The Autonomia Foundation and the Open Society Institute 2012 1 st of May started the Supplementary Fund (SF) program. The SF is mainly offered for the project owner participating or willing to take part in the PGF or the Mentoring project of Autonomia Foundation.
The aim of the program is to offer solutions for the financial problems faced by Roma civil organizations implementing EU grant financed projects.
There are two main causes behind the financial problems.
In many cases, exceptionally with human development type projects (TÁMOP), the payment of grants can be delayed for several months with no reason provided. Applicants cannot manage these gaps by legally and financially acceptable methods. In most of the cases the organization cannot take a loan, because they have unpaid public dues due to the delayed payment of the grants or having no securities required by the bank.
Certain types of expenditure are not eligible for EU structural funds support because of the EU or national regulations. There are other costs, which can only be covered partially (proportionately e.g. management costs). Given that Roma NGOs do not have own infrastructure, HR capacity, and financial capital, they are in disadvantaged position compared to the other applicant organizations.
The program is designed to address the above described problems with three financial instruments:
The fund can support costs that are
– The organization must have on ongoing EU financed program
– Essential for the implementation of the project;
– A project meats all the criteria of OSI-PGF or Mentoring program aims, its main aim is Roma integration;
– Both the grant and the loan have to meet at least one of the four priorities of the Decade of Roma Inclusion which are: health, housing, education, and employment;
– The fund support is covers maximum 30 % of the total project cost;
– The implementation of the costs supported by the fund meets all the legal requirements;
– The implementation of the costs supported by the fund is transparent.
Maximum amount of the grant is 5 million forint (around USD 25,000).
The Hungarian legal context allows Autonomia Foundation to provide loans with no business aim, therefore we can manage the bridge loan program but only as an experimental project, with a very strict protocol for the request of loan
Conditions of the bridge loan:
– The organization must have on ongoing EU financed program;
– Documents justifying the accounting reports completed up to now and their acceptance concerning the project required supplementary support by the organization
– The professional content of the project required supplementary support and the fulfillment of indicators aimed
– Effect of the project on roma integration
– Items of quarantee concerning the loan required (authority for collection on the bank account of the organization, other forms of covering)
– The professional and financial reports of the organisation up to now
– The maximum period of the bridge loan could be 12 months.
Maximum amount of the grant is 15 million forint (around USD 50,000).
III. Financial planning and consultation
Autonomia Foundation will employ an expert working exclusively in this program. The tasks of the expert will be:
– Keep a continuous contact and regular visits to the organizations of the program to follow their financial management;
– Consult and advise the organizations on their financial management.
– Provide information on the financial management issues of the organizations to Autonomia Foundation.
This service is compulsory both the nonegilible fund and the bridge loan beneficiaries.
Expected number of beneficiaries
Real Pearl Foundation
Bhim Rao Association
Ugly Duckling drama group
Public Benefit Association for the Integration of Roma of South-Borsod
Association for the Roma and Disadvantaged People in the Valley of Hernád
Hungarian Anti-Poverty Foundation
Roma Self-Help Association of Cserehát
Számá Dá Noj – Take Care of Us Association
Kiflinger’s Free Time Association
Roma Association of Somogyvámos
Hungarian Magiszter Foundation
Motivation Educational Association
Alliance of Democratic Roma Leaders
Khetanipe for the Roma Unity Association
“Hét Kútforrás” Social Charity Association
Straw Association of Mátraterenye
More About Each Other
I Will Not Give Up Association