Financial capacity to implement the social services
Financial provision of social services is carried out in two main ways: centralized and decentralized.
The delegated activities by the State are under the governmental responsibility and local activities are provided by the municipalities' own revenues.
For the State delegated activities the amount of funds for social services is determined annually by the State Budget Law for the year.
For the cost of the State delegated activities the most important element is the size of their sum calculated on the basis of accepted standards which include the number of staff, the amount of the salaries, of the social security payments and of the alimony.
The collected fees for delegated activities are determined by a tariff of fees for social services funded by the state budget and are transferred to the fund "Social support" at the Ministry of Labour and Social Policy.
During the year, the social services institutions pay into the account of the municipality the collected own revenues: revenues from sales of goods and services, incomes from rented municipal property and others.
The financing of social services - local activities, is done by recruiting its own funds - from local taxes and fees. There are no standards for maintenance of local activities. The municipality has the right, depending on the tasks to solve in the field of social services and its financial resources, which have been collected from local revenue sources, to determine the resources by which will finance the local activities.
In terms of the expanding market of social services there is a necessity that the planning and the supply of some of the services to be performed in partnership with non- governmental organizations- “service providers”.
Sources of funding that can be used by the social service providers
- The social service providers listed in the register of the Social Assistance Agency (SAA) can apply for funding regarding the provision of social services from the state budget and the municipal budgets following the procedure established for conducting competitions.
- The social service providers can finance their activities by revenue from fees for social services.
- Any supplier enrolled on the register of SAA can apply for resources from "Social support" fund after defending a project.
The main types of funding in the social sphere accessible to the Bulgarian non-governmental organizations (NGO):
- Revenues from own regulated activity
In Bulgaria there is possibility to NGOs to carry out economic activity. Some non-profit organizations successfully combine the market approach with social impact - for example, with adopting a flexible payment model for the social service according to the financial status of their customers.
- Revenues from private donations
Traditionally the business is interested in charitable causes and campaigns that can present the company or its products in a favorable light to the society.
Such partnerships organized at national level (between coalitions of corporations and coalitions of NGOs) are already a well-established practice.
- Revenues from project activities – they provide stability for the organizations and some kind of professionalization of the social services offered by them.
- In Bulgaria, the main sources of financing the activities of NGOs continue to be with foreign origin:
- Private donor funds are a serious factor in forming the budgets of the Bulgarian social- oriented NGOs.
- Foreign government funds (outside the EU programs) - financial programs of embassies, US and British government programs (British Council, USAID, MATRA), as many of them prioritize namely the social activity.
The programs of the European Union - the main source of funding for most Bulgarian NGOs.