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Does this mean the Statute is one step closer to becoming
reality and we should get ready to uncork our champagne
bottles? Perhaps, but for the time being, its probably better
to keep our heads clear and stick to sparkling mineral water. In
any case, the legislative process star ting from the conclusion
of the study and presentation of recommendations, then
moving on to a Commission decision to go ahead with the
Statute, and further to the drafting of a text for review by the
Council and Parliament could take at least one to two years.
Manuel Medina, a Spanish member of the European
Parliament since 1986 with a longstanding interest in this
issue, believes a Statute is a necessary step, given the various
difficulties facing foundations in their European activities.
However, he cautions that a feasibility study could engender
a false sense of progress being made on the Statute. The
Commission has too many feasibility studies, he notes.
According to Medina, a European Foundation Statute is
needed because we have to develop European [structures],
and one way of developing European [structures] is throughfoundations, which are useful instruments. A European
Statute would provide a special status for foundations whose
activities have a European scope, and this in turn should
pave the way for creating a more favourable tax environment
for such foundations and their donors. Medina feels that
taxation can be a particularly problematic area for European
foundations operating across borders in the EU.
Administrative and fiscal barriers to foundations and funders
cross-border work are also a prime concern for Wolf Schmidt,
a member of the Executive Board of the Krber-Stiftung,
an EFC member foundation. The foundation launched the
international EUSTORY network, which aims to promote
dialogue on the different histories in Europe and to ensure
that history is used to foster mutual understanding. The
Krber-Stiftung is now in the process of establishing the
International EUSTORY Foundation (IEF) in order to have a
pan-European structure. When politicians say that a national
framework is enough for public benefit activities in Europe,
they are completely wrong, says Schmidt.
He would like to see the IEF set up as a European foundation
under a European Foundation Statute, as well as a non-
discriminatory tax regime in the EU whereby donations to
foundations throughout the Union are treated the same
way as donations to national foundations. In this regard,
the Commissions infringement procedures against various
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Whats next for the European Foundation Statute?
Work on a feasibility study on the European Foundation Statute was set to begin this summer, following the
European Commissions call for tender in April 2007. With a June 8th deadline for tenders, the bids are now
in and the winner will have 11 months to complete the study. This is the latest step in a process that has been
unfolding for the past few years, with consultations, action plans, briefings, and high-level expressions of
both support and doubt.
Manuel Medina, Spanish member of t he European Parliament
We have to develop European [structures],and one way of developing European[structures] is through foundations..."
-Manuel Medina, Spanish member of the European Parliament
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national governments are a welcome step. Schmidt believes
that a European Foundation Statutewould be important
as a political symbol for an issue like promoting dialogue on
European history which requires Europe-wide activities, [and]Europe-wide fundraising and funding.
As a European Foundation Statute is not yet a reality, the
IEF will be registered as a Dutch entity, with an additional
national-level affiliate in Germany for tax reasons. The primary
mechanism to enable favourable tax conditions for donors to
the IEF will be the Transnational Giving Europe (TGE) network.
Schmidt stresses that we need not only the feasibility study,
we need the Foundation Statute. We need it urgently and
at the same time we cannot wait until we get the Statute.
We have to act now in Europe, that means we have to look
for solutions in the time between. Using TGE is just such an
interim solution.
There is no guarantee
that the feasibility study,
soon to be undertaken,
will result in the necessary
political momentum for
a European Statute. For
Manuel Medina, the best
way to create a political
opening for the Statute
is to tie it into the EUs
current emphasis on
research and technology.
He points out that theEU is seeking to increase
foundations involvement
in research and
development at a European level. It is even trying to develop
a European Institute for Technology which would seek
cooperation with the private sector. So, the EU has an interest
in having those foundations recognised, says Medina. The
counterpart of the European Institute for Technology should
be a European Statute on Foundations so that foundations
can operate across frontiers.
Medina advises the foundation sector not to be discouraged
by negative responses by the Commission. The Commissionsometimes says no and then a few months later changes its
opinion. Soyou have to keep putting the foot in the door.
This is perhaps a good moment You need a political push
andfor that you have to have a good reason to [lobby for] a
Statute on European FoundationsYou have to focus on what
the Union is doing now, and research is one of the goals of the
Union at this stage.
With regard to the European Forum on Philanthropy and
Research Funding, which has been set up by the EFC with the
support of the European Commission, Medina believes it is a
good way to highlight and strengthen the role of foundations
in research: Its a useful thing. Its a way of creating the
appropriate environment.
But still, the feasibility study remains an important process.
The EFC will monitor the process and will seek to be closely
involved with it. The purpose of the study is to provide
an overview of the main regulatory differences affecting
foundations in EU Member States and an inventory of the
main internal market barriers, as well as an estimate of the
costs created by these obstacles. The study will analyse
how these obstacles can be efficiently overcome, including
whether the adoption of a European Foundation Statute
would be an effective solution. Also, the study will assess the
potential impact of a Statute on the foundation and corporate
sectors, and the European economy at large.
Today there are foundations that have a European mission
but cannot fully carry out this mission because of a lack of a
European legal form for foundations. EFC members report
various barriers in their European-level activities. But it is
not only a question of legal and fiscal barriers. A European
Foundation Statute would send a positive signal and mobilisenew funders to bring their resources to bear on addressing
important European issues. The Commissions feasibility study
is a welcome step, but the European foundation sector should
be realistic and make use of various avenues to advance its
goals.
Nyegosh Dube, EFC
For more information on the European Foundation
Statute, go to: www.efc.be/european_statute
When politicians say that a nationalIUDPHZRUNLVHQRXJKIRUSXEOLFEHQHWactivities in Europe, they are completelywrong.-Wolf Schmidt, Krber-Stiftung
THE LEGAL AND FISCAL SCENE
Wolf Schmidt, member of the
Executive Board of the Krber-
Stiftung
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