2011 ANNUAL REPORT

AND FINANCIAL STATEMENT

EUROPEAN FOUNDATION CENTRE 2011 ANNUAL REPORT AND FINANCIAL STATEMENT ON THE COVER... Copyright © European Foundation Centre (EFC) 2011

Winner of the 2011 EFC Photo Competition: “Companions”,

Fondazione

Cassa

di

All rights reserved. Reproduction by any means mechanical or

Risparmio di San Miniato (© Alberto Lotti).

electronic is prohibited without express written consent

The photograph depicts two lively elderly

of the publisher.

women who have benefitted for several years di Risparmio di San Miniato, in a social centre

identification of source. The EFC shall not be held liable for errors and/

in San Miniato, Pisa, Italy. The project provides

or omissions, nor shall any statement in this publication be construed

assistance for the elderly who are not self-

as a recommendation to third parties.

sufficient. Just as Ulysses desperately wanted to return to his homeland of Ithaca, this

For additional copies of this publication and further information

initiative of Fondazione Cassa di Risparmio di

on the EFC, please contact:

San Miniato helps elderly people to end their

European Foundation Centre, AISBL

life journey in the place where their love,

78, avenue de la Toison d’Or | 1060 Brussels, Belgium

belongings and roots are. The project also

t +32.2.512.8938 | f +32.2.512.3265 | [email protected] | www.efc.be

helps the participants' families and assistants.

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

from the Ithaca Project, of Fondazione Cassa Quotation from this publication is authorised subject to full

3

CONTENTS

Foundation House, a new home for philanthropy

6

22nd AGA and Conference

7

Autumn Assembly

9

Professional development

10

Network building

12

Improving the legal and fiscal environment

16

Telling the story of European philanthropy

19

Financial statement

21

Strategic development and governance

23

Membership 2011

24

Governing Council and Management Committee members

27

FOREWORD ERIK RUDENG Reflecting on 2011, it is my feeling that

Foundations by no means escaped this fallout, and despite the

A building was also purchased in the heart of Brussels that will in

it will be remembered as a pivotal year

economic climate valiantly fought to mitigate the effects of the

2013 be transformed into Foundation House: a physical platform and

financial crisis on the most disadvantaged and stimulate fresh

attractive meeting place from which EFC may better showcase our

thinking about the future of our societies. Many foundations

work to relevant stakeholders from the capital of Europe and beyond.

challenged longstanding regimes and deposed demagogues, the global

supported conferences and projects for new social initiatives, analyses of the financial sector, and alternative economies.

by the EFC and its partners over the past year as individual

financial crisis continued to unfold and made ‘austerity’ an all too intimate household word, and social unrest was rife. Europe was in many respects

As with many of 2011’s significant events, I view the actions taken

With this challenging backdrop over the course of the year we

achievements in an expansive "work in process". The strengthening

also witnessed a continued and even heightened commitment

of European philanthropic infrastructure is a long-term effort

on the part of EFC members to the building of philanthropic

that will require increased cooperation and support. Given the

infrastructure in Europe. This dedication to moving the

present troubles in Europe, foundations, with their pivotal role

at the centre of this turbulence, with

sector forward came in many varied guises over 2011 which

in developing civil society and stimulating informed debate,

economic woes in a handful of countries

form the substance of this annual report, but I will take this

will become all the more essential. Therefore, it is necessary

opportunity to call your attention to some of the highlights.

precisely in this situation for our organisations to improve their

having consequences for the entire euro zone, riots in the UK over the

capacity and ingenuity, collaborate more frequently, and build Tremendous strides were made by the EFC and Donors and

up trust and professional efficiency across regional and national

summer and Athens later in the year

Foundations Networks in Europe members (DAFNE) in winning

borders. I hope that, as in 2011, the EFC will be central to this.

signalling the public’s frustration, and the

support within the European Institutions for the European

"Indignant" protestors in Spain laying

Foundation Statute, and the first Autumn Assembly at the European

I invite you to delve into this report to get a full picture of all

Economic and Social Committee more firmly placed the sector on

the EFC’s activities in 2011, none of which would be possible

the radar of Brussels’ decision and policy makers. Further advancing

without an active and dedicated membership. Thank you

the relationship with DAFNE, the new EFC Strategic Plan approved

for your participation over the year and enjoy the read!

the groundwork for Occupy movements around the globe.

by the AGA in May included the parameters for an envisaged formation of a Foundation Council of Europe; a governance

Erik Rudeng

structure composed of DAFNE and EFC members that will

Chair, European Foundation Centre

represent the 6000+ voices that are members of these two bodies.

Director, Fritt Ord Foundation

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

for many reasons. The Arab Spring

5

FOUNDATION HOUSE A NEW HOME FOR PHILANTHROPY 2011 signalled a new coming of age for European philanthropy with the purchase of a building located at 94, rue Royale, in the heart of the Brussels. Foundation House will welcome visitors to discover - through conferences, debates, trainings and exhibitions - the important work of foundations and the countless ways in which they impact the lives of European citizens. Due to open by the end of 2013, Foundation House provides a focal point and a public face to a sector whose work until now has remained under the radar. A truly European initiative, Foundation House is conceived and supported by six foundations located across Europe: King Baudouin Foundation (Belgium), Körber-Stiftung (Germany), Fritt Ord Foundation (Norway), Realdania (Denmark), Stichting Fonds 1818 (The Netherlands) and the Van Leer Group Foundation (The Netherlands). In preparation for Foundation House, the EFC is gradually becoming the convening space in Brussels for foundations to meet, share best practices and develop joint projects. In 2011 the EFC hosted:  24 events organised by the Centre’s interest groups, taskforces and committees  12 events organised by external partners  4 evening receptions

Some 600 delegates attended

Having the oceans as both theme and scenery for the 22nd EFC AGA

the 22nd Annual General

and Conference, delegates debated the challenges and opportunities

Assembly and Conference with the theme "Resources and

for foundations as they strive to use their resources – human, financial, intellectual – to ensure sustainable and positive change in the world. Some very timely topics were discussed, such as the Arab Spring and

At a special plenary

sustainability: The oceans",

the role of philanthropy in reform agendas, the financial crisis and how

session

from 26 to 28 May in Cascais,

to responsibly invest, and the transition from relief to reconstruction in

governance in Europe,

Haiti, to name but a few.

keynote speaker Her

Portugal.

on

ocean

Royal Highness Princess Laurentien van Emílio Rui Vilar, President of Fundação Calouste Gulbenkian and then Chair

Oranje stressed that, "Sustainability has

of the EFC, said in his opening address that one of the main priorities of

to become somehow part of our DNA."

his chairmanship had been to emphasise the responsibility of European

HRH Princess Laurentien emphasised

foundations to look beyond the borders of Europe. "There is a growing

the importance of listening to young

sense that so many of the issues that European philanthropy addresses

people in finding solutions: "Younger

have global implications and causes," he said. "To tackle these issues, we

generations think in terms of possibilities, not obstacles."

must look out beyond our borders – for ideas, for partners, for knowledge

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

22ND AGA AND CONFERENCE

and for solutions."

7

OTHER HIGHLIGHTS:  The Mercator Fund’s Raymond Georis Prize for Innovative Philanthropy in Europe was awarded to Bassma Kodmani of the Arab Reform Initiative, which promotes democratic reform in the Arab world. In her acceptance speech, Ms Kodmani said of the change that is underway now in the Arab world, "There is a long way to go, but… the task is exhilarating."  The EFC Philanthropy Compass Prize, which honours individuals who have had a major impact on the course of European philanthropy, was awarded to Francis Charhon of Fondation de France. Luc Tayart de Borms of the King Baudouin Foundation emphasised Mr Charhon’s critical contribution to the EFC, notably his efforts around the European Foundation Statute.  A peer speech by Kathleen Cravero - Kristoffersson of Oak Foundation on the value-added partnerships between foundations and multilaterals  Fondazione Cassa di Risparmio di San Miniato winning the 2011 EFC Photo Competition with their entry ‘Companions’ picture (see cover) For more about the 2011 EFC AGA and Conference, visit: www.efc.be/aga. Video interviews and highlights are available from

EuroFoundationCentre

The first-ever Autumn Assembly gathered more than 150 delegates from EFC membership and the Donors and Foundations Networks in Europe (DAFNE) in the heart of Brussels, at the European Economic and Social Committee. The aim of the event was to raise the profile of foundations in the EU and discuss the important disclosure and communication strategies, and explored the steps that foundations should take to make sure that they are sufficiently transparent and accountable. Following a brief opening session that welcomed participants, Jenny Hodgson of the Global Fund for Community Foundations moderated four short, lively debates. These 30-minute sessions featured just two speakers, each of whom argued one side of a pressing issue for foundations. The audience joined in the debate with challenging comments, questions and discussion, and a new instant polling feature summed up their views at the end of each session. A short closing session sent participants on their way to a relaxed evening reception at the building which will become Foundation House, the future home of European philanthropy (See page 5). Download the summary report of the event: www.efc.be/publications. Video summaries of the debates and highlights are available at on

EuroFoundationCentre

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

issue of legitimacy. The event addressed foundations’ compliance, governance, stewardship,

9

PROFESSIONAL DEVELOPMENT Professional development is a core tool underpinning and influencing all other activities of the Centre’s work, as boosting the skills and professional capacities of foundation staff in Europe is vital for a vibrant and thriving sector. In 2011, the Centre with the support of various EFC members continued with its programme of learning

LEARNING EVENTS

events and activities, and co-launched the new Grantcraft. IMPACT ISLAND

identifying, engaging and managing them. It addressed the fundamental

At the EFC AGA and Conference, Lisa Jordan, Bernard van Leer Foundation

models and practices to implement a consistent process for identification

and Bettina Windau, Bertelsmann Stiftung led a lively and imaginative

and engagement of stakeholders and managing their changing expectations

workshop on evaluation where the results of a survey of 54 foundations

throughout the project lifecycle and beyond. The 2011 edition was the second

were discussed, and delegates reflected on their own attitudes towards

year in a row that the Lab "sold out", bringing together 25 foundation

philanthropy and explored new tools and methods to analyse impact.

professionals from across Europe (June, October, November at Fondazione

Watch a video interview with Lisa Jordan and Bettina Windau about Impact

Cariplo, Milan).

Island on

www.efc.be/EuropeanLearingLab

EuroFoundationCentre.

CLOUD COMPUTING

360° FOR MISSION

The AGA and Conference featured a workshop, facilitated by TechSoup

In August, representatives from 25 European foundations and other

Global, which brought together cloud technology experts and foundations

organisations came together in Brussels to share their experiences and

to collectively explore the impending shift to cloud computing and the

explore opportunities for joint learning and practical cooperation on issues

opportunities and challenges to the foundation sector associated with

related to responsible and impact investing. The meeting drew on the

it. Participants explored the significant potential of cloud computing in

findings of a report from the Mistra Foundation, "360 Degrees for Mission:

achieving greater innovation and social impact, and looked at privacy

How leading European foundations use their investments to support their

issues and the implications of the cloud for the policy landscape.

mission and the greater good", and discussed specific issues such as the role of board members and how impact investing can have an effect on

EUROPEAN LEARNING LAB

the operations and the spirit of an organisation. Co-hosted by Fondazione

The second year of the EFC and Fondazione Cariplo Learning Lab focused

Cariplo, Mistra Foundation and Stichting Fonds 1818, the workshop was

on "Managing relationships for project success", looking at the role of

co-designed by the EFC and onValues.

stakeholders within the project management cycle and the processes for

GRANTCRAFT

leaders at the Trust in London to discuss European foundations’ legitimacy,

2011 saw the EFC and Foundation Center jointly take over GrantCraft, a

and how to deal with the inevitable scrutiny that can be expected for

project formerly operated by the Ford Foundation, which publishes guides

organisations that work in the public space. The main message taken away

and develops tools and techniques for sharing “practical wisdom” on

from the two days was that each foundation has a responsibility to do their

grantmaking. The aim of GrantCraft is to increase the collective knowledge

job well with a clear mission and vision that is revised regularly; strong

of the field and improve the practice of philanthropy. With a dedicated

and transparent financial stewardship; good governance that distinguishes

member of staff at both the EFC and the Foundation Center, the focus of

between the executive and non-executive functions; and high quality staff.

the new partnership is on developing further these practical resources for

It was agreed that these characteristics, when clearly communicated and

foundation practitioners, taking into account experiences from the US,

implemented with integrity, strategic vision and common sense, should

Europe and worldwide. The latter half of the year saw the finalisation of

reinforce a sense of trust in European foundations’ role as valuable partners

GrantCraft’s multi-year workplan, the launch of a blog and development

in bettering societies.

of new relationships.

AUTUMN WEBINARS

Response to GrantCraft in Europe has been encouraging: out of the 4,000

Over the autumn months, with the support of Microsoft Community

new subscribers in 2011, 450 of these came from European countries.

Affairs and in collaboration with TechSoup, the EFC staged its first-ever

Foundations from all parts of Europe demonstrated their willingness to

series of webinars (three in total) focusing on increasing foundations’

collaborate and contribute with their stories and experiences. Work on the

effectiveness through the use of technology. Attracting some 75 foundation

first new European guide – on foundations working together - has involved

representatives altogether, these live online trainings looked at data

35 professionals from 11 European countries to date.

visualisation techniques and innovative approaches to using social

www.grantcraft.org

networking media in order to increase impact and advance social change. Watch the webinar recordings on

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

In September, the EFC and the Wellcome Trust convened 35 foundations

PRINCIPALS FOR PRINCIPLES

EuroFoundationCentre.

11

NETWORK BUILDING Increasingly foundations are working together to tackle both European and global issues. The EFC creates the convening space for the incubation of new ideas and projects through funder-led networks, fora and partnerships.

FUNDERS’S NETWORKS

Essl Foundation’s Zero project (an international study on the

CHILDREN AND YOUTH FUNDERS GROUP

funders, EU institutions and Brussels-based stakeholders.

implementation of the Convention) by facilitating contacts with

In 2011, the Children and Youth Interest Group met twice in Brussels to examine the role of foundations in affecting policy change and to

League of Historical Accessible Cities Project

draw on experiences and lessons learnt from foundations working on

Significant headway was made since the launch of the League of

early childhood and foundations’ approaches to evaluation. Launched

Historical and Accessible Cities (LHAC), a pilot project that aims to

in 2009, the group provides a platform for learning, networking and

improve the accessibility of European historical towns, while at the

identification of synergies for funders working on advancing children

same time promote the development of sustainable tourism and

and youth issues in Europe and internationally.

the protection of cultural heritage. So far nine foundations with six

www.efc.be/ChildrenAndYouth

European cities have become full partners of the project. In June, the group met to present and discuss their respective projects

DISABILITY INTEREST GROUP

which entail designing tourist itineraries and innovative solutions

European Consortium of Foundations on Human Rights and

to facilitate access to these cities by people with disabilities. The

Disability

year also saw the launch of a new website and the production of

2011 saw further efforts by the European Consortium of Foundations

promotional brochures and videos.

on Human Rights and Disability, a product of the EFC Disability Group,

Watch video interviews with League-participating foundations on

to promote the implementation of the UN Convention of the Rights of Persons with Disabilities. Activities included the dissemination among

EuroFoundationCentre. www.efc.be/DIG

national stakeholders (in three languages) of the key findings from a 2010 study on the challenges and good practices in implementing the

DIVERSITY, MIGRATION AND INTEGRATION INTEREST

Convention and outreach at various high-level policy and stakeholder

GROUP

events. A series of seminars were also designed on EU disability law

The Diversity, Migration and Integration Interest Group (DMIIG)

and the Convention in collaboration with Academy of European Law

continued its convening and knowledge sharing role with the

Foundation. Other important milestones included the Consortium’s

organisation of several meetings that brought together group members,

drafting of a position paper on the impact of Cohesion Policy and

civil society representatives, policy makers and think tanks to discuss

the EU Structural Funds on disability after 2013, and assisting the

topics of common concern. A meeting in April explored the interaction

LEAGUE OF HISTORICAL

between the work of foundations and migration

EUROPEAN FOUNDATION COMMUNICATIONS EXCHANGE

policymaking at the national, international and local

(EFCOMEX)

levels. In November, a meeting was organised in

The EFC, with the support of the King Baudouin Foundation

Brussels to bring members up to speed on the latest

and Stiftung Mercator, brought together some 30 foundation

tools to support integration policies and practices in EU Member States.

communications staff for a meeting at the EFC AGA and Conference

The meeting included a special session in cooperation with Open Society

to share views and experiences of using social media and virtual

Institute-Brussels on the rise of populist parties in Europe. At the EFC’s

fora as part of their communications strategy. In a lively discussion,

AGA and conference, DMIIG together with The European Programme

participants spoke of the many benefits as well as the limitations

for Integration and Migration (EPIM) held a session on the current crisis

that these online fora present, and exchanged tips and hints on tools

of tolerance in Europe. DMIIG also continued to represent the sector

for further learning in this field of communications. Established as

and provide strategic input to the EU’s migration agenda through its

an informal platform in 2010, the group primarily communicates

seat on the European Integration Forum, a civil society platform set

through Facebook and an email exchange service.

up by the European Commission which meets twice a year in Brussels.

www.efc.be/EFComEx

www.efc.be/DMIIG EUROPEAN ENVIRONMENTAL FUNDERS GROUP

Beginning with a change of name, 2011 marked a transitional period for

In 2011, the European Environmental Funders Group organised

the EFC Research Forum (formerly European Forum on Philanthropy

several outreach, networking and learning events, featuring

and Research Funding). Building on the success of its pilot phase the

discussions on policies that impact the environmental agenda as

Forum agreed on a new strategy for a three-year period until 2013. In

well as foundations’ practices and approaches on advancing work on

order to facilitate more effective philanthropic support for research

the environment. These events contributed to identifying gaps and

through transnational cooperation and information exchange, the

neglected issues and opportunities for foundations’ engagement. In

Forum will continue to organise thematic peer-learning events and

September, the group published the report “Environmental funding

regular conferences. The EFC Research Forum organised a session

by European foundations: A snapshot”, which represents the most

at the EFC AGA and Conference on “Bridging science and policy,

systematic study to date of support for environmental initiatives

connecting science and the citizens”, which highlighted the role

by European foundations. The study aims to better inform future

science and research can, but does not always, play in informing

funding strategies and to provoke discussion on the size, scope,

public policy. The session also looked at the role foundations can play

impact and effectiveness of foundations’ efforts in this field.

to strengthen this science-policy relationship, and to build support

www.efc.be/Environment

for science and research among the general public. www.efc.be/ResearchForum

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

RESEARCH FORUM

13

EUROPEAN FOUNDATION FINANCIAL AND INVESTMENT

FORUM FOR ROMA INCLUSION

OFFICERS

The year kickstarted with the EFC signing a strategic partnership

The European Foundation Financial and Investment Officers (EFFIO)

agreement with Eurocities to support Roma inclusion at the local

continued to run its annual survey of members’ investment strategy

level. This lead to the Forum contributing to the first peer review

and returns and biannual meetings. Key issues dicussed by the

of the Eurocities Task Force on Roma Inclusion held in October in

group throughout the year included the impact of the financial

Berlin, with a focus on Roma mediator schemes. The Forum met

crisis on foundations’ investments; differences and similarities

in April at a meeting hosted by the Bernard van Leer Foundation

between the investment strategies of foundations and sovereign

in The Hague to discuss Italy’s national integration strategy on the

wealth funds and pension funds; property investments as part of

Roma. At a second meeting in Berlin in December, hosted by the

a diversification strategy; the future of private equity and venture

Remembrance Foundation, members of the Steering Committee

capital; and long-term investment strategies. EFFIO meetings were

met with new members to discuss its strategy and deliver the work

hosted by Stichting Fonds 1818 in the Hague and Fondazione Cassa

programme for 2012-2014. The Forum also provided its strategic

di Risparmio di Torino (CRT) in Turin. Meanwhile, EFFIO members

input to the EU Roma policy agenda through its representation at

Fundação Calouste Gulbenkian and The Nuffield Foundation provided

the European Roma Platform, which brings together EU Member

a thought-provoking panel on lessons from the 2008 crisis at the

States, international organisations and Roma civil society.

EFC AGA and Conference.

www.efc.be/RomaRorum

www.efc.be/EFFIO GRANTMAKERS EAST FORUM EUROPEAN HIV/AIDS FUNDERS GROUP

The 16th Grantmakers East Forum (GEF), in Riga, Latvia, was themed

In June, the European HIV/AIDS Funders Group (EFG) convened

“Learn, reflect, connect”. Hosted by the Soros Foundation Latvia,

more than 60 foundation representatives from Europe and the

the 2011 edition brought together more than 130 delegates to discuss

US, as well multilateral and bilateral donors to discuss HIV/AIDS

how readily-available information and communications channels

funding and programming, and how to improve coordination between

are changing traditional grantmaking. This year’s programme was

stakeholders and increase effectiveness in response to the disease.

adapted to incorporate more structured sessions on pressing issues

The Group also published its annual report on resource flows for HIV/

offering participants a chance for more interaction and discussion.

AIDS from 31 European funders, which includes total expenditures

The sessions focused on a wide variety of topics, including the

and total commitments figures, as well as a breakdown of funds by

institutional development of non-profit organisations; the

geographical region, intended use, the top three main population

role of foundations in safeguarding democratic societies

groups to which funding was directed, and the forecast for funding

from corruption, social media, social innovation and the

increases or decreases in 2011. At the end of the year the Group’s

implications for philanthropy following the Arab Spring. As

Secretariat was transferred from the EFC to London.

always the event provided the opportunity for networking

www.efc.be/EFG

through an array of side visits and social events, which featured traditional Latvian singing and dancing. www.gef.efc.be

these. Work started on such actions as an index on cross-border giving,

PARTNERSHIPS

which will rank legal and fiscal requirements of countries for moving

DAFNE

philanthropic donations across borders. Another action underway is the

Thanks to the support provided by the Rockefeller Brothers Fund, 2011 saw

development of a framework to encourage more strategic engagement

the partnership between the Donors and Foundations Networks in Europe

between foundations and multilateral organisations. The Initiative also

(DAFNE) and EFC reach strategic momentum, notably with the envisaged

started incubating two international collaborations involving funders from

formation of the Foundation Council of Europe, a new governance structure

different world regions, one on sustainable cities/urban futures, and the

composed of DAFNE members and the EFC Governing Council. The aim

other on strengthening the capacity of civil society towards transitions in

of the Council is to provide the sector with a collective voice on issues of

the countries of the Arab region, following the Arab Spring. GPLI is the

common concern, such as obtaining a European Foundation Statute and

joint initiative of the EFC, Council on Foundations and Worldwide Initiatives

creating a more enabling environment for foundations in Europe, removing

for Grantmaker Support (WINGS), and co-chaired by Fundação Calouste

existing tax law barriers and reaching a better deal for VAT, and promoting

Gulbenkian and the Charles Stewart Mott Foundation. Its Task Force is

transparency and accountability.

comprised of some 30 philanthropic leaders. www.efc.be/GPLI

(see page 14). In addition, several important new products emerged from

LEARNING FOR WELL-BEING CONSORTIUM

partnership during the year, including the publication of a joint study on

OF FOUNDATIONS IN EUROPE

“Exploring transparency and accountability regulation of public-benefit

During 2011, the EFC continued to collaborate with the Learning for Well-

foundations in Europe” (see page 15) and the launch of an interactive map

being Consortium of Foundations in Europe, the main focus of which was

of the European foundation sector (see page 17). The year also marked

on the development of the policy glossary, “Learning for well-being - a

the launch of a new DAFNE website, hosted within the Centre’s website.

policy priority for children and youth in Europe. A process for change”.

www.dafne-online.eu

The policy glossary, which represents a cross-sector perspective, was drafted following consultations with the Organisation for Economic

GLOBAL PHILANTHROPY LEADERSHIP INITIATIVE

Co-operation and Development (OECD), the Council of Europe, the EU

The Global Philanthropy Leadership Initiative (GPLI) reached the middle

and many experts, foundations, youth organisations, government and

of its two-year mandate to develop new ways to advance the practice and

non-government organisations across education, health, social affairs,

impact of philanthropy on the global level. In 2011, the Initiative decided

children’s rights, media, ICT and family.

on a key set of actions and established four working groups to implement

www.efc.be/LearningForWellBeing

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

Many of these joint actions are already afoot and having positive results

15

IMPROVING THE LEGAL AND FISCAL ENVIRONMENT EUROPEAN FOUNDATION STATUTE

and a set of illustrative examples which were disseminated among the

Important strides were taken towards the European Foundation Statute

sector and decision-makers in the institutions and Member States.

(EFS) over the course of 2011. In February, some 386 Members of the European Parliament signed a written declaration in support of European

LEGAL AND TAX ISSUES

Statutes, a campaign lead by the EFC and its partners.

FOUNDATIONS’ VAT BURDEN GAINS EU RECOGNITION The EFC and key partners, such as DAFNE and the European Charities’

One of the Centre’s main priorities

In April, the European Commission signaled support for the Statute by

Committee on VAT (ECCVAT), made significant progress advocating

is to represent its members

including it in its action plan for the re-launch of the Single Market and

for fairer tax treatment for foundations. Following a European public

and engage in dialogue with the

its 2011 work programme. Speaking in March ahead of the re-launch,

consultation on the matter, to which the EFC and DAFNE made a

institutions of the EU to bring

European Commission President José Manuel Barroso confirmed that

joint submission, in December the European Commission published a

about a positive legal and fiscal

“one of the likely first initiatives is precisely the issue regarding social

Communication on the future of VAT. The Communication acknowledges

environment for foundations.

entrepreneurship including the important role of foundations in Europe

the VAT burden faced by non-profits and calls on Member States to make

and the status of foundations.”

use of existing options at national level (should a European level solution

The EFC monitors EU affairs and

not be feasible) to alleviate the burden – something for which the EFC has

funding opportunities, raises the visibility of the work of foundations

In October, a study to inform EU institutions of the legal basis for the Statute

long campaigned. Answering the calls of the sector, particularly the EFC

and represents the views of the

was commissioned by EFC, while in November the Statute received renewed

and ECCVAT, in October the European Parliament invited the Commission

sector on EU policy developments.

words of support from Luca Jahier, President of Group III at the European

to propose a mechanism to allow Member States to grant a general VAT

Economic and Social Committee (EESC). The fruits of these efforts were

exemption for all or most of the activities and transactions carried out by

seen in February 2012, with the Commission adopting a proposed Regulation

non-profit organisations, particularly smaller scale entities.

on the Statute, which kick starts a new phase in the legislative process. NEW STUDY ON TRANSPARENCY AND ACCOUNTABILITY To spearhead its advocacy work on the Statute, the EFC replaced its

The EFC Legal Committee and DAFNE joined forces to conduct the first

taskforce with an Advocacy Committee, welcoming a new chair and

cross-country mapping and analysis of the national public and self-regulatory

members, including representatives from the DAFNE network. The Centre

frameworks for foundations with regard to transparency and accountability

also produced the publication “It's time for a European Foundation Statute”

across 30 European countries. The study “Exploring transparency and

accountability regulation of public-benefit foundations in Europe”, which was

REVIEWING RUSSIAN LEGISLATION ON PHILANTHROPY

conducted by European Center for Not-for-Profit Law (ECNL) and Thomas

In September at an international conference, the EFC illustrated European

von Hippel, found that there are no fundamental gaps in national legislation

trends in foundation and foundation tax laws as the basis to discuss and

and that no further EU regulation on transparency and accountability is

contextualise reform to legislation on philanthropy in Russia. Organised

therefore needed. Instead the study makes recommendations on how

by the Russian Donors Forum, the Vladimir Potanin Foundation and other

the EU and the foundation sector can make improvements to existing

partners, experts also discussed with politicians the need to streamline the

frameworks and enhance the sharing of best practices. The study is the

series of different foundation laws and to introduce more tax incentives

starting point for further collaborative work on the issue of transparency

for donors. The conference was a follow up to meetings of EFC and

and accountability regulation that will take place in 2012. The project was

DAFNE representatives with the Russian authorities earlier in the year.

jointly funded by Fondazione Cassa di Risparmio di Bolzano - Stiftung

The meetings enabled the group to deliver key messages from the sector

Südtiroler Sparkasse, Pro Victimis Foundation, Gebert Rüf Stiftung, Körber-

concerning the registration procedure for Russian foundations, their

Stiftung and the Wellcome Trust.

reporting requirements and public availability of reports, and the treatment

TRENDS IN NATIONAL FOUNDATION LAWS ACROSS EUROPE

Ministry of Justice, parliamentarians from the Duma, and representatives

2011 saw the publication of “Comparative highlights of foundation laws”,

of the Ministry of Foreign Affairs.

thanks to support of The Atlantic Philanthropies, which presents the latest data on the legal and tax treatment of foundations across Europe.

STRENGTHENING LEGAL FRAMEWORKS FOR WESTERN BALKAN

The new edition expanded the mapping and analysis beyond the EU 27

PHILANTHROPY

countries to Albania, Switzerland, Turkey and Ukraine. The charts and

In June at the Rockefeller Brothers Fund's “Forum on the development

cross-country summaries give an easily comparable overview of, for

of philanthropy in the Western Balkans”, the EFC, indigenous foundation

example, the requirements to set up foundations, governance issues as

representatives and international foundation law experts discussed the

well as tax treatment of foundations, and tax incentives for individual and

legal frameworks of foundation and other civil society organisations in

corporate donors also in cross-border contexts.

the Western Balkans. Participants at the event looked at the specific legal challenges facing the region, the impact of EU accession and the importance of foundation and donor networks to advocate for a better operating environment. As a follow up, the EFC agreed to extend its legal mapping to Western Balkan countries and to establish closer links between the Centre, DAFNE and the emerging Western Balkan networks.

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

of foreign entities operating in Russia, to representatives of the Russian

17

REVIEWING GLOBAL CROSS-BORDER PHILANTHROPY

The EU Structured Dialogue for an efficient partnership in development was

The philanthropic sector is growing and becoming more international

another important vehicle through which the EFC helped raise the profile

but legislation in many parts of the world does not respond to this trend

of foundations as key stakeholders, this time in the area of development

and there are significant legal and fiscal barriers to philanthropy across

cooperation. Specifically, the Centre sought to increase awareness of

borders. As part of the Global Leadership Philanthropy Initiative (GPLI) and

diverse and innovative approaches to addressing development challenges

in collaboration with the EFC Legal Committee, dicussions got underway

that are funded by foundations. During the Dialogue, the Centre contributed

during the year on how to address these barriers. Agreement was found

to defining the core principles upon which an efficient partnership among

to work on several strategies including access to information on relevant

all key stakeholders in development cooperation – EU institutions, Member

laws, matching experts and those seeking advice, drafting principles for

States, civil society organisations and local authorities – should be

an ideal environment; reviewing a treaty solution. The collaboration also

established and supported.

agreed to work on an “Ease of global giving index” to raise awareness of the current difficulties in legal and regulatory systems for cross-border

In September, the EFC with other groups at the European Stakeholder’s

giving and highlight which countries are making it easier for donors to

Forum on EU cooperation in education, training and youth drafted a series

give cross-border.

policy priorities for the period 2012-2014 at EU level. Other important

REPRESENTING FOUNDATIONS AT THE EU LEVEL

milestones during the year included the EFC’s contribution to the European fifth report on economic social and territorial cohesion in January, as well as a public consultation submission for the “EU Citizens for Europe”

SHAPING EU POLICIES

programme (2014-2020), which fed into a proposal for a new programme

The EFC ensures that the sector’s views are shared and fed into discussions

released by the European Commission in December.

on a wide variety of EU policies. This is achieved through its membership of several EU fora and direct contributions to reports, public consultations

RAISING VISIBILITY WITHIN THE “EUROPEAN YEARS"

and dialogues.

Within the 2011 European Year of Voluntary Activities Promoting Active Citizenship, the EFC worked on raising the visibility of foundations’ activities

Over the course of the year, the EFC continued to build alliances with

in the sector of volunteering, through the sharing of data and participation

other civil society organisations through its active membership within

in numerous events. Preparatory work also began on the 2012 European

Social Economy Europe, the EU level representative institution for social

Year of Active Ageing and Solidarity Between Generations. In this vein, in

economy, and the Civil Society Liaison Group of the EESC. In addition

November the EFC as part of a coalition of stakeholders signed a manifesto

to work on the European Years, the Centre contributed to drafting the

to promote an age-friendly European Union, and prepared a roadmap and

EESC Liaison Group’s position on sustainable development for the United

a conference to kickstart the Year. Through its membership of the EESC,

Nations’ Rio+20 conference in June. The Centre also participated in the

the EU consultative body for social and economic matters, the Centre also

new European Platform Against Poverty and Social Exclusion, which aims

contributed to an Opinion on refining the scope of and ensuring different

to support the target set at EU level of lifting at least 20 million people out

dimensions of citizenship within the 2013 European Year of Citizens.

of the risk of poverty and exclusion by 2020.

TELLING THE STORY OF EUROPEAN PHILANTHROPY EFFECT MAGAZINE

their love, belongings and roots are. The project also provides assistance

In spring 2011, Effect looked at sustainability and how foundations are

to their families and trains health assistants who pay daily home visits to

taking on this concept – from their grantmaking, to creating new kinds of

ensure their quality of life. Entitled “Companions”, the winning photograph

philanthropic partnerships, to their operations, to sustainable exit strategies.

is of two lively, elderly women who are taking part in activities at the social centre in San Miniato, Italy.

In the autumn, the magazine explored how foundations are responding to critiques in recent years that have called their legitimacy into question.

COUNTRY PORTRAITS

Articles covered the many facets of this topic – from transparency and

Launched in November at the Autumn Assembly, the Country Portraits

accountability to responding to increased scrutiny to how foundations

provides for the first time a one-stop web portal to explore and better

around the world view the concept of legitimacy.

understand the diversity and impact of the European foundation sector. The

Effect is the EFC’s flagship publication about and for European foundations,

per country, their financial resources, the various legal frameworks they

with an emphasis on the Centre’s members. The magazine, published two

operate within and how many people they employ. The Portraits are just

times per year in hard copy and online, covers foundations’ impact and

one of several products to emerge from the EFC and DAFNE partnership

role in Europe and the world; operational issues; the political, legal and

in 2011 (see page 13 for more information about the partnership).

fiscal environments in which foundations work; and how they get that work done, both individually and in collaboration with others.

The European foundation sector is a mosaic of culturally, economically and

www.efc.be/effect

legally diverse national foundation sectors spread across the continent.

EFC PHOTO COMPETITION

The Country Portraits provide a tool with which to look at particularities of the sector at national level, the differences and similarities between

The annual EFC photo competition, “Every picture tells a story”, provides

countries and a general a snapshot of the foundation sector Europe-wide.

a unique opportunity for EFC members to show the positive impact of the

An ongoing initiative, the Portraits also allow for updates to be made as

activities they are supporting. In 2011, the award went to a photograph

soon as new information is available on each country.

illustrating Ithaca, a project supported by Fondazione Cassa di Risparmio di San Miniato. The project provides assistance at home and through a social centre to elderly people who are not self-sufficient. Specifically the project helps elderly people to end their life journey in the place where

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

map reveals key insights into European foundations, including their number

19

TAILORED BRANDING The Centre continued its branding exercise with the development of separate icons for each of its thematic areas of work. These icons, each of which comes with a set of combined colours, provide the thematic areas with their own identity, while also maintaining a strong connection with the Centre’s overall image.

Follow us... @the_EFC EuropeanFoundationCentre EuroFoundationCentre

REACHING A WIDER AUDIENCE

WEBSITE

The EFC continued to use social media to complement more traditional

To gauge the response to changes made to the EFC website in late 2010, delegates

communications tools such as printed publications and the EFC website. Channels

at the AGA and Conference in Cascais were asked to take part in a web usability

such as Twitter and Facebook were used to develop online networks with more

test. While the overall response was positive, particularly in terms of revamped

than 700 foundation professionals, journalists and others connected to or with an

graphics and modernised colour scheme, the survey revealed the need for a clearer

interest in the philanthropic sector. These media were also used in the build-up

distinction to be made between information relating to the EFC as an institution

to large EFC events such as the AGA and Conference and the Autumn Assembly,

and information relating to its member foundations. Based on the results of the

boosting interactivity in real time with those who could attend while offering concise

survey, the Centre worked during the latter half of 2011 on a plan to revise the

updates to those that could not. In 2011 the social networks became fully integrated

architectural structure of the website, to be rolled out in mid 2012.

with the EFC website via an "Add this" functionality to ensure that headlines and member news are disseminated to as wide an audience as possible. In turn, monitoring other organisations’ social networks allowed the EFC to stay on top of the latest news from its membership and the philanthropic community at large.

INFORMATION SERVICES AND MEMBERSHIP KNOWLEDGE The EFC continued to receive frequent requests from members for information on

Through YouTube, the EFC continued to post video highlights of its key annual

a wide variety of topics related to the work of other members and the European

events. 2011 also saw the Centre branch out into developing promotional products

foundation sector as a whole. These information services helped EFC members

such as a video advert on the Learning Labs and a series of interviews to promote

wishing to identify interested stakeholders and potential partners, as well as best

foundations in the field of ageing and the League of Historical and Accessible

practices and programming opportunities.

Cities. Videos were also produced to initiate debate on the issue of legitimacy at

www.efc.be/GetAnswers

the Autumn Assembly. To date, the EFC YouTube channel has received more than 20,000 views and features some 115 videos.

FINANCIAL STATEMENT ASSETS

2011

41.260

41.260

1.929.414

2.227.748

7.591

7.591

PROVISIONS

81.300

81.300

LIABILITIES

700.787

597.649

661.620

790.902

3.421.972

3.746.450

124.139

84.912

5.851

5.925

746.538

798.192

CUMULATIVE CARRY-OVER

1.359.290

1.416.113

1.169.161

1.423.791

16.993

17.518

3.421.972

3.746.450

CASH GUARANTEES RECEIVABLES CASH AND BANK DEFERRED CHARGES AND ACCRUED INCOME

TOTAL ASSETS

2010

2011

FIXED ASSETS

DEPOSITS

FUNDS AND LIABILITIES

2010

INITIAL CAPITAL/ASSETS RESERVES

DEFERRED INCOME AND ACCRUED CHARGES

TOTAL FUNDS AND LIABILITIES

MEMBERSHIP FEES 909.500 INCOME FROM PROJECTS 1.438.163

2010

2011

FUNDS AVAILABLE END YEAR

1.970.674

2.269.009

TOTAL INCOME

3.568.798

3.641.486

TOTAL EXPENDITURE

3.564.727

3.343.150

INCOME AND EXPENDITURE

OTHER 134.351

GENERAL PURPOSE GRANTS AND VOLUNTARY CONTRIBUTIONS 1.159.472

STAFF COSTS 1.980.247

PROJECT COSTS 685.479

OPERATING COSTS 677.424

STRATEGIC DEVELOPMENT AND GOVERNANCE At the 2011 AGA, members unanimously

At the AGA in May Emílio Rui Vilar, Fundação Calouste Gulbenkian, completed his

backed the adoption of a new EFC

three-year term as Chair and was succeeded by Marco Parlangeli, Fondazione Monte

which defines the EFC’s mission to be the natural partner for those seeking to strengthen the European philanthropic sector. The Plan also reasserts the EFC’s four programmatic priorities: communications and knowledge, legal

dei Paschi di Siena. Due to internal changes at the foundation in Siena, in August Mr Parlangeli stepped down from the position, which was taken up in the interim by the EFC Vice-Chair, Ingrid Hamm, Robert Bosch Stiftung. At the Autumn Assembly in November, members enthusiastically endorsed the Chair candidacy of Erik Rudeng , Fritt Ord Foundation, who will hold the position until May 2014. Also over 2011, a member-led Governance Task Force was charged with proposing transparent and clear procedures to ensure active participation and more diverse representation of the membership on the EFC’s governing bodies and committees.

and fiscal affairs, network building, and

Specific suggestions for changes to the EFC Governing Council election processes, as well

professional development.

as the composition of the Management Committee, were approved at the extraordinary General Assembly in November to be implemented over the course of 2012. For more information on the election procedures, visit the EFC website.

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

Strategic Plan for the period 2011-2016

23

MEMBERSHIP 2011 In 2011, the EFC was pleased to welcome 17 new members (marked with *). At the year’s end, the EFC had a total of 235 members from 37 different countries. A new EFC publication “Foundations in Europe together: Be part of the bigger picture”, was launched in November. The small brochure presents the EFC’s areas of work, statistics on membership and the benefits and services of joining the Centre.

MEMBERS Academy of European Law Foundation Adessium Foundation Alexander von Humboldt-Stiftung American Express Foundation Amgen Foundation ArcelorMittal Foundation Arcus Foundation Atlantic Philanthropies, The AXA Research Fund Aydin Dogan Vakfi Bank of Cyprus Cultural Foundation Banque de Luxembourg Barrow Cadbury Trust Berghof Foundation Bernard van Leer Foundation Bertelsmann Stiftung Bill & Melinda Gates Foundation BMW Stiftung Herbert Quandt Bodossaki Foundation Bogliasco Foundation, The BOTA Foundation Breuninger Stiftung GmbH Carnegie United Kingdom Trust Cera Champalimaud Foundation* Charities Aid Foundation Charles Stewart Mott Foundation City Bridge Trust, The Community Foundation for Northern Ireland, The Compagnia di San Paolo Cultiva - Kristiansand Kommunes Energiverksstiftelse Deutsche Bundesstiftung Umwelt Deutsche Telekom Stiftung Diana, Princess of Wales Memorial Fund Dinu Patriciu Foundation Dmitry Zimin Dynasty Foundation Egmont Fonden Emirates Foundation Enel Cuore Onlus Ente Cassa di Risparmio di Firenze

ERSTE Stiftung Eurasia Foundation European Climate Foundation European Cultural Foundation Evens Foundation Evkaf Foundation Fondation Alta Mane Fondation Bernheim Fondation de France Fondation MACIF Fondation Mava Fondation Mérieux Fondazione Adriano Olivetti Fondazione Banca del Monte di Lucca Fondazione Banco di Sardegna Fondazione Banco di Sicilia Fondazione Cariplo Fondazione Cassa dei Risparmi di Forli Fondazione Cassa di Risparmio della Provincia dell'Aquila Fondazione Cassa di Risparmio della Provincia di Chieti Fondazione Cassa di Risparmio della Provincia di Teramo Fondazione Cassa di Risparmio della Spezia Fondazione Cassa di Risparmio di Alessandria Fondazione Cassa di Risparmio di Ascoli Piceno Fondazione Cassa di Risparmio di Biella Fondazione Cassa di Risparmio di Bolzano - Stiftung Südtiroler Sparkasse Fondazione Cassa di Risparmio di Bra Fondazione Cassa di Risparmio di Carrara Fondazione Cassa di Risparmio di Cesena Fondazione Cassa di Risparmio di Cuneo Fondazione Cassa di Risparmio di Fermo Fondazione Cassa di Risparmio di Ferrara Fondazione Cassa di Risparmio di Fossano Fondazione Cassa di Risparmio di Lucca Fondazione Cassa di Risparmio di Modena Fondazione Cassa di Risparmio di Padova e Rovigo Fondazione Cassa di Risparmio di Parma Fondazione Cassa di Risparmio di Perugia

Fondazione Cassa di Risparmio di Pistoia e Pescia Fondazione Cassa di Risparmio di San Miniato Fondazione Cassa di Risparmio di Terni e Narni Fondazione Cassa di Risparmio di Torino (CRT) Fondazione Cassa di Risparmio di Udine e Pordenone Fondazione Cassa di Risparmio Salernitana Fondazione con il Sud* Fondazione del Monte di Bologna e Ravenna Fondazione di Venezia Fondazione Edoardo Garrone Fondazione Giorgio Cini Onlus Fondazione Italcementi Cav. Lav. Carlo Pesenti Fondazione Italiana per il Notariato Fondazione Marcegaglia* Fondazione Monte dei Paschi di Siena Fondazione Pescarabruzzo Fondazione Roma Fondazione Roma - Mediterraneo Fondazione Roma - Terzo Settore Fondazione Varrone Cassa di Risparmio di Rieti Ford Foundation, The Foundation 'Anastasios G. Leventis' Foundation for Polish - German Cooperation Foundation for Polish Science Freudenberg Stiftung GmbH Fritt Ord Foundation Fritz Thyssen Stiftung Fundação Assistência Médica Internacional Fundação Bissaya Barreto Fundação Calouste Gulbenkian Fundação EDP Fundação Eng° António de Almeida Fundação Eugénio de Almeida Fundação Luso-Americana para o Desenvolvimento Fundação Maria Cecilia Souto Vidigal* Fundação Oriente Fundación Academia Europea de Yuste Fundación AVINA* Fundación Barrié Fundación Bertelsmann Fundación Instituto De Empresa

New Eurasia Foundation Novo Nordisk Foundation Nuffield Foundation, The Oak Foundation, The Open Estonia Foundation Open Society Foundations Oranje Fonds Oxfam GB Pears Foundation Piraeus Bank Group Cultural Foundation* Prince Albert II of Monaco Foundation, The Prins Bernhard Cultuurfonds Pro Victimis Foundation Realdania Robert Bosch Stiftung Rockefeller Brothers Fund Rural Development Foundation Sabanci Foundation Saratov Region Community Foundation Schlumberger Foundation Siemens Stiftung* Sigrid Rausing Trust, The Sinopec-Addax Petroleum Foundation Sørlandets Kompetansefond Sparebankstiftelsen DnB NOR State Street Foundation, Inc. Stavros Niarchos Foundation Stefan Batory Foundation Stichting Fonds 1818 Stichting VSBfonds Stiftelsen Konung Gustaf V:s 90- Årsfond Stiftelsen Riksbankens Jubileumsfond Stifterverband für die Deutsche Wissenschaft Stiftung "Erinnerung, Verantwortung und Zukunft" Stiftung Braunschweigisher Kulturbesitz Stiftung Deutsche Welthungerhilfe* Stiftung Mercator GmbH Stipendienfonds E.ON Ruhrgas Suomen Kulttuurirahasto Svenska Kulturfonden Sygekassernes Helsefond Third Sector Foundation of Turkey (TÜSEV) Trust for Civil Society in Central & Eastern Europe TrustAfrica* Türkiye Insan Kaynaklari Vakfi UniCredit Foundation*

United Nations Foundation United Way Worldwide Universal Education Foundation Van Leer Group Foundation Vehbi Koç Vakfi Velux Foundations Victor Pinchuk Foundation Victoria Children Foundation Vladimir Potanin Foundation Vodafone Stiftung Deutschland VolkswagenStiftung W.K. Kellogg Foundation Welfare Association Wellcome Trust Wilhelm Sander-Stiftung World Lung Foundation ZEIT-Stiftung Ebelin und Gerd Bucerius ASSOCIATES ADMICAL ADRA Deutschland e.V. Agropolis Fondation Alliance for Childhood European Network Foundation American-European Community Association Boghossian Foundation Both ENDS Central European University Hungary Centre for European Policy Studies Centre for Nonprofit Management, Trinity College Centre for Social Investment BRITDOC Foundation ChildFund Stiftung Chronicle of Philanthropy, The Concern Worldwide Ecole Polytechnique Fédérale de Lausanne Erasmus Centre for Strategic Philanthropy European Policy Centre, The European Venture Philanthropy Association Factary Europe Ltd. Firelight Foundation Fondazione ANDI Onlus Fondazione Peppino Vismara Forum for Active Philanthropy: Inform, Inspire, Impact GmbH Foundation Center, The

Foundation for Future Generations FRIDE Fundación Europea Sociedad y Educación Fundación Intervida Fundacja Techsoup Global Greengrants Fund/ Greengrants Alliance of Funds GuideStar International Hippocrène Foundation HIVOS Institute for Economics and Peace Institute for Policy Studies, The Johns Hopkins University International Foundation for Science Katholieke Universiteit Leuven Promo P.A. Fondazione Save the Children Federation, Inc. Sightsavers Slovak-Czech Women’s Fund SODALITAS StiftungsZentrum.Ch GmbH Theanon Charitable Foundation The Global Fund for Children UK Trust TuBerculosis Vaccine Initiative UBS Philanthropy Services University Centre Saint - Ignatius Antwerp Voluntary Services Overseas World Savings Banks Institute WWF - World Wide Fund for Nature

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

Fundación Juan March Fundación Luis Vives Fundación MAPFRE Fundación ONCE Fundación Principe de Asturias* Fundación Rafael del Pino* Fundación Ramón Areces Fundación SM Fundación Telefónica* FXB International Gemeinnützige Hertie-Stiftung Gerda Henkel Stiftung German Marshall Fund of the United States, The Global Fund to Fight Aids, Tuberculosis and Malaria, The* Guerrand-Hermès Foundation for Peace Haniel Stiftung Institut Curie Institut Pasteur Instituto Marquês de Valle Flôr International Fund for Animal Welfare* International Renaissance Foundation J. Paul Getty Trust Jacobs Foundation Jerusalem Foundation, The* Johnson & Johnson Europe, Middle East, North Africa Jordan River Foundation Joseph Rowntree Charitable Trust Joseph Rowntree Foundation King Baudouin Foundation Körber-Stiftung Kraft Foods Kronenberg Foundation "la Caixa" Foundation LEGO Foundation, The* Lundbeckfonden M.A.C AIDS Fund Madariaga - College of Europe Foundation Mama Cash Foundation Marga und Kurt Möllgaard Stiftung Medicines for Malaraia Venture Medtronic Foundation, The Microsoft EMEA National Foundation for Civil Society Development Croatia

25

INCOME FROM MEMBERSHIP In 2007, the EFC set itself the goal of obtaining 60% of its

2006 2007

22%

78%

44%

2008

€3.603.972 56%

60%

€4.074.771

40%

€4.017.022

income from membership contributions in order to move away from the historical reliance on project funding. The chart shows that gains have been made towards this goal thanks to the membership.

2009

46%

54%

€3.996.582

2010

60%

40%

€3.568.798

2011

57%

43%

€3.641.486

E TH

MEMBERSHIP FEES & VOLUNTARY CONTRIBUTIONS

AL GO

OTHER

60% 40%

Bernard van Leer Foundation Bertelsmann Stiftung Charles Stewart Mott Foundation Compagnia di San Paolo European Cultural Foundation Fondazione Banca del Monte di Lucca Fondazione Cariplo* Fondazione Cassa di Risparmio di Torino (CRT) Fondazione di Venezia Ford Foundation, The Fritt Ord Foundation* Fundação Calouste Gulbenkian Fundación ONCE German Marshall Fund of the United States, The Jacobs Foundation Joseph Rowntree Charitable Trust King Baudouin Foundation* Körber-Stiftung "la Caixa" Foundation Open Estonia Foundation Realdania Robert Bosch Stiftung* Rockefeller Brothers Fund Sabanci Foundation Stefan Batory Foundation* Stiftelsen Riksbankens Jubileumsfond Third Sector Foundation of Turkey (TÜSEV) VolkswagenStiftung

List current as at 31 December 2011 * Members of the EFC Management Committee

2011 ANNUAL REPORT AND FINANCIAL STATEMENT

GOVERNING COUNCIL AND MANAGEMENT COMMITTEE MEMBERS

Barrow Cadbury Trust

27

EFC PRINCIPLES OF GOOD PRACTICE ALL EFC MEMBERS SUBSCRIBE TO THE FOLLOWING PRINCIPLES:

4

2

GOVERNANCE

1

Foundations have an identifiable decision-making body whose members and successors should be nominated in accordance with established principles and procedures, and act with the highest ethical standards.

COMPLIANCE

Foundations comply with the laws of the state in which they are based, and act in accordance with their bylaws. They comply with the international and European conventions to which their country of residency is party.

3

STEWARDSHIP: MANAGEMENT AND FINANCE

6

Foundations promote efficient organisation and work while ensuring prudent and sustainable management, investment strategies and procedures, and use of resources for public benefit. Foundations ensure proper accounting/bookkeeping according to established rules in the state in which they are headquartered. They may complement such rules with additional measures on a voluntary basis.

INFORMED POLICIES, OPERATIONS AND SUPPORT PROGRAMMES

Foundations define a clear set of basic policies and procedures specifying their mission, objectives, goals and related programmes and review these on a regular basis.

5

MONITORING AND EVALUATION Foundations organise appropriate monitoring and regular evaluation of their action and programmes.

DISCLOSURE AND COMMUNICATION

Foundations act in a transparent manner and comply with the regulations concerning transparency in force in the countries in which they operate. They may complement such regulations with additional measures on a voluntary basis.

7

COOPERATION

Foundations share their knowhow and experience with peer organisations and other relevant stakeholders to advance good practice and cooperate whenever appropriate, to maximise their impact in their respective fields of activity.

European Foundation Centre, AISBL | 78, avenue de la Toison d’Or | 1060 Brussels, Belgium | t +32.2.512.8938 | f +32.2.512.3265 | [email protected] | www.efc.be