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Bulgaria |
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Former Projects |
Community Fund and Social Enterprise Program
"Social enterprises in Bulgaria are a vehicle for social inclusion of disadvantaged people...through access to resources, health and social services, employment and skills development."
--Mike Fritz, the USAID Mission director in Bulgaria
The goal of this 5-year $5.3 million USAID-funded program was to enhance the sustainability of Bulgarian NGOs by developing community funds and creating social enterprises.
The key project objectives were the following:
- facilitate the process of community fund development across Bulgaria;
- assist in the development of social enterprises throughout Bulgaria;
- synergize best practices of community funds and social enterprises in developing model social contracting methodology and implementing it in Bulgarian municipalities; and
- document and disseminate best practices and lessons learned for community funds and social enterprises.
Community Funds
Community funds are a logical extension of Counterpart International's (Counterpart) decades of work in the areas of local institution building and civil society development in transitioning countries around the world. They represent the culmination of Counterpart's mission to "help people help themselves." A community fund (community foundation) is a local, non-profit, public benefit organization that serves a particular geographic region and works to mobilize existing local resources for solving community identified issues. To develop community funds in Bulgaria, Counterpart utilized the proven "Assess, Agree, Address and Assist" methodology. Counterpart provided targeted training and technical assistance activities conducted by internationally recognized community fund experts to support each step in the development of these nascent organizations. Our grant mechanism, which includes matching grants, ensured effective start-up and sustainable operations of the community funds.
Social Enterprises
Social enterprises offer a mechanism for social service NGOs working for the benefit of disadvantaged groups to attain financial sustainability. These NGO-operated businesses or income generating ventures create economic opportunities for NGOs and their target groups while furthering the organization's mission and objectives. Counterpart provided customized business and organizational development training and technical assistance to NGOs starting social enterprises. Regional study tours were organized for social enterprise staff to see successful models in neighboring countries. Counterpart also financed these new enterprises through its "kick-starting" grants mechanism. Additionally, Counterpart worked with these NGOs to formalize a network that can advocate for a more favorable environment for social enterprises in Bulgaria.
Bulgaria continues to undergo a difficult process of decentralization, whereby many important state functions, including the provision of social services, are being transferred to local governments. Counterpart worked in Bulgaria to develop a different model, for "social contracting," whereby NGOs provide these crucial social services to communities, in place of or in partnership with governments. The goal of the social contracting component of this program was to develop, implement, and replicate an effective model for social contracting in Bulgaria. The social contracting component demonstrated the capacity of local models and practices to strengthen the role of the third sector in the delivery of public services. It also helped social enterprises to demonstrate their capacity to act as direct service providers in the social contracting process, while community funds displayed their skills in identifying social service providers, conducting needs assessments, and leveraging the community fund's fundraising and grant making expertise.
Achievements
- 10 legally registered community funds exist in Chepelare, Gabrovo, Blagoevgrad, Stara Zagora, Lom, Vratsa, Sliven, Yambol, Pazardjik and Tutrakan. These community funds have a total of 500 founding members.
- More than 450 volunteers have assisted in the activities of these 10 operational community funds.
- A total of $619,895 has been raised locally by the community funds, and Counterpart added $470,774 through its matching grant program for meeting community needs by supporting projects to improve living environments, health and social services, schools and playgrounds for children.
- 45 social-service NGOs participated in Counterpart's Social Enterprise program. Their staff received trainings in starting a social enterprise, marketing, management, human resources, feasibility and business planning.
- A network of 15 professional business consultants provided more than 2,500 hours of business consultations to these social enterprises.
- 44 seed and development grants totaling $110,000 were distributed to social enterprises for strengthening their income-generating capacity.
- Through the social contracting component, 17 municipalities were awarded grants totaling $83,700 to match $240,663 of public funding provided from municipal budgets. The implementation of these projects in pilot municipalities was marked by a number of achievements, such as strengthening the Public Councils on Social Services and lobbying for funding for social contracting from municipal budgets.
- 1,000 copies of the English handbook on Social Contracting "Good Examples of Social Service Delivery and Social Contracting" was distributed to a wide variety of social service NGOs, public authorities, social assistance institutions, and social partners.
To learn more about Counterpart's Community Fund and Social Enterprise Program in Bulgaria, please read the following feature stories: