The financing of the Third Sector in Spain will grow by 4.7% to 12,872 million euros between 2018 and 2022

Image result for spainMADRID, 26 (EUROPA PRESS)

 The financing of the Third Social Sector in Spain will grow by 4.7 percent to reach 12,872 million euros between 2018 and 2022, thus exceeding, in real terms, the levels prior to the crisis, as revealed in the report ‘X-ray of the Third Sector Social in Spain: challenges and opportunities in a changing environment ‘, prepared by the consulting firm PwC.

This growth will be driven, fundamentally, by the increase in state, autonomous and local financing (with an increase of 4.4 percent) and private sector contributions (with a 5.1 percent increase), as he points out the study, prepared from interviews, work panels and surveys to heads of almost 300 entities, and which was presented on Tuesday June 26 in Madrid.

Specifically, the document states that the increase in public funding will come from an increase of 6.5 percent in the contribution for the allocation of 0.7 percent of the IRPF and the increase in the headings of central governments ( 3.2 percent more), autonomic (5.6 percent) and local (5.6 percent).

As for private financing, the document estimates that it will increase by 5.1 percent thanks to the rise in contributions from companies and corporations (4.7 percent more), from the social work of the Savings Banks (4 , 8 percent) and partners (7.1 percent).

In any case, the authors of the report indicate that in order for these expectations to be met, it is necessary for Public Administrations to “commit” themselves to the Third Social Sector and not to lower the funding coming from the General State Budgets. In 2017, financing in real terms was reduced by 5.1 percent compared to 2016, standing at around 10,500 million euros.

DOUBLE SECTION MODEL

In response to the last year, the report also analyzes how the new double tranche model for the management of 0.7 percent of Personal Income Tax has influenced the financing of the Third Sector. Specifically, it indicates that in 2017 a similar amount has been distributed to 2016, but the number of entities that have received financing has multiplied by 2.6.

It also indicates that the number of organizations that receive amounts of less than 50,000 euros have increased from 35 to 58 percent; that 150 entities received 10,000 euros or less, and four of them, amounts lower than 1,000 euros. “These are extremely low amounts, with which it seems unviable to undertake any type of action”, they specify.

On the other hand, the report identifies a set of challenges that the Third Sector entities face in a context of demographic, climatic, technological and economic power “changes”. These challenges group them into four categories: strategic vision, economic, relational and internal.

In particular, one of the main concerns of the Third Sector is sustainability and, in this sense, the entities recognize that diversification of funding sources is necessary, leaving behind the “high dependence” of the public sector. Among the internal challenges, it also aims to “improve the procedures for capturing talent” or not allow digitalization to generate “a gap”.

INTERNAL CONTROL, REPUTATION AND TRANSPARENCY

INTERNAL CONTROL, REPUTATION AND TRANSPARENCY

Likewise, the report reveals that more than 80 percent of the entities of the Third Sector consider that their priority challenges are internal control, the reputation of the sector, the measurement and communication of results, good governance and transparency.

“We have to define and establish mechanisms that are capable of guaranteeing compliance with regulations, and that allow us to act quickly and diligently in case of non-compliance,” the document said, which also insists on the need to adopt efficient forms of government. similar to those of the business sector and in increasing the information that is provided to the different interest groups.

The Third Sector in Spain is made up of almost 30,000 entities (social cooperatives, singular entities, foundations, NGOs), which annually serve more than seven million people with the work of more than two million volunteers and employees, who help the 12.8 million people at risk of poverty and exclusion.

The report also reveals that 14 percent of people devote part of their time to volunteer activities in Spain, a percentage “much lower” than the European average, where they account for 20 percent of the total population and far from 39 percent. cent of Ireland. In any case, the authors of the study observe “a certain upward trend” in recent years in Spain.

In this line, one of the proposals made in the document is to promote temporary collaborations or “micro-volunteering” reduced timeframes or for specific projects, taking advantage of the arrival of volunteers of the millennial generation. They also raise the idea of ​​establishing collaborations or temporary alliances for certain programs with companies.