The voluntary welfare associations in Germany: An overview



19

The sources of financing voluntary welfare services can basically be divided into three
groups
:51

remuneration for services,

public grants-in-aid and

donations and internal funding

The welfare associations receive remunerations in return for services they provide in
certain areas (hospitals, nursing homes and out-patient services among others). Either
care recipients have to pay themselves (often with a right to reclaim the charges from
social welfare), or the public welfare agencies pay directly.

As for funding in the form of public grants-in-aid, its legal basis lies in the pubic-law
obligation to provide appropriate support for voluntary welfare agencies.

The public grants-in-aid are financing

investment aid for the building facilities and

assistance for their operation.

This funding is in part stipulated in law, and in part furnished according to political
judgement. The form and extent of public grants-in-aid varies according to the respec-
tive field of work, and depends on the Land, district or municipality responsible.

The traditional sources of income for the welfare associations are the financial and ma-
terial
donations from the public appeals, households and street collections. Internally,
the associations receive contributions from their own members, friends and supporters.

A further self-financing activity is the sale of welfare coupons which contain a sur-
charge. Revenue from
lotteries are also important, e. g. the ZDF television lottery “Ak-
tion Mensch”, the ARD lottery “Ein Platz an der Sonne” and the “GlücksSpirale”.

Finally, the voluntary welfare makes a considerable contribution itself. First and fore-
most there is all the work performed by
voluntary helpers, even if these do not appear
on any balance sheets as a financial item. Voluntary work saves enormous amounts of
money which would otherwise have to be covered by the public through taxes or insur-
ance contributions.

The different shares of financing are:52

remuneration for services 64,1 %

public grants-in-aid 20,2 %

donations 3,2 %

51 See to the different forms and procedures of funding: Backer/Naegele/Bispinck/Hofemann/Neubauer
2007, Bd. 2: 556-560. See the general information on funding: BAGFE 2002: 103-105.

52 Boeβenecker 2007: 4.



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