08/04/2024
Worldwide INitiatives for Grantmaker Support
– Community Foundations (WINGS-CF)
Case studies - EFC
Parallel to these events Europe witnessed after World War II the birth of the European
ideal with the creation in 1949 of the Council of Europe (currently with 41 member
states) and in 1957 of what is nowadays the EU (currently 15 member states). The
former is an inter-governmental organisation and the latter a transnational set of
institutions.
Europe faces two main challenges at the moment: the enlargement of the EU and the
accession of countries to the East is the first. The second is the resolution of the grave
conflicts in South-East Europe (also known as the Balkans), where the disintegration of
the former Yugoslavia has left in its wake a trail of inter-ethnic conflicts and destruction.
Legal and tax frameworks
During the early years of the 20th century, when most tax systems were taking shape in
Europe, it was not a concern of most European governments to grant privileges to nonprofit
organisations. Most privileges were granted on an irregular, case by case basis.
In general, the UK and Scandinavian countries have a more favourable legal framework
when it comes to the creation of foundations. In the South of Europe legal frameworks
tend to be more restrictive (e.g. France) and in Central and Eastern Europe legislation is
either incipient or very dispersed (e.g. Russia). In recent years, the creation of Donors’
Forums in many CEE countries (e.g. Czech Republic) has led to concerted attempts at
creating or changing the legal frameworks applied to non-profit organisations in general
and to foundations in particular.
In general, taxes on the transfer of capital are not a barrier to the creation of
foundations in Europe, but it is more difficult for a foundation to avoid paying taxes in
respect to its activities. Operating foundations (as distinct from grantmaking
foundations) are generally required to pay VAT (value added tax). The most favourable
lega
