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EU and Statutory Funding

The EU is a billion-Euro source of funds for the nonprofit sector.

How important is the EU to the nonprofit Sector?

Several hundred NGOs in Europe and worldwide are receiving funds from the EU. In its discussion paper on non-governmental organisations1 published in 2000, the Commission estimated that over €1,000 million a year is allocated to NGO projects directly by its services.

Around two-thirds of national law now originates from the European Community. European policies cover a wide range of issues of relevance to the nonprofit sector: combating social exclusion, equal opportunities, job creation, environment, culture, health, consumer protection, research, education, training, urban rehabilitation, development cooperation…

These funding and policy issues are encouraging many nonprofits to develop an EU strategy.

How is the money paid out?

As the executive arm of the EU, the European Commission is responsible for managing common policies. It puts forward proposals on new policies, and drafts legislation for consideration by the Council of the European Union and the European Parliament. It also manages the budget for EU policies.

The largest part of EU funding is not paid directly by the European Commission but via the national and regional authorities of the Member States. This is the case for payments under the Common Agricultural Policy and most payments under the structural funds (e.g. the European Regional Development Fund or the European Social Fund) which make up, in money terms, the great bulk of EU funding.

Of the total budget of €116.5bn in 2005, agriculture took about €42.8bn, along with a further €6.3bn to be spent on rural development. The EU’s structural funds (including the Regional Development Fund and the Social Fund) represented the second largest budget item, taking almost 30% of the budget in 2005.

The Commission pays direct grants in pursuance of other common policies in such fields as research and development, education, training, the environment, health and consumer protection, information and EU external relations.

A significant budget item is spending on research and innovation. This took more than €4 billion in 2005. The money helps promote integrated pan-European research projects which pool the efforts of scientists working in different EU countries in areas such as consumer safety, the environment, energy, transport and public health.

The EU budget also pays for educational programmes, such as the Socrates programme for education, which spent € 351 million in grants in 2005. Total expenditure on cross-border education programmes and projects to protect and promote Europe’s cultural diversity accounted for more than €0.9 billion in 2005.

External relations is another area of substantial EU spending. The EU funds economic development in many countries around the world, with particular emphasis on the needs of its immediate neighbours around the Mediterranean, in Eastern Europe – particularly candidate countries for EU membership – and the Balkans. In addition, some € 500 million is spent on average every year on humanitarian aid.

The European Commission is organised by policy areas into 36 departments, known as “Directorates-General (DGs)”. EU funds are spread among the DGs across more than 250 different budget lines.

All EU funding is channelled towards precise objectives and priorities defined in the respective common policy strategies, which in turn are based on provisions of the Treaties. Multi-annual programmes translate the common policy strategies into concrete actions to be achieved in the years of reference. Within the defined programme framework, annual work plans provide the basis for calls for project and contract funding.

Most EU grants are awarded after following procedures laid out in EU legislation, with only a few limited exceptions for pilot schemes or preparatory actions. These procedures are:

  • Call for proposals
  • Call for tenders
  • Call for expressions of interest.

Since grants cover a very diverse range of fields, the specific conditions that need to be fulfilled vary from one field to another. It is therefore important to read carefully the application guidelines for each grant programme.

Why not take advantage of the opportunities offered?

  • Co-finance
    •  Your projects may be eligible for co-financing under the structural funds (e.g. European Social Fund or Equal) or under one of the 250 plus European action programmes and budget lines which are open to the nonprofit sector
  • Contracts
    •  Your organisation could work as a contractor to the European institutions through the many procurement contracts on tender for the supply of services, carrying out of research, implementation of EU projects and activities
  • Lobbying
    •  The European Commission offers many opportunities to nonprofits to make their voice heard and participate in EU policy-making, through external consultations, forums, advisory committees and expert groups. In lobbying, you can draw the attention of the European institutions on an issue in order for that issue to be taken into account at European level, or have a chance to impel EU policy and programme priorities
  • And many more
    •  You can get involved in European networks, identify partner organisations in other countries, extend your project beyond national borders, raise awareness in your cause at European level, and give greater visibility to your project and organisation.

Factary can help

Factary can help your organisation to find its way within the complex European institutional world, among the large array of European budget lines and sometimes overload of information.

Practically, we can help you

  • Define your EU strategy
  • Find out about European policy and priorities in your field of activity
  • Uncover funding and other participation and advocacy opportunities
  • Identify the right services and persons within the European institutions, with whom to develop and maintain contacts
  • Identify existing European initiatives and networks in your area
  • Research partners and co-funders for your project
  • Advise on the application criteria being employed, and on your projects fitting those criteria
  • Draft case statement and design project proposals.

Read our Research information for further details.

Key EU Institutions

The key bodies in the EU are;

  • European Commission
    •  Driving force and executive body
    •  As the executive body, the European Commission is responsible for most EU funding programmes.
  • European Parliament
    •  Elected by the peoples of the Member States
    •  The European Parliament Committees may have limited budget lines
  • Council of the European Union
    •  Key decision-making body in the EU
    •  Representing the governments of the Member States

Associated with these European institutions are a huge number of bodies varying in importance from the Court of Justice of the European Communities to the European Economic and Social Committee (the voice of civil society). The European Central Bank, guardian of the Euro, is one of these.

Notes:
Commission discussion paper on “The Commission and Non-Governmental Organisations: building a stronger partnership”, January 2000. (Back)