Irena Degutienë
The Status of Charity and Sponsorship for Lithuania
Irena Degutienë is the Minister of Social Security and Labour of the Republic of Lithuania. This speech was given at the "Gift for Lithuania" Conference in Washington, D.C. in November 1999.
Charity and sponsorship,
provided by the United States of America, has always been very important for
the people of Lithuania. We are especially grateful to the organizations of
the Lithuanians in emigration who have never forgotten their Motherland and
have always lent their helpful hand in times of trouble.
Currently, people and organizations of foreign countries provide the major part of charity and sponsorship for Lithuania. It shows the friendly attitude of other countries towards Lithuania and their understanding of our problems. We must admit that the fact that the number of foreign donors exceed the number of local donors is determined by economic problems of the country and, partially, by certain shortcomings of laws regulating the provision and acceptance of charity and sponsorship. According to the data of the Department of Statistics at the Government of the Republic of Lithuania, in 1998, 76.6% of all charity and sponsorship provided for Lithuania came from abroad and 23.4% from Lithuanian enterprises and individual persons.
The major part of charity and sponsorship received from foreign countries consists of material values (ca. 91.1% of all charity and sponsorship received from foreign countries). These are mostly medical and orthopedic products, medicines, paints, radio, TV and communications equipment and apparatus, videotapes, soft drinks, used clothes, computers and computer equipment.
Quite often we are asked about the efficiency of the usage of charity and sponsorship for dealing with social, cultural and health issues. While selecting the recipients of charity and sponsorship, foreign donors give the priority to those areas of life in society where sponsorship (whether it be providing things or services and training programs) is needed most of all.
If we analyze the distribution of the received charity and sponsorship among institutions, we will notice that institutions of social security and health care prevail: in 1998 they received almost half (48.8%) of all the charity and sponsorship provided for Lithuania. Its smaller part is provided for non-governmental organizations (26.7%), education, culture and sports related institutions (15.3%).
Research data of the Department of Statistics show that positions of foreign and local donors, while selecting the recipients, differ. Foreign donors give their priority to health care and social security institutions as well as non-governmental organizations, and Lithuanian enterprises most often provide their charity and sponsorship for education, culture, and sports related institutions and consider health care and social security institutions as their third priority. Reasons for the said choices may be explained differently. However, one thing is clear, [organizations (companies) would rather advertise themselves by sponsoring sports, culture and performing activities than show that they provide] charity and sponsorship for social care institutions or hospitals.
Currently, we observe the decrease of charity and sponsorship received from foreign countries. Largest volumes of charity and sponsorship were provided in 1996; afterwards, a continuous decrease was observed.
This is caused by the gradually improving situation in the institutions engaged in the said fields. Therefore, the demand for items most often provided as charity and sponsorship decreased. Quality of and access to health care, social, and other services are gradually improving. On the other hand, quite a few bureaucratic obstacles, strict quality control, and legal regulations that are not always clear may sometimes dampen the wish of foreign donors to provide assistance.
The United States of America and Germany are the most active providers of charity and sponsorship to Lithuania; they account for almost 70% of all the charity and sponsorship provided. Presently, sponsorship provided for Lithuania by Finland, Japan and Italy is continuously increasing.
I have already mentioned that the largest share of the charity and sponsorship provided for Lithuania is given to health care. During the first years of Lithuania’s independence, health care institutions did not have enough means for the acquisition of the most necessary medicines, disposable medical items, even sheets, sanitary and hygiene items.
The biggest sponsorship for the institutions of the health care system was provided by “Lithuanian Mercy Lift”, a Lithuanian organization in Illinois. This organization continues its activities by sending large charity shipments to different health care institutions. Currently, it takes care of an especially urgent problem in Lithuania – treatment and prevention of TB.
“Aid to Lithuania Incorporated”, a charity organization of Michigan Lithuanians (Lietuvos Vyèiai), also provides charity of a very high quality. This organization has a partnership agreement with the Charity Foundation of France, “Pharmacists Without Borders”, and delivers new medicines from French factories. It should be mentioned that delivered medicines have long expiration periods, full annotations, and quality certificates, and most often they are certified by the State Medicines Control Agency of the Republic of Lithuania. This makes the administration of the said medicines much easier.
“Lietuvos Vaikø Globa”, from Boston, provides charity and sponsorship mostly for children hospitals and children (infants) care homes. They receive not only medicines, but also clothes, toys and other items needed by children.
I would like to mention that the provision of charity through the warehouses of the Ministry of Health has quite a few advantages. However, when charity is delivered straight to institutions of individual and public health care, it saves time and money.
If we talk about the system of education and science, foreign donors mostly assist secondary schools of general education, institutions of vocational training, institutions of additional training, institutions of higher learning, and scientific institutes. Cultural centers, libraries, theatres, and music groups receive much less attention from foreigners.
In the field of social security, the major share of the foreign charity and sponsorship is provided for childcare institutions, institutions for mentally disabled people, and care homes for the elderly.
Charity and sponsorship for the said institutions is also provided by Lithuanian NGO’s (charity and sponsorship foundations, public organizations, religious organizations) that receive charity and sponsorship from similar organizations or private individuals from abroad. However, the volume of foreign sponsorship provided for Lithuanian NGO’s is decreasing.
It is said that after a rather long period of sponsorship, the time came for Lithuanian NGO’s to become more independent, and to use and mobilize the potential sponsorship of their members, fellow citizens, and local businesses for projects and initiatives of NGO’s. Lithuanian authorities appreciate the useful activities of NGO’s and search for ways to support and assist them. The budget is not big enough for the sponsorship of NGO’s; therefore, the sponsorship provided for NGO’s by foreign donors is extremely necessary.
It is important that provided charity and sponsorship meets the purpose, i.e. meets the demands of the recipients. However, sometimes health care and social care institutions and schools receive items that are not the most necessary for them, or sponsorship is provided for institutions other than those that are in need of sponsorship. This issue should be dealt with by involving municipalities into the coordination of charity and sponsorship provided for the region that they serve. The laws of the Republic of Lithuania provide for the responsibility of institutions of self-government for the social condition of the community.
Municipalities should examine the demand of health care, educational, social care and other institutions operating on their territory for the specific sponsorship and provide the information for the potential donors. Municipalities have institutions closest to people that know the problems and that search for ways of dealing with them. Each municipality has separate departments that are in charge of specific fields, i.e. departments of social assistance, health care, education, and children’s rights security.
I would like to encourage all organizations and individuals who try to help the people of Lithuania to more actively exchange information with municipalities that serve the territory on which the institutions that they wish to support operate.
Another way would be to select one or two institutions (health care, educational, social care) and to co-operate with them directly, thus avoiding intermediaries and warehouses. In this way, the sponsor could better influence the development of the said institution, use its costly time and accumulated means more efficiently, and could have information about the usage of charity and sponsorship. Such partnerships proved to be efficient in some health care institutions of Þemaitija where German organizations have been providing sponsorship for specific hospitals not only with medicines but also with consultation in the fields of medicine and management for several years already. Some social care institutions also have regular sponsors from abroad that help with the provision of the most necessary social services.
I would like to note that currently the financial situation of the state social care institutions of Lithuania is rather good; however, the situation of social care institutions subordinated to municipalities is different. The situation of children care homes, care homes for the elderly, and schools in rural areas is worse than elsewhere so far. Very often they lack such basic things as kitchen equipment, kitchen utensils, covers, furniture, sheets, domestic electric appliances, and compensatory equipment for the handicapped.
It is obvious that Lithuania still needs sponsorship. Appreciating the charitable activities of foreign and local enterprises and individuals, the Government of the Republic of Lithuania improved legislation regulating the provision and acceptance of charity and sponsorship. With this purpose in mind, the commission, formed by the Government, drafted to amend the Charity and Sponsorship Law and the related laws (drafts of amendments and adjustments of Law on Customs Duty Tariffs, Law on Value Added Tax, Law on Income Tax of Natural Persons, Law on Profit Tax of Legal Persons, Tax Administration Law).
Once the Parliament (Seimas) adopts the said drafts, NGO’s of all types will have equal opportunities to provide and receive sponsorship. Legally provided and useful for the society, objectives will help determine the fields; and organizations engaged in the said fields will be provided with sponsorship. Donation of material values and financial means will become a legal way of providing sponsorship. Charity will be provided for those who need sponsorship most. The responsibility of charity and sponsorship providers will grow, and the provision, acceptance, and usage of charity and sponsorship will be controlled more efficiently. It will be possible to determine the validity of the application of tax privileges. The law will also encourage the provision of charity and sponsorship by making export and import procedures more simplified.
The adoption of the law amendment drafts was delayed due to a long coordination process with different interested institutions. However, I hope that the developed law drafts will soon be discussed in the Seimas, and that already this year, Lithuania will have the Charity and Sponsorship Law.
I would like to thank you all for the opportunity to share my thoughts in this Conference. You helped our health care, social security, and education systems survive the difficult times, and now you can help them reach a higher level. We would kindly ask you to provide us not only with material support but also with your good ideas, consulting, and training our specialists. Our common goal is to see Lithuania so strong and so developed that it no longer needs any foreign charity and sponsorship. With your help, this day may come sooner.
All your activities provide the support and joy of life for those who need assistance most. Let me wish you good health, energy, optimism, patience, and success in your life and your work.