Opinion of the Economic and Social Committee on 'Voluntary Organizations and Foundations in Europe'
Date: 1998-01-28
Institutions: European Economic and Social Committee
Subjects: collective activities, foundation, report, social economy, voluntary organisation

30.3.98

EN

Official Journal of the European Communities

C 95/99

Opinion of the Economic and Social Committee on ‘Voluntary Organizations and Foun-
dations in Europe’

(98/C 95/20)

On 17 September 1997, the Commission decided to consult the Economic and Social
Committee, under Article 198 of the Treaty establishing the European Community, on
‘Voluntary Organizations and Foundations in Europe’.

The Section for Social, Family, Educational and Cultural Affairs, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 15 January 1998. The
rapporteur was Jan Olsson.

At its 351st plenary session (meeting of 28 January 1998) the Economic and Social Committee
adopted the following opinion by 79 votes in favour, one against and five abstentions.

1.

Introduction

1.1.
In its Communication on Voluntary Organ-
izations and Foundations in Europe (1), the Commission
outlines the specific features, role and importance of the
sector in Europe. The Commission emphasizes that
voluntary organizations and foundations are playing an
important role in almost every field of social activity.
They contribute to employment creation, active citizen-
ship, and democracy. They provide a wide range of
services, represent citizens’ interests to public auth-
orities, and promote and safeguard human rights, as
well as playing a crucial role in development policies.
The Communication also describes the problems and
challenges facing the sector. Finally, the Commission
puts forward a series of recommendations for initiatives
at voluntary sector, national and EU level.

Three specific categories, viz: political parties, religious
societies and the social partners, are not touched upon
either in the Communication or, consequently, in this
opinion.

1.2.
At its December plenary session, the Economic
and Social Committee adopted an own-initiative opinion
on ‘charitable associations in the field of social welfare’.
The present opinion is more comprehensive, and covers
the general activity of voluntary organizations and
foundations.

2. General considerations

2.1.
The Economic and Social Committee, which
represents European citizens’ organizations, welcomes
the long-awaited Communication and appreciates the
Commission’s positive approach to voluntary organ-
izations and foundations.

2.3. When discussing voluntary organizations, the
Member States use different expressions and have
different concepts of what the sector comprises. These
differences are also reflected in the differing legislation.
The Communication uses the term ‘social economy’ —
which, however, also includes cooperatives and mutual
societies. In some countries, there is no dividing line
between the economic activity carried out by voluntary
organizations and by cooperatives.

Most voluntary organizations are small and have limited
economic resources. A large proportion of the voluntary
sector is made up of organizations which are motivated
by idealism, and which are of great importance to
people’s daily lives.

On the other hand, a significant number of voluntary
organizations operate extensive economic activities. A
feature of these organizations is the fact that they respect
market forces, yet remain outside the market.

2.4. Notwithstanding the differences in terminology
and legislation, the Committee would emphasize the
common principles which apply to the voluntary sector
and the social economy, and which distinguish it from
other forms of activity.

The essential criteria are that they should be demo-
cratically structured, contribute to the public good or
the good of their members, and be non-profit-making.
This opinion only deals with voluntary organizations
which fulfil these basic criteria.

2.5.
The foundations covered by the Communication
are independent, and administered according to their
own judgement and in the public interest.

Since these foundations work in the same spirit as
voluntary organizations, the Committee feels that coop-
eration is necessary.

The Committee feels the Communication should

2.2.
be followed up with concrete measures.

There are some 100 000 (2) foundations in Europe
2.6.
which dispose of large resources to be used for the public

(1) COM(97) 241 final.

(2) Source: European Foundation Centre, 1997.

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good, and to fund voluntary organizations and their
operational activities in particular.

3. Democracy and welfare

2.7.
In the run-up to the IGC, voluntary organizations
had high hopes of an explicit reference to the sector’s
role being enshrined in the Treaty. The Committee
regrets this did not happen, as it would have provided
political recognition for the activities of the voluntary
sector. The sector is, however, affected by the declar-
ations adopted in Amsterdam on voluntary service
activities (1) and sport (2).

2.8.
The new Treaty introduced the transparency
principle with regard to citizen access to EU official
documents. The Committee would emphasize the role
of the voluntary sector in enabling citizens to take full
advantage of this right, and hopes for a speedy practical
application of the transparency principle.

2.9.
The Communication shows clearly that volun-
tary organizations and foundations are needed to
implement EU policies in most areas.

The Committee therefore believes it is vital that the
various EU institutions and other bodies should cooper-
ate with and support voluntary organizations and
foundations.

In the run-up to EU enlargement, the Committee
2.10.
would call on the Commission to ensure that accession
negotiations take account of the situation of voluntary
organizations and foundations
in the applicant
countries, both in terms of legislation and other oppor-
tunities for full participation in European cooperation.

2.11. Given the lack of information on the sector, the
Committee believes it is essential to carry out regular
surveys in order to be able to assess the development of
voluntary organizations and foundations in all EU
countries.

(1) No 38: The Conference recognizes the important contri-
bution made by voluntary service activities to developing
social solidarity. The Community will encourage the
European dimension of voluntary organizations with par-
ticular emphasis on the exchange of information and
experiences as well as on the participation of the young
and the elderly in voluntary work.

(2) No 29: The Conference emphasizes the social significance
of sport, in particular its role in forging identity and
bringing people together. The Conference therefore calls
on the bodies of the European Union to listen to sports
associations when important questions affecting sport are
at issue. In this connection, special consideration should
be given to the particular characteristics of amateur sport.

The Committee would particularly emphasize
3.1.
the importance of voluntary organizations in bolstering
democracy in Europe. They provide individuals with an
outlet for their ideas, and an opportunity to work
towards the goals they believe in; they can carry out
meaningful tasks and find a place in society; they can
make themselves heard, and influence and achieve
change.

By organizing themselves, citizens provide themselves
with a more effective means of impressing their views
on different society-related issues on political decision-
makers.

Strengthening non-parliamentary democratic structures
is a way of giving substance and meaning to the concept
of a Citizens’ Europe.

The Committee supports the framing of a European
Citizens’ Charter, as proposed by, inter alia, the Perma-
nent Forum of Civil Society.

Citizens regard party political and parliamentary work
with increasing scepticism. Together with other organ-
izations, voluntary organizations can help to offset this,
and help boost democracy and parliamentary input.

3.2.
The globalization of the economy and politics is
giving rise to a situation whereby decisions are frequently
being taken further and further away from the persons
concerned by these decisions.

3.3.
In this respect, thanks to their strong grass
roots connections, voluntary organizations provide an
increasingly important means of defending local democ-
racy.

4. Employment

4.1.
Employment opportunities within the European
voluntary sector have mushroomed over the last few
years (3).

Many voluntary organizations and foundations have
embarked on projects aiming to fight unemployment
and to integrate the weaker groups in society.

4.2.
Several Committee opinions have highlighted the
role both the social partners and other specific interest
organizations can play in boosting employment (4).

(3) A study carried out by the John Hopkins University puts
the number of people employed in the voluntary sector in
1990 in four EU Member States (United Kingdom, Ger-
many, Italy and France) at 3 million.

(4) Cf. ESC opinion on the European Council on Employment,

OJ C 355, 21.11.1997, p. 64.

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4.3.
The Committee welcomes the employment sum-
mit’s confirmation of the role of the social economy.
The Member States, within the framework of corporate
development, undertake to investigate measures to take
advantage of the social economy’s employment creation
potential at local level, and in areas in which the market
does not satisfy demand.

In this connection, and without obligation, the Member
States are also to examine ways of reshaping taxation
systems and employers’ contributions; this could be an
important measure to boost employment in the voluntary
sector.

4.4. With this in mind, the Committee would call on
the Member States to involve voluntary organizations
and foundations in the fight against unemployment.

5. Specific comments — the Member States

5.1.
In the Committee’s view the subsidiarity principle
should continue to be applied to legislation governing
voluntary organizations and foundations. At the same
time, the Committee would call on the Member States
to review their regulations, to remove any obstacles to
the variety and development of such bodies.

5.2.
The Committee calls on the Member States and
voluntary organizations and foundations to cooperate
on measures to raise the profile of the latter and use the
Commission Communication as a basis for discussion
of their role and development. The measures and their
impact should be the object of a special Commission
report to be published by the year 2000 at the latest.

The Committee would also point out the need to
implement long-term national research programmes, to
be framed in consultation between voluntary organ-
izations/foundations and research institutes and respon-
sible authorities, and funded jointly by foundations and
the public sector.

It is vital that the results of research should be dissemi-
nated widely. Initiatives from the sector itself can be of
considerable assistance here.

5.3.
The Commission recommends that the Member
States should review the relationship between public
authorities and voluntary organizations, in consider-
ation of the enhanced role of the latter.

The Committee is, however, firmly opposed to the
public sector shifting its responsibility for basic welfare
onto voluntary organizations. Such a shift presupposes
a partnership which satisfies the objectives and con-
ditions of both parties. Voluntary organizations must

be involved in the planning stage, so that they can play
an active part and influence the content of any measures
they agree to implement.

5.4.
The Committee would emphasize the need for
allowances and income from services and assignments
to be underpinned by long-term agreements between
voluntary organizations and foundations.

5.5.
Since voluntary organizations and foundations
differ from traditional economic sectors, and aim to
work for the public good, they are often taxed differently.
Taxation rules vary from country to country and are
complicated. The Committee believes that a guiding
principle in the ongoing revision of Member States’ tax
legislation should be that voluntary organizations and
foundations must not be put at a disadvantage.

The Committee feels that voluntary organ-
5.6.
izations should enhance their financial independence by
boosting income from their membership — e.g. by
recruiting new members, increasing membership fees,
and selling goods and services to their members — and
from external sources, such as the general public and
business.

5.7.
The Commission feels that voluntary organ-
izations and foundations should have better access to
Structural Fund resources.

In line with the subsidiarity principle, several avenues
exist for achieving this at national level.

6. Specific comments — voluntary sector and foun-

dations level

6.1.
The Committee believes that voluntary organ-
izations and foundations would benefit from increased
cooperation at national level, in order to be able to
speak with one voice on common, sector-specific issues.

The Committee would also point out the need for
6.2.
voluntary organizations and foundations to cooperate
with business and organizations representing business
interests, and with trades union organizations. This
should be underpinned by mutual trust and exchanges
of experience in areas such as the environment, culture,
education, health and social protection.

The Committee calls on European networks
6.3.
and organizations to raise their profile both with EU
institutions and in the Member States. The Committee
calls on networks and organizations to ensure they are
represented in all Member States, press for an increase
in their membership, and cooperate in an effort to be
more representative.

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6.4.
The Committee shares the Communication’s
view that voluntary organizations and foundations need
to be encouraged to cooperate more at European
level, and that they should, in conjunction with the
Commission, find suitable measures for such initiatives.

6.5.
The Committee calls on voluntary organizations
and foundations to harness various EU-funded education
and skill development programmes. These programmes
should not be restricted to employees, but should also
be extended to board members.

6.6.
The Committee calls on voluntary organizations
and foundations to harness the recently adopted Euro-
pean Voluntary Service programme, in order to offer
volunteer posts in their organizations to under 26 year
olds. At the same time, their own young members can
work in peer organizations in other Member States.

The Committee believes that this programme should
provide a blueprint for a similar programme open to
all employees and volunteer workers in voluntary
organizations and foundations.

7. Specific comments — Community level

7.1.
The Committee would refer to its opinions
on the Commission proposal on European voluntary
organizations (1) and on a statute for a European
company (2), and would call on the Commission and the
Member States to come to a swift agreement on this
matter.

The Committee notes that, for the moment, the
7.2.
Commission is looking into the possibility of putting
the existing consultative committee for cooperatives,
mutual societies, associations and foundations (CMAF)
on a permanent footing, in order to further improve
channels of communication with the whole sector in
matters of general interest. Voluntary organizations and
foundations in all Member States and in all sectors
should therefore be actively involved in the committee’s
work.

7.3.
In sector-specific issues, it is important for the
Commission to establish useful dialogue with estab-
lished, representative European networks and organ-
izations.

The Committee calls on the Commission to undertake
a systematic review of existing consultative and manage-
ment committees within the EU system to assess whether
voluntary organizations and foundations should be
represented. The results of this review should be reported
to the CMAF before the end of 1998.

Communication’s objectives can be translated into
practice in the day-to-day activities of all DGs. The
result of this consultation should be reported according
to the procedure recommended in point 7.3 above.

7.5.
In the Committee’s view, the debate on the future
of the European welfare model between the social
partners and voluntary organizations and foundations
should be developed in greater detail, inter alia, within
the framework of the European Social Forum, scheduled
for June 1998.

7.6.
Voluntary organizations also play a major role
as employers. The Committee notes with interest the
ongoing discussions between social economy representa-
tives and the European Trade Union Confederation
concerning the introduction of ‘voluntary’ social dia-
logue to back up social dialogue between the traditional
social partners in the labour market.

7.7.
The Commission is considering proclaiming a
special ‘European year of voluntary organizations and
European citizenship’. The Committee is very sceptical
about the proposal. It should only go ahead if it can
enlist the support of representatives of the sector, and
give them ample opportunity to take part in planning
the activities at both national and European level.

Whether a ‘voluntary organizations year’ is proclaimed
or not, voluntary organizations should be given ample
opportunity to play an active part in other ‘European
Years’.

The Committee assumes that voluntary organ-
7.8.
izations and foundations will have access to all EU
programmes open to private sector players.

In this connection, the Committee would, however,
highlight some new initiatives which should be taken
into consideration:

— promotion of exchanges between voluntary organ-
izations and foundations in the Member States and
the applicant countries, in order to create a broad,
democratic process;

— presentation of programmes to combat unemploy-
ment, poverty and social exclusion within the frame-
work of the new Treaty provisions on employment;

The Committee advocates that the Commission,
7.4.
after consultation with voluntary organizations and
foundations, devise practical plans showing how the

— creation of a risk capital fund for the social economy
through, inter alia, cooperation between foundations
and the European Social Fund;

(1) OJ C 223, 31.8.1992.
(2) OJ C 19, 21.1.1998, p. 116.

— opening up EU twinning programmes to the volun-

tary sector;

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7.9.
The Committee expects the Commission to
put forward its promised programme on cooperatives,
mutual societies, voluntary organizations and foun-
dations in the near future.

7.10.
The Committee would stress the need for the
Commission to encourage voluntary organizations and
foundations to engage in wider European cooperation.
This should also be extended to applicant countries.

In order to provide a stable, long-term environment,
support should be guided by the fundamental principle
that European cooperation is necessary.

The Committee therefore endorses the proposal to set
up a special fund to facilitate European cooperation for
voluntary organizations and foundations. The fund
should be run by a management committee which
safeguards their influence over the use of funds. Appro-
priations — in addition to basic support — could
also be used for preparatory studies for transnational
projects, microprojects, networking seminars, exchange
visits and other, highly innovative, initiatives.

7.11.
The Committee would stress that the EU Com-
mission generally allows organizations to pay in kind
the contribution they are often required to make to EU
projects. This is consistent with Commissioner Gradin’s
answer to a question tabled in the European Parliament
in April 1997.

7.12. With reference to how voluntary organizations
and foundations stand in relation to competition rules,
the Committee would refer to its opinion (1) on the 24th
report on competition policy, which states that ‘more
particularly, voluntary and social activities in support
of marginalized groups might be allowed to benefit from
state aid and specific legislative concessions.’ A ruling
recently handed down by the European Court of Justice
states that every Member State is free to promote

activities in this sector, rather than in profit-making
companies (2).

7.13.
The Commission has announced proposals for
Community rules on VAT and certain other taxes. This
could impact considerably on voluntary organizations
and foundations.

The Committee calls on the Commission to set up a
study group — to include representatives from the
voluntary sector and foundations, and from the Member
States — in order to arrive at suitable solutions.

7.14.
The Communication recommends, on the one
hand, setting up a special observatory, and on the
other, placing existing bodies such as BC-Net and
Europartenariat — subject to certain changes — at the
disposal of voluntary organizations and foundations
which are looking for cooperation partners for European
projects.

The Committee feels, however, that it would be more
useful to support voluntary organizations’ and foun-
dations’ own initiatives by concluding a special agree-
ment with representative European organizations, with
a view to establishing an independent body linked up to
the social economy. This would be able to provide an
overview of existing research in the area, commission
research, collate and publish annual, updated statistics
relating to the scope, activities, economy etc. of voluntary
organizations and foundations. An important
task
would be to publish a sector-specific glossary, with the
terminology and definitions used in relation to voluntary
organizations and foundations and their activities.

7.15.
The Committee calls on the Commission to
share responsibility with the Member States and volun-
tary organizations and foundations for ensuring that the
Communication’s declared objectives are implemented.
A progress report should be submitted by the year 2000
at the latest, and forwarded to the Economic and Social
Committee.

(1) OJ C 39, 12.2.1996.

(2) Case C 70/97 Sodemare/Regione Lombardia.

Brussels, 28 January 1998.

The President

of the Economic and Social Committee

Tom JENKINS