On June 3, 2021, the Mozaik Foundation, with partner organizations (Hastor Foundation, Pomozi.ba Association, Network for Building Peace, Trag Foundation and Catalyst Balkans), with financial support provided by the USAID, organized an event for companies and foundations to present the idea of establishing a Philanthropic Forum.
The establishment of a Philanthropic Forum would contribute to finding faster systemic solutions that can only be reached if all actors pool resources and work together to remove existing legislative and institutional barriers.
Why a systematic approach to the development of charity is important for the society of Bosnia and Herzegovina in general is shown by the following data:
- Between 16.9 and 18.6% of the population in Bosnia and Herzegovina live below the poverty line
- Between 15,000 and 20,000 people eat at soup kitchens daily
- In Bosnia and Herzegovina, about 500 tons of food products are destroyed annually, because their expiration date has expired or will expire soon.
- There is no law that defines the terms of donation and humanitarian aid
- If companies and organizations want to donate goods or services to those who need them, they must pay VAT on the amount of the donation
- Donations from the BiH diaspora are not possible through the PayPal service.
The Philanthropic Forum in Bosnia and Herzegovina is envisaged as an informal platform for corporations and foundations, as well as individuals who want to invest in a better society. On the one hand, it would enable the philanthropic community to have more confidence in the giving process and thus allocate more funds. On the other hand, it would also provide recipients of philanthropic benefits with a better quality of life and long-term support.
An interesting fact is that the total amount of philanthropic donations in 2020 amounted to 42.2 million BAM (according to data collected by the Catalyst Foundation). 60% of that amount was donated for the control and treatment of the COVID-19 and the private sector donated about a third of that amount. Company donations could be increased if the legal framework supported and stimulated philanthropic benefits. By joining forces with individuals and foundations, company donations can become simple, more efficient, and more visible.
The Philanthropic forum event was opened by Peter Cronin, Director of the USAID’s Democracy Office:
“USAID believes that a country’s self-sustainability begins through community development. Over the past decade, we have taken significant steps to articulate the principles of locally driven development, ownership, systems, and sustainability through our policies and guidelines. We are committed to helping partner countries achieve independence and respond to their own development challenges, while ensuring that U.S. taxpayer investments result in sustainable, long-term development results. Local leadership is key to achieving these goals. We have seen that people in this country are willing to help each other in case of need. Day after day, especially in these difficult COVID times, numerous acts of kindness and courage give light in the darkness we have faced. However, sometimes we know that in order for things to work properly, there must be a functional system. Bosnia and Herzegovina needs a strong framework that encourages the development of philanthropy. USAID’s Improving the Legal Framework for Philanthropy, led by the Mozaik Foundation and its partners, aims to improve laws, bylaws, policies, standards, and procedures that support the philanthropy ecosystem in Bosnia and Herzegovina. The establishment of an informal Philanthropic Forum, which will bring together numerous companies, foundations, citizens, will be a cohesive element of positive energy and the profound impact of philanthropy in Bosnia and Herzegovina. Let’s be good to each other, let’s support each other. The most important thing is to support acts of kindness and compassion, so that the flame of philanthropy continues to warm those who need it the most.”
Danijela Alilović, Head of Marketing Development at Violeta, also addressed the meeting on behalf of Mr. Petar Ćorluka, owner and director of Violeta, a company known for its philanthropic corporate culture:
“Literal translation of the word philanthropy from the Greek language would be loving human beings. That would mean that today we are establishing a Humanitarian Forum – a commendable idea and endeavor. The goal of philanthropic action is the good of another or many, regardless of their own success or benefit. The principle of philanthropy is increasingly being promoted in the economy and the business world.
We are all part of the same economic, social and societal circle and the pandemic showed us that this is true. By giving to the community, we are the ones who receive. We therefore welcome your efforts to create a stimulating environment for the development of philanthropy and the promotion of cooperation between the public, private and civil sectors. In this way, we can target shared resources and create a better future.”
A useful exchange of practices, experiences, and recommendations took place during a panel attended by:
- Sedin Kahriman, General Manager of BH Telecom;
- Tatjana Vučić, Executive Director of BIT Alliance;
- Suhad Ećo, owner and member of the Board of Directors of Inside by Ećo and
- Milica Kondić, spokesperson for the company m:tel.
The discussion was moderated by Vesna Bajšanski-Agić, Executive Director of the Mozaik Foundation. The curiosity of this panel is that serious competitors on the market have met at one table with the same idea of establishing a Philanthropic Forum, which makes them partners!
BH Telecom’s impressive philanthropic doctrine is summarized in a statement by BH Telecom’s CEO Sedin Kahriman:
“In addition to the realization of successful business results, BH Telecom continuously supports all important cultural, sports, educational and humanitarian events and organizations in the country, which confirms that it is an important support for its community and all projects that need help.”
Suhad Ećo, owner and member of the Board of Directors of Inside by Ećo, pointed out the following:
“A necessary precondition for the private sector to give more is improving legal framework through which we would all benefit. VAT on donations should be reduced or removed, as this will motivate and increase benefits. Thus, a company that decides not to invest part of its profit in the production process but to donate it for development or humanitarian purposes must pay an additional amount to the state, instead of giving it as its contribution to the public good.”
After the panel, Milica Kondić, spokesperson for m:tel, shared their philanthropic practice:
“At m:tel, we see investing in philanthropy as a contribution to the development of society and the community in which we operate. Thus, we directly or indirectly influence the improvement of the quality of life of our fellow citizens and users, and in that way, we complete the care of the user. We believe that the establishment of the Philanthropic Forum will enhance the effects of philanthropy in BiH. We will share good practice and experience, and we will all multiply the effects of investing together.”
After the panel discussion, Seid Fijuljanin, director of the Hastor Foundation, presented the idea of the Philanthropic Forum. The event was attended by representatives of companies, who expressed their interest in establishing the Philanthropic Forum. At the end of the event, all those present signed the Memorandum on the Establishment of an Informal Philanthropic Forum.
The Philanthropic Forum is part of the “Legal Framework for Philanthropy” program implemented by the Mozaik Foundation together with partner organizations (Hastor Foundation, Pomozi.ba Association, Network for Building Peace, Trag Foundation and Catalyst Balkans) with financial support provided by the USAID.
We would like to take this opportunity to thank the media partners who supported this event with their presence and media coverage. Please see below the TV report made by the BHT:
https://www.facebook.com/watch/?ref=external&v=2942521049408914
