Philanthropic foundations push for EU statute

According to the head of the European Foundation Centre (EFC), Gerry Salole, increasing wealth in Europe is part of the rise in philanthropic foundations, which have been around on the continent since the 13th century.

People are also seeing that using private wealth for public resources has an impact, Mr Salole told the EUobserver in an interview. But he would like to see foundations able to be pan-European.

The Brussels-based centre is pushing for a European statute for foundations, which would be a legal instrument easing legal, financial and administrative burdens foundations currently face when transferring tax-exempted charitable donations across intra-EU borders.

"If we are serious about Europe, then we need a European foundation statute that will allow foundations to work across the border," Mr Salole said, adding that there is no internal market for foundations.

Currently tax-exemption for cross-border charity donations in Europe is only possible to a limited extent, through the Trans-Europe Giving (TEG) Network.

There are an estimated 80,000 foundations across the EU – a number that grows by 15 percent each year - and the EFC suggests that 25,000 of these foundations have combined assets of €174 billion at their disposal. Money that Mr Salole argues has an impact on the European economy.

Most foundations invest their assets, for example in the stock market or in the real estate market, and spend a certain amount of their assets on philanthropic projects or charitable causes each year. Others include family trusts.

The European Commission has a study on the likelihood of a European foundation statute in the pipeline and is also exploring possible initiatives to develop the role of philanthropic organisations as means to raise additional funds for research and innovation – part of the EU's so-called Lisbon Strategy to improve Europe's economy.