, enterprises and businesses linked to processes
such as Corporate Social Responsibility are increasingly ready to support
health-related activities. This might be in areas related to their business
interests (e.g. projects on drink driving funded by alcoholic beverage
producers), in their local community (e.g. by the local supermarket), or at a
broader scale, at regional/national level (cf food manufacturer's
participation in an EPODE network.)
The voluntary sector Therefore, the voluntary sector has a role to play in the public health
activity across Europe. As government budgets for health diminish, there is a greater
possibility for non public contributions to support the public effort.
The private sector Within the voluntary sphere, there is the private sector (which might include
wealthy individuals or companies). There is interest in this sector support the
public health efforts of government, for example in terms of voluntary
actions or financial contributions from private actors.
1
Communication from the Commission of 6 June 1997 on promoting the role of

voluntary organisations and foundations in Europe [COM (1997) 241]
3
It is important that non profit contributions to public health actions are in the
public interest and free of commercial influence, so that governance issues
are very important. Therefore such organizations face a number of practical challenges to operate at a European level which are partly related to the
difference arrangements in place across the EU for making and receiving
donations.
Scarce public funding Many countries in the EU have under gone financing crises in the health
sectors as a result of ageing populations, increasing expectations for health care
services, and a growing number of treatments, and other technologies. As a
result, public resources for funding public health actions are increasingly
scarce. This is particularly true for cross-border and European projects, both
in terms of the availability of Member States funds, and EU project funds. In
terms of EU funding, projects would only receive co-funding which, for the
health programme, would normally not exceed 60% of eligible costs).. The
combination of increasing demands for activities in the voluntary sector and
shortage of financial support constrains non-profit and voluntary
organisations from pursuing their mandates. At the same time, there are is a
perception that established boundaries between the non-profit and voluntary
sector and the state and the private market are in flux. There are sensitivities
and concerns in certain areas related to accepting private funds for public
health projects. For example, there are concerns that private support to a
project would link to the commercial interest of contributors (e.g. food
industry support to nutrition projects), and to the potential influence a
sponsor could have on the content and operation of a project. There are also
concerns about branding and advertising in particular when considering
activities targeted to young people and schools. This indicates the
importance of investigating and developing the funding arrangements for
voluntary and not for profit public health activities at EU level.
The overall purpose of this study is to explore options to establish one or
The overall purpose
more pan European trusts to receive donations for public health activities.
The study has focused on the following specific tasks:
The
4 pur
inventor
explore
of trusts
1.2 Inventory, review and analysis

Purpose
review looks at the macro-economic context for voluntary activity in the
different parts of the EU, to see whether historical and cultural contexts
play a role. This will enable us to understand why acceptance of voluntary
action varies across member states.
Why a blind trust? Despite the dramatically changes in health and demography the public funding
in health is scarce. This situation challenges the public health systems in all European countries. Therefore, the voluntary public health sector has an
important role to play in the public health care sectors across Europe.
Ways to obtain
Various funding arrangements are available for both voluntary actors and
funding for
trusts, respectively. According to voluntary actors the aim is to receive money
voluntary actors
for being able to run public health activities. Whereas according to a trust
and trusts, rethe aim is to be able to run a trust which among others fund actors to run their
spectively
activities. In both cases funding can derive from various sources:
Government support: revenues from state and municipalities grants contracts and reimbursement schemes (public contribution)
Earned income: revenues from sales of services and goods, membership
dues
and investment income
Philanthropy: donations from individuals, foundations and private
companies
(non-public contribution e.g. industries).
If voluntary actors are directly funded a risk of conflict of interest arise.
This claims for establishing a blind trust.
Inventory of different trusts across the
EU and other relevant countries
A high number of trusts and foundations are present in Europe. None of them
are the same; they have different visions, missions, objectives, economical
situations etc. They provide services to donors, beneficiaries, make grants,
and undertake leadership and partnership activities to address a wide variety
of need.
Income from donors
Every trust or fund is dependent on donors. The income from donations

decide the activity the trust are able to run and the number and amount of
grants which can be distributed. The type of donations (government support,
earned income, philanthropy) is of special interest when founding a new trust
because it reflects the viability of the trust.
Review of the
macro-economic
context for voluntary
activity in the different parts of the EU
The review presents the comparative data on the scope, composition and
structure of the non-profit, voluntary sector in Europe which have been
generated
through the Johns Hopkins University Comparative Nonprofit Sector
Project
(JHU project) covering about 40 countries. The review elucidate among
others the types of voluntary, non-profit organisations, the type of voluntary
activities and the impact of the organized civil society and of the organisation
of the welfare system, respectively.
Types of voluntary,
non-profit
organisations in
the field of health
and prevention
Voluntary activities
defined in three
sectors
The impact of the

organized civil society, its labour force
(unpaid and paid)
and its economic
impact on the
national economies
Level of voluntary
action and prosperity
at national level
Voluntary activities are all kinds of voluntary engagement. In general, the vol-v
untary sector and activities are well described in social contexts whereas the o
description of the public health orientated voluntary sector is lacking in the l
European context. Most voluntary activity takes place at local level. Modern u
n
approaches to public health go beyond traditional, medical interventions.
t
Increasingly, comprehensive strategies and approaches across traditional
policy boundaries, settings and target groups are developed. Concepts such as a
'Health in All Policies' underline the potential of action in non-health areas r
to address health concerns more effectively. In other words, the population's y
health is not an issue for health policy alone, therefore a goal is to integrate ,
health in all policies.
u
The analysis of the voluntary non-profit organisations includes three different n
sectors: health, social services and culture and recreation. In all three sectors p
some type of health-related and preventive activities takes place. In research a
on non-profit organisations focus has primarily been on participation and
i
non- profit institutions meaning the formal aspects of civil society. However, d
the informal social networks and social contacts in local communities and
friendship circles are just as important for the cohesion of the society and the l
integration of individuals but these types of activities are normally not
a
included in studies of the non-profit sector.
b
o
The impact of the organized civil society, its labour force (unpaid and paid) u
and its economic impact on the national economies focusing on the formal r
networks and organizations might partly explain why the non-profit sector /
the organized civil society are significant lower in the Southern and Central / i
East- ern parts of Europe. This is countries where the informal support
s
systems
through family, social networks and local community are more widespread r
compared to Western Europe and especially in the Scandinavian countries. e
s
The amount of voluntary activity and the prosperity of the non-profit sector
t
seem to be stimulated rather than restricted by highly developed and
r
formalised public welfare organisations, and the formal organisational basis
i
for non-profit activities seems to grow as a result of public support. The
c
Scandinavian countries and the Netherlands score high on both dimensions.
t
These countries have
e
a highly developed social welfare system and a high level of membership in d
associative organisations combined with widespread volunteering.
.
Furthermore, a relatively high level of publicly financed social services in
Bel- gium, France and Austria was found, but in all three countries the level
of voluntary activity is restricted. A large number of non-profit
organisations in these countries as well as in the UK and Germany are
involved in the production of social services elderly care and institutions
for children but the costs of providing these services are financed by the
state. Moreover, these social services are primarily provided by paid labour
employed by the non-profit organizations, and the involvement of
6
Another important health dimension in determining the level of voluntary in- ing
volvement (and therefore the acceptability of a Trust or foundation) seems non
thus to be the organisation of the welfare system. A highly organised and
institutionalised health system tends to stimulate voluntary involvement
prof
and to increase the role of the non-profit sector. It may be organised
its
through the state apparatus as in the Social Democratic system or through the that
corporative organisations as in the continental system. These dimensions
ope
describing the welfare system concern primarily voluntary work performed rate
in the institutional framework of a non-profit organisation.
on a
pan
Voluntarism performed as informal care for friends and family members outside the household is high both in countries characterized by equalized,
Eur
social structures such as Social Democratic welfare systems where the equal ope
social structure stimulate social networking and close contact in the local
an
community and in countries with a less developed system of social protection basi
but characters
ized by a strong familialism and patronage in the system of social network, coul
d be
the
which also stimulate the informal support system but make it highlyena
ctmen
t of
a
segregated. The review, inventory and analysis indicate that
'Eur
ope
The context for voluntary action is varies considerably from Member State an
to Member State within the EU.
Stat
ute
A high number of trusts and foundations are present in Europe. None of
for
them are the same; they have different visions, missions, objectives, eco- Fou
nomical situations etc. They provide services to donors, beneficiaries,
ndat
make grants, and undertake leadership and partnership activities to
ions
address a wide variety of need.
and
a
The activity level within voluntary public health activities (measured as the
Eur
amount of expenditures in the non-profit sector as percentage of the total ope
GDP) could be a result of a possible lack of and/or further need of
an
financial support
Stat
ute
The strategy and objectives, decided by the Trust Board, should reflect
which type of voluntary activities and target groups will be able to for
Ass
obtain funding
ocia
Review of trusts/foundations across the EU and beyond, indicate that there tion
are essentially three types of donations: fees (e.g. memberships), govern- s'.
mental donations, and philanthropy (private one-time donations) which
describe the level and type of financial donations
Impact
of
the
organisation of the
welfare
system on voluntary
involvement
Outcome of the review and inventory
There is no legislation at EU level relating to the regulation and governance of voluntary and non-profit organisations. One solution for facilitatO:\A005000\A008601\Grafik\1101_old\@_Projekter\DG-SANCO_flyttet til 1114\Final_Report_Blind_trust\Blind trust - final report June_ 2010.docx
Background
The inventory, review and analysis of existing Trust/Foundation design

forms
the basis for developing the following three options.
The three options for a voluntary and not for profit public health blind trust
are primarily based on aspects of organising a pan-European blind trust.
Further- more, elements such as trust objectives, Board structure, trust
domicile, marketing & public awareness and foundations in European law
are taken into consideration.
1.3 Th
option
blind
Attraction of financial contribution
All three options of a blind trust presented below are established to capture
both public contribution (financial support from e.g. the EU budget,
individual Member States, regional governments, etc.) and philanthropy (nonpublic contribution) such as financial support from individuals, foundations,
private companies, etc. Additionally, all options will also have the
possibility to create their own direct income in respect to reinvestment of
capital, membership fees, products/logos, etc.
Establishing a blind
trust - similarities
and differences
The set up of a blind trust involves many different elements. The generic
organisational structure of a blind trust arrangement includes a governing
body, consisting of the Board, advisory committee(s), and a secretariat
including a performance and financial controlling system. Furthermore,
marketing & public awareness, voluntary actors (potential beneficiaries) and
potential donors are important external elements (Figure 1.1). All elements
are necessary regardless of the type of the blind trust. Many of the elements
are similar as e.g. nominating advisory committees or the financial
performance controlling. The differences occur primarily as a consequence
of the selected organisation. These similarities/differences can at the same
time appear positive/negative depending on the organisation.
Figure 1.1. A generic model
Finally, the analysis showed that there is no legislation at EU level relating

to
the regulation and governance of voluntary and non-profit organisations.

There- fore, voluntary activities are subject to the national legislation of the
country in which the organisation is legally created and undertaking its
activities. Volun- tary organisations that desire to work across Member
States are subject to different legislation.
With this in mind the three following options are suggested:
Option A: The blind trust is fully under the direction of the European
Commission. The blind trust is fully controlled by the Commission.
Option B: The blind trust is in any way independent of the Commission or
any other political system. The governing body of the blind trust
operates without directions from the Commission.
Option C: The blind trust is organised with satellite offices in a number of
or all EU Member States. This option can both be under the direction of
the Commission or independent of any political systems in various
degrees.
The table below provides an overview of the differences of the essential
aspects of the three options of a blind trust analysed in this study.
Table 1-1 Overviews of fundamentals and differences between the options

Blind trust
Option A - EU directed trust fundamentals
Option B - Independent
Option C - Satellite Trust
Trust
Aim/ objective of the Vision, mission, and strategy

corresponding to EU policy in
trust
the field.
Vision, mission, and strategy
Depend on EU directed or
independent from political in-
independent trust.
Potential donations
More willingness to donate to
independent trust.
independent trust.
fluence. Trust self-governing in

relation to needs in the field.
Co-donation from the EU

budget.
Donors could be unwilling to
donate to "political" trust.
Potential recipients
(voluntary actors)
Attract voluntary organisations

above a certain size.
Attract voluntary organisations

above a certain size.
Could attract smaller voluntary

actors - however the distance
from either a region to a capital or the region to a trust in
Brussels is considered to be
the same.
Legislative issues
Apply legislation at national

level (location of trust) taking
into consideration the EU financial principles.
Various EU tools regulate the
extent of donors' involvement
with a trust as a tool of marketing.

level (location of trust).
In legislative terms, this is a

complicated matter. The trust
will be subject to numerous
regimes.
levels in respect to both the
central trust and the satellite
units (location of trust).
Need to establish a new

brand/name.
Marketing with fewer restrictions than Option A.
independent trust.
Marketing/ public
awareness
Domicile
Cost estimate
EU a well-known "brand" to
use in marketing - could attract
donations.
EU will be associated with the
trust and its donors in the general public.
High needs for transparency trust could be seen as spending tax payers' money.
Could be hosted by the Com- Need own domicile and loca- Need a number of local ofmission. This could affect the tion. This will affect the admin- fices. This will affect the adadministrative costs, see be- istrative costs, see below.
ministrative costs, see below.
low.
Same as for Option B. However could have lower administrative costs, if hosted by the
Same as Option A
Substantial higher cost than

Option A and Option B
Blind trust
Option A - EU directed trust fundamentals
Commission.
Option B - Independent
Trust
10
Option C - Satellite Trust
Secretariat
Option A
Same as for Option B. Could have

few staff members, if hosted and
co-administration with
Commission.
Same as for Option A.
Larger secretariat
Here beneath the three options are illustrated according to their

organisational set-up.
Figure 1.2. Option A: EU directed trust - this option is under the full direction
of
the Commission (e.g. board majority). On this basis, the aim of the trust is
coherent with EU policy in the field. The internal organisational set-up and
procedures of the blind trust is dealt with in Task 3 of the study.
11
Option B
Option C
Figure 1.3.Option B: Independent trust - this option is independent in relation to

any
political system or interest. On this basis, the independent board of the trust is
free to
manage the trust in the direction of its aim. The internal organisational set-up and
Figure 1.4. Option C: Trust with local satellite unit - the organisation of this trust
includes a number satellite units located in the European countries. This option can
be
both under the direction of the Commission or an independent trust. The map of
Europe illustrate satellites in relation to a Commission directed trust or an
independent trust, respectively. The internal organisational set-up and procedures of the
blind
trust is dealt with in Task 3 of the study.
1.4 Cost estimate of operating the blind trust options

The cost estimate includes the following cost elements:
Salaries and costs of meetings (costs according to tasks performed in
the establishment/implementation and operation phases)
facili1
ties/
2 offi
Overhead costs (costs of operating the blind trust including office

Marketing and public awareness (costs of marketing and public
awareness activities targeted to the EU population, prospective applicants
and donors).
To this end, it should be kept in mind that the options presented above are
two ends of the scale, and therefore a blind trust can be created in a variety of
ways which will naturally influence the costs of running a trust. Therefore,
the cost estimate should be considered as an overview of costs incurred in
relation to the three options and as a tool to be used when deciding on the
final structure of the trust. Furthermore, a number of assumptions in the cost
estimates have been invented, e.g. the sum of the annual distribution of
funds. This is a fictive figure, and the adjustment of that figure to actual
conditions will naturally affect costs estimate (for more on this see appendix
3).
Based on the cost estimates, the below table shows that the total cost
estimate for operating Option A and Option B is expected to be the same
whereas the cost of operating Option C is significantly higher.
A costly Option C
Cost element
Option A
Option B
Op
Cost - board of
directors, secretariat
and committees
2,503,500
2,503,500
3,7
Office/facilities/rent
and overhead
880,000
880,000
1,3
Marketing and public

awareness
2,000,000
2,000,000
2,0
Total
5,383,500
5,383,500
7,0
Option C with satellite offices in several EU Member States naturally

increases the costs of establishing/implementing and operating the blind trust.
Option C has higher overhead costs compared to Options A and B as more
offices are envisaged. Furthermore, the salary costs are also expected to be
higher for Op- tion C as more secretariat staff is needed due to a higher
number of offices in the EU Member States.
Conclusion
13
The three options for a voluntary and not for profit public health blind trust
are primarily based on aspects of organising a pan-European blind trust.
Regardless of option chosen, special attention must be given to election of
Board members to avoid conflict of interest. Furthermore, focus on
marketing and public awareness - and especially attraction of donors - claims
a well-researched strategy.
To explore attitudes to the options, stakeholder interviews have been
performed as well as SWOT analysis for each option. The number of
interviews is less than anticipated due to limited willingness of stakeholders
to participate in interviews. Interviews were carried out with an expert, a
voluntary actor and a potential donor reflecting different angles regarding the
workability of the options.
The following pros and cons according to each option are primarily based
on the SWOT analysis.
Option A:
Option B:
Pros in relation to Option A:
Co-donation from the EU budget
The EU is a well-known 'brand' - which could be an advantage in attracting
donations
Objectives/strategy known and coherent with EU policy
Organisational support from the Commission
Lower administrative cost, if hosted by the Commission
Cons in relation to Option A:
Lack of freedom to act in line with objectives and focus areas during EU
programming period
Conflicts of interest in relation to Commission board members
Private donors could be unwilling to donate to 'a political system' (EU)
Challenge to manage which donors/products the EU will become associated with
Distance to potential recipients (voluntary actors)
Pros in relation to Option B:
Independent to act both in terms of objectives and donors
1
establish
4
brand/na
potentia
(volunta
Likely to attract private donors

Direct communication with donors
Cons in relation to Option B:
Option C:
No financial or organisational back-up from e.g. the Commission

Pros in relation to Option C:
Knowledge about needs at regional, national, and local levels
Linguistic skills
Closer relationship to recipients of donations

Cons in relation to Option C:
High administrative costs

Legislative complications
Distribution according to geographical balance in contrast to reel needs.
Less pan-European knowledge sharing
Distance to potential recipients (voluntary actors) are secondary
The background of the three options is described in details in the following

appendixes.
15
Appendix 1: Inventory, review and analysis
COWI A/S
Parallelvej 2 DK-2800
Kongens Lyngby Denmark
Tel +45 45 97 22 11
Fax +45 45 97 22 12
www.cowi.com

arrangements for the
EU level
Report on Task 1: Review, inventory
and analysis
European Commission
Health and Consumers Directorate-General
September 2009
Document no.
Version
Date of issue
Prepared
Approved
Checked
Report on Task 1: Review and inventory
Table
Conte
1 Introduction 3
1.1
Purpose of Task 1
1.2
Contribution to the Study
1.3
Structure of the report
3
4
4
Why a blind trust?
4.1
4.1.1
4.1.2
Inventory of different trusts across the EU

and
other relevant countries 8
Methodology and data of the
review
Approach 11
Forms of voluntary, non-profit organisations
Types of voluntary, non-profit organisations
4.2
field of health and prevention 13

Data description and availability
5
5.1
5.1.1
5.2
5.2.1
5.2.2
6
6.1
6.1.1
6.1.2
6.1.3
6.1.4
11
in
1 the
2
re 1
vie5
w
Presentation of data based on literature

and inventory 17
The size of the Non-profit Voluntary Labour Force
Voluntary, unpaid work and paid work 18
Type of activities and composition of work force in
the non-profit sector 22
The composition of the non-profit sector by sector
the economic impact of the sector 24
The financial importance of the non-profit sector
expenditure and revenue 24
Type of activities and distribution of revenue in the
non-profit sector 26
Comparative analysis of
regions
Denmark
Portugal 35
Germany 37
Belgium 39
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33
33
6.1.5
Kingdom
The United
42
7
7.1
EU legal framework
45
EU regulation of voluntary and nonprofit
organisations 45
8
Conclusions and the further work of the
47
study
8.1
Conclusions 47
Results of Task 1 to feed into the following
8.2
tasks of the
study 49
9 Literature 51
3
1.1
Pu
Task 1
P
ur
p
o
se
The pur
inventor
explore
of trusts
1 Introduction
review looks at the macro-economic context for voluntary activity in the
different parts of the EU, to see whether historical and cultural contexts
play a role. This will enable us to understand why acceptance of voluntary
action varies across member states.
The report will discuss the following questions:
Why establish a blind trust?
Which type of activities are voluntary public health activities?
How is voluntary public health activities financed?
How is voluntary public health activities organised?
Can Member States be grouped by characteristics as regard voluntary public health activities (e.g. types and level activities)
What are the legal challenges of establishing a European blind trust?
Task 1: Inventory of
different trusts
Task 1: Literature
review and a
feasibility study
Task 2: Structure of
a blind
trust/foundation
This will be elucidated by performing the following tasks:

An inventory of different trust based in and outside Europe will elucidate
the high diversity in the purpose of establishing a trust and especially the
type of donations the different trusts receive.
p
u
b
l
Based on a literature review and a feasibility study, funding arrangements i
for voluntary and not for profit public health activities at EU level have c
been analysed as well as an examination of the structures for the private sector and
state
funding of voluntary and not for profit public health activities is performed.
On that basis, the overall aim of the study is to provide an assessment (based
on experiences inside and outside the EU) leading to at least three options for
how a blind trust/foundation for donations to voluntary and not for profit
health organisations may be structured. Based on that, this report on Task 1

includes assessments and analysis of the following elements:
Overview of and experience with voluntary activities
Overview of the organisation of the voluntary work
Likely flows of funds
Formulation of public health areas suitable for the general use of a common donation source and for the specific use of the proposed options
Outline of the criteria for a legal structure of a blind trust
EU regulation on related areas
EU health strategies.
Output
Empirical evidence
The present report is the output of Task 1, dealing with the above-mentioned
areas.
1.2 Contribution to the Study

This report will build the foundation of task 2 and 3. Therefore, the three options of a blind trust within voluntary and not for profit public health
activities
will be formulated in the context of the empirical evidence presented in this
report. This means that the differences between the options will mainly be
based on differences in voluntary and not for profit health activities,
organisations and legislation.
1.3 Structure of the report

The report includes the following chapters:
Chapter two discuss the need of a blind trust
Chapter three gives an overview of different trusts across the EU and
other relevant countries and the type of donations they receive.
Chapter four describes the methodology and data; and explains our
data
sources, and analytical approach
Chapter five presents the data deriving from the literature review
Chapter six elucidates comparative analysis of selected regions
Chapter seven presents the legal framework of EU according to voluntary and non-profit organisations and possible legal regulation.
Chapter eight elaborates conclusions on the present report based on the

literature review and the feasibility study. Furthermore, the results of
Task 1 which obviously feed into Task 2 and 3 are demonstrated.
In
6 recen
focus on
Europe
due to a
2
The need for funding
arrangements for
voluntary and not
for profit public
health activities
Ways to obtain
funding for
voluntary actors
and trusts, respectively
Why a blind trust?
number of persons suffering from a poor health condition. Simultaneously,

the demographic changes show a huge increase in the amount of elderly
citizens. The main health determinants are smoking, physical inactivity,
nutrition, alcohol e.g. According to WHO 70% of all deaths in 2020 are due
to an inactive lifestyle in the western countries. Furthermore, the inequality in
health across Europe is obvious e.g. life expectancy varies from 65.3 years in
Lithuania to 79.5 years in Iceland. Even in Europe where most countries offer
universal health care systems, large groups face significant barriers to equal
access to healthcare. Among those who face the lowest access to health care
are disadvantaged communities and vulnerable population groups such as
low-income groups, migrants and children. Despite these dramatically
changes in health and demography the public funding in health is scarce. This
situation challenges the public health systems in all European countries.
Therefore, the voluntary public health sector has an important role to play in
the public health care sectors across Europe. This indicates the importance of
investigating and developing the funding arrangements for voluntary and not
for profit public health activities at EU level.
Various funding arrangements are available for both voluntary actors and
trusts, respectively. According to voluntary actors the aim is to receive money
for being able to run public health activities. Whereas according to a trust
the aim is to be able to run a trust which among others fund actors to run their
activities. In both cases funding can derive from various sources, later in this
report three main categories of revenues are categorized:
Government support: revenues from state and municipalities grants contracts and reimbursement schemes (public contribution)
dues
companies
If voluntary actors are directly funded a risk of conflict of interest arise.
This claims for establishing a blind trust.
7
To avoid conflict of interest between the beneficiaries and the investments a
Conflict of interest
blind trust is recommended. Donors in sensitive positions often place their
personal assets or investment income into blind trusts, to avoid public
scrutiny and accusations of conflicts of interest when directing funds to
specific areas. In a blind trust the trust board (fiduciaries) have been given
power of attorney, they have full discretion over the assets, and the
beneficiaries have no knowledge of the holdings of the trust and no right to
intervene in their handling. In general, the beneficiaries are unaware of the
specific assets in the trust.
Blind trusts It is therefore the interest of both voluntary actors and trusts to establish a blind trust to
increase the envelope in the voluntary public health sector. Blind trusts
exist in many variations which create experiences for establishing a blind
trust within the area of public health at EU level.
Inventory of different trusts across the EU

and other relevant countries
3
different aims
A high number of trusts and foundations are present in Europe. None of them
are the same; they have different visions, missions, objectives, economical
situations etc. They provide services to donors, beneficiaries, make grants,
and undertake leadership and partnership activities to address a wide variety
of need.
Income from donors
Every trust or fund is dependent on donors. The income from donations

decide the activity the trust are able to run and the number and amount of
grants which can be distributed. The type of donations is of special interest
when founding a new trust because it reflects the viability of the trust.
Different trusts have
Type of donations
Table 5-1 shows a selection of trusts across Europe and other relevant
countries and the type of donations they receive. It is evident that most of the
trusts receive Earned income as the most important income source. This
primarily derives from investment income and partly income from sales.
About half of the trusts' receive income from at least two different sources
e.g. Earned income and Philanthropy and one even receives income from all
three economical sources. In one case (Vrdal Fonden) the trust received
Government support for the establishment of the trust; thereafter the primary
source derives from Earned income. It is notable that only two trusts' receive
income from only philanthropy. Though, this is in agreement with the
findings in chapter 3 showing that the lowest share of revenues derives from
philanthropy.
In Appendix 1.1 the 32 trusts mentioned in Table 5-1 are further described according to their area of interest, goal, mission, vision and grants as far as it is
possible to obtain this information. The trusts described represent different areas, some covering several countries, and they obtain income from different
sources as also shown in Table 5-1.
Trust /foundation
Aga Khan Foundation
(Switzerland)
Type of donations
Trust /foundation
Type of donations
Lilly Endowment
Philanthropy/Earned
Government supincome
port/Philanthropy/Ear (US)
ned income
Mott Foundation (US) Philanthropy/Earned
Barnardos (Australia) Earned income
income
Berantungstelle fr
Unfallverhtung
(Switzwerland)
Bertelsmann Foundation
(Germany)
Earned income/Philanthropy
Pew Charitable Trusts Philanthropy/Earned

income)
Earned income
Nuffield Foundation
(UK)
Earned income
Bill and Melinda

Gates Foundation
(US)
Earned income
Robert Woods Johnson Foundation (US)
Earned income
Calouste Gulbenkian
Foundation (Portugal)
Earned income
Rockefeller Foundation (US)
Earned income
Carnegie Endowment
(US)
Government support/philanthropy
Roi Baudouin Foundation (Belgium)
Philanthropy/Earned
income
Ditchley Foundation
(UK)
Philanthropy
Sasakawa Peace
Foundation (Japan)
Philanthropy/Earned
income
Esmee Fairbairn
Foundation (UK)
Earned income
Forebyggelsesfonden (The
Prevention Fund) (Denmark)
Philanthropy/Earned
Schwab Foundation
income
for Social entrepreneuership (Switzerland)
Government support Skoll Foundation (US) Earned income
Foundation ONCE
(SPAIN)
Friedrich-EbertStiftung (Germany)
Heinrich-BoellStiftung (Germany)
Joseph Rowntree
Foundation (UK)
Knut och Alice
Wallenbergs Stiftelse
(Sweden)
Earned income
Soros (Open Society)

Foundation (US)
Government support Trygfonden (Denmark)
Philanthropy/Earned
income
Earned income
Government support Vrdal Fonden (SweGovernment support/

den)
Earned income
Earned income
Philanthropy
Wakfs (Muslim Charitable Foundation)
Earned income
Welcome Trust (UK) Earned income
10
Laerdal fonden (Norway)
Earned income
W. K. Kellogg Foundation (US)
Philanthropy/Earned
income
Table 5-1 Selected trusts and their type of don
Methodology and data of the review
Review
The following review clarifies and analyses the voluntary and nonprofit activities in the field of public health across Member States and
Anglo-
11
Literature review
Analysis - based on
the Johns Hopkins
University Comparative Nonprofit Sector
Project
America. Furthermore, the level of funding followed by practices for the

operations and the role of not for profit and voluntary organisations in the
different types of societies is identified.
The following analysis are based on a review of literature generated by
d
scholars related to the research network around the John Hopkins University e
Compara- tive Nonprofit Sector Project (JHU project).The analysis partly
f
derives from a number of comparative analyses based on the JHU-data base i
on organisation of and volunteering in the non-profit voluntary sector; and n
partly the national case studies performed in connection to the JHU project of i
the European countries selected for detailed description in chapter 4 of this t
report.
i
The comparative data on the scope, composition and structure of the non-o
profit, voluntary sector in Europe used in this report have been generatedn
.
through the
Johns Hopkins University Comparative Nonprofit Sector Project (JHU
project)
covering about 40 countries. Consequently, the definitions and terminology
developed in the JHU project are used. For some of the countries, the
survey of the non-profit sector took place already in the early 1990s e.g.
the UK, Ger- many and Hungary. For other countries the survey has first
been carried out in recent years e.g. Portugal, Belgium and Denmark.
Furthermore, for some of the frontrunner countries the non-profit sector
project has been repeated, and for these countries a longitudinal database
exists e.g. Sweden, Norway, and Italy.
4.1 Approach
Five characteristics
of the voluntary
sector
According to the criteria used in the Johns Hopkins University Comparative

Nonprofit Sector Project (JHU project), the voluntary sector (non-profit
sector)
can be defined by five characteristics:
Firstly, the sector consists of organisations - i.e. the entity is an 'institutionalised reality'. This may take the form of legal status, or of organisational
perma- nency, with ongoing activities, formal objects, structures and
procedures (e.g. written statutes), frequent meetings, an address or meeting
place, as well as meaningful cut-off points from the activities of the rest of
society. As a result,
ad hoc groups and temporary unions and gatherings do not comply with this
12
Secondly, the organisation is to be private/non-governmental , i.e. the

organisation is not part of or controlled by the public sector, and the organisation is
in- stitutionally separate. This criterion does not, however, prevent the
organisation from taking on work on behalf of the public sector or deriving
the majority of their finances from the public sector.
Thirdly, the organisation is to work
not-for profit, i.e. generating a
profit, either
directly or indirectly, is not a primary objective and commercial targets and
considerations do not guide the organisation. Any form of accumulated
surplus
must be used for the objectives of the organisation and not be distributed
among
the owners, members or board of directors.
Fourthly, the organisation is to be self-governing, i.e. be in charge of its own
affairs and not controlled by other organisations. This part of the definition is
similar to point 2, but also includes the possible control over an association
or institution by an establishment or a national organisation. Even though no
organisation is totally independent of others, the organisation must control
its own management and operations. This does not, of course, prevent
national organisations and other organisations from making demands on the
organisation, for example, but in principle it has decided for itself whether
it wants to be member of a national organisation, which activities it wants to
be involved in, who the members of the board are to be, the nature of its
statutes, etc. The self- governing principle, however, does not concern the
way the organisation was formed, the degree of public regulation of activities
or dominant external sources of income.
Fifthly, participation in the organisation is non-compulsory, i.e. membership/participation and any financial contributions or work are voluntary, and
that voluntary, unpaid work is also performed in the organisation. This does
not stop voluntary organisations undertaking tasks that make membership in
them necessary in order to practise a profession; but as long as membership
is not a
condition for citizenship the organisation is still considered voluntary.
Association
4.1.1 Forms of voluntary, non-profit organisations

The voluntary, non-profit sector consists of two main types of organisations:
An association is normally defined as a union of people - or a union of
organisations - with a common aim or common interests, organised and
managed by ordinary democratic rules and procedures (sometimes also
named clubs and societies). This organisation form emerged in the beginning
of the 1800s and differed from pre-modern associations by
being formalised (typically with written rules),
having members
being a defined interest community,
being open to everybody (in principle)
Private foundation
and self-governing
institution
having voluntary work

In many countries, the legal basis for associations is formed by the
Constitution Act. Associations account for the majority of non-profit
organisations.
Common to a 'private foundation', a 'self-governing institution', a 'public
benefit corporation' and a 'charitable trust' is the fact that, unlike associations,
they do not have members. Common to these types of organisations is that
the organisation owns itself so to speak (it has no owner)
there is no other owner than the 'purpose', which has to be of public utility
(or charity)
foundations have an asset designed for at specific purpose
any surplus is earmarked for the purpose, and in case the institution is
dis- solved, the property is also owned by the 'purpose'
In many countries, these non-profit organisations or institutions are
typically regulated by special legislation and have to be entered in a
separate database.
Voluntary activities
defined in three
sectors
4.1.2 Types of voluntary, non-profit organisations in the field of

health and prevention
In this report, activities related to the field of health and prevention are
broadly defined. The analysis of the voluntary non-profit organisations
includes three different sectors: health, social services and culture and
recreation. In all three sectors some type of health-related and preventive
activities takes place.
In the overview to follow, a detailed description of the different types of
activities taking place in these sectors is provided. Due to restrictions in
available data, it is not possible to obtain data on such a detailed level at the
cross- national level. Most available data are simply overall figures for the
three main sectors.
Organisations involved in health and health promotion.
The primary goal of these organisations is treatment and care, health pro
motion and dis
easefighting activities (representing and working for people with specific
diseases).
Hospitals and re
Nonprofit private hospitals, nursing homes etc.
habilitation cen
Voluntary associations supporting private and public hospitals, nurs
tres
ing homes etc.
Associations and nonprofit institutions involved in ther
apeutic care (nature cure centres, yoga clinics, etc.)
Nursing homes,
Voluntary associations supporting nursing homes, homes for disabled
homes for dis
people etc.
abled
Mental health and Associations and non
having
1
structur
3
decision
p
r
o
fi
t
i
n
s
ti
t
u
ti
o
n
s
f
o
r
t
r
e
a
t
m
e
n
t
o
f
m
e
n
t
a
ll
y
il
l
14
crisis intervention
patients
Associations and nonprofit institutions
ntion (in
cludes suicide prevention and suppo
ssault and
Other health ser
Associations for public health promotion
vices
cation (in
cludes first aid training, family plann
Diseasefighting associations (e.g. Canc
he Association
of Rheumatism, the Brain Association
n of Mental
Illness)
Primary health organisations
Associations for the disabled and handic
Associations for donors (for instance blo
Relief work associations
Adoption and Society
Temperance societies
Nonprofit institutions and organisations
and medical
service (e.g. ambulatory services, pa
gency care,
Organisations involved in social services and activities.
The primary goal of these organisations is welfare, development, recreati
onal activities etc.
for specific groups in society (children, families, elderly people, refugees e
tc.).
Associations and nonprofit institutions for
Child welfare, child services and day care
Youth welfare and youth services (including youth centre
s, pregnancy
prevention services, job programmes for young people
Family services. Includes family violence shelters and ser
vices, family care, family education etc.
Elderly. Provision of geriatric care, meal programmes et
c, Red Cross visitors etc.
Marginalised groups (poor people, homeless people
, refugees) Income support
Selfhelp
Other personal social services
Organisations involved in recreation and sports

The primary goal is typically to practice and to promote a specific leisure
and sports activ
ity. These organisations typically consist of members with an interest in a
particular activity
that is cultivated jointly by the members. They are not usually concerned
with other activi
ties or goals. Health and health promotion are in most of these activities s
ide effects.
S
p
15
National organisations or local associations
Different kinds of sports (football, gymnastic, rowing, te
nnis, horse riding, rollerskating etc.)
Physical fitness (including nonprofit fitness
centres)
Dance (folk dance, modern dance, ethnic d
ance etc). Walking, hiking, marching etc.
Handicap sport
Workplace sport and exercise
Sport and training facilities
Financial support to a sports club
Other recreational
and social clubs
Organisations, associations and nonprofi

r
Leisure and recreation for children (inclu
WCA, boy
scouts and girl scouts)
Recreation and leisure activities for adu
Facilities for recreational and leisure act
g playground
associations, country clubs, touring c
4.2 Data description and availability

Data from the Johns
Hopkins University
Comparative Non-
Focus of the data

profit Sector Project
16
sent a dual system with both private and public organised social services
and the conditions for access are defined based on labour market
affiliation. The Continental European countries are in our analysis divided
into two groups,
A detailed analysis
of the selected
countries
mainly because of a marked difference in the importance of volunteering in

social services, which are significantly higher in the Benelux countries
compared to Germany, France and Austria. In addition to these two systems
the Southern European countries can be separated due to the fact that the
private provision of social services are dominant, and the welfare system can
be characterised as sub-protective meaning that the system is fractured and
highly restricted in coverage. The Central European countries which
previously were assigned to a universal system for social service have been
forced to demolish this system due to economical constraints. Today the
system in many Central European countries is highly fractured and poorly
financed reflecting limited access to services. Finally, the Anglo-American1
countries are characterised by a market- oriented approach to the welfare
system embedded on individual insurance based organisation of the welfare
provision. For each cluster of countries a number of countries representing a
typical configuration of the non-profit voluntary sector in the region have
been selected (see e. g. Boje 2008; Esping- Andersen 1990 & 1999; Gallie &
Paugam 2000). In the comparison, marked differences were found between
the regions, both in the level of non-profit involvement in society as such
but also in the way non-profit activities are supported by citizen
involvement and by the government.
Furthermore, a more detailed analysis of six countries representing the
selected European regions is presented. For each of the countries concerned
Denmark, Portugal, Germany, Belgium, Hungary and the United Kingdom
the non- profit, voluntary sector is analysed in a historical perspective, within
the present legal framework and according to the organisational structure of
the sector, the financing of the sector and the level of professionalisation. In
the country-level analysis the focus is on information related to the three
sectors covering health and prevention
The term Anglo-american is in this context the cultural sphere shared by the UK,
the US, and sometimes English Canada.
1
revie
7
inven
The aim
chapter
the impo
non-pro
institutio
The importance of
the non-profit sector
in provision of welfare
Structure of the
chapter
5 Presentation of data based on literature

and volunteering in the provision of welfare in particular social services
and health. The complementarity between public welfare institutions and
non-profit institutions in providing social welfare is important in
understanding the formation of the welfare system. In the comparison data from the
Johns
Hopkins
University Comparative Nonprofit Sector Project was used.
The decisive dimension in determining the composition of the workforce in
the non-profit and voluntary sector in paid and voluntary unpaid work seems
to be the level of involvement of non-profit organisations in the provision of
welfare services. The more involved the non-profit sector is in providing
welfare services in a given country, the higher is the proportion of paid work
compared to the unpaid, voluntary workforce, and the more professionalised
and formalised the non-profit organisations tend to be. The Nordic countries
can illustrate this assumption. Here the majority of the non-profit labour force
is voluntary unpaid work. In Norway and especially Sweden the public
sector government and municipalities provide welfare services, while it is
primarily in culture and recreation, in advocacy organisation and other nonservice producing sectors that the non-profit and voluntary organisations
play a significant role. The picture is completely different in countries like the
Netherlands, Portugal and Germany where the provision of welfare services
health, education and social services plays a significant role in the nonprofit and voluntary sector and where paid work dominates.
The comparison of a selected number of European countries includes a comparison with the Anglo-American countries the US and Canada. The
chapter firstly looks at the size of the non-profit sector, the composition of
the non- profit workforce and the importance of the non-profit welfare
services in the European countries. Next, the size of non-profit expenditure is
described in relation to the total national product, the non-profit sector
revenue and its composition. Finally, the sectoral composition of non-profit,
voluntary organisations is explored in terms of both work force and revenue.
18
5.1 The size of the Non-profit Voluntary Labour Force

Voluntary, unpaid work and paid work
Significant differences in the level of
non-profit labour in
the selected regions
and countries
Non-profit labour differs widely in the selected countries. It ranges from

more than 15 per cent of the total economically active population in the
Netherlands to less than 1 per cent in Hungary. Looking at the four
represented regions, the total non-profit labour force is biggest in the AngloAmerican countries, followed by the Continental European countries and
Scandinavia. The non-profit labour force represents the lowest proportion of
the total, active population in Central Europe. However, the composition of
the non-profit sector differs markedly between the countries. In the AngloAmerican countries, the predominant proportion of the non-profit labour
force is paid employees while voluntary, unpaid work plays a minor role. The
same is even more pronounced in continental Europe, while the opposite
situation occurs in the Scandinavian countries where voluntary, unpaid work
dominates. These differences in the division of the labour force between paid
and unpaid work indicate variations among the countries in two respects.
First, the importance of the non-profit sector in the production of welfare
services, which typically requires a large-scale paid labour force, secondly
the level of professionalization in the non-profit sector.
19
Table 5-1 The workforce in the non-profit sector for selected countries as a percentage of the economically active population divided into paid
work unpaid voluntary work and calculated in Full-Time
Equivalents (FTE)
Country
Paid workforc
e (FTE)
Scandinavia
Denmark (2004)
Unpaid Volunta
ry
Workforce (FTE)
Total workforc
e in the non
profit sector
3.9
3.1
7.
Sweden (2002)
2.6
7.4
Norway (2004)
30
5.1
10
0
8.
Continental
Europe
Germany (1995)
3.5
2.3
5.9
France (1995)
3.7
3.7
7.6
Austria (1995)
Benelux
Belgium (2001)
3.8
1.1
4.9
8.6
2.3
Netherlands
(2002)
Southern Europe
Italy (1999)
9.3
5.8
2.3
1.5
Portugal (2002)
Central Europe
2.8
1.1
10
9
15
1
3.
8
4.
0
Hungary (1995)
0.9
0.2
Czech Republic
(1995)
AngloAmerican
The UK (1995)
1.3
0.7
0.
8
2.
0
4.8
3.6
8.
The US (1995)
6.3
3.5
9.
Canada (2002)
8.4
2.7
Scandinavian
countries
2.7
3.7
11
1
6.
Continental
Europe
5.5
2.3
7.
Central Europe
0.8
0.4
1.
AngloAmerican
5.2
3.0
8.
Source: The Danish figures are calculated based on figures provided from the national population
survey 2004, SFI and Statistics Denmark: Survey of National Account 2003. For other countries
figures are from the John Hopkins Non-profit Sector project
Note: All workforce figures are excluding religious worship organisations and estimated in FullTime Equivalents (Denmark 1650 hours)
20
Differences between
Scandinavian countries
A closer look at the composition of the voluntary workforce in the different

countries reveals differences between the Nordic countries. In both Sweden
and
Norway, the large majority of work done in the non-profit organisations is
voluntary, while the paid work dominates in the Danish non-profit sector. The
composition of the non-profit, voluntary workforce in Denmark is thus more
similar to that of Germany and the Netherlands than that of the Nordic countries. The non-profit sector in Denmark is more professionalised than in the
other Nordic countries but less so compared to countries such as the Netherlands, Germany, and Portugal. Professionalization is in this context defined
by
the amount of paid labour in relation to the voluntary, unpaid workforce
active
in the country see Table 5-2.
Person in paid
labour (FTE)
Persons in unpaid
voluntary work (FTE)
Level of
professionalisation
Paid labour/Total labour force (FTE)
Sweden (2002)
99,000
351,000
Norway (1997)
66,243
115,229
France 974,867 1,114,816

UK (1995)
1,473,443
Germany 1,480,850 1,211,474
Denmark (2004)
140,620
1,664,003
110,041
47
47
55
56
Netherlands (1995) 669,122

Czech Republic
Spain 475,179 253,599
Portugal (2003)
425,554
78,200
159,950
45,400
67,342
65
70
Belgium 358,853 100,686

Austria 150,425 40,686
Hungary 45,101 10,187
Source: Danish figures have been calculated based on data from the national population survey as
well as from the Statistics Denmark's National Account Survey of Non-profit Institutions (2003). For
other countries figures are from the John Hopkins Non-profit Sector project, and Michael H. Hall,
Cathy W. Barr et al., 2005; Raquel Campos Franco et al., 2005).
The more involved

non- rofit sector; the
higher proportion of
paid work in the
Nordic countries
The decisive dimension in determining the composition of the workforce in

the non-profit and voluntary sector in paid and voluntary unpaid work seems
to be the level of involvement of non-profit organisations in provision of
welfare services. The more involved the non-profit sector is in providing
welfare services in a given country, the higher is the proportion of paid work
compared to the
21
unpaid, voluntary workforce, and the more professionalised and formalised
the non-profit organisations tend to be. This assumption is true for the
Nordic countries. In Norway and especially in Sweden the public sector
government and municipalities provide the welfare services, while it is
primarily in culture and recreation, in advocacy organisation and other nonservice producing sectors that the non-profit and voluntary organisations
play a significant role see Table 5-3.
Table 5-3 Labour forc

selected
countries
Countr
y
e composition in the non-profit welfare sector in
Nonprofit welfare l
abour
force in % of total n
ational
labour (FTE)
Paid work in % of tot

al non
profit welfare labour
force (FTE)
Scandinavia
Denmark (2004)
Sweden (2002)
Norway (2004)
Continental Europe
Germany (1995)
France (1995)
Austria (1995)
Benelux
Belgium (2001)
The Netherlands
Southern Europe
Italy (1999)
Portugal (2002)
AngloAmerica
The UK (1995)
The US (1995)
Source: JHU Database and ILO Labour Statistics Database. Sivesind data for Norway and national
reports for Sweden,, Portugal and Belgium.
Note: The welfare sector consists of health, education and social services
The picture is completely different in countries such as the Netherlands, Germany and France or the Anglo-American countries where a significantly
larger proportion of the production of welfare services health, education
and social services is undertaken by organisations in the non-profit,
voluntary sector. The Danish welfare sector is also characterised by a
relatively large proportion of self-owner, non-profit organisations primarily
in the provision of educational and social services. In Denmark, the
workforce composition thus resembles that of the Continental European
countries rather than that of the other Nordic countries.
22
All countries show

higher level of professionalization in
health, education,
and social than the
rest of the non-profit
sector
The non-profit
workforce holds different
work occupations
The assumption of a higher level of professionalization in non-profit

organisations producing welfare services is substantiated by looking at the
composition of the workforce in the non-profit, voluntary welfare sector
health, education and social services. In the non-profit welfare sector, all
countries display a higher level of professionalization than the rest of the
non-profit sector see Table 5-2 and Table 5-3. In Denmark, the non-profit
voluntary workforce as a whole is divided into 56 per cent paid voluntary
work and 44 per cent unpaid, voluntary work. In the non-profit welfare
sector, the distribution is 85 and 15 per cent respectively. For the
Netherlands, corresponding figures are 61 per cent involved in paid and 39
per cent in unpaid, voluntary work for the total non-profit sector, but 76 and
24 per cent respectively, in the non-profit welfare sector.
5.1.1 Type of activities and composition of work force in the nonprofit sector
The non-profit workforce performs many different functions. In the John
Hop- kins Nonprofit Sector Project these functions are divided in two main
groups:
Service activities
involve the delivery of direct services such as
education,
health, housing, economic development promotion etc. Most of these
services are provided by the three welfare sectors education, health
and social services.
Significant differences in the

composition of
unpaid labour
force in selected
countries
Expressive activities involve those activities that provide cultural, spiritual

profession or policy values, interests, and beliefs. Here, cultural institutions, recreation groups, professional association, advocacy groups,
human rights groups, social movements, and political organisations etc
are included.
As can be seen from Table 5-4, there are vast differences in the composition
of the voluntary unpaid labour force among the selected countries. In the
Scandi- navian countries, about half of the voluntary work is done in the
culture and recreation sector while the welfare sectors only represent 10-15
per cent of the voluntary work. In the continental European countries, the
welfare sectors, account for the majority of the voluntary, unpaid work
while the expressive activities represent about one-third of the voluntary,
unpaid work. Germany deviates from the pattern with a large proportion of
voluntary work performed by religious institutions, but the overwhelming
proportion of religious, voluntary activities are related to service production.
The same is the case for the two Anglo-American countries where welfare
services also account for the majority of voluntary activities. For the other
types of activities only voluntary work among Scandinavians through
professional organisations and unions plays a significant role.
selec
2
cent
3
Table 5-4
The composition of the non-profit work force by sector in the
Denmark
Swed
en
Norwa
y
Germa
ny
Netherla
nds
Belgiu
m
Ital
y
Portug
al
Hunga
ry
Czec
h
Repub
lic
Unite
d
Kingdo
m
A.
work
Unite
d
Stat
es
Culture and
recreation
Education and
Research
49
51
51
33
36
33
37
12
30
40
21
14
Health
11
Social services
21
55
21
38
32
15
13
25
Environme
nt
2.
-
Development
and Housing
Civic activities
and Advocacy
Philanthropy
12
13
2.
-
2
71
International
activities
Religion 6
Professional org.
and Unions
Not Classifi
ed
Tota
l
11
2
19
3
8
2
2
11
16
10
13.
10
0
10
0
10
0
B.
10
0
- -
1
10
33
32.
0
10
0
10
0
100.
31
- 10
0
Norwa
y
4
2
10
0
100.
The Paid workforce
Denmark
Swede
n
Germa
ny
Netherla
nds
Belgiu
m
Ital
y
Portug
al
Hunga
ry
Czec
h
Republ
ic
Unite
d
Kingdo
m
Unite
d
Stat
es
Culture and
recreation
27
12
12
38
29
24
Education and
Research
36
21
23
11
27
39
20
10
14
40
22
Health
30
42
30
21
13
46
Social services
28
14
27
50
13
13
Environme 0
nt
7
Developme
Civic activ
ities
and Advoc
Philanthrop
1
y
18
24
38
19
11
11
2
6
0
2
1
6
1
3
1
10
0
5
0
2
2
13
4
7
1
7
10
10
International
activities
Religion
Professional org.
and Unions
Not Classified
Tota
l
9
14
2
10
0
2
1
1
0
15
15
10
0
0
10
0
1
2
4
2
10
0
0
5
2
6
10
0
0
1
10
0
0
5
9
4
6
10
0
10
0
0
16
12
100
0
10
0
10
0
10
0
Source: The JHU-database and country reports from the individual countries: Denmark, Sweden,
Portugal and the Netherlands.
24
Turning towards the paid work done in the non-profit sector, the provision of
Paid work in the
welfare services plays an even more dominating role. In the Scandinavian
non-profit sector
plays a dominate role countries, about half of the paid workforce is employed in the welfare sectors
mostly in education and social services while the Scandinavian non-profit
health sector is very small measured in paid and unpaid activities. In addition
to the non-profit welfare sectors, paid work in Scandinavia plays an important
role in the sector of professional organisations and unions a corresponding
trend is found in the Central European countries.
Among the continental European countries, the non-profit welfare sectors are
completely dominated by a paid labour force. In these countries, health and
social services alone account for more than 50 per cent of the paid
workforce. If education is added to these sectors, the figure is close to 80 per
cent or more. The same pattern is found in the US, where the health sector
alone nearly represents half of the paid labour force. In the UK, the pattern
is different in that, the health sector is public with universal access to health
services. The non-profit sector has only marginal impact on healthcare as is
the case in the Scandinavian countries. Instead, it is the British school system,
which constitutes a dominant factor in the non-profit sector.
The economic impact of the non- rofit

sector
Measuring
the
economic impact
5.2 The composition of the non-profit sector by sector

the economic impact of the sector
So far, the cross-country comparison has focused on the size and
composition of the labour force in the non-profit sector. In the following, a
more detailed description of the economic importance of the non-profit
sector is provided, including an overview of the sector's methods of
attracting financial resources.
5.2.1 The financial importance of the non-profit sector
expenditure and revenue
The economic impact of the non-profit and voluntary sector can be measured
in many ways. In the following, two measures will be reviewed (1) the
amount of expenditure in the non-profit sector as a percentage of the total
Gross Domestic Product (GDP) and (2) the non-profit sector revenue and its
sources indicating the importance of the different actors in supporting the
non-profit and voluntary organisations. With respect to the economic
importance of the non-profit sector to the national economy, almost the same
pattern can be identified as was the case with the size of the non-profit labour
force. The Netherlands and Belgium rank highest followed by the AngloAmerican countries and then the Scandina- vian countries see Table 5-5.
Table 5-5
Na-
Expenditure in the non-profit sector as a percentage of the Gross

tional Product in selected countries.
Country
% of GDP
Scandinavia
Denmark (2004)
Sweden (2002)
Norway (2004)
Continental Europe
Germany (1995)
France (1995)
Austria (1995)
Total Nonprofit Expenditure as
6.6
4.1
3.7
4.0
3.8
Source: T
and count
the indiv
Denmark,
Portugal,
Netherland
3.0
Benelux
Belgium (2001)
Economic importance of the nonprofit is usually

pro- portionate with
the size of the
sector
8.4
2
Netherl
5
15.5
Souther
Italy
3.1
Portuga
4.2
Central
Hungary
2.8
Czech
5)
1.7
AngloA
The
6.8
The
7.5
The economic importance of the non-profit sector tends to be strong in countries where it runs a significant proportion of the welfare services. In the
Neth- erlands and Belgium, the non-profit sector dominates in the provision
of elderly care and care for pre-school children. In the US, it is primarily in
provision of health care that the non-profit sector plays a major role. The
economic size of the non-profit sector in Scandinavia is similar to the
Continental European countries but with a different composition. Again, the
Danish non-profit and voluntary sector differs from the other Scandinavian
countries and is in size more similar to the Anglo-American countries.
The main reason for the relatively high level of expenditure in the Danish
non- profit and voluntary sector is the strong involvement in the provision of
welfare services. The two sub-sectors of welfare provision education and
social services account for about half of the total expenditure in the nonprofit sector. In Danish education and social services non-profit organisations
the self- governing institutions the activities of providing services play a
major role. In Norway and Sweden, these types of non-profit organisations
barely exist, and
26
the overwhelming proportion of welfare services is, as mentioned above,

provided through the public welfare sector.
Various sources for

the non-profit sector
revenue
Most revenue comes

from earned income
5.2.2 Type of activities and distribution of revenue in the

non- profit sector
The revenue of the non-profit and voluntary organisations comes from many w
different sources such as sales of goods and services, membership dues, in- e
vestment income, donations from individuals, foundations and companies
l
and government support, which includes grants, contracts and
f
reimbursement of services provided.
a
r
In this chapter, revenue is divided into three main categories:
e
Government support: revenues from state and municipalities grants con- s
tracts and reimbursement schemes (public contribution)
e
r
dues
v
i
c
companies
e
s
.
In terms of total revenues in the non-profit sector, income from sales of services and membership dues is the dominant source of revenue in most countries. It is only in the continental European countries and in Benelux that government subsidies account for more than half of the total income. In the Scandinavian countries, more than half of the revenue comes from self-generated
income, while the public support accounts for 40 per cent of the total
revenue. Philanthropy only plays an insignificant role in generating income.
Public resources constitute an even lower proportion in the South and
Central European countries. Not surprisingly, the same pattern applies to the
US where philanthropy instead represents a significant proportion of the
revenue.
A comparison of the Danish welfare system with foreign welfare systems reveals that the Danish nonprofit sector relies more on government support than
in the other Nordic countries but less so compared with the continental European welfare systems Germany, the Netherlands and France. Denmark's
position is in between these welfare systems, primarily because of the
important role of the self-governing institutions in providing education and
27
Table 5-6
Country
er cent
Total revenue in
millio
ns
Composition of revenue in the non-profit sector in selected countries by

categories
Total revenue in
per ce
nt
Composition of revenue sources in p

Governm
ent
Philanthr
opy
Earned Inc
ome
Scandinavia
Denmark 2004
Health
Culture etc.
Social Services
Total
Sweden 1992
Health
Culture etc.
Social Services
Total
Norway 1997
Health
Culture etc.
Social Services
Total
Continental
Europe
Germany 1995
Health
Culture etc.
Social Services
Total
France 1995
Health
Culture etc.
Social Services
Total
Austria 1995
Health
Culture etc.
Social Services
Total
1,833
11,797
15,204
105.162
1.7
11.2
14.5
100.0
13
25
75
40
41
20
4
7
1,702
14.487
4,859
62,716
2.7
23.1
7,7
100.0
87
25
71
29
1
12
10
9
3,230
7,693
5,292
43,875
7.4
17.5
12.1
100.0
82
29
66
35
4
13
2
9
47,566
12,232
35,929
137,567
34.6
8.9
26.1
100.0
94
20
65
65
0
13
5
3
41.675
44.356
94.089
290.080
14.4
15.3
32.4
100.0
80
30
58
57
6
5
5
8
11.279
7.024
32.478
68.252
16.5
10.3
47.6
100.0
76
33
44
47
0
0
8
6
4
6
5
5
2
1
5
3
1
2
6
3
2
0
6
2
1
4
5
8
3
2
5
6
6
6
6
3
0
3
2
1
3
6
5
3
6
3
4
2
4
6
7
4
7
4
7
28
Country Total revenue in

n per cent
Total revenue in
Composition of revenue sources i
millions
me
Benelux
Belgium 1995
Health
292,423
Culture etc.
56,109
Social Services
92,450
Total
758,052
Netherlands
1995
Health
27,318
Culture etc.
5,976
Social Services
13,082
Total
98,110
Southern Europe
Italy 1999
per cent
Government Philanthropy
Earned Inco
38.6
7.4
12.2
100.0
81
41
66
76
1
12
12
5
1
7
4
7
2
2
1
9
27.8
6.1
13.3
100.0
96
27
66
58
1
8
3
3
3
6
5
3
1
3
8
Health
Culture etc.
Social Services
Total
Portugal 2002
Health
Culture etc.
Social Services
Total
Central Europe
Hungary 1995
Health
Culture etc.
Social Services
Total
Czech Republic
Health
Culture etc.
Social Services
Total
13,752,333
12,718,207
14,631,395
73,116,866
18.8
17.4
20.0
100.0
71
25
42
36
2
2
5
3
974
304
2,240
5,672
17.2
5.4
39.5
100.0
82
25
42
36
3
2
5
3
5,791
53,791
21,654
181,917
3.2
29.6
11.9
100.0
31
23
46
27
41
20
23
19
3,236
6,938
2,321
24,175
13.4
28.7
9.6
100.0
57
42
50
39
14
13
19
15
2
7
3
5
3
6
1
1
6
7
3
5
3
6
1
2
8
5
7
3
1
5
4
2
9
4
5
3
1
4
6
29
Country Total revenue in

n per cent
Total revenue in
Composition of revenue sources i
millions
me
AngloAmerica
The UK 1995
Health
1,661
Culture etc.
7,135
Social Services
5,006
Total
51,351
The US 1995
Health
297,525
Culture etc.
26,146
Social Services
39,686
Total
631,599
60 per cent of revenues to non-profit

sectors come from
public sources in the
EU
per cent
Government Philanthropy
3.2
13.9
9.7
100.0
38
14
39
45
23
2
31
11
47.1
4.1
6.3
100.0
41
7
37
27
5
50
20
21
Earned Inco
4
0
8
4
3
0
4
3
5
4
2
4
3
5
1
Looking at the EU countries as a whole, revenues from public sources

represent nearly 60 per cent of the total revenues of the non-profit sector. This
indicates the important role that non-profit institutions have in the continental
European countries as the provider of welfare services. Among the three
sectors represented in Table 5-5 health, culture and recreation, and social
services, public resources are especially important in the non-profit health
services. In this sector, 80 per cent or more of the revenues comes from all
Continental European countries including the Benelux countries. The same
pattern is found in Central Europe and Norway and Sweden, but in these
countries the heath sector only represents a small proportion of the total nonprofit economy.
Overall, philanthropy
In the international Johns Hopkins Study, activities classified under philanplays a minor role
thropy are donations from individuals, foundations and private companies.
Ex- cept in the US, this type of revenues only account for an insignificant
part of
the total non-profit revenue in all countries. In Central Europe philanthropy
also represents a relatively high proportion, but again overall figures are small.
In the continental European countries enjoying an extended welfare system,
non-profit institutions play a major role and their provision of services is
heavily subsidised by the government. In the Nordic countries, excluding
Denmark, welfare services are provided through public institutions, and nonprofit institutions do not play a significant role. In the Anglo-American
countries, such as the UK and Canada, with a relatively large welfare sector, a
significant proportion of the non-profit revenue originates from the
government to education and health while the US non-profit sector has the
lowest proportion of its revenue from government, but strongly relies on selfgenerated income and philanthropy. Philanthropy plays a minor role in all
developed countries except in the US where more than one fifth of the
revenue comes from philanthropy. In Scandinavia, philanthropy accounts for
about 7-9 per cent, and its significance is even lower in the welfare
partnership countries Netherlands and Germany.
30
The share of funding

deriving from earned
income, government
support and philanthropy in the different
country groups,
respectively.
The structural organisation of the welfare systems are roughly the same as
the organisation of health system and services, except for the US and
England where a marked difference exists. In the Anglo-American countries
represented by the UK and The US we find a similar pattern in the size of
the non- profit, voluntary sector and its composition, the importance of paid
work in the non-profit sector etc. However, when it comes to the structuring
of the health sector the two Anglo-American countries differ radically. In the
UK the health sector is primarily public organised while it in the US is
characterised by a high proportion of private organisation. The access to
health services also differs between the two countries. In the UK we find
universal access to health services relatively low-cost while access to
qualified health services in the US is determined by individually based
protection via health insurance. This difference between the organisations
of the health sector can also be registered in the economic importance of the
non-profit health sector in the US which is much bigger than in the UK.
Figure 3-1shows an overview of how the non-profit and voluntary organisations obtain their funding from Government support, earned income and
philanthropy, respectively. The percentage demonstrates weighted averages2
in relation to population size. It is evident that philanthropy represents the
lowest per cent of revenues in each sample of countries. There is no clear
picture of which source is representing the highest revenue. In Continental
Europe and Benelux it is government support whereas it is earned income in
Scandinavia, Southern Europe, Central Europe and Anglo-America.
The distribution of the various revenue sources in the country groups is estimated
based on weighted averages. The countries have different population sizes (number of
inhabitants) and are therefore weighted according to the number of inhabitants in the
calculation of the weighted averages.
31
Fig. 3-1 The share of funding deriving from earned income, government support
and philanthropy in the different country groups, respectively.
Government support,
philanthropy and
earned income in the
US compared to
Europe
In the US most of revenues derive from philanthropy compared to Europe (74

% vs. 26 %; Fig. 3-2). In contrast most revenues in Europe derive from government support compared to the US (68 % vs. 32 %; Fig. 3-2). Comparing
the US and Europe according to revenues deriving from earned income it
presents about half of the revenues (51 % vs. 49 %; Fig. 3-2).
Fig. 3-2 Government support, philanthropy and earned income in the US compared
to Europe
32
The highest share of revenues derives from earned income in the US (52 %)
whereas it derives from government support in Europe (50 %). In both the US
and Europe the smallest share of revenues derives from philanthropy (Fig. 33). Though, in the US 21 % of the revenues derives from philanthropy which
is three times more than the share of philanthropy in Europe (7 %).
Source of revenues
in the US and
Europe, respectively
Fig. 3-3 Sources of revenues in the US and Europe, respectively.
3
3
Comp
analy
regio
The aim of this chapter is present and to compare the voluntary, non-profit
sector in five regions in Europe represented by five countries.
Scandinavia: Denmark
Continental Europe:
Germany
Benelux: Belgium South Europe:
Portugal East / Central Europe:
Hungary
Anglo-American: UK.
For each country, the following elements have been included:
- a brief description of the history of the voluntary sector
- organisational features of the voluntary sector with focus on the public
health activities
- financing of the voluntary sector with focus on the public health activities.
6.1 Denmark3 4 5
History and legal
framework
Three factors have formed the voluntary sector in Denmark. The adoption of
a democratic constitution adopted in 1849 that made it possible for a civil
society to flower. Now, citizens could freely join organisations, unions and
associations and new communities gradually replaced the traditional
networks, bonds and safety nets, and it became possible to distinguish
between the public and private sectors. The 1849 Constitution guaranteed
citizens rights, and associations were formed in almost every sphere of
society.
The emergence of the popular movements in the late 19th century, e.g. the
farmers' movement, the labour movement, the mission movement, the
temperance movement and the popular sports movement increased.
3
Ibsen, Bjarne and Habermann, Ulla (2005). Definition af den frivillige sektor i
Danmark. www.frivillighedsus.dk
4
Boje, Thomas P.; Fridberg, Torben and Bjarne Ibsen. Den frivillige sektor i
Danmark omfang og betydning. Socialforskningsinstituttet (SFI). 2006
5
Ibsen, Bjarne; Boje, Thomas P. and Fridberg, Torben (ed.). Det frivillige
Danmark. Syd- dansk Universitetsforlag.
34
Number of voluntary
actors increased
since the 1980s
Organisational features of the voluntary

sector with focus on
the public health activities
Finally, the formation of the welfare state has influenced the voluntary
sector. From the early 1930s the public sector gradually assumed
responsibility for social work, and relations between the two sectors were
either distant or closely integrated. This differs from the culture and leisure
areas, where the voluntary organisations retained the initiative and
responsibility and, despite growing public-sector funding, associations and
organisations managed to retain a great deal of autonomy and an
independent identity. The welfare project has created a form of welfare
identity, which for decades has had a tendency to obscure the fact that cooperation between the state and the voluntary sector was relatively close
throughout the 20th century. The voluntary sector has developed in parallel and apace with the rest of society and is, in addition, still engaged in dialogue with the welfare state. Roughly speaking, involvement has progressed
from charity and education, to promoting particular interests, to participation
in civil society. The process has not been without its battles, however, and
the voluntary organisations have sometimes had difficulty identifying their
roles.
Since 1980, the number of voluntary associations and organisations increased
massively in Denmark. Concurrently with the change of government in the
early 1980s, this also meant that political interest in the area increased, and
ideological and financial doubts began to arise about whether the welfare
state was able to take care of everything. At one stroke, the voluntary sector
was endowed with greater ideological legitimacy and therefore greater
public-sector support but also greater public-sector scrutiny and control.
Various forms of cooperation, as well as experimental and development
programmes, were established to support co-operation between the public
and voluntary sectors. In the late 1990s, this resulted in social legislation (the
Danish Social Service Act, 1998), under which local authorities were
instructed to co-operate with voluntary organisations. In many cases, this
resulted in an 'instrumentalisation' of the associations, which became more
and more involved in the production of welfare and were expected to fill the
role of trustworthy partner.
In a study from 2004, the number of non-profit institutions and organisations
in Denmark was estimated to approximately 101,000. Of these, local and
regional organisations comprise the vast majority, with more than 83,000
entities. It is estimated that there are approximately 6,200 public utility funds;
just fewer than 8,000 self-governing institutions; and approximately 3,000
national organisations.
Compared with the other areas of the voluntary sector, organisations involved
health activities
are - centralised with relatively many organisations at
the national level and few organisations at the local level. The local associations
and the self-governing institutions constitute only 3 per cent of the total
number of locally oriented voluntary organisations. Among the national
organisations they comprise approximately 10 per cent. Among the national
organisations there are many small organisations devoted to the health of
people with less common diseases and few big organisations (for instance the
Cancer Association and the Association of Rheumatism).
35
Organisations involved in social work and assistance have a stronger position U
at the local level accounting for 6 per cent of the total number of local
n
associations and 30 per cent of the total number of self-governing
i
institutions. At the national level, these organisations make up 4 per cent of v
all national organisations.
e
Organisations involved in social

work and assistance
Organisations involved in recreation

and sports
The financing of the

non-profit voluntary
health activities
Professionalization
of the non-profit
sector
History and legal

framework
Organisations involved in recreation and sports also have a strong position at

the local level. At this level, sports associations and leisure and hobby
organisations make up 25 per cent, and 18 per cent respectively of the total
number of local associations. Among the self-governing institutions, these
organisations account for a smaller part (13 and 3 per cent respectively). At
the national level the voluntary sector constitutes a smaller part of the total
number of organisations than at the local level, but some of the
organisations are very big (first of all sports organisations).
r
s
i
t
y
.
Income from sales of services and membership fees is the dominant source of
revenue for the Danish non-profit and voluntary sector at large as it is for
most other countries included in the JHU study. More than half of the revenue
comes from self-generated income, while public support accounts for 40 per
cent of the total revenue and philanthropy only plays a minor role in
generating income in the Danish non-profit sector. The Danish non-profit
health sector is very small as it accounts for less than 2 per cent of the total
non-profit income, and a significant proportion of its income originates from
philanthropy nation-wide collections and gifts while government transfers
are small.
The non-profit sector in Denmark is thus more professionalized than in the
other Nordic countries mainly due to the large number of self-governing
institutions in social services childcare and special care institutions and
educational establishments private primary schools and adult education.
Still the Danish non-profit sector is less professionalised compared to
countries such as the Netherlands, Portugal and Germany, countries which
are all characterised by a large non-profit care sector.
6.1.1 Portugal6
The size of the voluntary sector is on the same level as in Italy and Spain
(approximately 4 per cent of the economically active population). One of
the ex- planations to the small voluntary sector in Portugal (compared with
northern European countries) is the relatively recent transition from
authoritarian regimes, which were hostile to civil society.
The composition of the voluntary sector also diverges from the average
voluntary sector (among the countries in The Johns Hopkins Comparative
Non-profit Sector study). The social service component of the voluntary
sector in Portugal is twice the average in all other countries studied. The
health service compo6
Franco, Raquel Campos; Sokolowski, S. Wojciech; Hairel, Eileen M. H.; Salamon,
M.
The Portuguese Nonprofit Sector in Comparative Perspective. Johns Hopkins
Lester
36
nent is, however, of minor importance. This is explained by the fact that
healthcare is almost exclusively provided by the public sector.
Analyses of the Portuguese voluntary sector explain these features with four
impulses through history:
First, the Roman Catholic Church has had an enormous impact on the development of the voluntary sector in Portugal spiritual (embraced in the
doctrine
of 'works of mercy') as well as institutional (among others hostels, houses for
poor, children's hospitals for abandoned children and Holy Houses for
Mercy
founded in the 15th century).
Second, a tradition for mutualism, cooperation and solidarity has existed
since
the 12th and 13th centuries. For instance, craft co-operations designed to
preserve the interests of the members of a particular profession, self-help
organisations to assist people (by disasters) and later also workers' associations safeguarding workers' interests and rights. Mutualism, historically evolved
around
the principles of democracy (one man, one vote), freedom (according to
which
anyone is free to join the mutualism movement or leave it), independence
(each
organisation must maintain its autonomy) and solidarity (promoting the
wellbeing of the members without the individual profit motive) 7 .
Third, both the Church and mutualist organisations had to take shape within
an
environment characterised by governmental dominance. This dominance was
particularly strong between 1926 and 1974 under the Salazar corporative
(fascist) regime based on the idea of a society organised into interest-based
pillars
supporting the political regime (only one organisation for each
pillar/interest).
The creation of other free associations and federations was prohibited. As
a
consequence, the fascist regime resulted in a decline of non-profit
organisations
in general and mutualism in general.
Finally, the democratisation of Portugal since the beginning of 1970s
unleashed
a revival and strengthening of civil society and the voluntary sector, and the
remnants of earlier civil society organisations played an important role in
this
development. The adoption of the Constitution of the Portuguese society in
1976 re-established the freedom of speech and association. This led to an explosion of associative movements concerned with every aspect of social life.
Four historical impulses
37
Organisational feaThe analyses of the voluntary sector in Portugal lack analyses of the number G
tures of the voluntary of voluntary organisations total and in different fields of society. This part e
sector with focus on of the description of the voluntary sector in Portugal is therefore based on the r
the public health ac- analy- ses of the figures of the workforce in the voluntary sector.
m
tivities
a
The analyses indicate that the social service part of the voluntary sector in
Por- tugal is proportionately larger than elsewhere in Europe (60 per cent of
the total workforce in the voluntary sector); the healthcare part is very small n
and was almost excluded by the absorption of the non-profit hospitals in the
y
mid-1970s (2 per cent of the total workforce); and that the share of
.
recreational organisations and institutions is also proportionally small
compared with other Euro- pean countries (25 per cent of the total
T
workforce).
h
non-profit voluntary The Portuguese non-profit sector generates most of its revenue from earned e
sector with focus on income fees and services - and very little from philanthropy. This is
J
similar to the Danish case. In addition to this, both countries have a
health activities
relatively small non- profit health sector, but when it comes to financing of o
health services the two countries differ radically. The Portuguese non-profit h
health sector accounts for nearly one-fifth of the total non-profit revenue,
n
and the health sector generates the majority of its revenue from government s
transfer.
Level
of
H
professionPortugal
ranks
relatively
high
in
terms
of
professionalization
in
the
non-profit
alization
o
sector as such, but low in terms of professionalization in the welfare sector.
p
The explanation might be that a lot of welfare services are provided through
k
the Catholic Church and on a voluntary basis.
History and legal

framework
i
n
s
6.1.2 Germany8
In Germany, the voluntary sector or non-profit sector is not understood as a
single institutional sector or entity neither in legal and economic discourse
nor in everyday language. Different terms are used to refer to the
organisations located between the state and the market: 'Vereine' and
'Verbnde' (= associations), 'gemeinntzige Organisation' (public benefit
organisations), 'gemein- wirtschaftliche Unternehmen' (communal economic
corporations) and 'Organi- sationen ohne Erwerbszweck' (non-profit
organisations).
According the Constitution, all Germans have the right to found
associations and societies. Associations may be registered or not registered.
The registered associations become a legal personality endowed with its
own legal rights. To register, an association must pursue a non-commercial
objective, and have at least seven members, a charter and a board.
The voluntary sector in Germany is a result of three crucial principles
that shaped the modern voluntary and non-profit sector in Germany.
Anheir, Helmut K and Seibel, Wolfgang (1993): Defining the Non-profit Sector:
U
n
i
v
e
r
s
i
t
y
.
The principle of self-administration that originated from the 19th century
confl
3
the
sta
8
citizenry
allowed
develop
profit organisations in a state that had only a partially granted freedom of

association.
The principle of subsidiarity assigns priority to private, non-profit provision
of welfare over the public provision of welfare and social services. Under
this principle, the state acknowledges the self-administration and selfgovernance of non-profit organisations while at the same time guaranteeing
these organisations financial support.
The principle of Gemeinwirtschaft (communal economics), which was
based on the search for an alternative to both capitalism and socialism led
to the development of a cooperative movement as well as mutual
associations in the banking and housing industries.
Organisational feaSince the unification in 1990, the number of registered voluntary associations d
tures of the voluntary in Germany has expanded 9 from approximately 286,000 to approximately i
sector with focus on 450,000 in 1995. In the mid 1990s, approximately 40 per cent of the
e
the public health ac- workforce in the voluntary sector worked for organisations and institutions s
tivities
involved in social work and assistance (27 per cent if voluntary work is
.
included). Com- pared with other European countries, employment in the
healthcare sector constitutes a large share of the total workforce in the
voluntary sector, approximately 30 per cent (22 per cent if voluntary
employment is included), but has decreased since 1990 where the
employment in the voluntary sector accounted for 35 per cent. In several
areas of welfare services, the voluntary 'production' makes up at significant
part of the total production, including 42 per cent of all hospital days and 60
per cent of nursing homes. The most prominent non-profit areas are
residential care and homes for infants, children, youth, elderly etc., where
church-related welfare activities have a prominent position present. Nonprofit welfare institutions are often perceived as quasi-public rather than truly
independent institutions with a high degree of public funding.
Compared with the Scandinavian countries, the voluntary sector in culture,
recreation and sports is small. Employment in culture and recreation only
accounts for 5 per cent of the total workforce in the voluntary sector (20 per
cent if voluntary employment, which largely is due to volunteering in sports
(25 per cent of the population is a member of a sports club), is included) 10 .
Anheir, Helmut K. and Seippel, Wolfang: The Nonprofit Sector in Germany.

Johns Hopkins Nonprofit Sector Studies.
10
Priller, Eckhard; Zimmer, Annette; Anheir, Helmuth K.; Toepler, Stefan and
Salamon,
Lester (1999): Germany: Unification and Change. in Salamon, Lester M.; Anheir, Helmuth
K.; List, Regina; Toepler, Stefan; Sokolowski, S. Wojciech and Associates. Global Civil
Society: Dimensions of the Nonprofit Sector. Johns Hopkins Center for Civil Society StuO:\A005000\A008601\Grafik\1101_old\@_Projekter\DG-SANCO_flyttet til 1114\Final_Report_Blind_trust\Appendix 1- TASK 1 Marts_FINAL.docx

health activities
39
Together with Belgium, Germany has the largest non-profit health sector
among the European countries included in this study. More than one-third of
the total revenue created in the non-profit sector goes to health, and this
revenue is almost entirely provided through government transfers 94 per
cent. To- tally, the German non-profit sector receives two thirds of its income
from the government with the health sector as the most extreme case. A
significant proportion of German healthcare is provided through non-profit
institutions but paid in full by the government. The public sector is the
dominant provider of funding for non-profit organisations. It includes 'grants
and subsidies', reimbursement schemes and indirect support (tax exemption
and use of public of publicly owned facilities free of charge).
As long as an organisation meets certain standards as prescribed in the
relevant legislation, it has a legal claim for public funding. However, this
kind of funding restricts the governments' ability to control the
implementation of policies. The trend is therefore towards more flexible
forms of support (contracts, project support). In Germany, support from the
public sector through intermediary organisations also takes place. Such
organisations receive funding from government resources but the
distributive decisions are made in relative independence of the funding
agency.
Level
professionalization
History and legal

framework
of
The level of professionalization in the German non-profit sector is similar to

the Danish level 55 per cent of the workforce is remunerated. This indicates
both that a significant level of professional staff in the non-profit welfare
sector but also that the voluntary element is large in other parts of the nonprofit sector religion, which to some extent is mixed with social services,
and culture & recreation, in which one third of the total unpaid work takes
place.
6.1.3 Belgium11
Compared with other European countries, Belgium has a large voluntary,
non- profit sector. Only the Netherlands has a bigger non-profit sector.
Researchers explain that by
1 the development of the welfare state with centralized public action and institutions
2 the principle of subsidiarity that implies a delegation of public services to
non-profit organisations
3 the division of the country in socio-political 'pillars'. On the one hand, associations connected to the socialist movement supported the establishment of public institutions, and on the other hand, Christian
organisations that have defended the right to provide collective services
outside the public sector.
Mertens, Sybille; Adam, Sophie; Defourny, Jacques; Mare, Michel; Pacolet, Jozef;
Van
de Putte, Ilse: Belgium. In in Salamon, Lester M.; Anheir, Helmuth K.; List, Regina; Toepler, Stefan; Sokolowski, S. Wojciech and Associates. Global Civil Society: Dimensions of
the Nonprofit Sector. Johns Hopkins Center for Civil Society Studies.
11
40
Organisational feaIn 1995, it was estimated that approximately. 50,000 voluntary associations
tures of the voluntary operated in Belgium. This figure only includes formally registered
sector with focus on associations and organisations. 41 per cent of the non-profit associations
the public health ac- were primarily active in culture and recreation. Only 12 per cent were
tivities
active in social services and 4 per cent in health.
One third of these associations employed paid staff. The paid workforce in
the non-profit sector was estimated to 359,000 full-time jobs, and the
voluntary work was estimated to 101,000 full-time equivalents.
Approximately 50,000 of the paid jobs are in the health area. There are only
approximately 450 voluntary jobs in the area. Volunteering has almost no
importance in the healthcare sector in Belgium. In the field of social services,
the corresponding figures are approximately 50,000 and 55,000.
Volunteering in the social sector constitutes 55 per cent of all voluntary work
in the country. In culture and recreation, the majority of the work is done by
volunteers: There are approximately 17,000 paid full-time (equivalent) jobs
and 33,000 voluntary full-time (equivalent) jobs in culture and recreation. In
1995, the non-profit hospitals covered 66 per cent of 'days at hospital' and 23
per cent of numbers of homes for elderly.
health activities
While volunteering in Belgium is low in the health sector, the sector

disposes of nearly 40 per cent of the total non-profit revenue which is
primarily government transfers for managing care of the elderly and
significant parts of the hospitals. As in Germany, these services are
provided by non-profit organisations but paid by the government, and the
organisations are staffed by paid employees.
Level of professionalization
History and legal

framework
In Belgium, the level of professionalization is for the total non-profit

organisations at level with most other continental European countries due to the
large
involvement of non-profit institutions in the provision of welfare services.
On
closer scrutiny, the Belgian welfare sector has a high proportion of professional staff and a tradition for social services where voluntary activities are
much more widespread which displays differences in comparison with
6.1.4 Hungary12 13
Despite a long-standing Communist regime, Hungary has a developed voluntary sector as a product of a long tradition for voluntary institutions before
the Communist party took over.
The communist regime halted the development of the voluntary sector by
ban- ning most of the voluntary organisations. The right of associations and
foundaSebestny, Istvn; Kuti, va; Toepler, Stefan and Salamon, Lester: Hungary. in in
Salamon, Lester M.; Anheir, Helmuth K.; List, Regina; Toepler, Stefan; Sokolowski, S. Wojciech and Associates. Global Civil Society: Dimensions of the Nonprofit Sector. Johns
Hopkins Center for Civil Society Studies.
13
Kuti, va: The nonprofit sector in Hungary. Johns Hopkins Nonprofit Sector
Studies.
12
41
tions was denied. In 1956, the revolution failed, but it was followed by a
more flexible system of state-socialism with more freedom, reforms, gradual
changes and a more tolerant government attitude towards voluntary
organisations and civic initiatives. The rehabilitation of the civil society was
long underway before the collapse of the communist regime. One of these
steps was the rehabilitation of foundations in 1987. In 1989, the voluntary
organisations were numerous and widespread enough to become important
actors of the political change. The same year the Parliament passed the Law
on Association, which guarantees the freedom of association.
Organisational feaDuring the 1990s, the number of organisations tripled, and new legal forms t
tures of the voluntary of organisation created: public foundations, public benefit companies, h
sector with focus on public law associations and voluntary mutual insurance funds. In 2006, 52 e
the public health ac- per cent of the voluntary organisations were membership organisations, and
tivities
36 per cent were foundations.
Compared with Scandinavian and continental Europe the size of the
voluntary sector in Hungary is small, but compared with other countries in
Central and Eastern Europe it is relatively large. In 1995, employment in the
voluntary sector corresponded to 1.6 per cent of the total employment
force in Hungary.
In 1995, the total number of associations in Hungary was estimated to approximately 27,000 and the number of foundations to approximately
16,000.
Eleven years later, in 2006, the number of membership organisations and
foundations had increased to approximately 36,000 and 22,000 respectively.
Culture, recreation and sports account for the largest share of the non-profit
activities, with approximately 40 per cent of the non-profit employment in
2006. Sports accounts for 12 per cent, which is a decrease from 22 per cent in
1993; culture accounts for 11 per cent (10 per cent in 1993) and recreation
and hobby for 17 per cent (13 per cent in 1993). This field of the non-profit
sector was among the few areas that were tolerated and even encouraged by
the Commu- nist state. Before 1990, these organisations accounted for about
two third of the employment. At that time, the non-profit organisations
accounted for 75 per cent of the employment in the sports area and 84 per
cent in the area of recreation and other leisure activities.
Financing of the
health activities
In contradiction to culture and recreation, the field of social services and

health activities makes up a only a small part, one fourth of the voluntary,
non-profit employment in Hungary. This reflects perhaps a general
greater willingness of Hungarians, and other Eastern and Central Europeans
to rely on the state to provide social and health services. In 1993, four per
cent of the associations were health associations and eight per cent social
activity organisations. In
2006. the share was five and nine per cent respectively.
In Hungary, as in all the Central and East European countries, the non-profit
sector is very small and does not have much impact on social life as such.
Within the non-profit sector, the health services only accounts for three per
cent of the total revenue. Most of this revenue originates from philanthropy in
42
form of gifts and funding from foreign donors. Less than one third comes
from the government and earned income respectively.
Just as the size of the non-profit sector is limited in Hungary, so is the level c
of volunteering. Only 0.2 per cent of the economically active population are i
involved in voluntary work. It also means that the predominant proportion e
of work in the non-profit sector is done by paid employees, and Hungary has t
the highest level of professionalization of all the selected European
y
countries. Non- profit activities are paid by foreign donors and done by
professionals. In the post-communist period, the civic organisations have
S
encountered major trouble because they were considered the extended arm of t
the former regime.
u
Level
professionalization
History and legal

framework
of
6.1.5 The United Kingdom14 15

The history of the voluntary, non-profit sector in the UK is described as one
of gradual secularisation and formalisation of traditions of philanthropy and
mutual aid. The formalisation and secularisation of philanthropy began in
the beginning of the 1600s in the wake of the religious upheaval of the
Reformation and a response of the economic and social change in the same
period. Acceler- ating industrialisation in the eighteenth and nineteenth
centuries, rapid population growth and the movement of a large part of the
population from the land to the cities increased the demands on both
philanthropy and the State. During this period philanthropic organisations
were formed by members of the middle class focusing on new needs and
bringing injustices to public attention. Many of the fields of activity,
developed in this period, remain important today, including social care
provision, public health, schools and adult educations, culture, environment
etc.
Mutual aid organisations for working class people were particularly
established in the latter part of the 19th century: bodies of people who
pooled their resources to create a fund for sickness, old age etc. Trade
unions, consumer co- operatives, building societies and housing societies
were also part of this trend. The profile of the non-profit sector was high in
the nineteenth century as a bul- wark against poverty combining the direct
provision of resources with its advocacy role.
In the twentieth century, many parts of voluntary actions were increasingly
being coordinated by umbrella groups such as local and national councils
for voluntary service, while State action was growing in importance. During
the Sec- ond World War a strong partnership of the State and voluntary
organisations developed. After the war, the adoption of the social legislation
in the 1940s changed the relation between the non-profit sector and the public
sector, which came to dominate the funding and provision of education,
health, social welfare
Kendall, Jeremy and Knapp, Martin (1993): Defining the Nonprofit Sector: The
United
Kingdom. The Johns Hopkins Comparative Nonprofit Sector Project.
15
Kendall, Jeremy and Almond, Stephen. United Kingdom. in Salamon, Lester M.;
Anheir,
Helmuth K.; List, Regina; Toepler, Stefan; Sokolowski, S. Wojciech and Associates. Global Civil Society: Dimensions of the Nonprofit Sector. Johns Hopkins Center for Civil So14
d
i
e
s
.
43
etc. Most voluntary sector hospitals were absorbed into the State sector.
Many voluntary sector schools maintained their voluntary status retaining
distinct identities and some autonomy, but nevertheless regarded as State
schools. But in each of these new fields of public activity, a small but
significant number of providers survived fully outside the mainstream
government system, funded mainly through private fees, and the voluntary
sector continued to be a key player in most social care activities,
particularly child care and care for elderly people. The welfare state
pioneers saw the non-profit sector in a role of com- plementing and
supplementing the universal welfare schemes.
The takeover from the State of the responsibility of welfare tasks did,
however, not marginalise the non-profit sector and parts of the sector were
invigorated by the reforms. In the 1950s and 1960s many new organisations
were formed, including self-help groups, aid agencies and lots of sports and
leisure associations. During the 1960s and 1970s, the voluntary
organisations continued to be at the forefront of social change. New
emerging problems, enhanced expectations of the public and the awareness
of the limitations of the public sector led to augmented funding of
community-based groups, service user organisations etc.
Into the 1990s, John Majors Government continued to promote the sector
with the implementation of the Charities Act 1992, the introduction of
further measures to facilitate charitable giving and through the
encouragement of contract- ing-out in fields where voluntary sector
providers co-exist with other sectors which has allowed both for-profit and
voluntary sector bodies to increase their shares in some industries.
Organisational feas
The voluntary, non-profit sector in UK consists of three types of
tures of the voluntary organisations:
e
c
the public health ac- The professional non-profit organisations with employed staff which are pro- t
viders of professional services. Local offices are typically run by the o
tivities
r
national organisations, which also raise funds.
.
Voluntary service organisations have professionally organised national headquarters, but autonomous local groups which raise their own funds and N
use volunteers.
u
m
Independent local community
groups are self-standing bodies with no b
head ofe
fice to provide support and the most important resources are voluntary r
work done by the members.
t
There are no figures indications the number of the three types of w
organisations as well as voluntary organisations in the different fields of o
society (culture, social service, health etc.).
w
Studies from mid 1990s estimated the contribution of the voluntary, nona
profit sector in UK to the economy to approximately 9 per cent of the GNP s
(including the value of volunteering). The largest field for voluntary action is
culture and recreation, where the total employment of professional and
voluntary work represented 22 per cent of the total employment in the
44
education with 21 per cent of the total employment, and number three was
social services, which represented 13 per cent of the total employment.
The employment in the field of health represented 7 per cent.
Among the Anglo-American countries, the UK deviates in terms of organisation and financing of the health sector. Where this sector in the UK is
primarily run by the public through the National Health Services (NHS) with
universal access to health services, the health sectors in the US, New Zealand
etc. are divided into a public sector and a non-profit/private sector. This
difference can also be seen from the proportion of finances allocated to the
health sector in the UK and the US, which is 3.2 and 47.1 respectively of the
total revenues allocated to the non-profit sector. The revenue in the UK nonprofit health sector is split on about 40 per cent from both government
transfers and from earned income and on 23 per cent from philanthropy.
The last figure indicates that a significant part of the UK non-profit health
sector is related to interest groups patient organisations, research centre etc.

health activities
Level
professionalization
of
In the UK, the non-profit sector is less professionalised than in most other
European countries outside Scandinavia. The voluntary unpaid labour is
higher than the amount of paid labour in the sector, which is only the case in
the Scan- dinavian counties except for Denmark. Religion, culture &
recreation followed by social services are the areas where most voluntary
work takes place in the UK. For the paid work, the dominating sector is
clearly education. The health sector only represents a tiny proportion of both
the unpaid and paid labour force.
EU legal framework
7.1 EU regulation of voluntary and non-profit

organisations
Laissez-faire apInstead of enacting a legal framework, the EU has adopted a laissez-faire
ap-
45
proach
Treaty basis for

Community competence over voluntary
organisations
proach towards the regulation and governance of voluntary and non-profit

organisations. Thus, the legal enablement of these bodies occurs in the
national legislation of Member States. This means that the regulation of
voluntary organisations that wish to work across a number of European
Member States is subject to different legislation. In some instances (e.g. in
the area of direct taxation), the EU lacks the competence to harmonise
national laws. In other areas, such as company law, the EU has legislative
competence to harmonise national laws but has chosen to exclude non-profit
organisations from the scope of its regulatory efforts. This means that the
current European legal regime prevents non-profit organisations from fully
enjoying the benefits of the common market.16
The Treaty basis for Council or Commission competence over non-profit organisations is limited. Notably, the right for non-profit organisations to enjoy
freedom of establishment in the territory of another Member State is limited
(cf.
Articles 43 and 48 para. 2 EU Treaty17 , see also Case C-70/95 Sodemare
SA
and Others v. Regione Lombardia [1997] 3 C.M.L.R. 591, 604).
The following Articles of the EU Treaty18 have been referred to as the legal
basis for Community competence over voluntary organisations:
Article 12 on the prohibition of discrimination on grounds of nationality
has applied in several cases (see, e.g., Case C-172/98, Commission of the
European Communities v Belgium [1999] ECR I-3999);
1
7
C
o
ns
ol
id
at
e
d
v
er
si
o
n
of
th
e
T
re
at
y
of
th
e
E
ur
o
p
ea
n
U
ni
o
n
1
8
Oonagh B. Breen, EU Regulation of Charitable Organizations: The Politics of

Legally
Enabling Civil Society The International Journal of Not-for-Profit Law, Volume 10, Issue
3.
June 2008
16
Ib
id
.
Article 95 that uses the co-decision procedure with the European

Parliament and requires only a qualified majority vote within the Council;
Treaty's objectives where the Treaty has not provided the Council with
the necessary powers.19
-4
allow
6
th
Minister
action to
Although the Treaty basis for Council or Commission competence over

non- profit organisations is limited, the ECJ has found non-profits to be
subject to Community law, in particular in the context of:
competition and state aid (see e.g. European Antitrust Review (2006) at
77);- labour law.
European Statute for
Foundations and a
European Statute for
Associations
In those two cases the non-profit organisations must apply EU law.20

One solution for facilitating non-profits that operate on a pan-European basis
could be the enactment of a 'European Statute for Foundations and a
European Statute for Associations'. These instruments would have transparent
and uni- form requirements in each Member State and thereby cut down on
the legal and administrative bureaucracy that non-profits endure in attempting
to open new branches or deal in Member States other than their founding
Member State. On 16 February 2009, the European Commission launched a
consultation process in order to seek views from interested parties on a
possible European Founda- tion Statute (EFS).21
Conclusions and the further work of the

study
8
from three different

sectors: health, social
services and culture
and recreation
The organized civil

society, its labour
force (unpaid and
paid) and its economic impact on the
national economies
The size of the nonprofit, voluntary

workforce
Ac 4
tiv 7
itie
s
der
ivi
ng
In this r
activitie
the field
and prev
defined
broadly, and includes in the analysis of the voluntary non-profit organisations

three different sectors: health, social services and culture and recreation. In all
three sectors some type of health related and preventive activities takes place.
In research on nonprofit organisations focus has primarily been on
participation and non-profit institutions meaning the formal aspects of civil
society. How- ever, the informal social networks and social contacts in local
communities and friendship circles are just as important for the cohesion of
the society and the integration of individuals but these types of activities are
normally not included in studies of the nonprofit sector.
This paper primarily relies on data from the Johns Hopkins University Comparative Nonprofit Sector Project (JHU project). The main focus has been on
the organized civil society, its labour force (unpaid and paid) and its
economic impact on the national economies. The focus on the formal
networks and organizations might partly explain why the nonprofit sector /
the organized civil society are significant lower in the Southern and
Central / Eastern parts of Eu- rope. This is countries where the informal
support systems through family, social networks and local community are
more widespread compared to Western Europe and especially in the
Scandinavian countries.
8.1
Conclusions
The size of the non-profit, voluntary workforce among the European/Western countries varies from a large non-profit workforce paid and
unpaid work in the Netherlands of 15.1 per cent of the economically active population to a small non-profit workforce of less than 1 per cent in
several of the Central and East European countries. The variation across the
countries not only concerns the size of the non-profit workforce but also its
distribution on paid and unpaid labour.
In the Scandinavian countries, the total non-profit labour force is relatively
large, but it is composed by a small paid non-profit staff and a large number
of voluntary activities. For nearly all other European countries, the relation is
the opposite. Denmark represents a slightly deviant case. In Denmark, there
is a higher level of non-profit involvement in the production of social
services social services and education than in the other Scandinavian
countries. To some extent, this pattern is resembles the situation in the con-
48
tinental European countries, which are all characterized by a non-profit

workforce dominated by paid labour. This is most obvious in Benelux and
Austria where the voluntary work account for less than one third of activities in the non-profit sector.
The composition and The decisive dimension in determining the composition of the workforce in
the involvement
the nonprofit sector in paid and unpaid, voluntary work seems to be the level of non-profit involvement in provision of welfare services. The more involved the non-profit sector is in providing health services in a given country, the higher is the proportion of paid work compared to the unpaid, voluntary workforce, and the more professional and formalized the nonprofit organizations tend to be.
The
publicly
financing
Volunteering and
prosperity
The organization
The relationship between the level of volunteering in non-profit

organizations and publicly financed welfare services confirms the thesis that
societies with a high degree of universalism in the provision of social
services and high social equality are also characterized by extensive social
networks, a high level of institutional trust and a significant level of
voluntary involvement. This thesis seems to be confirmed by the present
study.
s
o
c
i
a
l
s
t
r
u
c
t
u
r
e
The amount of volunteering and the prosperity of the non-profit sector seem
to be stimulated rather than restricted by highly developed and formalized
s
public welfare organizations, and the formal organizational basis for nont
profit activities seems to grow as a result of public support. The
i
Scandinavian countries and the Netherlands score high on both dimensions. m
These countries have a highly developed social welfare system and a high
u
level of membership in associative organizations combined with widespread l
volunteering. Furthermore, a relatively high level of publicly financed social a
services in Belgium, France and Austria was found, but in all three countries t
the level of volunteering is ree
stricted. In these countries the rate of membership in non-profit organizations
is
s
low but those who are members have a high level of volunteering. A large
o
number of non-profit organizations in these countries as well as in the UK
c
and Germany are involved in the production of social services elderly care i
and institutions for children but the costs of providing these services are
a
financed by the state. Furthermore, these social services are primarily
l
provided by paid labour employed by the non-profit organizations, and the
involvement of voluntary, unpaid labour is restricted.
Another important health dimension in determining the level of voluntary involvement seems thus to be the organization of the welfare system. A highly
organised and institutionalised health system tends to stimulate voluntary involvement and to increase the role of the non-profit sector. It may be
organised through the state apparatus as in the Social Democratic system or
through the corporative organisations as in the continental system. These
dimensions describing the welfare system concern primarily voluntary
work performed in the institutional framework of a non-profit organization.
Voluntarism performed as informal care for friends and family members
outside the household is high both in countries characterized by equalized,
social structures such as Social Democratic welfare systems where the equal

.
a4
9
Revenues according
to population sizes
Activity level
Type of organisation
The composition of
unpaid and paid
workforce
networking and close contact in the local community and in countries with
less developed system of social protection but characterized by a strong
familialism and patronage in the system of social network, which also
stimulate the informal support system but make it highly segregated.
There is not a clear picture of the sources from which the revenues originate.
Taking into account population size in the different countries most revenues
derives from government support in Continental Europe and Benelux
whereas it derives from earned income in Scandinavia and Southern Europe.
In Central Europe and Anglo America half of the revenues derive from
earned income. In all country samples philanthropy represent the smallest
share of the total revenues. In the US 21 % revenues derives from
philanthropy which reflect three times the share deriving form philanthropy
in Europe.
pub
lic
heal
th
sect
ors
and
cou
ntri
8.2 Results of Task 1 to feed into the following tasks of the es is
also
study
imp
The following five points represent the main elements extracted from Task orta
1 which we will build upon in the creation of different options of blind
nt
trust/foundations in the field of voluntary and not for profit voluntary
info
public health activities:
rma
The activity level within the nonprofit and voluntary public health sector tion
for example measured in terms of the amount of expenditures in the to
non- profit sector as percentage of the total GDP indicates possible hav
lack or further need of financial support to given nonprofit and e in
voluntary activities, and is therefore an essential element to include in min
d in
the creation of a blind trust/ foundation.
esta
This should be taken into account when looking into the particularly aim blis
as well as geographical coverage of the foundation, e.g. it could be an
hin
objective of a foundations to support a particular voluntary public
g
health activity in a geographical region with a historical low level of suchthe
activity.
pos
sibl
The type of organisations carrying out public health activities related to
e
particular target groups are also vital knowledge to use in building
fou
options of trust founds. Such organisations are for example on-profit
ndat
private hospitals, nursing homes, voluntary associations to support
ions
private and public hospitals, nursing homes, or associations and nonprofit institutions for therapeutic care (nature cure centres, yoga clinics, '
aim
etc.).
and
In relation to establishing a trust fund the particular type of organisations sele
and their target group, the fund is supposed to support will for example ctio
re- late to the fund's application criteria as well as their criteria for n
distributing funds.
crit
eria
for
The composition of unpaid and paid workforce in the different voluntary
50
the distribution of fund. The support of organisations based on unpaid or
paid workforce relates to not only the type of organisation but also the
type and size of target groups which are to be supported.
Likely types of donations
Legislation on EU
level
The level and type of financial donations presented in this report provides
a background of understanding the likely types of donations. This understanding can be used in the creation of a foundation. Basically, there are
three types of donations, earned income (e.g. memberships),
governmental support, and philanthropy (private donations). The smallest
share of donations derives from philanthropy in all countries. In the US
the share of philanthropy are three the size of the share in Europe.
It is also of importance in relation to the establishment of the blind trust to
acknowledge that there is no legislation on EU level towards regulation
and governance of voluntary and non-profit organisations. Therefore,
voluntary activities are subject to the national legislation of the country
in which the organisation is legally created and undertaking its activities.
Voluntary organisations that desire to work across Member States are
subject to different legislation. This legal issue will be incorporated in
our creation of different trust funds.
5
1
9
Anheier, HK and Seibel, W (1993): Defining the Non-profit Sector: Germany. The Johns Hopkins University.
Anheier, HK and Seippel, W (2001): The Nonprofit Sector in Germany.
Johns Hopkins Nonprofit Sector Studies.
Boje, TP (2008) Den danske frivillige nonprofit sektor i komparativt perspektiv. In Boje, Friberg & Ibsen (red.) Det frivillige Danmark.
Odense:
Syddansk Universitets Forlag
Boje, TP; Fridberg, T and Ibsen, B (2006): Den frivillige sektor i Danmark omfang og betydning. Socialforskningsinstituttet (SFI). (in
Danish)
Esping Andersen, G (1990): The Three World of Welfare Capitalism. London: Polity Press
Esping-Andersen, G (1999): The Social-economic Foundation of PostIndustrial Economies. Cambridge: Polity Press
European Council of Associations of General Interest
http://www.cedag-eu.org/index.php?page=european-statute-ofassociation&hl=en_US
European Foundation Centre, Proposal for a European Foundation Statute, January 2005, which remains open to either Article 95 or Article 308
as potential legal bases for the legal instrument.
Franco, RC; Sokolowski, SW; Hairel, EM.H; Salamon, LM (2005): The
Portuguese Nonprofit Sector in Comparative Perspective. Johns
Hopkins University
Gallie, D and Paugam S (2000): Welfare Regimes and the Experience of
Unemployment in Europe. Oxford: Oxford University Press
Ibsen, B and Habermann, U (2005): Definition af den frivillige sektor i
Danmark. www.frivillighedsus.dk (In Danish).
52
Ibsen, B; Boje, TP and Fridberg, T (ed.).(2008): Det frivillige Danmark.

Syddansk Universitetsforlag (In Danish).
Hall MH; Barr, CW; Easwaramoorthy, M; Sokolowski, SW & Salamon,
LM (2005): The Canadian Nonprofit and Voluntary Sector in Comparative Perspective Montreal: Statistics Canada
Measuring Civil Society and Volunteering, Initial Findings from Implementing of The UN Handbook on Nonprofit Institutions, Johns
Hopkins University 2007
Kendall, J and Knapp, M (1993): Defining the Nonprofit Sector: The
United Kingdom. The Johns Hopkins Comparative Nonprofit Sector
Project.
Kendall, J and Almond, S (2004): United Kingdom. in Salamon, Lester
M.; Anheir, Helmuth K.; List, Regina; Toepler, Stefan; Sokolowski,
S.
Wojciech and Associates. Global Civil Society: Dimensions of
the
Nonprofit Sector. Johns Hopkins Center for Civil Society Studies.
Kuti, (1996): The nonprofit sector in Hungary. Johns Hopkins Nonprofit Sector Serie:4.
Mertens, S; Adam, S; Defourny, J; Mare, M; Pacolet, J; Van de Putte, I
(2004): Belgium. In Salamon, Lester M.; Anheir, Helmuth K.; List,
Regina; Toepler, Stefan; Sokolowski, S. Wojciech and Associates. Global
Civil Society: Dimensions of the Nonprofit Sector. Johns Hopkins
Center for Civil Society Studies.
Oonagh B. B (2008): EU Regulation of Charitable Organizations: The
Politics of Legally Enabling Civil Society. The International Journal
of Not-for-Profit Law Volume 10, Issue 3.
Priller, E; Zimmer, A; Anheir, HK.; Toepler, S and Salamon, L (1999):
Germany: Unification and Change. in Salamon, Lester M.; Anheir,
Helmuth K.; List, Regina; Toepler, Stefan; Sokolowski, S. Wojciech and
Associates. Global Civil Society: Dimensions of the Nonprofit Sector.
Johns Hopkins Center for Civil Society Studies.
Sebestny, I; Kuti, ; Toepler, S and Salamon, L (2004): Hungary. in in
Salamon, Lester M.; Anheir, Helmuth K.; List, Regina; Toepler, Stefan; Sokolowski, S. Wojciech and Associates.
Global Civil
Society:
Dimensions of the Nonprofit Sector. Johns Hopkins Center for Civil
Society Studies.
Socialforskningsinstituttet, the national population survey 2004.
Statistics Denmark: Survey of National Account 2003.

.
53
.
Treaty of the European Union (Consolidated version)
European Commission Health and

Consumers Directorate-General

arrangements for voluntary
and not for profit public
health activities at EU level
Appendix 1.1
November 2009
COWI A/S
Tel +45 45 97 22 11
Fax +45 45 97 22 12
www.cowi.com


Appendix 1.1
November 2009
Document no.
Version
Date of issue
Prepared
Checked
Approved
Feasibility study on funding arrangements for voluntary and not for profit public health activities at EU level
Tabl
Cont
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21
1.22
1.23
1.24
1.25
1.26
1.27
1.28
1.29
1.30
Appendix - blind trusts

Aga
Khan
Foundation
(Switzerland) Barnardos (Australia)
Berantungstelle
fr
Unfallverhtung
(Switzerland) Bertelsmann Stiftung (Germany)
Bill and Melinda Gates Foundation (USA)
Calouste Gulbenkian Foundation
(Portugal) Carnegie Endowment (USA)
Ditchley Foundation (United Kingdom) Esmee
Fairbairn Foundation (United Kingdom)
The Prevention Fund (Denmark)
Foundation ONCE (Spain)
Friderich-Ebert-Stiftung (Germany)
Heinrich-Boell-Stiftung (Germany)
Joseph Rowntree Foundation (United Kingdom)
Knut och Alice Wallenbergs Stiftelse (Sweden)
Laerdal fonden (Norway)
Lilly Endowment (United States)
Mott Foundation (United States)
Pew Charitable Trusts (United States)
Nuffield Foundation (United Kingdom)
Robert Woods Johnson Foundation (USA)
The Rockefeller Foundation (USA)
Roi Baudouin Foundation (Belgium)
Russell Sage Foundation (United States)
Sasakawa Peace Foundation (Japan)
Schwab Foundation for Social Entrepreneurship
(Switzerland) 23
Skoll Foundation (United States)
Soros (Open Society Foundation) (United States)
Trygfonden (Denmark)
Vrdal Fonden (Sweden)
3
3
4
5
5
6
7
7
9
9
10
11
11
13
14
15
15
16
17
17
18
19
20
20
21
22
24
24
25
25
1.31 Welcome Trust (United Kingdom)

1.32 W.K. Kellogg Foundation (United States)
26
27
3
1
1.1 - b
trusts
1.1 Ag
Found
(Switz
Areas o
The Aga Khan Foundation focus is on a small number of specific
development problems. The foundation forms intellectual and financial
partnerships with organisations sharing the foundations objectives. The
following are the foundations focus areas:
Architecture
Civil society
Culture
Economic development
Education
Health
Historic cities
Humanitarian assistance
Microfinance
Music
Planning and building
Rural development.
Mission/vision
No vision or mission is clearly stated.
4
Grants
Most Foundation grants are made to grassroots organisations testing

innovative approaches in the field.
The foundation is the principal grant-making agency for social
development within the Shia Ismaili Imamat. His Highness the Aga Khan
is its founder and chairman. The founder provides the Foundation with
regular funding for administration, new programme initiatives and
contributions to its endowment. Funding sources also include income from
investments and grants from government, institutional and private sector
partners - as well as donations from individuals around the world.
1.2 Barnardos (Australia)

Areas of interest
The Barnado's foundation works in the following areas:
Child poverty
Education
Children in trouble
Sexual abuse
Sexual exploitation
Substance misuse
Homelessness
Children in care
Young carers
Advocacy
Domestic violence
Disability and inclusion
Fostering, adoption and short break care
Parenting support
Black.
5
Vision
Barnardos vision today is that the lives of all children and young people
should be free from poverty, abuse and discrimination. Barnardos believe in
the abused, the vulnerable, the forgotten and the neglected. The foundation
pledge to support them, stand up for them and bring out the best in each and
every
child.
Grants
The total amounts spend on charitable activities are 174.3 million in 2008.
1.3 Berantungstelle fr Unfallverhtung (Switzerland)

Areas of interest
The main areas of interest for the Berantungstelle fr Unfallverhtung
foundation is Accident Prevention in the sectors of road traffic, sport,
home and leisure. The areas of interest and activities:
Road traffic. The foundation promotes a safe traffic infrastructure and influences general legal conditions. It campaigns to reduce drink driving,
for the observation of speed limits and wearing of safety belts.
Sport. The foundation is engaged in ensuring safer sports areas and sports
equipment, a responsible individual approach to risk and the wearing
of protective gear.
Home and leisure. The foundations campaigns for safety inside buildings
(e.g. non-slip floors, balustrades) as well as outside (e.g. playgrounds).
It promotes product safety by regular market checks and the award of
the bfu safety label.
Mission
By means of accident prevention, the bfu wants to prevent deaths and
injuries and reduce the annual effective cost of 13 billion Swiss francs
caused by nonoccupational accidents.
Grants
Information not found.
1.4 Bertelsmann Stiftung (Germany)

Areas of interest
The Bertelsmann Stiftung is a private operating foundation and award grants
to projects that conceives, initiates and implements itself. The areas of
interests in
the foundation are listed below, and the areas of interest are elaborated
into several programs at the foundation's website.
Politics
Society
The Bertelsmann Stiftung is working to promote steady development that
leads to a sustainable society.
Objecti
Grants
The Bertelsmann Stiftung functions as a private operating foundation and it
carries out its own project work and does not make grants or support thirdparty projects.
In 2008 the Bertalsmann Stiftung program expenditures were at 57,490,000 .
1.5 Bill and Melinda Gates Foundation (USA)

Areas of interest
The Bill and Melinda gates Foundation make grants in three main areas:
Global Health Program, Global Development Program, and United States
Program. Each program includes a policy and advocacy team dedicated to
raising awareness of problems and solutions to motivate change. Their
work includes public affairs, to increase interest in the issues and strengthen
the voice of the public; grantmaking to organisations that support our
mission; and public education, to provide policymakers and others with
information on issues.
The three main areas of interest are as stated above:
Global Health Program
Global Development Program
United States Program.
school
a
7
life.
Mission
Grants
Guided by the belief that every life has equal value, the Bill & Melinda
Gates Foundation works to help all people lead healthy, productive lives. In
developing countries, we focus on improving peoples health and giving
them the chance to lift themselves out of hunger and extreme poverty. In the
United States, we seek to ensure that all peopleespecially those with the
fewest re- sourceshave access to the opportunities they need to succeed in
ments: $2.8 billion. For the three main areas of interest the Global Health
grants paid in 2008 was $1.8 billion, Global Development grants paid in
2008 was $462 million, and U.S. Program grants paid in 2008 was $170
million.
Total gr
commitm
inceptio
billion.
grant pa
1.6 Calouste Gulbenkian Foundation (Portugal)

Areas of interest
The Calouste Gulbenkian Foundation provides grants in several areas. The
activities are exercised not only in Portugal, but also in any other country
where its administrators deem it expedient. The areas of interest are:
Charity
Art
Education
Science.
Purpose
The purposes of the Foundation are charitable, artistic, educational and
scientific.
Grants
Grants, scholarships and prizes were at 23,583,133 in 2007. The
foundations own initiatives amounted to 26,028,133 in 2007.
1.7 Carnegie Endowment (USA)

Areas of interest
The Carnegie Endowment for International Peace is a private, non-profit organisation dedicated to advancing cooperation between nations and
promoting
8
econom
active international engagement by the United States. The foundation has

the following program areas:
develop
China
world.
Russia Eurasia
Goals (v
South Asia
The Car
Endowm
overarch
Middle East
Nonprofileration
1
improve
understa
United S
thinking
Democracy and the rule of law

Energy and climate
other countries and regions, thereby affecting American policy. Equally,
to develop deeper understanding abroad of U.S. thinking and to derive,
on both sides, a critical mass of research-based insights on vital issues.
2 To model and demonstrate - in microcosm - the approach we believe the
United States should be taking in its international relations and thereby
help develop a sustainable American role in the world, successful for
itself and for the world community.
3 To provide a model of how to do first-rate, independent policy research even in constrained political circumstances - and demonstrate how such
institutions can contribute to the strengthening of their governments
and societies.
Grants
It is not clearly stated how many projects the foundation has supported or
by which amount in total.
transatla
9
deed glo
There ar
approxim
conferen
1.8 Ditchley Foundation (United Kingdom)

Areas of interest
The Foundation convenes private and highly focussed conferences,
gathering senior international experts together to address issues of
Furthermore, the foundation promotes support through legacies as a longterm strategy to secure continuing financial health.
Thus, the above areas of interests are:
Conferences
Legacies.
Mission
No mission or vision is stated at the foundations website.
Grants (number of conferences)
Approximately twelve conferences are held per year. One conference is held
in the United States or Canada. The rest is held in United Kingdom.
1.9 Esmee Fairbairn Foundation (United Kingdom)

Areas of interest
The primary interests are in the United Kingdoms cultural life, education
and learning, the natural environment and enabling disadvantaged people to
participate more fully in society. The Esmee Fairbairn Foundation
supported projects in Scotland, Northern Ireland, Wales, England and UKwide in 2008. The following areas have received grants from the Main
Fund (based on the Annual Report 2008):
Arts, culture, heritage
Citizenship or community development
Education
Environment
Human rights, conflict resolution
Prevention or relief of poverty.
Aim
1
0
The aim of the foundation is to improve the quality of life for people and
communities in the United Kingdom both now and in the future.
The foundation funds the charitable activities of organisations that have
the ideas and ability to achieve change for the better.
Grants
In 2008 the Main Fund granted 267 projects in total 17,223,000.
1.10 The Prevention Fund (Denmark)

Areas of interest
The Danish Prevention Fund provides grants to projects in Denmark that
contribute in the following health areas:
Routines and working practices in workplaces that wears down the staff in
especially threatened industries and occupations as well as retention of
employees with poor health. Development of new technology is
included as well
Rehabilitation in municipalities
Health promotion at work.
Vision
The Board of Directors visions for the fund are:
that the number of people affected by wearing-down, absence from work
due to illness and awarded early retirement pension are decreased
more people experience good working conditions so that remain in work
rather than choosing early retirement
absence at work due to illness is reduced in companies
those who suffer from illness, an accident or work injury receive better
conditions and opportunities to get back in work faster.
Grants
In 2008 the foundation awarded 115 projects grants, and 238 million was
granted in support of programs and projects in the above presented areas of
activities.
Areas
1
o
1
1.11 Foundation ONCE (Spain)

All of the Fundacin ONCE's activities are aimed at contributing to
improving the quality of life of the disabled.
The Fundacin ONCE encourages other organisations and administrations to
take part in specific programmes aimed at providing equal opportunities for
the disabled. Hence, the foundation is actively taking part in the management
of the European Union's "Combat Poverty" action programme for the period
encom- passing 2000-2006.
At least sixty per cent of the Fundacin ONCE's resources are allocated to
promoting stable employment and training for the disabled, while the
remaining per cent is dedicated to programmes designed to achieve full
accessibility.
Mission and aim
All of the Fundacin ONCE's activities are aimed at contributing to
improving the quality of life of the disabled by providing them with stable
employment, improving their training and promoting the creation of
environments, products and services that are accessible by all.
The Fundacin ONCE's mission is four-fold:
1 Achieving the full integration and normalisation of the disabled in Spanish
and European society.
2 Helping to improve the quality of life of the disabled through the development of work integration, training and employment programmes.
3 Seeking global accessibility -understood as more than just the elimination
of architectural barriers for people with limited mobility- by
incorporating
the viewpoints of Global Accessibility, Design for All and
Self- Sufficiency.
4 Achieving effective equal opportunities to make the integration of the disabled into society a reality.
Grants
1.12 Friderich-Ebert-Stiftung (Germany)

Areas of interest
The Friedrich-Ebert-Stiftung maintains its own representations in 70
countries of Africa, Asia, the Middle East and Latin America.
12
The Friedrich-Ebert-Stiftung sees its activities in the developing countries
as a contribution to:
promoting peace and understanding between peoples and inside its partner
countries,
supporting the democratisation of the State and society and strengthening
civil society,
improving general political, economic and social conditions,
reinforcing free trade unions,
developing independent media structures,
facilitating regional and worldwide cooperation between states and different interest groups and
gaining recognition for human rights.
The focus in Germany is:
Focusing on a fair society, on innovation and the future, and creating an
active democracy
Public educational programs in Germany
Research on and scientific analysis of central policy areas
Dialogue and interchange between social and political actors
Scholarship programs for students and Ph.D. Candidates.
Aims
The Friedrich-Ebert-Stiftung is a non-profit German political foundation
committed to the advancement of public policy issues in the spirit of the
basic values of social democracy through education, research, and
international cooperation.
The foundation has the following aims:
Furthering political and social education of individuals from all walks of
life in the spirit of democracy and pluralism,
Facilitating access to university education and research for gifted young
people by providing scholarships,
Contributing to international understanding and cooperation.
13
The Friedrich-Ebert-Stiftung is a non-profit German political foundation

committed to the advancement of public policy issues in the spirit of the
basic values of social democracy through education, research, and
international cooperation.
Grants
The budget is approximately 120 million in 2008. The budget is mainly
based on public funding.
1.13 Heinrich-Boell-Stiftung (Germany)

Areas of interest
The foundations main areas of interest are as highlighted in the annual
report for 2008:
Globalisation and sustainability
International democracy promotion
Foreign and security policy
Global gender policy
European policy
Promoting young talent - scholarship program
Heinrich Bll House in Langenbroich
Art and culture.
Mission statement
The Heinrich Bll Foundation is part of the Green political movement that
has developed worldwide as a response to the traditional politics of
socialism, lib- eralism, and conservatism. The foundation's main tenets are
Ecology and sustainability
Democracy and human rights
Self-determination and justice.
The foundation place in particular emphasis on gender democracy,
meaning social emancipation and equal rights for women and men. The
foundation is also committed to equal rights for cultural and ethnic
minorities and to the so-
cietal and political participation of immigrants. Finally, the foundation

promotes non-violence and proactive peace policies.
Grants
1.14 Joseph Rowntree Foundation (United Kingdom)

Areas of interest
14
Most of the foundations work centres on the interconnected themes of

poverty, place and empowerment. In 20092011 the foundation will also
continue to look at some of the themes that emerged from the social evils
programme, launched in 2007 to understand people's perceptions of social
evil in the 21st century.
The foundation's main areas of interest are:
Poverty
Place
Empowerment
Themes emerged from the social evils programme.
Purpose and aim
Our purpose is to influence policy and practice by searching for evidence
and demonstrating solutions to improve:
the circumstances of people experiencing poverty and disadvantage;
the quality of their homes and communities;
the nature of the services and support that foster their well-being and citizenship.
The foundation aims to present evidence in a balanced, unbiased way and
to stimulate debate on current and emerging issues.
In all the work, the foundation look to reflect the diversity of the UK
population, learn from others and operate in a sustainable way - socially,
environmen- tally and economically - finding practical and realistic
solutions and focusing on the needs of disadvantaged people. Through
housing, community and care services, the foundation aim to achieve the
highest professional standards.
Grants
1
5
In 2008 the Joseph Rowntree foundation had 3,519,000 in grant

commitments,
3,572,000 in support costs and 44,000 in governance.
1.15 Knut och Alice Wallenbergs Stiftelse (Sweden)

Areas of interest
The foundation awards grants to scientific research and education at
Swedish universities, institutes and other academic units. Universities,
academies and similar research and educational institutions are eligible for
grants within the following fields:
Expensive scientific equipment
Fellowship programs initiated by the Foundation
Selected research projects of significant potential
Larger educational research projects.
The Foundation gives priority to grants for equipment for scientifically
outstanding projects that already attract support for personnel and
running costs from other sources, and for equipment for national research
facilities.
Purpose
The purpose of the Foundation is to: "promote scientific research,
teaching and/or education beneficial to the Kingdom of Sweden".
Grants
According to the annual report SEK 1,017 million has been granted in 2008.
1.16 Laerdal fonden (Norway)

Areas of interest
Support practically oriented research and development in acute medicine.
The support includes support to about 60 PhD research projects in the
Scandinavian countries. The foundation has supported projects in Sweden,
Norway, Den- mark, Finland, USA, other European countries outside
Scandinavia. The research fields are listed at foundations website:
Heart function
Brain function
Circulation/shock
Treatment outside hospital
1
6
Breathing function
Goal
The goal of the Foundation is to be of maximum value relative to its mission

of
Helping save lives.
Grants
In 2009, the Foundations grant capacity amounts to NOK 25 mill (USD 3,6
mill). At the beginning of the year, about half of this amount has been
allocated to continuation of previously awarded centre support, and for
partial funding of chairs in acute medicine. The last three years the
foundation has supported about 1,500 projects.
The Foundation has so far, together with a sister foundation in the US, supported in excess of NOK 100 mill (USD 15 mill).
1.17 Lilly Endowment (United States)

Areas of interest:
Lilly Endowment considers proposals in three program areas:
community development
education
religion.
The foundation are also interested in initiatives that benefit youth, that
foster philanthropic leadership education among non-profit institutions,
and that promote the causes of philanthropy and volunteerism.
As desired by its founders, Lilly Endowment concentrates its philanthropic
efforts in community development in its home territory of Indianapolis
and Indi- ana.
Mission
The mission for the Endowment is to support the causes of religion,
education and community development.
During 2008 the Endowment distributed grant payments of $330.9 million

and
approved $310.9 million in new grants.
1.18 Mott Foundation (United States)

Areas of interest
The Mott foundation provides grants for projects within the following areas:
Civil Society: To strengthen citizen and non-profit sector engagement in
support of free and pluralistic democratic societies, with primary
geographic focus on the United States, Central/Eastern Europe and
Russia, South Africa, and at the global level.
Environment: To support the efforts of an engaged citizenry working to
create accountable and responsive institutions, sound public policies,
and appropriate models of development that protect the diversity and
integrity of selected ecosystems in North America and around the
world.
Flint Area: To foster a well-functioning, connected community that is capable of meeting the economic, social and racial challenges ahead.
Pathways Out of Poverty: To identify, test and help sustain pathways out
of poverty for low-income people and communities.
Mission and vision
To support efforts that promotes a just, equitable and sustainable society.
The Charles Stewart Mott Foundation affirms its founders vision of a world
in which each of us is in partnership with the rest of the human race where
each individuals quality of life is connected to the well-being of the
community, both locally and globally.
Grants
In 2008 according to the annual financial report 2008 the foundation made
558
grants. In total $110,400,755.
1.19 Pew Charitable Trusts (United States)

Areas of interest
The Pew Charitable Trusts is driven by the power of knowledge to solve
today's most challenging problems. Pew applies a rigorous, analytical
approach to improve public policy, inform the public and stimulate civic
life.
Grants
1
7
18
Improving public policy. We study and promote nonpartisan policy solutions for pressing and emerging problems affecting the American
public and the global community.
Informing the public. The Pew Research Centre, a Washington-based
subsidiary, is home to most of our information initiatives. It uses
impar- tial, fact-based public-opinion polling and other research
tools to track important issues and trends.
Stimulating civic life . We support national initiatives that encourage
civic participation. In our hometown of Philadelphia, we support
organizations that create a thriving arts and culture community
and institutions that enhance the well-being of the regions
neediest citizens.
Mission
The mission is to serve the public interest by "improving public policy,
informing the public, and stimulating civic life".
Grants
Information not found
1.20 Nuffield Foundation (United Kingdom)

Areas of interest
The Foundation has wide objects. These include:
the advancement of health
the advancement of social well being
the advancement of education
the care and comfort of the aged poor
the relief of handicaps
the benefit of the Commonwealth and such other charitable purposes.
Aim
The foundation tries to 'advance social well being', particularly through research and practical experiment. The foundation aims to achieve this by
supporting work which will bring about improvements in society, and
which is founded on careful reflection and informed by objective and
reliable evidence.
Grants
1
9
According to the annual report 2008 the foundation used in total

$10,643,000 on charitable activities.
1.21 Robert Woods Johnson Foundation (USA)

Areas of interest
The Robert Wood Johnson Foundation provides grants for projects in the
United States and US territories that advance the mission to improve health
and health care of all Americans.
As an independent philanthropy devoted to improving health policy and
practice, the Robert Wood Johnson Foundation works with a diverse group
of dedicated people and organizations to address problems at their roots and
to help make a difference on the widest scaleparticularly for the most
vulnerable among us. For projects to be eligible for funding they must
address one of the following program areas.
Building human capital
Childhood obesity
Coverage
Pioneer
Public health
Quality/equality
Vulnerable populations.
Mission
The Robert Wood Johnson Foundation seeks to improve the health and health
care of all Americans. Our efforts focus on improving both the health of
everyone in America and their health care - how it's delivered, how it's paid for,
and how well it does for patients and their families.
Grants
In 2008 the foundation awarded 1,043 grants and contracts, providing
$523.26 million in support of programs and projects to improve health and
health care in
the United States.
1.22 The Rockefeller Foundation (USA)
2
0
Areas
o
The Rockefeller Foundation for the 21st Century focuses its resources and
en- ergies on five interconnected - overlapping - issue areas, selected both
because they are critical global challenges and because the Foundation is
distinctively positioned to address them effectively and with measurable
results. The issue areas are listed below:
Repairing weak, outmoded health systems. Making modern health systems stronger, more affordable, and more accessible in poor and
vulnerable
communities.
Building resilience to environmental degradation and climate change.
Developing plans and products to protect those with the fewest means
from
an imperilled environment and warming global climate.
Addressing the risks of accelerating urbanization. Shaping efforts in
planning, finance, infrastructure, and governance to manage a world in
which, for the first time in history, more people live in urban
communities than rural ones.
Reweaving frayed social contracts. Reinforcing American workers social and economic security, reimagining the regulatory framework
that governs our economy, and reinvigorating the notion of
citizenship.
Easing basic survival insecurities.
Supporting sustainable efforts to
provide the basic building blocks of increased labour and land productivity
and economic growth: nutrition, water, health care, and shelter.
Mission
The Foundations mission is to expand opportunities for poor or vulnerable
people and to help ensure that globalisations benefits are shared more widely.
Grants
Approximately $15 billion (2007 dollars) has been granted over the years.
1.23 Roi Baudouin Foundation (Belgium)

Areas of interest
The activities of the King Baudouin Foundation are essentially aimed at
everyone who lives in Belgium. The Foundation, however, also works at
the Euro- pean and international levels. The Foundation focuses on specific
themes and is based in Brussels, but also supports projects far beyond the
borders of Belgium and Europe. By working together with a range
of different organisations we
aim to harmonise our own mission as effectively as possible with the

efforts made by others.
foundation carries out missions at the request of government bodies and
institutions and formulates its own recommendations. By harmonising the
efforts the foundation can be more effective in the areas of work both in
Belgium and abroad.
The King Baudouin Foundation supports projects and citizens who are
committed to create a better society. In this way the foundation can make a
lasting contribution towards greater justice, democracy and respect for
diversity.
Mission
The mission of the King Baudouin Foundation is clear and at the same time
wide-ranging: to help to improve living conditions for the population. In its
1976 Constitution the Foundation is described as "an independent structure
that encourages original ideas and sets up new projects."
Grants
The King Baudouin Foundation operates in 2009 with a budget of 35 million
. Of this total the foundation spends 92% on projects and 8% on the day-today management of the hundreds of projects and Funds.
1.24 Russell Sage Foundation (United States)

Areas of interest
The Foundation dedicates itself exclusively to strengthening the methods,
data, and theoretical core of the social sciences as a means of improving
social policies.
The Russell Sage Foundation is an operating foundation directly involved in
the conduct and dissemination of social science research. In its effort to
improve the social effectiveness of social research, the Foundation:
Invites individual scholars and collaborative groups working in areas of
Foundation interest to participate in the Foundation's Visiting Scholar
Pro- gram to pursue their research and writing projects;
Provides support for scholars at other institutions to pursue research projects that advance the Foundation's research programs;
Assures widespread access to the research that the Foundation supports
through its own book publishing program;
The
2 Fou
active
1
a
regional
internati
The
22
Sponsors special seminars and working groups aimed at developing new

topics in social science;
Participates in the planning of each study or program as an active partner
and reserves the right to publish any resulting manuscripts;
Collaborates with other granting agencies and academic institutions in
studies of social problems.
Goal
The Russell Sage Foundation is an operating foundation directly involved in
the conduct and dissemination of social science research. The goal is to
improve
the social effectiveness of social research.
Grants
1.25 Sasakawa Peace Foundation (Japan)

Areas of interest
To undertake surveys and research, develop human resources, invite and dispatch personnel, organise international conferences and other forums, and
conduct other activities fostering international understanding, exchange,
and cooperation, as well as to collect, disseminate, and propagate
information in order to carry out these and other activities necessary to
accomplish the Foundation's mission.
The areas of interest are:
Surveys and research
Develop human resources
Invite and dispatch personnel
Organise international conferences and other forums
Conduct other activities fostering international understanding, exchange
and cooperation as well as to collect, disseminate, and propagate
information.
Mission
To contribute to the welfare of human kind and the sound development of
the international community, and thus to world peace, by conducting
activities fos-
23
tering international understanding, exchange, and cooperation, as well as

efforts
to promote these activities.
Grants
1.26 Schwab Foundation for Social Entrepreneurship

(Switzerland)
Areas of interest
The foundation's main activities include:
Identifying the world's leading social entrepreneurs
Community building
Connecting social entrepreneurs
Generating solutions in partnerships
The next generation of social entrepreneurs
Additional services (work with universities and leading academic institutions).
Mission and purpose
The Foundation provides unparalleled platforms at the national, regional and
global levels for leading social innovators that highlight social
entrepreneurship as a key element to address social and ecological problems
in an innovative, sustainable and effective way.
The purpose of the Schwab Foundation for Social Entrepreneurship is to
promote entrepreneurial solutions and social commitment with a clear
impact at
the grassroots level.
Grants
The Schwab Foundation does not give grants. Rather, it invests its limited resources in creating unprecedented opportunities where social entrepreneurs
who have successfully implemented and scaled their transformational idea,
can further the legitimacy of their work, have access to usually inaccessible
networks, and in consequence, mobilize the financial and in-kind resources
that enable
them to continue to strengthen and expand.
Areas
2
o
4
1.27 Skoll Foundation (United States)

The Skoll Foundation invests in social entrepreneurs through the "Skoll
Awards for Social Entrepreneurship". These three-year awards support the
continuation, replication or extension of programs that have proved
successful in addressing a broad array of critical social issues:
tolerance and human rights
health, environmental sustainability
institutional responsibility
peace and security
economic and social equity.
Within these areas, the Foundation is particularly interested in innovators
working on climate change, water scarcity, pandemics, nuclear
proliferation and Middle East conflict.
Mission and vision
Mission: The Skoll Foundation drives large-scale change by investing in,
connecting, and celebrating social entrepreneurs and other innovators
dedicated to solving the worlds most pressing problems.
Vision: Our vision is to live in a world of peace and prosperity where all people, regardless of geography, background or economic status, enjoy and
employ the full range of their talents and abilities.
Grants:
1.28 Soros (Open Society Foundation) (United States)

Areas of interest
The Open Society Institute (OSI) seeks to shape public policies that assure
greater fairness in political, legal, and economic systems and safeguard
fundamental rights. On a local level, OSI implements a range of
initiatives to advance justice, education, public health, and independent
media.
Mission
The Open Society Institute works to build vibrant and tolerant
democracies whose governments are accountable to their citizens. To
achieve its mission,
25
OSI seeks to shape public policies that assure greater fairness in political,
legal, and economic systems and safeguard fundamental rights. On a local
level, OSI implements a range of initiatives to advance justice, education,
public health, and independent media. At the same time, OSI builds alliances
across borders and continents on issues such as corruption and freedom of
information. OSI places a high priority on protecting and improving the lives
of people in marginalised communities
Grants
The expenditure on grants are not clearly stated but the total expenditures by
OSI and the Soros foundations network currently average between $400
million and $500 million a year.
1.29 Trygfonden (Denmark)

Areas of interest
Trygfonden provides grants for projects in Denmark. Trygfonden has the
following focus areas where activities are initiated:
Safety
Health
Well-being
Mission and vision
Mission: Trygfonden contributes so that everyone in Denmark can take
responsibility for their own and others' safety.
Vision: TrygFonden will be the most professional and respected promoter
to safety creating activities in Denmark.
Grants
1.30 Vrdal Fonden (Sweden)

Areas of interest
The Swedish Foundation for Health Care Sciences and Allergy Research
(The Vrdal Foundation) initiates and stimulates innovative,
interdisciplinary Swed- ish health care science and allergy research of high
international standard and clinical relevance. The foundations
multidisciplinary review committees' award priority to project programs
that:
2
recruitm
6
educatio
postgrad
Take an interdisciplinary approach

Are clinically relevant
The Foundation's vision is to contribute in a long-term perspective to an
effective and sustainable healthcare and social welfare system by
providing support to research for the prevention and cure of disease, to
strengthen health and to promote well-being, as well as to reduce human
suffering through improved healthcare and medical treatment.
Grants
In 2008 the foundation has granted SEK 21 million to new projects.
During 2008 a total of SEK 73 million (where SEK 12 million is external
resources)
was granted to projects.
1.31 Welcome Trust (United Kingdom)

Areas of interest
Welcome Trust support many different kinds of research and activities with
the ultimate aim of protecting and improving human and animal health. This
support is not restricted to United Kingdom researchers and the foundation
devotes significant funding to international research too. The foundations
areas of interest are:
Biomedical research funding
Research funding programmes in the medical humanities
Technology transfer funding
International funding
Funding of activities promoting public engagement with science
Wellcome Trust Clinical Research Facilities
Broadcast media
Mission
The Trusts Strategic Plan for 20052010, Making a Difference, sets out the
context and direction or the Wellcome Trust to achieve its overall mission to
Vision
foster and promote research with the aim of improving human and
1 Advancing knowledge: To support research to increase understanding of
health and disease, and its societal context.
2 Using knowledge: To support the development and use of knowledge to
create health benefit.
3 Engaging society: To engage with society to foster an informed climate
within which biomedical research can flourish.
4 Developing people: To foster a research community and individual researchers who can contribute to the advancement and use of knowledge.
5 Facilitating research: To promote the best conditions for research and the
use of knowledge.
6 Developing our organisation: To use our resources efficiently and effectively.
Grants
The Welcome Trust total charitable expenditure for 2007/2008 increased to
701.6 million. The foundation also supports international projects outside
the
United Kingdom.
1.32 W.K. Kellogg Foundation (United States)

Areas of interest
The W.K. Kellogg Foundation focuses its investments and grantmaking to
help create conditions in communities for children and families to be
successful. Teams are focusing on three key elements which are critical to
impacting the success of children: Education and Learning; Food, Health
and Well-Being; and Family Economic Security. The integration of these
elements to help children learn, develop and stay healthy, and strengthen
families all happen within the context of communities and places. Our work
to improve the lives of children and families will connect to different
stages of a young person's growth, with a core focus on the early years of a
child's life.
Mission and vision
Mission: The W.K. Kellogg Foundation supports children, families, and
communities as they strengthen and create conditions that propel
vulnerable children to achieve success as individuals and as contributors
to the larger community and society.
animal
2
during
7
The Tr
aims:
28
Vision: We envision a nation that marshals its resources to assure that all
children have an equitable and promising future a nation in which all
children
thrive.
Grants
In 2006/2007 the Kellogg Foundation made grant expenditures of
$334,763,816 to 827 of its 2,653 active projects.
16
Appendix 2: Options for voluntary and not for

profit foundations/arrangements
European Commission
Health
and
Feasibility study on
funding arrangements for
EU level
Report on TASK 2: Options for voluntary
and not for profit foundations/arrangements
SANCO/2008/C4/05
January 2010
COWI A/S
Tel +45 45 97 22 11
Fax +45 45 97 22 12
www.cowi.com


Draft report on fund and
trust options
Report on TASK 2: Options for voluntary and
not for profit foundations/arrangements
SANCO/2008/C4/05
January 2010
Document no. 1
Version 1.0
Date of issue 16.12.2009
Prepared LWAN, LIPU
Checked
Approved
Tabl
Cont
1
Summary 2
Introduction 5
3
3.1
Methodology 7
Approach 7
Generic model for a voluntary and not for profit

public health blind trust 9
Introduction 9
Organisational structure and elements in a blind trust 10
Three blind trust options
Option A - fully under the direction of the
Commission 15
Option B - independency of EU and the European
Commission 26
Option C - satellite organisational structure
4.1
4.2
5
5.1
5.2
5.3
Eu
ro
30
In this ta
options
voluntar
profit pu
blind
Option A
trust have been developed. The options are primarily based on aspects of
organising a pan-European blind trust. To ensure usability of the options
interviews of stakeholders have been performed as well as SWOT analysis for
each option.
Figure 1-1 Option A: EU directed trust - this option is under the full direction of
the Commission (e.g. board majority). On this basis, the aim of the trust is
coherent with EU policy in the field. The internal organisational set-up and O
r
g
a
n
i
s
a
t
i
o
n
a
l
s
u
p
The EU is a well-known 'brand' - which could be an advantage in attracting p
o
donations
Pros in relation to Option A:
rt from
the
Commiss
ion
Lower
administrative cost, if hosted by the Commission

Cons in relation to Option A:
Lack of freedom to act in line with objectives and focus areas during EU
programming period
Conflicts of interest in relation to Commission board members

Private donors could be unwilling to donate to 'a political system' (EU)
Challenge to manage which donors/products the EU will become associOption B
ated
3 wit
potentia
(volunta
Figure 1-2 Option B: Independent trust - this option is independent in relation to

any political system or interest. On this basis, the independent board of the trust is
free to manage the trust in the direction of its aim. The internal organisational setup and procedures of the blind trust is dealt with in Task 3 of the study.
Pros in relation to Option B:

Cons in relation to Option B:
No financial or organisational back-up from e.g. the Commission
Difficult to establish a brand/name
Distanced to potential recipients (voluntary actors)
Option C
Figure 1-3 Option C: Trust with local satellite unit - the organisation of this trust includes a number satellite units located in the European countries. This option can be
both under the direction of the Commission or an independent trust. The map of
Europe illustrate satellites in relation to a Commission directed trust or an
independent trust, respectively. The internal organisational set-up and procedures of
the blind trust
is dealt with in Task 3 of the study.
Pros in relation to Option C:

Knowledge about needs at regional, national, and local levels
Linguistic skills

Cons in relation to Option C:

Distribution according to geographical balance in contrast to reel needs.
Less pan-European knowledge sharing
Distance to potential recipients (voluntary actors) are secondary
Introduction
In Task 1 we analysed the voluntary and non-profit activities in the field

of
public health across Member States and Anglo-America. Furthermore, the

level of funding followed by practices for the operations and the role of not
for profit and voluntary organisations in the different types of societies was
identified. These analyses revealed that voluntary activities are needed and
that funding is scarce. Important elements which must be taken into
consideration when developing options for voluntary and not for profit
foundations/arrangements are the type of organisation, the type and size of
the target group, likely types of donations and legislation.
The purpose of Task 2 is to outline options for voluntary and not for profit
trusts based on the review and inventory. The results and the findings of
the inventory (Task 1) will naturally elaborate on potential models for a
structure of a trust, (foundation or other body), and on that basis three
models of pan- European blind trust in the field of voluntary and not for
profit public health activities will be suggested.
When searching for a model for how to organise the funding of voluntary
public health activities in a Pan European setting, a number of issues have
to be investigated as practices and legislation across Europe differ. The
organisational set-up models that are described in this study will rest on
best practice uncovered in the public health field inside or outside Europe.
The description of each option for the organisational set-up will include
details of the issues that need to be addressed when developing a blind trust.
These issues are:
Trust objectives/alignment with EU public health policy
Board structure
Trust domicile
Marketing and public awareness
Foundations in European law
In chapter 3, the methodology and data used in Task 2 will be described.
Chap- ter 4 introduces a generic model for a blind trust, whereas chapter 5
presents
three options for a blind trust discussing issues of relevance to a blind trust.
SWOT analysis will be used to assess strengths, weaknesses, opportunities
and threats.
A
6
Meth
3.1 Ap
The options suggested in Task 2 are based on the analysis made as part of
Task
1 with specific focus on type of donations and legal and organisational
frame- works. The main conclusions from Task 1 in terms of organisation
and legislative advantages/disadvantageous will be assessed for the
different options. To ensure the utility and applicability of the options,
relevant expert and stakeholders (voluntary actors and prospective donors)
will be interviewed as well as a SWOT analysis will be made.
The interviews will be conducted by COWI consultants, and the
Interviewees identiinterviewed experts will be stakeholders in the area of voluntary and not
for profit public health activities. The relevant interviewees will be
fied through network identified through our professional network.
Interview guide
cha
nce
to
part
icip
The interview guide is designed with the aim to discuss and verify theate
usability of the different options (Annex 1). The interviews will in particular
be based on the SWOT analysis of the three different options.
Four interviews were conducted with the following stakeholders:
Kirsten Grnbjerg, professor, Center on Philanthropy at Indiana University
The Center on Philanthropy at Indiana University is a leading academic
centre dedicated to increasing the understanding of philanthropy and improving its practice through research, teaching, public service and public
affairs. Founded in 1987, the Center is a part of the Indiana University
School of Liberal Arts at Indiana University-Purdue University
Indianapo- lis.1
Morgens Kirkeby, president, International Sport and Culture Association
The International Sport and Culture Association (ISCA) is an
organisation bringing together sport, culture and youth organisations
from across the globe. ISCA believes that everyone should have the
http://www.philanthropy.iupui.edu/About/
.
den
8 and
Villum K
Fonden
are both
in international activities such as festivals, exchanges and sports

tournaments. ISCA calls this Sport and Culture for All.2
Kjeld Juel Petersen, Managing director of Villum Kann Rasmussen Fonfoundations which provide funding for projects with scientific, cultural,
artistic and social objectives. Each of the foundations also pursues
different priorities within its statutory purposes3 .
Jesper Jger, Senior Project Manager at Arla Foods
Arla are sponsor for the Danish National soccer team. Furthermore,
Arla want to contribute to a healthier lifestyle among Danish children
and youth. Therefore, Arla are funding activities which motivate the
youngest generation to healthy food and drink and more physical
activity.
The number of interviews is less than anticipated due to willingness of
partici- pating in interviews. It has been agreed, that SANCO will proceed in
respect to the consultative process of the findings of the study. This could be
undertaken by for example consulting the Alcohol Forum.
3.1.1 Strengths, weaknesses, opportunities, and threats (SWOT)
A SWOT analysis will be conducted to assess the strengths, weaknesses,
opportunities, and threats of the three options for a blind trust. The analysis
is a strategic planning method involving internal and external factors that
are favour- able and unfavourable to achieving the objective of the blind
trust. The strengths and weaknesses are internal factors to the blind trust and
opportunities and threats are the external factors to the blind trust. A SWOT
analysis is a use- ful method for understanding and for making informed
decisions in various situations, e.g. such as establishment of a blind trust.
A SWOT analysis will be made for each of the three options of a blind
trust. Thus, the analysis will offer valuable information on pros and cons of
various models for a blind trust which may feed directly into a decisionmaking process.
2
3
dc45dbc0b5b2&Lang=uk
http://isca-web.org/english/
http://www.vkr-fondene.dk/Page.aspx?ID=81f777a4-2653-4227-af2b-
trust
General legal aspects

of a blind trust
9 Int
4.1
D
ef
in
iti
o
n
of
a
bl
in
4 Generic model for a voluntary and not for
d
profit public health blind trust
A trust i
In this chapter, a generic model is presented forming the basis for the three arrangem
options for blind trusts in the field of voluntary and not for profit public
a numbe
health activities at pan-European level.
are appo
legal document (trust deed) for the purpose of holding funds or property on
behalf of another person or persons. Typically, the trust is established and
.
working under a set of defined objectives. These objectives have most
recent been defined by the founders of the trust. The trust's objectives are
often difficult to alter or amend. Blind trusts have the distinguishing feature
that the beneficiaries cannot be told details of the asset holdings of the trust.
The establishment of a blind trust will be discussed in detail in Task 3.
In legal form, a trust is a relationship between a trustee/s (who has/have legal
title to the trust property) and the beneficiary/ies (for whom the trustee is
obliged to use that property to benefit). The trust deed may allocate control
flexibly among the trustee, beneficiaries, creator of the trust, and a contracted
manager, or there may be no discretion required beyond instructions in the
trust deed. The trust can be distinguished from activities of the trustee in
other ca- pacities, and from the beneficiaries whose involvement may be as
little as a potential to receive future income. With the structure, a range of
economic functions can be carried out, such as collective investment
vehicles, and asset holding for individuals.4
Distinction may be made between the following criteria for legal structure of
a blind trust:
Typically, the trust is established in a way so that only specifically appointed persons or organisations may be members of the board of the
trust;
National legislation sets forth the requirements as to the nature and objectives of the trust that are recognised by this legislation;
Fourteenth Meeting of the IMF Committee on Balance of Payments Statistics

Tokyo, Ja- pan, October 24-26, 2001
10
National legislation also requires that a designated public authority is given
the right to monitor the actions taken by the trust;
The right to take decisions on expenditure of the trust's fund is governed

by the defined set of objectives of the trust.
4.2 Organisational structure and elements in a blind

trust
A simple generic model of a blind trust is shown in Figure 3-1.
Figure 4-1 A generic model
The generic organisational structure of a blind trust arrangement includes

a governing body, consisting of the Board, advisory committee(s), and a
secretariat including a performance and financial controlling system.
An important issue for the board of trust is to define and describe the vision, s
The board of trust
mission and strategy/objectives of the trust. The board makes decisions on be-e
half of the trust and is responsible for these decisions. It will be the board's c
foremost obligation to manage the funds of the blind trust in alignment with t
the strategy/objectives and mission of the trust.
o
r
The board members include representatives and main actors in the field of .
Members of the
voluntary and not for profit public health activities from both international
Board
institutions, EU institutions, not for profit organisations, and the private
Advisory committee Permanent or ad-hoc advisory committees of experts could take the role of
supporting the board on professional and technical health issues in relation to
nominating projects for financing to the Board. A number of committees
could
11
be formed according to the strategy and focus areas within public health to
ensure that the objectives of the trust are covered.
Secretariat It is relevant to establish a secretariat supporting the trustees and the advisory
committees and dealing with the practical issues. The size, scope and role of the
secretariat will depend on the different blind trust models and what tasks
the secretariat should have.
The blind trust's public awareness activities towards the general European
Marketing and
public as well as to potential voluntary and not for profit actors and donors
public awareness
to the blind trust is essential and two-sided. On the one hand, it is central for
the blind trust to ensure that its funds are generally available to voluntary not
for profit organisations in the public health area across the EU Member
States. On the other hand, it is vital that the trust has a strong positive profile
in the general public so that potential and current donors see an incentive to
contribute to the blind trust.
Donation
arrangement
Attraction of donors
Performance and fi-
nancial controlling
Operating donations
t
h
e
t
r
u
s
t
The benefit of donating financial resources to the blind trust is closely related .
to the revenue already obtained in the non-profit and voluntary organisations.
Ac- cording to the findings in Task 1 the revenue of the non-profit and
voluntary organisations comes from many different sources such as sales of
goods and services, membership dues, investment income, donations from
individuals, foundations and companies and government support, which
.
includes grants, contracts and reimbursement of services provided. The
revenue is divided into three main categories: government support, earned
income and philanthropy. 60 per cent of revenues to non-profit sectors come
from public sources in the EU whereas overall, philanthropy plays a minor
role. Foundations and trusts derives from philanthropy which cover
donations from individuals, foundations/trusts and private companies. The
revenue of the pan-European blind trust could as well be established based on
the principles of earned incomes, such as membership fees or principles of
government support, such as Member State support. This may cause
competition or profit to a pan-European blind trust; a factor which must be
thoroughly considered.
The attraction of donors is very important for the trust and especially how
donors' inducement to make donations can be embedded in the set-up of the
blind trust options in an ethical way. Without donors (money), no trust! One
possibility of making donations attractive could be a logo which donors can
use on their products or website to promote their health and social profile.
In the blind trust's funding procedure, it will be fundamental to ensure that
the allocated funding is spent in coherence with the defined objectives and
mission of the blind trust. On that basis, a performance and financial
monitoring system will be important to implement as part of the funding
cycle.
As regards donations, revenues may derive from either Government (or EU)
support, philanthropy or earned income as described in Task 1. After
identifica- tion of donors, it is up to the trust secretariat to handle the
donations according to the legislative nature of the trust and the objectives of
Operating
applications
Operating management and marketing

Output
12
The first screening of applications is performed by the trust secretariat to

ensure strict adherence to the trust rules. The secretariat passes the
applications on to the advisory committees, which assess the technical and
scientific contents of
the applications followed by a nomination to the board of trust. It is the
responsibility of the board to select the projects that can obtain funding from the
trust.
The flow of financial and performance management (controlling) and
marketing/awareness is continuously applied to ensure that the trust
observe legislation governing trusts and the trust objectives.
There are different ways of regulating how foundation grants are allocated
to the strategy according to the decisions made in the board. One issue is if
beneficiaries are obliged to obtain co-funding e.g. by national
support/funding or they can be purely trust funded. Policy options could be
to fund in coherence with the EU Public health policy or in coherence with
independent objectives/strategies or in relation to specific targets.
1
3
5
blind
optio
This chapter will focus on three different options for a blind trust operating
in the area of voluntary public health activities across the EU. The options
will be based on the generic model of a blind trust described in Chapter 3.
Further- more, the analysis in Task 1 indicated that type of donations,
organisation and legislative framework were important when describing
options.
Type of donations
Organisational set-up
14
area of blind trusts' operation, and EU legislation in general will affect the
blind trust's targeted operation.
It is also essential to consider whether the blind trust should have

regional/local offices in a selection of Member States, in all Member States,
or have any satellite offices at all. An organisational structure where offices
are located in each or a number of Member States (satellites) poses several
challenges. These will be discussed below for each of the proposed options.
Marketing and public Marketing and public awareness is of the highest priority when discussing
awareness
the different options. It is vital that the trust has a positive profile in the
general public; otherwise it may not survive since this is one of the most
A
important factors in attracting donors.
S
The three options for a blind trust are presented in sections 4.1, 4.2 and
Options A, B and C
W
4.3 where each option is described in detail.
O
T
The three options are defined as follows:
Option A: The blind trust is fully under the direction of the European
Commission. The blind trust is fully controlled by the Commission.
a
n
a
Option B: The blind trust is in any way independent of the Commission or l
any other political system. The governing body of the blind trust y
operates without directions from the Commission.
s
Option C: The blind trust is organised with satellite offices in a number of i
or all EU Member States. This option can both be under the direction of s
the Commission or independent of any political systems in various degrees.
Options A and B - at
two ends of the scale
A satellite organisation dealing with
geographical issues
Structured
presentation of
the options
Options A and option B are contrasts at each end of the scale in terms of
the level of direction or organisational link to the Commission. Thus, in
between various intermediate options do occur.
Option C represents a geographical challenge of deciding how the blind
trust should be organised. Thus, a satellite organisation of a blind trust may
be organised in several ways.
o
f
t
h
e
o
p
The detailed presentations of the three options for the operation of blind trustst
i
in the field of voluntary public health activities across the EU will be
o
structured according to the below four issues:
n
Overall objective/strategy and function of the blind trust
.
Legislative issues related to the option
Donations and the ability to attract donors
1
5
5.1 Option A - fully under the direction of the

European Commission
As mentioned above, option A is under the full direction of the
Commission and therefore under the guidance of the EU political system,
including the Council and the European Parliament (Fig. 4-1).
Figure 5-1 Graphical illustration of an EU directed trust
5.1.1 O
objecti
Alignment with EU
public health policy
p
The establishment and operation of a trust in the field of voluntary public
health activities that is under the complete direction of the Commission will a
result in objectives and strategies of the trust being closely related to the EU's r
public health policy. It is unlikely to image such a trust having objectives and a
specific focus areas which are not in coherence with the objectives of the EU l
Health Strategy 'Together for Health: A Strategic Approach for the EU 2008- l
e
2013' (see text box 4-1).
l
Text box 5-1 Health Strategy - health objectives
Objective 1: To foster healthier lifestyles and reduce inequities in health across the EU -
Operation in parallel
with PHP
particularly in relation to supporting healthy ageing;

.
Objective 2: To protect citizens and patients from known and unknown - threats to health;
Objective 3: To increase the sustainability of health systems with a focus on new technologies;
Objective 4: Strengthening the EU's voice in global health.
On the basis of the coalition between its objectives and focus areas and the
EU Health Strategy, the EU directed trust will most likely be operating in
16
with the programme objectives of the EU Public Health Programme (PHP)5 ,
see text box 4-2.
Naturally, the activities within which the voluntary actors operate can seem
distant from the general objectives of the PHP, however, the operation of a
trust that is under the direction of the Commission is expected to be
manoeuvred in the light of those objectives.
Text box 5-2 PHP 2008-2013 - programme objectives
To improve citizens' health security:
Developing EU and Member States' capacity to respond to health threats, for

example with health emergency planning and preparedness measures;
Actions related to patient safety, injuries and accidents, risk assessment and
community legislation on blood, tissues and cells.
To promote health, including the reduction of health inequalities:
Action on health determinants - such as nutrition, alcohol, tobacco and drug
consump- tion, as well as social and environmental determinants;
Measures on the prevention of major diseases and reducing health inequalities
across the EU;
Increasing healthy life years and promoting healthy
ageing. Health information and knowledge:
Action on health indicators and ways of disseminating information to citizens;

Focus on Community added-value action to exchange knowledge in areas such
as gender issues, children's health or rare diseases.
Board structure
Another characteristic of a trust under the direction of the Commission

would be a construction of the trust's board with a significant degree of
influence by the Commission. Such a construction can obviously be
established in several ways.
One way could be to let the board be chaired by a relevant Commission manager with a relatively high influence on EU public health policy, e.g. a Commission director. Another way could be to ensure that the board has a simple
majority of members from the Commission, which could result in alignment
of the trust with the Commission's public health policies. A board with nonCommission members under full supervision of the Commission could also
be envisaged.
Naturally, it will be the board which decides on objectives and focus areas of
the trust. These could be adopted in the context of the inventory and review
undertaken during Task 1 of this study. This will among other things include
es-
The Second Programme of

Community Action in the
Field of Health 2008-2013.
17
tablishing the objectives and focus areas in relation to the current activity
level of voluntary public health activities, the types of organisation,
including target groups and the organisations' composition of paid and
unpaid labour. For example, a specific focus area of the trust could be to
increase the general voluntary public health activities in a geographical
region of the EU with a tradition- ally low level of such activities. It could
also be an objective to increase the voluntary activities in the form of nonprofit hospitals with a specific support to the unpaid sector.
Hosted by
Com- mission
the
Having the board of the trust with a high influence by the Commission and
building the objectives and strategies (focus areas) on the current situation
in voluntary public health activities across the EU will both align the
function of the trust with the EU's health policies and ensure financial
support to voluntary actors in respect to the actual needs.
For a trust under the full direction of the Commission, it will be accepted to
have its domicile at the premises of the Commission. Having the
Commission hosting the trust in-house will not only make the cooperation
between the two institutions smooth but also improve the economic
situation of running the trust, including the cost related to office space, and
the possibility to share the secretariat function with the Commission.
d
o
n
a
t
i
o
Marketing and public As explained previously in chapter 3, the marketing and public awareness ac- n
tivities in relation to the trust are two-sided. The trust needs to have the
awareness
s
highest possible availability towards the voluntary public health actors in the
EU to ease their access to the financial support from the trust. The trust also i
needs to have a significant profile in the general public of the EU to ensure it s
is as attractive as possible for donors to support financially.
t
On the one hand, a trust under complete direction of the Commission holds
o
the strong and well know brand of "European Union". On the other hand,
such a trust also needs to consider the effect on both voluntary actors and
m
potential donors of being closely linked to the EU as a brand.
a
The trust will need to face the challenge of national voluntary actors seeing k
the EU as a large-scale institution being out of reach from their perspective. e
The Commission directed trust will also have to face the dispute that potential
donors such as larger private companies might hesitate to donate to an EU i
politi- cally operated fund (although indirect). One instrument to face these t
challenges is to have a strong marketing strategic showing clearly the trust
objectives and operation in a transparent manner. This also needs to take into p
account the ability to attract donors, and in which way donors are allowed too
s
use their donation in their company profile.
s
One usual way of attracting and retaining donors is to host regular doi
nor/sponsor arrangements where these are invited to for example
sports/cultural events or conferences related to public health, see more about
this in task 3. Naturally, the trust needs to make this transparent so that it is
made public how the trust's resources are spent, in particular for a EU
.
directed trust. Another way to attract donors' attention and interest in making
ble to donate financially to specific aims. This will help the donors to see
details and relevance of the area(s) to which they donate. These specific aims
or areas naturally fall under the trust's overall strategy and objectives.
5.1.2 Legislative issues related to option A
The following will deal with the legal issues in relation to the establishment
and operation of a trust which is under complete direction of the
Commission. Dis- tinction is made between:
1 Funds that are allocated by the EU
2 Funds that are allocated by any donor, but which are directed by the EU.
The typical example of funds mentioned under 1) is EU Structural Funds
and the Cohesion Fund. In terms of regulation, the main difference between
the two types of funds is that EU allocated funds are typically subject to
detailed EU regulation (e.g. Structural Funds Regulations 2007-2013).
Furthermore, Finan- cial Regulation6 will apply to such types of funds. This
Regulation sets out the scope of grants, the procedure for awarding them and
the arrangements for payment and controls. Within the meaning of the
Financial Regulation, grants are direct financial contributions, by way of
donation, from the budget in order to finance:
Either an action intended to help achieve an objective forming part of an
EU policy;
Or the functioning of a body which pursues an aim of general European
interest or has an objective forming part of an EU policy.
The basic award principles are:
The principles of transparency and equal treatment
Grants may not be cumulative or awarded retrospectively and they must
involve co-financing
Grants may not have the purpose or effect of producing a profit for the
beneficiary
All grants awarded must be published annually with due observance of the
requirements of confidentiality and security.
The Commission must respect the general principles as laid down in the
Finan- cial Regulation.
6
Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial

Regu- lation applicable to the general budget of the European Communities
the
1
8
are
1
9
In terms of funds allocated by any donor, but directed by the EU, these
typically subject to less regulation on the part of the EU. Regulation typically
takes place at the national level taking into consideration the existing EU
financial principles (as set out in the Financial Regulation). For Option A, it
is a characteristic that the EU is heavily involved in the establishment and
operation of a fund. This pre-supposes the observance of the basic principles
of the Fi- nancial Regulation as well as the Commission Internal Rules of
Procedure from the EU Commission side.
Although we have chosen to focus on the funds allocated by any donor, but
which are directed by the EU, it is necessary for the basic understanding of
the issues described below to briefly mention the legal issues related to
funds awarded by the EU.
Conflict of interests
in relation to corporations' involvement
in an EU directed
trust
Board members
Legal issues related to marketing and public awareness

One of the major issues related to the functioning of a trust is avoiding any
conflict of interest among actors involved in the trust.
One example could be a CEO of a corporation who is elected to the board of
a national, non-profit organisation. His/her company develops a cause-related
marketing campaign that benefits the non-profit objectives of the trust which
at the same time enhances sales, profits, and the public image of the
corporation. This situation may be classified as a conflict of interest and is not
subject to any EU regulation.
The extent to which the donors should be allowed to use their involvement
with the trust as a tool of marketing may be regulated by the following four
means to resolve the matter of conflict of interests:
1 Board members of the fund
The overall mandate of the board members is to ensure broad legitimacy
of the organisation of the fund's undertakings through quite broad
responsi- bilities typically comprising:
Setting the strategic direction for the trust;

Monitoring performance;
Ensuring effective financial stewardship;
Ensuring accountability for corporate governance;
Appointing, appraising and remunerating senior executives;
Ensuring dialogue with the wider community.
In those areas, the board member, e.g. appointed directly by the EU

Com- mission would thus have a margin of influence through the
decision- making process.
However, the incentive for the representatives of high-profile enterprises
to become board members of a fund is quite limited due to the lack of
benefit to the enterprise. Indeed, such a board member would represent
the fund, but not the enterprise.
20
The Commission may impact donors' involvement with the trust as a
tool of marketing through the board, which is the decision-making body
of the fund. This may be achieved by means of the Commission's
involvement in the process of the composition of the fund's board
members.
2 Internal institutional rules/commands and control
Provided that the fund is administrated by the EU Commission, the
Commission may rely on the internal rules of procedure vested within the
Commission. The legal basis for the adoption of the Rules of Procedure
ensuring that both the Commission and the departments operate
smoothly
is Article 218(2) of the EU.
Although this solution is most suited for the funds directly allocated by
the
EU Commission, it is also relevant for funds that are allocated by any
donor, provided that such funds are directed and administrated by the EU.
The following two models are suited for funds awarded by the EU:
3 Targeted EU regulation and secondary national legislation, including statutes, by-laws and decisions (financial, accounting, etc.)
As each type of fund may be subject to a specific (targeted) EU regulation,7 one way of addressing the issue described above will be to
include a
special provision in the respective legislative instrument to regulate the
ceiling for the expenditure to be used for marketing purposes. The
adoption of such legislative instruments will typically be based on an interinstitutional agreement.
The issues related to marketing and public awareness may be also addressed by national legislation regulating certain issues (e.g. accounting
or
financial regulations or by-laws).
4 Direct order
The decision-making hierarchy should be analysed in a concrete
situation
to determine whether:
it is possible to issue an internal order
if yes, whether it is possible to enforce such an order on the donors
who are involved in the EU fund.
Commands and control

Targeted regulation
Direct order
Legal issues related to donations.

Although generally EU legislation does not block the extent to which nonprofit foundations may invest in non-liquid assets, the following issues
should be
considered:
7
E.g. Structural Funds Regulations 2007-2013, Directive on Alternative Investment

Fund Managers (AIFMs) (proposal)
1 In a number of legislative regimes of EU Member States, the permitted

purpose of a non-profit foundation is limited to serving public
purposes
and does not pre-suppose economic activity/financial gain.
2 If an economic activity is considered legitimate, the non-profit
organisation may be subject to EU competition rules.
21
Commission's limited powers

General principles
For the funds awarded by the EU, the Commission has quite limited powers
to
provide investments in the form of non-liquid assets due to the following
main
reasons:
1 The Commission shall respect award principles as set out in Financial
Regulation8 , including that of the grant may not have the purpose or
effect
of producing a profit for the beneficiary, which applies to all operations
managed directly by the Commission (Cf. Articles 109, 155-156).
2 In accordance the Rules of Procedure,9 the Commission shall respect the
principles of transparency, accountability and sound financial management. The donation of non-liquid assets pre-supposes financial gain due
to
the fact that it is beyond the control of the Commission whether the
asset
value will rise or decline.
For a more detailed analysis of the above legal matters.
Legal issues related to distribution of funds.
The principal question is how the Commission can ensure that the funds are
distributed to the purposes determined by the Commission. This could be
resolved by means of
1 A special agreement between the donor and the recipient/beneficiary
2 Organisational monitoring.
The last-mentioned solution is though only suited for funds that are
administered by the Commission.
Overall, the Commission should respect budgetary and award principles as
set
out in the Financial Regulation, and the general principles of transparency,
accountability and sound financial management as set out in the Commission's
Rules of Procedure.
For a more detailed analysis of the above legal matters, see annex 2.
Council Regulation N (EC, Euratom) No 1605/2002 of 25 June 2002

on the Financial Regulation applicable to the general budget of the European Communities
9
Rules of Procedure of the Commission C(2000) 3614
.
Legal
2
is
to
2 taxat
Commissions' limited legislative

competence
In the area of direct taxation, the EU has quite limited legislative

competence. The regulation of tax-related issues is largely subject to the
national legislation of the Member States. The diverse legislation of the 27
Member States create difficulties in the treatment of capital-asset movement
and tax treatment of donations, particularly cross-border donations.
1
1
Lack
of
harmonization
There is no common approach to defining public benefit criteria that can lead
to tax relief. What may qualify as a public benefit in one country may not be
considered as such in another. The resulting lack of harmonization has
implied that Member States have had the freedom to develop their own legal
criteria for the definition of public benefit for tax purposes and for ancillary
legal requirements that may impose on an organisation seeking tax relief for
its charitable purposes.10
Special tax treatment
Measures to reduce
the tax burden
Despite national differences in tax treatment, all Member States have made
provisions for special tax treatment of public benefit purpose foundations.
Do- nations to public benefit purpose foundations are generally exempt from
corporate income tax. The same applies to income deriving from asset
management in most countries. In the majority of the countries Foundations
that pursue public benefit purposes are, also exempt from gift and
inheritance tax.
To reduce the tax burden, the following measures may be taken:
1 National-level measures;
These comprise the revision of Member States' national legislation and
introduction of public benefit status regarding tax privileges for both
national and European organisations; establishment of the same tax
incentives for donors when donating to a foreign foundation; and equal
treatment of both foreign and national foundations.
2 Bilateral agreements
3 EU-level measures.11
For a more detailed analysis of the above legal matters see annex 2.
Conclusion on legal
issues - option A
For option A, the EU has various tools to regulate the extent of donors' involvement with a trust as a tool of marketing. The appropriateness of each
tool is determined by its enforceability. Against this background, the
Commission may have a margin of influence on the trust's decision-making
through its involvement in the composition of the trust's board.
Furthermore, for funds that are directed and administrated by the EU,
internal institutional rules (upon the condition that the enforceability of an
administrative decision is reached by
Nilda Bullain and Radost Toftisova A Comparative Analysis of European Policies
and
Practices of NGO-Government Cooperation The International Journal
of Not-for-Profit Law Volume 7, Issue 4, September 2005
10
E
ur
o
p
ea
n
F
o
u
n
d
at
io
n
C
e
nt
re
,
In
tr
o
d
u
ct
io
n
a
n
d
C
o
m
p
ar
at
iv
e
a
n
al
ys
is
legislati
2
3
means of an "ex-territorial agreement") will apply. Although EU

does not regulate the extent to which non profit foundations may invest in
non- liquid assets, there are issues to be considered.
The Commission may ensure that the funds are distributed to the purposes
determined by the Commission by means of special agreements concluded
between the donor and the beneficiary. The EU has limited legislative
competence in the area of direct taxation, and therefore regulation occurs at
national level.
Several sources of
financial support
Government support
Earned income
5.1.3 Donations and hereby the ability to attract donors

In Task 1, it was found that financial support to voluntary public health
actors originates from various sources, which can be categorised in three
groups: government support, earned income, and philanthropy.
As to potential donors to a trust under the full direction of the Commission,
these can also take the form of any of the above-mentioned three groupings.
Such a trust will be likely to attract donations from private companies and
other national or other global foundations. These financial sources are
examples of philanthropy. The ability to attract particularly donations from
private companies largely depends on the availability of mechanisms in
place for the companies to use in their public profile because of their
donation to the trust. It is one
of the biggest challenges to the trust to put in place an adequate incentive
structure for donors, including in particular incentives for private companies.
Furthermore, the equivalent to government support in relation to a trust
operating across EU borders and at EU level could be financial support
from the EU budget. This will be another way of getting 'public' donations.
Especially, an EU directed fund will provide incentives for the EU to invest
in as such a trust would operate in parallel with the EU public health
policies. Member State donations to an EU directed trust could also be
relevant.
Additionally, the trust has the possibility to provide financial support with
the help of own earned income. This can take form of membership dues
both for individuals and for companies. Such a measure would also require
a mechanism that benefits the potential members of the trust. Some
foundations use a
label or logo that members can use on their products, website, or annual
report
to flag that they have provided financial support to this particular foundation.
An important way of generating self-earned income is to invest the
financial capital of the trust to increase the financial support for the
voluntary actors.
d
o
n
o
r
s
.
T
a
b
l
e
5
1
S
W
O
T
O
p
t
i
o
n
A
5.1.4 SWOT analysis of Option A

This section will focus on the strengths, weaknesses, opportunities, and
threats of the operation of a blind trust under the direction of the Commission
(Option A). In the below table, the conclusions of Option A are summarised. .
Following this, conclusions are detailed primarily based on interviews with
experts (researchers) in the field, voluntary actors and potential
2
Internal
f
4
Strengths
Weaknesses

Organisational support from the Commission
Lower administrative cost, if hosted by
Commission
Lack of freedom to act in li

tives and focus areas dur
gramming period
Conflicts of interest in relat
mission board members
External factors
Opportunities
Threats

The EU is a well-known 'brand' - could
be an advantage in attracting donations
Constraints on donation
Focused donations
Labelling
12
13
Private donors could be un

nate to 'a political system
Challenge to supervise wh
nors/products with which
comes associated
Distance to potential recip
actors)
On the ability to attract donations, the approached experts on p

point to some difficulties envisaged for a blind trust under the
of
the Commission. One complication could be that there is a risk
prospective
donor companies will be reluctant to donating financial resour
cally governed fund (direct or indirect). Another constraint cou
prospective donors in forms of other funds are often unable to don
political
aims. Both obstacles are often encountered in philanthropy in
Based on the interviews with stakeholders and experts, it was
order to attract donations it is essential that the blind trust define
focus areas so that donors experience that their donations can b
wards a special focus area, although not towards a particular v
In
the case of a Commission directed trust, the objectives of the t
coherent with the EU health policy need to be broken down into
focus areas.
To attract donations, experts in the field mention that personal
Interview Kristen Grnbjerg
Interview Mogens Kirkeby
.
25
The use of a logo or other forms of labelling can be a very effective means
for a blind trust to attract donations. Donating companies may use such logo
for marketing purposes to show social responsibility. However, a blind trust
needs to be cautious about the companies and/or products with which they
become associated. This naturally applies to blind trusts in general but to EU
directed trusts in particular, recognising the embedded political sensitivity of
the latter.
Distance to voluntary The distance between a central EU directed trust and the likely recipients of
actors
financial support in the field of voluntary public health activities may at first
seem long. However, information from voluntary actors as well as experts
indicates that this might not be as big an obstacle as firstly presumed. It can
be assumed that voluntary actors applying to a pan-European trust have
some capacity and will therefore be capable of observing international
procedures and applying in other languages. Furthermore, such actors are
used to applying for financial resources internationally.
5.2 Option B - independency of EU and the European

Commission
26
As previously mentioned, Option B is entirely independent of the

Commission and any other political body. Such a trust fund is free to act
exclusively under
the direction of its own independent board (Fig. 4-2).
Figure 5-2
Trust objectives corresponding to public

health needs
Graphical illustration of an independent trust
5.2.1 Overall objective/strategy and function of option B

A trust fund operating in the field of voluntary public health absolutely
independently of any political system or other interests will naturally
still need to have its role based on objectives that are linked to a strategy
and focus areas.
In a trust, such elements will obviously have to be based on the needs for
interventions by voluntary actors in relation to public health problems and
needs in the local, regional and EU societies. Therefore, it will be the trust
board's responsibility to ensure that the trust is operated in accordance with
objectives that match the present needs.
Board structure
A trust board in an independent trust should be formed by members with a

broad variety of backgrounds; all having motivation and knowledge in the
field of voluntary public health activities. The members could come from the
public and private sectors as well as from academia. This could for example
be relevant representatives of the Commission, national or regional public
authorities, private companies with a broad interest in the field, and
researchers in the field of voluntary activities and health.
Independent board
The most important element in the creation of the board is that each involved
person can act freely as board member without any detached conflict of interest, or that the composition of the board ensures that specific interests are
eliminated. To this end, it is also of utmost importance that the public knows
the board members' professional backgrounds, e.g. through the trust's
webpage. In this way, it will also be evident in which situations the board
members have to disqualify themselves.
27
On the domicile of an independent trust, it would be most natural as opposed t
to Option A if such a trust had its own premises (rented or owned) or shared a
premises with either similar, independent organisations or organisations
x
which operate in non-related fields. The domicile issue will naturally have an impact on the costs of operating the trust; see more on this in Task 3.
Trust domicile
In principle, the location of the trust could be in any Member State of the EU.
However, such organisations and other organisations involved in EU-wide ac-.
tions, e.g. NGOs and other interest organisations have a tendency to locate
themselves in Brussels. The location of the trust will have legal implications
for the trust's operation; see below for a more detailed account of the legal
perspec- tives of trusts.
Marketing and public As is the case with Option A, it is also relevant in Option B to view
marketing and public awareness aspects from two sides. The independent
awareness
trust also needs to secure the highest possible availability towards the
voluntary public health actors in the EU for the latter to gain access to the
financial support from the trust. Furthermore, the trust needs to build a
positive image in the general public of the EU to ensure that the trust is
considered attractive by prospective donors. An independent trust faces the
essential tasks of building a strong brand, which can attract donations, and
of creating an image with which voluntary actors can identify.
As for Option A, meeting these challenges requires a carefully formulated
marketing strategy which displays the trust objectives and operation in a
transparent manner. The strategy should also take into account the ability
and means to attract donors and the extent to which donors are allowed to
use their donation to enhance their corporate image.
For an independent trust the sponsor activities may improve the
attractiveness of the trust as would possibilities of directing donations to
specific areas, as explained under Option A.
5.2.2 Legislative issues related to option B
In the following, the legal issues governing the establishment and operation
of a trust independent from any direction from the Commission or any other
governing body are described.
National legislation
Private agreements
Legal issues related to marketing and public awareness activities

In the absence of a tailor-made framework EU legislation regulating this
issue, the framework for donors involvement in a 'blind trust' as a tool of
marketing is set out in the national legislation of Member States.
The distribution of funds for marketing purposes may also be regulated by
private agreements, in which cases general contractual terms and conditions
would apply.
Legal issues related to taxation
Due to the limited EU legislative competence in the area of direct taxation,
National and
legislation
EU
Private agreements
Conclusion
Several sources of
financial support
"Public financial
support"
Legal
2
is
to
8 dona
treatment issues are subject to national regulation in the individual

Member States (see discussion above under Option A).
C
Donation issues are also subject to national regulation in the individual
Member States. Among other things, such issues include basic organisational o
m
requirements, the requirements of holding accounts etc.
m
When a fund is established in EU territory, due consideration should be i
given to the basic principles of existing EU legislation (and the principle of s
suprems
acy). In addition, traditional considerations such as transparency and account- i
ability (as laid down in the Financial regulation) should be taken into account.o
n
Specific financial issues, including the distribution of funds and conditions ,
for the EU providing funding to non-profit organisations, may be regulated
by means of private agreements. The contractual terms may also require that t
the organisational set-up includes one-to-one compatibility (clear
h
correspondence between the purpose defined by the Commission and that of e
fund).
s
e
In the absence of a single European legislative framework, the regulation of
issues under Option B is mainly vested within Member States. The regulation
of specific issues, e.g. those related to the distribution of funds for marketing
purposes or financial issues may be enforced by means of private
agreements. Furthermore, the EU Member States should respect existing EU .
principles and considerations. However, reliance on private agreement and
general EU principles may not always be efficient enough to achieve the
desired result. Firstly, an agreement is targeted towards regulating a certain
situation rather than being a comprehensive regulatory tool. Secondly,
general EU principles are not always implemented at the national level.
In Task 1 it was found that financial contributions to voluntary public health
actors originate from a variety of sources. These can be categorised into the
following: government income, earned income, and philanthropy.
As for Option A, the potential donations to an independent trust can also take
the form of the above-mentioned three groupings. This trust will attract donations from private companies and other national or global foundations. This
kind of financial income for the trust is exemplified by philanthropy. Under
Option A, it was also discussed that the ability to collect donations from
private companies depends on the availability in trusts of mechanisms that
may be attractive to donating companies for enhancing their corporate
profile. Therefore, one of the basic challenges for the trust is to put in place
an adequate incentive structure for donors.
Moreover, for an independent trust operating across European borders
support corresponding to government support could be financial support
from the national governments as well as the EU budget. Although, the
trust is not under the direction of any national government or the European
29
governing bodies could choose to donate financial support and increase
voluntary actions in European public health if deemed relevant.
Additionally, the independent trust can also secure financial support from
own, earned income (as is the case with Option A). This can take form of
membership dues both for individuals and for companies. This, in turn, calls
for a mechanism that benefits the potential members of the trust - be it a label
or logo that supporting members can use as part of their marketing activities,
e.g. on their products, website, or annual report to flag that they have
provided financial support to this particular foundation.
Earned income
Another way to generate self-earned income is to invest the financial capital

of the trust to increase the financial support for the voluntary actors.
5.2.4 SWOT analysis of option B
threats of the operation of a blind trust entirely independent of the
Commission (Op- tion B). In the below table, the conclusions of Option B are
summarised. Fol- lowing this, conclusions are detailed primarily based on
interviews with experts (researchers) in the field, voluntary actors and
potential donors.
Table 5-2 SWOT - Option B
Internal factors
Strengths
Weaknesses
No financial or organisation
from e.g. the Commission
External factors
Threats
Opportunities
Constraints on donation
Focused donations
Difficult to establish a brand/name

Distanced to potential recipients (voluntary actors)
The approached experts on philanthropy believe that an independent trust

such
as Option B is more likely to attract both private donations as well as
donations
from other funds compared to an EU directed trust (Option A). The
argumentation is the opposite as for Option A. Potential private donors and other funds
will be less reluctant to donating financial resources to an independent trust
oppose to a political directed trust. This is often encountered in philanthropy in
the US14 .
As mentioned in relation to Option A and based on the interviews with
stake.
experien
3
0
that the blind trust defines a number of focus areas so that donors
that their donations can be targeted towards a special focus area, although
not towards a particular voluntary actor. In the case of an independent
trust, this trust is free to define its own objectives and breakdown of focus
areas.
Labelling
To attract donations within these focused areas, the personal relationships

with prospective and current donors are paramount. An effective 'tool' is
described as the face-to-face contact with donors, as mentioned in relation to
Option A. However, it is pointed out by the approached experts that an
independent trust will have the advantage to act more freely towards current
and potential donors without having any political or financial hindrance.15
As for Option A, the use of a logo or other forms of labelling in the operation s
of an independent trust can be an effective means for a blind trust to attract a
t
donations. Donating companies can for example use such logo for
marketing purposes as part of their social responsibility. However, as also e
l
mentioned in relation to Option A, a blind trust needs to be cautious about the companies and/or products with which they become associated. For an lites
independent trust, this is of particular importance to have a reliable reputationrelation
in the general public both towards current/potential donors and the voluntary Commis
actors.
directed
or
The experts in the field of voluntary actors mention that the awareness of a independ
blind trust among the voluntary actors which can be potential recipients will trust,
be fairly unproblematic. Assuming that actors being relevant for this trust
respectiv
have significant size of organisation they are experienced in applying for
financial support as this is the basis for operating their organisation.
Information about a newly established trust (a potential new income source
for voluntary actors) will according to the experts rapidly distribute in the
network of voluntary actors.
Distance to voluntary
The distance between a central EU directed trust and the likely recipients of
actors
financial support in the field of voluntary public health activities may at first
seem long. However, information from voluntary actors as well as experts
indicates that this might not be as big an obstacle as firstly presumed, as
also mentioned in relation to Option A.
5.3 Option C - satellite organisational structure

As previously mentioned, Option C has an organisational structure that includes local satellite offices and a central headquarter. This Option could be
both an EU-directed trust (such as Option A) and an independent trust (such
as Option B), or be anywhere on the scale between the two. Opposed to
Option A and Option B, Option C includes a number of local units which are
responsible for parts of the trust's operation on behalf of the central trust unit.
Figure 5-3
15
Graphical illustration of option C. The map of Europe illustrate
Interview Kristen Grnbjerg, Mogens Kirkeby, and Kjeld Juel Petersen

.
5.3.1
3
O
objecti
1
more a r
Role of the satellite

units
level of dependency than of whether or not the trust is organised with

satellite units.
However, an essential element to look into in respect to a trust structured with
satellites is the number of satellite units and the role of these units in relation
to the central body of the trust. On the number of local units, one alternative
could be to locate a local unit in each Member State, whereas another choice
could be a lower number of local units where each unit covers a number of
Member States that are similar in terms of type of government, public health,
and voluntary activities.
Apart from deciding on the number of local units, the role of the units should
also be defined. The main argument for establishing local units is that it
secures the presence of the trust present where the voluntary actors are, which
would not be the case with a trust with one central location in Europe. The
local presence of the trust may also help attract donations to the trust.
The division of labour between the local units and the main body of the trust
can obviously be organised in various ways. At one end of the scale, the
local units can purely function as 'mail boxes', and at the other end of the
scale, the satellite units can work as fully operating bodies of the trust and
undertake handling and screening of applications and draw up
recommendations for the central body of the trust. The local units could
also fill in a role in the marketing and public awareness activities of the trust
as well as in the distribution of funds in their area.
The obvious advantage of local units of the trust is that such units have the
necessary understanding and knowledge of the activities, culture, and
language of their country of work.
Obviously, the cost of the structure including local units will vary with
the number units and their role. This will be dealt with in Task 3.
32
Naturally, the domiciles of the local units can also be established in
different ways depending on the role of the units. One alternative could be
to integrate units in the national administration, e.g. the ministries of health,
which would thus host the local trust secretariat.
Local unit domicile
5.3.2 Legislative issues related to option C

The regulation of a pan-European trust with attached satellite units has the
following main distinctive futures:
1 The EU has adopted a laissez-faire approach to the establishment and management of a pan- European fund;
2 There is a lack of harmonisation of national legislation regulating issues
related to the establishment and management of such a fund;
3 Satellite units are established and managed in the EU Member States.
Therefore, regardless whether it is an EU satellite fund or a private
satellite fund, its establishment and management must comply with
existing EU legislation and principles (e.g. financial principles set out in
the Financial Regulation, the principle of prohibition against
discrimination of Article 12 EU Treaty) and the national legislation of
Member States.
Legal and fiscal
barriers
in
a
transboundary
context
Lack of a single European legislative framework, on the one hand, and the
variety of national legislation may cause legal and fiscal barriers to the
establishment and management of a satellite fund at the national level. Such
barriers are caused by existing legal, administrative and tax barriers to the
transnational work of foundations:
Administrative burdens during the procedure of setting up a branch in another country;
Increased cost linked to the creation and administration of several recognised legal entities in countries where a foundation needs to operate to
fulfil its objectives, and use of available assets/funds which otherwise
would have been distributed as grants or used for programme
activities;
Difficulties with the recognition of legal personality of foreign foundations, and legal insecurity as to the recognition by domestic public
authorities of the general interest character of the cross-border
activities of the resident/domestic foundation;
Added difficulty of maintaining a common and effective policy strategy
between different legal entities;
Most countries allow the creation of a foundation that is active abroad as
well as cross-border activities, but the foundation might not qualify for
tax privileges or will not be able to receive tax-deductible donations;
Tax exemption is usually denied to foreign foundations established and
based in other countries;
33
Almost all EU countries refuse tax deductibility for donations made to foreign-based foundations.16
Horizontal and vertical regulation

Conclusion
In Croatia, some organisations have had difficulties registering 'the provision

of volunteer services' among their statutory activities. Due to the lack of
legal definition, registration authorities did not have a clear definition of
what 'volunteer services' implied. In some countries (e.g., Switzerland,
Belgium, Mace- donia), reimbursement of expenses to volunteers is taxed;
only reimbursement to employees is exempted.17 Charitable status can vary
considerably across countries and jurisdictions. There is no guarantee that a
charity in one jurisdiction will be eligible as a charity neighbouring
jurisdiction in which it wishes to operate.
The regulation of legal issues (e.g. in terms of taxation, financing, etc.)
related
to a satellite fund comprises of two elements: horizontal regulation
(among/between Member States) and vertical regulation (between Member
States and the EU Commission). Against this context, the horizontal
regulation
aims at facilitating cross-border donations. This may be carried out by means
of
bilateral agreements harmonising national legislation (which is quite timeconsuming) and private agreements (such as the Transnational Giving
Europe
Agreement18 ). The vertical regulation determines the extent of EU
influence on
e.g. the distribution of a trust's funds. In those areas, where EU lacks or has
limited legislative competence, the regulation may typically be implemented
through a private agreement (the EU rules and principles should be respected
in
all cases).
Due to the lack of a single European law, on the one hand, and the diversity
of
European Foundation Centre Challenges and opportunities for foundations and
funders
work across borders
17
The International Journal of Not-for-Profit Law Volume 9, Issue 3, July 2007
Comparative Analysis of the European Legal Systems and Practices Regarding Volunteering By
Katerina Hadzi-Miceva
18
The Transnational Giving Europe Agreement between the Charities Aid Foundation,
the
Community Foundation for Ireland, the Fondation de France, the Foundation for Poland,
the King Baudouin Foundation, Oranje Fonds and the Maecenata Institute for Philanthropy
and Civil society, see the Transnational Giving Europe website
http://www.transnationalgiving.eu/tge/default.aspx?id=219948&LangType=1033
16
34

As mentioned under both Option A and Option B, the financial contributions
to voluntary public health actors come from a variety of sources. These can
be categorised into the following: government income, earned income, and
philanthropy. Potential donations to a trust structured according to Option
C also take the form of the above-mentioned three groupings and can have
the same characteristics depending on how close the option set-up is to
Option A or Option
B.
Opposed to the two other options, the satellites may support the attraction of
donations as well as maintain the flow of donations. This is secured by the
close and easy access to national donors facilitated by the satellite units'
knowledge of potential national and local donors. Additionally, the
satellites have a major role in the contact with the voluntary actors.
5.3.4 SWOT analysis of option C
threats of the operation of a blind trust with an organisational structure that
includes local satellite offices and a central headquarter. (Option C). In the
below table, the conclusions of Option C are summarised. Following this,
conclusions are detailed primarily based on interviews with experts
(researchers) in the field, voluntary actors and potential donors.
Table 5-3 SWOT - Option C
Internal factors
Strengths
Weaknesses
Knowledge about needs at regional,

national, and local levels
Linguistic skills

External factors
Opportunities
Threats
Distribution according to ge
balance in contrast to r
Less pan-European knowle
As indicated previously Option C can both take form as an EU directed

trust (Option A) and an independent trust (Option B) meaning that the
argument for and against these options also counts in relation to Options C.
Distance to voluntary One unexpected finding during this study is as also indicated earlier that the
actors
approached experts and voluntary actors all claim that the local satellites attached to the central trust not necessarily will have the suitable effect. At
first, the distance between a central EU directed trust and the recipients of
funding seem long. However, it may be assumed that voluntary actors
applying to a pan-European trust have some capacity and will therefore be
capable of observ-
35
ing international procedures, applying in other languages, and such actors

are usually used to applying for financial resources internationally.
In this relation, it is also relevant to keep in mind that the distance from for
example a voluntary actor located in a region of Rumania to a satellite
office of the trust in Bucharest could be argued as seeming as distanced for
the voluntary actor as a trust located in for example Brussels.
It can also be argued that a danger in relation to the decentralised structure
of a trust is that the distribution of funding is undertaken in respect to
geographical balance in contrast to the geographical areas with the real
needs. A decentralised structure could also result in less pan-European
knowledge sharing as an effect of less interaction across EU borders.
Furthermore, a trust with satellite offices will have some legislative
complications as described previously in this section, and the
administrative costs of the operation of the trust is significantly higher than
for the options without satellite offices, see task 3. In this relation, it is
worth mentioning that the more financial resources spend on
administration costs then less resources is available for the trust to distribute
to voluntary donors.
Feasibility study on funding arrangements for voluntary and not for

profit public health activities at EU level
Interview guide
COWI A/S
Tel +45 45 97 22 11
Fax +45 45 97 22 12
www.cowi.com
1 Feasibility study on funding arrangements for voluntary and

not for profit public health activities at EU level
First, this interview guide includes a short presentation of three different options of a blind trust operating in the field of voluntary public health activities.
In particular Option A and B should be seen as each end of a scale in respect
to the level of direction or organisational link to the European Commission.
Hence, in between various intermediate options do occur.
Aim of interviews
Secondly, the questions to the interviewees are given. The interviewees

are voluntary actors, potential donors, and experts in the field.
The overall aim of the interviews is to support the SWOT analysis of each option of a blind trust. Thus, the interviews will clarify the relevance and
function of each option. The interview questions are based on the previous
task of the study and the SWOT analysis.
Each interview will begin with a short introduction to the study and to each
of the three options.
Option A: EU directed trust
2 Presentation of the three options

Option A is under the full direction of the Commission and therefore under
the guidance of the EU political system, including the Council and the
European Parliament:
Document no.
Version
Date of issue
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C:\Documents and Settings\RT\Local Settings\Temporary Internet Files\Content.Outlook\FU7OU3HW\Annex 2 1.docx
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Interview guide
2
/
Figure 2-1 Graphical illustration of an EU directed trust
Option B: Independent trust
Option B is entirely self-governing in relation to the Commission or any

other
political bodies. The trust fund will on this basis be free to act exclusively
under the direction of its own independent board.
Figure 2-2 Graphical illustration of an independent trust
Option C: Satellite
fund
Option C is organised with an organisational structure that includes local

satellite offices and one central body. This Option could be both an EU
directed blind trust (as Option A) and an independent blind trust (as Option
B), or placed anywhere on the scale between the two. Oppose to Option A
and Option B is that Option C includes a number of local satellite offices
undertaking parts of the trust's operation for the central trust unit.
C
3
Interview guide
Figure 2-3
Graphical illustration of option
The yellow dots at the right side of the illustration and the stars at the left
side of the illustration illustrate the satellites, as well as the degree of
independency in regard to the EU.
3 Questions
The following represents the questions to the different
interviewees1 : General questions:
1 What are your general thoughts on the introduction of a blind trust operating in the field of voluntary public health activities across the EU?
2 What are your overall thoughts on the three options mentioned above?
Questions related to donations:
3 How do you see the three options' ability to attract donations?
4 Which initiatives could a blind trust make to raise public awareness/ marketing and attract donations? Differences between options?
Membership of blind trust as part of CSR
Use of logo (labelling)
Sponsor arrangements
Advertisement
5 Who do you see as potential donors? Differences between options?
Questions related to voluntary actors:
Not all questions are relevant for all interviews
Interview guide
4 / 5o
p
t
6 Are the three options relevant for voluntary actors to apply for funding? i
o
Differences between options?
n
s
7 Which voluntary actors do you see applying for funding in such a blind
?
trust? Differences between options?
International/ European associations of voluntary actors
National voluntary actors
Individual voluntary actors
Me
mbe
rs?
8 Are there any essentials for a blind trust working with voluntary actors?
Differences between options?
9 How does a blind trust raise awareness in respect to its existence towards
voluntary actors?
Voluntary public health arrangements/days
Advertisement
Structural questions:
Figure 3-1 A generic model
10
What are your general thoughts on the internal organisation of a blind
trust
(see the above figure)?
11
How do you see the structure of the board in relation to the three
Interview guide
5 /5
12
to
How do you see the structure of the advisory committee(s) in relation

the three options? Members?
17
Appendix 3: Roadmap and cost estimate related

to the establishment of a blind trust

Feasibility study on
funding arrangements for
EU level
Report on TASK 3: Roadmap and cost
estimate related to the establishment of a
blind trust
SANCO/2008/C4/05
January 2010
COWI A/S
Tel +45 45 97 22 11
Fax +45 45 97 22 12
www.cowi.com


Report on TASK 3: Roadmap and cost
estimate related to the establishment of a
blind trust
SANCO/2008/C4/05
January 2010
Document no.
Version
Date of issue
Prepared
Checked
Approved
Tabl
Cont
1
Summary 2
Introduction 3
3
4
4.1
4.2
Methodology 4
Roadmap for the establishment of a blind
trust
Establishment of a blind trust
The Board of the blind trust
Secretariat 11
Advisory committee
4.3
4.4
4.5
4.6
4.7
5
6
7
18
11
Application procedure
12
Marketing and public awareness
15
5
5.1
5.2
5.3
Financial and performance controlling

Cost estimation
Costs 21
Costs of establishing and implementing a blind trust 23
Costs of operating a blind trust
21
23
2
objectiv
specific
trust
3
secretar
4
advisory
1
Summary
A thorough understanding of the different steps in establishing a blind trust

is necessary and comprehensive. This task describes the different steps
which may be undertaken and carefully prepared before a blind trust is
implemented as well as the operation of a trust.
The following steps must be taken into account:
1 Decision of establishing a blind trust by a founder/creator. Subsequently,
the aim of the trust must be defined and notification of the trust given,
as
well as drawing up a trust deed.
2 Selection of Board of the blind trust. The Board elaborate:
Special attention must be given to election of Board members to avoid
conflict of interest. Furthermore, focus on marketing and public awareness and especially attraction of donors - claims a well-researched strategy.
According to cost Option A and B are almost identical except for Option A
which may have
fewer administrative cost and thereby running costs. Option C is much
more costly due to the satellite units.
5
blind tru
6
public a
7
perform
controll
Introd
Purpose
Background
Structure of Task 3
In Task 2 three options for a pan-European blind trust for voluntary and not
for profit trusts was outlined. The options are primarily based on aspects of
organising a pan-European blind trust. To ensure usability of the options
interviews of stakeholders was performed as well as SWOT analysis for
each option. The SWOT analyses demonstrated strengths & weaknesses
(internal factors) and opportunities & threats (external factors) for each
option.
The purpose of Task 3 is to describe an understandable and well-structured
roadmap that will facilitate the decision-making process on the establishment
and support the implementation of the blind trust. The roadmap will be easily
comprehensible and operational and will include a plan of action for each of
the included elements. Furthermore, cost estimates for the establishment,
implementation and operation of a blind trust will be presented.
A successful trust needs to promote good governance, transparency and accountability practices with respect to the Board, overseeing operations
(regular turnover, selection, periodic review etc.), professional asset
management and disclosure of procedures, programmes and results.
Transparent rules, such as clear information on funding restrictions, armslength processes for calls for projects and nomination of projects by Advisory
committee(s) should be used; as well as encouragement of disclosure, peerreview and self-regulation mechanisms and standards. Furthermore, a 'label
system' element so donors are as- sured that their donations to a foundation
are applied to a public benefit purpose should be adopted.
Chapter 3 describes the methodology of Task 3. The roadmap is developed
in chapter 4, and an in-depth description of each element is included as are
plans of action for each of the elements. Cost estimates for the
establishment, implementation and operation of a blind trust are presented
in chapter 5.
.
Methodology
Roadmap
The elements described in the roadmap are based on existing experience
and knowledge of establishing, implementing and operating foundations
and blind
Cost elements
Estimation of costs
trusts' as well as information from desk studies (Task 2). Furthermore,

relevant findings from Tasks 1 and 2 have been included in the roadmap.
The cost estimates are broken down into several cost elements.
Furthermore, cost estimates are described with a view to the three options
for blind trusts as well as the generic blind trust model presented in Task 2.
The estimation of costs is based on best available sources. Calculations are
based on information and knowledge from other blind trusts and estimates
from EU reports. Cost assumptions have been made in cases where
information was missing.
roadmap
5
the estab
blind tru
be easily
prehens
operatio
include
action fo
element
Roadmap for the establishment of a blind

trust
4
Introduction and
The roadmap elaborates on the elements presented in Task 2, section 3. For a background
Elements of a
When establishing, implementing and operating a blind trust, several issues
roadmap
are important. The following elements are discussed in this chapter:
1 A founder/creator decides to establish a blind trust. Subsequently, the aim
of the trust must be defined and notification of the trust given, and the
trust deed must be drawn up.
2 Selection of Board of the blind trust:
Vision, mission and objectives
Priority objectives and specific activities of the blind trust
3 Establishment of secretariat
4 Selection of advisory committees
5 Applicants to the blind trust
6 Marketing and public awareness:
7 Financial and performance controlling.
For each element, a plan of action will be elaborated.
The
6 firs
establish
trust mu
the foun
4.1 Establishment of a blind trust

Founder/creator of a
trust
Aim of a blind trust
Notification of a
blind trust
Trust deed
ders/creators. The founder/creator can represent a person or a group of

persons, legal persons or an association of physical and legal persons, e.g. the
EU.
The reasons for establishing a blind trust must be defined. An overall purpose
of a blind trust could be to encourage research into a specific area or to
increase activities in the field of voluntary and not for profit public health
activities.
To notify a blind trust drawing up of a trust deed is necessary. The trust deed
should contain the final rules/articles and a list of board members and the
name of the trust accountant.
The trust deed must contain a specification of:
the name of the blind trust
the domicile of the blind trust
the purpose of the blind trust
the size of the blind trust's assets and net capital at the time of establishment
special privileges and advantages attributed to the founder or other persons, if any
the number of board members and how they are appointed
presentation of accounts, and use of profit.
4.1.1 Plan of action
The elements and activities in the plan of action for establishing a blind
trust are presented in Table 4-3.
.
or other p
Table 4-1 Plan of action regarding establishing a blind trust

Activity
Brief description
Set-up of
Notification of a blind trust

To notify a blind trust, drawing up of a trust deed is
necessary.
Trust deed
Name of the blind trust
Size of the blind trust's assets and net capital at the
Domicile of the blind trust

Purpose of the blind trust
time of establishment
Board members
The Board members must be independent according to the trust's work and
represent a high integrity in the field of voluntary and not for profit public
health activities. It would be relevant to select Board members from among
national and/or international not for profit organisations, actors in the field,
the private sector, such as the food processing industry or the fitness industry,
institutions such as the World Health Organisation (WHO), the European
Commission, the European Economic and Social Committee (EESC), the
European Union's Committee of Regions, European Public Health Alliance
(EPHA) or Action for Global Health.
The Board members should be elected or appointed for a given period, e.g.
four years. Furthermore, re-election of Board members should be stated e.g.
two pe- riods. Thus, it will assure that the blind trust is innovative and
develops over time.
.
members
4.2 Th
of the
trust
Table 4-2 Members of the Board

Possible representatives and
Examples
main actors
International institutions
University
experts
in
public
health
University experts in voluntary activities
Not for profit organisation
Private sector
Actors in the field
World Health Organization (WHO)

Action for Global Health
The Alliance of European Voluntary S
sations
The European Platform for National N
brella Organisations and for National
general Interest (CEDAG)
Donors
Industry actors
Organisations running voluntary activities
Defining vision, mission and strategy/objectives
The board members have a number of duties. An important issue for the
board is to define and describe the vision, mission and strategy/objectives of
the trust. The board makes decisions on behalf of the trust and is liable for
these decisions.
Management of
funds
The board's foremost obligation will be to manage the funds of the blind trust
in alignment with the strategy/objectives and mission of the trust. The
collection and re-distribution of funds will be executed independently, and in
a transparent and accountable way by the blind trust to avoid conflicts of
interests between donors, beneficiaries, and the blind trust.
Handling
applications
It is the responsibility of the board to implement a specific application

process as well as to draw up application submission guidelines. It is
important that the boards' work areas are transparent and unambiguous for
potential beneficiaries and donors.
It is imperative that the blind trust has clear and transparent vision, mission
Vision, mission and
and objectives. Thus, the vision, mission and objectives will determine the
objectives defined by
activities of the blind trust.
the Board
Vision: The vision reflects the blind trust's values in terms of its fundamental
strategic direction. Vision is a long-term view, sometimes describing a view
of how the blind trust would like the world in which it operates to be. To
illustrate this, the vision of a blind trust in the area of voluntary and not for
profit activities could be "Strengthen the possibilities for voluntary and not
for profit activities".
.
Vision:
We envision a nation that marshals its resources to assure that all children have an equitable and promising future a nation in which all children thrive.
The Kelloggs' foundation
Mission: The mission defines the fundamental purpose of the blind trust.
Basically, it describes the trusts' existence and how it will achieve the vision. The
mission does not have a timeline, but rather the overall goal is
accomplished over the years.
Mission:
The W.K. Kellogg Foundation supports children, families, and communities as they
strengthen and create conditions that propel vulnerable children to achieve success as individuals and as contributors to the larger community and society.
The Kelloggs' foundation
Strategy: Visions and missions are often implemented by developing a

strategy
which reflects a clear focus on stakeholders in the area in which the trust
works (in this case voluntary and not for profit activities). A strategy is
implemented by objectives.
Strategy:
At the Wellcome Trust we strive to work in a way that maximises our ability to achieve our
mission - to foster and promote research with the aim of improving human and animal
health. The Strategic Plan provides the framework for the ongoing development of our
strategy.
The Wellcome Trust
Objectives: Objectives are closely related to focal areas and often

synonymous
with them. Objectives define the specific goals of the trust. Objectives can
cover specific strands, such as 'support activities within voluntary activities
in the area of healthy diet to homeless persons' or specific projects as e.g.
'sport activities for children in eastern Europe'. The objectives can change
according to the needs in the strands the trust work in; they will evolve
over time in relation to society trends in public health across Europe.
1
Objective
We support many different kinds of research and activities with the ultimate aim of protecting
and improving human and animal health. This support is not restricted to UK researchers we devote significant funding to international research too.
Focus areas
Biomedical science
Technology transfer
Medical humanities
Public engagement
Capital funding
Strategic awards
The Wellcome Trust
Mix of vision,
mission, strategy
and objectives
Some blind trusts mix their vision, mission, strategy and objectives and do
not distinguish between those elements. Thus, it may be convenient and
suitable for
many blind trusts to have this mix.
Mix of vision, mission, strategy and objectives:
Our belief that every life has equal value is at the core of our work at the foundation. We
follow 15 guiding principles, which help define our approach to our philanthropic work, and
employ an outstanding leadership team to direct our strategies and grant making.
Bill and Melinda Gates Foundation
We suggest that a blind trust have clearly defined vision, mission, strategy
and objectives. Thus, it is important to establish these elements as early as
possible and prior to implementing the blind trust as vision, mission,
strategy and objectives guide the work area for a blind trust.
As mentioned in Task 2, it could be relevant for the trust to have a number of
focus areas attached to each of its objectives so that both donors and
recipients have the opportunity to target their donations and funding
applications to a specific focus area.
The elements and activities in the plan of action in terms of vision,
mission, strategy and objectives are presented in Table 4-3.
Table 4-3 Plan of action for objectives and mission

Activity
Brief description
Appoint board members
Persons with high integrity in the field and independent of the trust's work are relevant board members.
The members should also be relevant according to
the vision, mission and objectives established. Define the vision, mission, stratThe board defines the not for profit voluntary blind egy and objectives
trusts vision, mission, strategy and objectives.
4.3 Secretariat
11
Secretariat and task

specific committees
The secretariat takes care of the daily operation of the trust by supporting the a
board, the applicants and advisory committees, therefore, the size, scope and m
o
role of the secretariat will depend on the specific blind trust model.
u
Depending on the organisational set-up, the tasks of a secretariat should n
among other things include:
t
.
Daily operation
Coordination of meetings off the Board, the advisory committee and others
Screening of applications from voluntary actors
Information to applicants on whether applications have been accepted
Marketing of the trust, including public awareness in respect to both potential and current donors as well as recipients of funding
Contact to potential and current donors, including bilateral arrangements,
conferences, donors' days, events, etc.
Table 4-4 Plan of action for secretariat
Activity
Brief description
Establish secretariat
Hire skilled staff
Elaborate fields of work
Develop a work plan according to the fields of work
Advisory
committee(s)
4.4 Advisory committee

Advisory committees have the role of assisting the board with professional
and technical public health related issues, voluntary work as well as
principles and practices for allocation of funding to applicants. It is the
obligation of the advisory committee to nominate projects for funding to
the board which takes the final decisions on grant recipients and the grant
.
One or more
committees?
Selection
members
of
The period of appointment must be defined. Advisory committees may be

permanent or ad-hoc according to the specific areas of activities. If the
activities deviate from each other, it may be necessary to form several
advisory committees with expert knowledge in certain areas of public
health. Acknowledging this, it must be decided whether one or several
advisory committees should be formed. In the case of a trust with a number
of focus areas attached to its objectives, it could be relevant with an
advisory committee for each focus area.
I
n
q
u
i
r
y
If the organisation of the blind trust is spread over several regions/countries, itf
should be decided whether local advisory committees should be appointed. r
o
m
Careful selection of members to advisory committee(s) is paramount to
ensure that members are health professionals covering the activity areas of
the trust'. Obvious members could be professionals from research
t
institutions, lawyers specialising in public health, experts in voluntary
h
activities, people from the industry, such as the food processing industry and e
fitness industry. It is the obligation of the board to appoint members to the
advisory committee(s).
g
r
Table 4-5 Steps in setting up advisory committee(s)
a
n
Steps
t
Tasks
1.
Permanent or ad-hoc
a
Decision on establishing permanent or ad-hoc committees
p
2.
Organisation of advisory
p
Decision on setting up committees at headquarters or committee(s)
l
in regions/countries
i
3.
Number of advisory commitc
Decision on the number of committees to be formed tee(s)
a
according to the areas of activities
n
4.
Appointment of committee
The expert members of the advisory committee(s) members
t
should be appointed (e.g. professionals from universi- s
ties and research institutions, and public health lawyers etc.)
4.5 Application procedure

The process of receiving and evaluating applications for grants needs to
be transparent.
External application
procedures and
guidelines
12
Application procedures have two angles:

the external application procedure and application guidelines
the internal application procedure.
Application guidelines and submission procedures need to be precise and
transparent for grant applicants. We suggest that the blind trust request a
Letter of
d
e
s
c
r
i
b
i
n
g
b
r
i
e
f
l
y the project and

organisation
enabling the secretariat to make a first screening of the relevance of the

project
.
13
to the blind trust's activity areas, vision, mission, strategy and objectives.
Thus, if the project is deemed relevant, a formal application form can be
filled in.
Both the Letter of Inquiry form and the application submission form should
be
easily accessible and in electronic format, i.e. on the blind trust's website.
The contents of application guidelines should be clear and structured

according to themes, such as:
Who can apply
Themes/activities to be financed
Costs to be covered
Who can apply?
Application, evaluation and selection of grant projects.

Eligible applicants as well as partner(s) should be clearly described in the
application guidelines. Criteria could be:
Registered as a voluntary organisation
Nationals of Europe
Governmental organisations/non-governmental organisations, private sector associations, professional associations
Local authorities, such as municipalities
Universities
Research institutes/centres
Grants to non EU Member States
Grants to individuals or activities that benefit only one person
Funding of applications from donors.
The applicant is the lead organisation and, if selected, it will act as the
contract- ing party. Applicants are directly responsible for the preparation
and management of the project with their potential partners.
Themes/activities to
be financed
Language
Programme areas or initiatives to be financed should be clearly defined

according to voluntary activities. Furthermore, the geographic priorities
should be stated. Thus, it should be decided whether the blind trust should
cover Euro- pean countries, EFTA Member States, EU official candidate
countries or EU Member States only.
Languages accepted when submitting applications should also be defined.
Thus, if all EU Member State languages are accepted, it will require that
the
14
organisation is capable of handling the translation process. Board members
and advisory committee(s) will hardly be able to read and understand all
European languages.
The costs to be covered by the grant should be described. Related questions
concern:
Cost to be covered
Funding of salary
Should co-funding from e.g. national sources be compulsory?
Funding of rent for locations
Application, evaluation and selection of
grant projects
Permanent procedures for funding are necessary to ease the work for both the
blind trust and actors in the field who apply for funding.
Application process
Internal application
procedure
the secretariat, Advisory committee, and Board reviews and evaluate the
T
h
applie
cation
based on their knowledge and understanding of issues addressed,
quality
a planning, plans for sustainability, importance of issue in the application,
of
p
strength
and feasibility of the possible project to receive a grant, and
p
expected
l
impact
of the possible project.
i is the responsibility of the Board to establish application procedures, i.e.
It
c
the
a
application
guidelines.
t
The
approval process can be divided into several steps. The blind trust
i
receives
o application, and the secretariat makes the first screening by reviewing
the
n
and
evaluating the formal requirements of the proposals. If the blind trust has
p
sevr
eral
areas of interest, the programme director in the secretariat responsible
o
for
c particular area will receive the application. If the application after the
the
e
initial
s
screening
process meets the criteria stated in the guidelines, it is passed on
15
The approval process for applications is important when assessing the

workload of the secretariat, the advisory committee(s), and the Board. Thus,
wage costs will depend on the workload and number of staff in each area of
interest.
Timing
of
application and
approval process
16
It is vital that the blind trust builds up and maintains a strong, positive profile r
in the general public in the EU Member States. It is an advantage if the
e
populations in the countries and geographic areas of interest know the blind s
trust and have a positive impression of it. Thus, populations may induce the p
interest from companies and organisations to donate grants. It must be
o
defined how the blind trust will address and communicate information to the n
populations in the Mem- ber States:
s
i
Media (commercials, newspapers, folders etc.)
b
i
Logo
l
i
Events such as an annual day of voluntary activities.
t
Marketing in relation to public awareness is central and can take many
y
forms. Commercials and folders present one form. A second form is offering
subscrip- tion-based newsletters, either in paper format or in electronic
format offered on the blind trust's website. A third form is different events
with special focus on voluntary activities according to a specific 'Voluntary
day' running all over Europe.
EU Member State
populations
Potential
applicants
grant
The group of grant applicants are probably the easiest group to reach. Normally, potential grant applicants are very quick at uncovering the existence of
a blind trust or the similar.
Public awareness and marketing towards applicants may take many forms.
The most appropriate forms of visibility to consider are:
A transparent and sufficient website, which appeals to the target audience
Exposure through applicant projects that have received grants from the
blind trust
Visibility through logos used by donor companies.
Potential
donors
grant
It is essential that the blind trust has a strong profile among current and
potential donors and that donors understand the incentive to contribute to
the blind trust. Therefore, the benefits of donating financial resources to a
blind trust from the point of view of companies and organisations must be
elaborated to attract donors.
In the process of attracting donors, donors may be divided into different
types according to the grant purpose.
Donors who expect PR in relation to the donation
Donors who do not expect PR in relation to the donation.
Donors expecting PR are typically companies. They donate money to
increase the sale/value of their products or to increase corporate social
Donors expecting PR
.
(CSR) in their company. Therefore, a marketing strategy towards

companies could be to appeal to the companies' CSR, especially if the
company has an integrated CSR policy.1 If it is possible to identify
companies by em- bracing their responsibility for their impact on public
health, donations of grants to the blind trust must appear relevant. CSR
policies can play a role in brand differentiation for companies, and thereby
give them a unique position on the market.
To increase visibility of donations, the blind trusts could have its own logo
which donors can use on products and/or website to promote their social
profile and thereby their products.
The blind trust can 'donate' gifts' to donors, tickets to a donating company
for special events such as national concerts/theatre performances or
international events, such as European Football Championship. Experts on
foundations also emphasise that by letting famous actresses, sport stars, or
other public persons promote the trust can be an effective way of promoting
the fund. This can both help attract donors and raise the general public
awareness of the trust.
Donors not expecting Donors who do not expect PR are typically foundations or wealthy private
PR
persons which donate financial resources to support the aim of the trust.
This is the classic definition of philanthropy.
Other organisational
arrangements
Marketing and public awareness staff should form part of the organisation.
Ei- ther as a part of secretariat or as a separate committee that supports both
secretariat and the board.
The elements of the plan of action for marketing and public awareness are
presented in Table 4-7.
CSR is integrated into a business model. An optimal CSR policy function is a

built-in mechanism whereby business would monitor and ensure their adherence to law,
international norms, ethics etc.
potentia
1
7
Activity
1
Brief des
Table 4-7 Plan of action for marketing and public awareness

Assign marketing and public
awareness responsible
A person responsible for marketing and public awareness to be assigned. It is the responsibility of the board
of directors and secretariat to identify the areas of
responsibility and assign the person.
General awareness
A website for the blind trust are developed and should

contain information about
Vision, mission and objectives

Areas of activities
Organisational structure (members of Board of Directors, secretariat and advisory committee(s) etc.)
Marketing and awareness towards populations
Application guidelines and forms

Publications
Marketing and public awareness towards the EU

Member States populations should be covered
through:
Media (commercials, newspapers, and folders etc.)

Newsletters
Logo used by donors' and applicants
The marketing and awareness activities are implemented in the blind trust by the responsible person or
committee.
Marketing and awareness towards potential grant applicants
The marketing and awareness campaign is implemented in the blind trust by the responsible person or
committee.
Key stakeholders (potential applicants) are identified.

The marketing and awareness is established in the
blind trust by the responsible person or committee.
Marketing and awareness towards potential grant donors
The board of directors and secretariat design and

implement a logo that creates visibility of the blind
trust. Donors to the blind trust should be able to use
the logo.
4.7 Financial and performance controlling

Financial and performance controlling
In the blind trust's funding procedure it will be fundamental to ensure that

the
allocated funding is spent in coherence with the defined objectives and
mission
of the blind trust. On that basis, a performance and financial monitoring
system
.
will be important to implement as part of the funding cycle. Implementation
19
Audit and financial

performance committee
results related to the funding. Moreover, organisations applying for funds

may be required to keep financial track records. The accountability of the
voluntary actor, and by that the coherence between the achievement of the
voluntary actor and the blind trust's objectives, are then ensured by reporting
on both performance and financial spending to the blind trust.
A blind trust should include an audit committee and a financial
performance committee. The responsibility of each of these committees
and types of personal should be clearly and transparently defined.
Audit committee
An audit committee's responsibility is to evaluate the blind trust's

organisational system, which also provides an assessment of the
organisation's internal control. The primary objective of an audit committee
is to express an opinion on the blind trust's organisation. An audit should be
performed annually and seek to assure the transparency and control of the
blind trust. The audit could be performed by either internal staff from the
secretariat or the board, or by external staff.
Financial performance committee
A financial performance committee's responsibility is to perform a financial

audit of the blind trust. It could be an option to merge the audit committee
and financial committee into one committee if relevant. The financial
committee's work could be undertaken by internal staff or outsourced to
external staff.
Investment
committee
If the blind trust has considerable funds, it may be appropriate to consider

setting up an investment committee with responsibility of investing funds if
necessary.
It should be noted that the work of the audit committee, financial
committee and investment committee could to a certain degree be covered
by the secretariat. Thus, the secretariat could include staff with
responsibility for investments and staff with responsibility for financial
and performance controls.
The elements of the plan of action are presented in Table 4-8 below:
Table 4-8 Plan of action for organisational structure
Activity
Brief description
Decide organisational structure The European Commission decides the organisational
structures with regard to geographical location
of headquarters and whether the organisation should
have satellite offices.
Locations
Create facilities to operate a blind trust. Responsibility of the Board of
The European Commission determines the exact re- Directors
.
sponsibili
directors.
determine
areas the
of
2 the sec
Assign
se
0
Staff of th
should be recruited.
Assign Board
The European Commission assigns the members of
the first Board.
assigned
Responsi
comResponsibility of the secretariat Assigned board of directors defines the responsibili- ties
The respo
established in accordance with vision, mission, objectives and activities by the board and the secretariat.
mittee(s) Assign advisory
committee Assign special
committees
If the advisory committee is permanent, it is chosen at

this point in time.
If found necessary, special committees such as Audit,
Financial, Marketing and Awareness committees are
established.
Profit and investments
If profit and investments are allowed in the blind trust according to the trust
deed, it should be noted that profits and investments may be subject to
national
tax. Potential profits in the blind trust could be invested in government
bonds,
2
1
5
estim
This cha
presents
estimate
operatio
trust, wh
also takes into account the differences between the three options for
establishing a blind trust introduced under Task 2. Furthermore, the cost
estimate is based on key elements of operating a blind trust.
Cost elements of op-
T
h
e
f
o
l
l
o
w
i
n
g
c
o
s
t
Costs in a blind trust
erating a blind trust
e
l
e
m
e
n
t
s
f
o
r
m
p
a
r
t
o
f the cost estimate:

Salaries and costs
of meetings (costs
according to tasks
performed in the
establishment/i
mplementation
and operation
phases)
Overhead costs
(costs of operating
the blind trust
including office
facilities/offices)
Marketing and
public awareness
(costs of marketing
and public awareness

activities targeted to the EU population, prospective applicants and donors).
To this end, it should be kept in mind that the options presented under Task 2
are two ends of the scale, and therefore a blind trust can be created in a
variety of ways which will naturally influence the costs of running a trust.
Therefore, the cost estimate should be considered as an overview of costs
incurred in relation to the three options and as a tool to be used when
deciding on the final structure of the trust. Furthermore, a number of
assumptions in the cost estimate have been made, e.g. the sum of the annual
distribution of funds. This is a fictive figure, and the adjustment of that figure
to actual conditions will naturally affect costs estimate.
5.1 Costs
In this section, key assumptions and cost parameters are presented with a
view to elaborating on how the cost estimate has been made.
The costs in a blind trust should not exceed 10 per cent of the grants. In the
cost estimate, it is assumed that the blind trust should distribute funds for
EUR 100,000,000 per year.
.
22
Number of staff in
the secretariat
The number of staff per year in the secretariat has been set based on the
staffing level in a Danish trust.2 It was found that one staff in the secretariat
of the Dan- ish trust covered grants in the order of EUR 2,500,000.
Consequently, a blind trust with a grant programme of EUR 100,000,000
would need 40 staff (100,000,000 divided by 2,500,000). It should be noted
that a linear relationship is assumed between the number of secretariat staff
in the blind trust and the grants. .
(
A
c
c
e
s
s
e
d
Salary costs per employee in the secretariat have been assumed to EUR
60,000 per year.3
O
Salary costs
Cost of board members and committees
Board of directors
Costs of convening board members as well as meetings in the advisory

committees are estimated. Travels for meetings are broken down into travel
costs (assumed to be EUR 450 per person per meeting), and per diem costs
(assumed to be EUR 700 per person per meeting).
c
t
o
b
e
r
It is assumed that the board consists of five persons and that the board is 2
con- vened six times a year. Thus, the annual costs of convening the board 0
0
are estimated at EUR 34,500.
9
activi-)
Initially, it is assumed that three committees covering different areas of

ties are established, and that the committees consist of five persons each that
meet twice a year. Thus, the annual costs of convening the advisory
committees are estimated at EUR 34,500. .
The costs of other committees such as financial and audit committees that
may be deemed necessary at a later stage are estimated to be similar to the
Advisory committees advisory committees. The costs of other committees are estimated to EUR
and other committees 34,500 per year.
Overhead costs includes everything other than salaries, such as facilities/offices, telephones, electricity, stationary etc. The overhead costs (or administrative costs) are estimated to EUR 22,000 per secretariat staff
annually.4
Marketing and public awareness activities are important elements of a blind
trust, and costs should be assigned to the elements in a way that reflects their
importance to the trust. Obviously, there are no standard amounts for
Overhead costs
spending on marketing and public awareness activities. For the cost estimate,
it is assumed that 20 per cent of the maximum amount of grants distributed
is devoted to marketing and public awareness activities. In a blind trust with
Marketing and public a grant port- folio totalling EUR 100,000,000 and maximum costs of 10 per
awareness
cent, this will correspond to EUR 2,000,000.
2
Forebyggelsesfonden (The Prevention Fund). Annual report 2008

http://www.forebyggelsesfonden.dk/fileadmin/webmasterfiles/AArsberetning/AArsberetnin
g_2008.pdf (Accessed October 2009).
3
This figure has been used in several EU studies, including agency evaluations
4
Source: Interim evaluation of the EACEA. February 2009.

http://ec.europa.eu/dgs/education_culture/evalreports/cross/2009/eaceareport_en.pdf
.
5.2 Costs of establishing and implementing a blind

trust
23
Founder of a trust
Costs
The establishment and implementation of a blind trust is related to the

foundation of the trust. Evidently, this phase is dependent on a founder who
takes the initiative to establish and implement the trust. This founder does
not necessarily have to be the same as the future responsible operator of the
trust.
The founder of the trust could for example be the Commission with the
actual founder being a project coordinator having received funds with the
aim of establishing and implementing a trust.
The costs of establishing and implementing a trust depend on several factors
and can only be properly estimated when the structure of the trust is
permanent. Factors influencing the cost level are for example geographic
location, number of units (if any), and level of independency.
Cost variables will be the introductory rent, office supply/equipment,
furniture, IT, etc. It must be assumed that an EU directed trust (Option A)
hosted by the
Commission will incur lower establishment and implementation costs than a
fully independent trust with no financial support from the Commission.
Option C (the satellite trust) will obviously incur higher establishment and
implementation costs due to the number of units in various locations.
5.3 Costs of operating a blind trust

Based on the assumptions made in section 4.1, the cost estimates for each of
the three options are presented below.
Salary costs of the secretariat and the costs of convening board members and
committees are presented in Error! Reference source not found..
As previously mentioned, it is assumed that the number of staff in the trust is
40.
This results in identical cost estimates for Option A and Option B in
terms of salary costs for the secretariat and for convening the board,
advisory committees, and other committees. However, on Option C it is
assumed that the secretariat of the trust can be half the size (20 staff)
compared to Option A and Option B and that the number of satellite units
requires 40 staff. This means that the cost estimate for Option C is 50 per
cent lower than the cost estimates for Option A and Option C.
Table 5-1 Costs of salary and gathering of Board of Directors and committees,
EUR per year
Cost element
Option A
Option B
Option C
Cost ,board
of directors
34,500 34,500 34,500
Salary, secretariat 2,400,000
2,400,000
1,200,000
2,400,000
.
Costs,
ad
4
committees
34,500
34,500
34,500
Cost s, other
committees
34,500
34,500
34,500
Total
2,503,500
2,503,500
3,703,500
Overhead costs are estimated to EUR 22,000 per staff member which will
be EUR 880,000 for both Option A and Option B. For Option C overhead
costs
are estimated to EUR 1,320,000, see Error! Reference source not found..
Marketing and public awareness costs are estimated to EUR 2,000,000
annually for all three options.
Table 5-2 Overhead costs, EUR per year
Cost element
Option A
Option B
Opt
Overhead per
person
22,000
22,000
22,
Number of
secretariat staff
40
40
60
Total
880,000
880,000
1,3
Based on the cost estimates in tables 4-1 and table 4-2, the total cost
estimate for operating Option A and Option B is EUR 5,383,500 per year,
and EUR 7,023,500 per year for Option C.
Table 5-3 Cost estimate for operating a blind trust for each of the three alternative options, EUR per year
A costly Option C
Cost element
Option A
Option B
Op
Cost - board of
directors, secretariat
and committees
2,503,500
2,503,500
3,7
Office/facilities/rent
and overhead
880,000
880,000
1,3
Marketing and public

awareness
2,000,000
2,000,000
2,0
Total
5,383,500
5,383,500
7,0
Option C with satellite offices in several EU Member States increases the

costs of establishing/implementing and operating the blind trust. Option C has
higher overhead costs compared to Options A and B as more offices are
envisaged. Furthermore, salary costs are expected to be higher for Option C
as more secretariat staff is needed due to a higher number of offices in EU
Member States.
.

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DG Health and Consumers

Feasibility study on funding arrangements for

DG Health and Consumers

Feasibility study on funding

The research described in this report was prepared for the

Three options of a blind trust

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Communication from the Commission of 6 June 1997 on promoting the role of

1.2 Inventory, review and analysis

Income from donors

Every trust or fund is dependent on donors. The income from donations

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The impact of the

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Outcome of the review and inventory

The inventory, review and analysis of existing Trust/Foundation design

Attraction of financial contribution

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Figure 1.1. A generic model

Finally, the analysis showed that there is no legislation at EU level relating

the regulation and governance of voluntary and non-profit organisations.

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Table 1-1 Overviews of fundamentals and differences between the options

Option C - Satellite Trust

Aim/ objective of the Vision, mission, and strategy

Vision, mission, and strategy

independent from political in-

More willingness to donate to

fluence. Trust self-governing in

Co-donation from the EU

Attract voluntary organisations

Attract voluntary organisations

Could attract smaller voluntary

Apply legislation at national

Apply legislation at national

In legislative terms, this is a

Need to establish a new

Substantial higher cost than

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Option C - Satellite Trust

Same as for Option B. Could have

Same as for Option A.

Here beneath the three options are illustrated according to their

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Figure 1.3.Option B: Independent trust - this option is independent in relation to

1.4 Cost estimate of operating the blind trust options

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Overhead costs (costs of operating the blind trust including office

Marketing and public

Option C with satellite offices in several EU Member States naturally

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Likely to attract private donors

No financial or organisational back-up from e.g. the Commission

Closer relationship to recipients of donations

High administrative costs

The background of the three options is described in details in the following

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Appendix 1: Inventory, review and analysis

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Feasibility study on funding

Report on Task 1: Review and inventory

Why a blind trust?