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Czech subsidies fall for nonprofit social work, rise for sports

20 February 2013
3 minute read

A recent analysis of the financing of nonprofit organizations in the Czech Republic shows that subsidies for nonprofit organizations focused on employment and social affairs have fallen in recent years, while those available for groups involved in physical education have risen. In 2009, CZK 3.55 billion made its way to nonprofits involved in social issues and increasing employment, but in 2011 just CZK 3.09 billion did, even as the total amount of subsidies to nonprofits overall rose during that period from CZK 10.18 to CZK 10.86 billion. During that period a higher share of those subsidies each year has been dedicated to groups involved in physical education.

The government is preparing to discuss the report for the 2011 funding year. According to the document, there were 103 735 nonprofit, non-state organizations registered in the country at the start of 2011. Of those, 96 136 were associations, 4 251 were religious organizations, 1 785 were public benefit corporations, 1 129 were foundations and 434 were endowments.

During 2011, nonprofit organizations received a total of CZK 10.86 billion from public budgets. Roughly 53 % of that total was provided by the state (CZK 5.74 billion), 15 % was provided by Regional Authorities and Prague, 20 % was provided by municipalities, and 7 % was provided by state-run foundations.

The area of physical education received the greatest support overall. About one-third of the finances, or CZK 3.67 billion, went to that sector. Groups involved in employment and social affairs divided 29 % of the available money between them, or CZK 3.09 billion. Only 10 % of the total went to groups involved in culture and monument preservation, or CZK 1.11 billion.

In 2010 the total subsidies available totaled CZK 10.34 billion, roughly one-third of which (CZK 3.37 billion) went to the social area. Physical education received approximately the same proportion of funds (CZK 3.34 billion). Culture received 11 % of the total, or CZK 1.17 billion.

In 2009 social affairs received CZK 3.55 billion of a CZK 10.17 billion overall subsidy. Physical education received 29 % (CZK 2.93 billion). Culture again received 11 %, not quite CZK 1.12 billion.

The total amount of subsidies provided from the state budget in 2011 did not change compared to 2010, but were distributed differently. The state allocated CZK 377.1 million less to employment and social affairs and added CZK 232.3 million to physical education.

While the amount of subsidies provided from the state budget did not grow, municipalities, Regional Authorities and state-run foundations sent more money to nonprofits in 2011. The Regional Authorities and Prague paid out CZK 1.61 billion, or 13.6 % more than in 2010. One-fourth of that amount went to physical education groups, about 23 % to groups involved in employment and social affairs, and one-fifth to culture and monuments. The municipalities distributed almost CZK 2.73 billion among nonprofit organizations, almost 6 % more than in 2010. More than two-fifths of that money supported physical education, almost one-fifth supported culture, and one-fifth went to social affairs.

The number of unemployed people and outlays for benefits and welfare has risen in recent years. The situation was worsened by the economic crisis. This January the Labor Offices reported a total of 585 800 job seekers. At the end of 2009 there were only 539 100.

During 2011, according to the final accounting, more than CZK 36 billion was spent on state welfare. Benefits for those in material distress and disability benefits cost almost CZK 7.06 billion, while unemployment benefits totaled CZK 10.35 billion. In 2009 state welfare totaled CZK 41.17 billion, other kinds of benefits cost CZK 4.53 billion, and CZK 15 billion was spent on unemployment benefits.

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