Access to budgetary resources for charities

Demand-led Provision of Social Services Would Give Not-for-profit Organisations Access to Budgetary Resources

At a recent conference, “Social Partnership and the Development of Institutions of Civil Society” organised by the Ministry of Economic Development and Trade of the Russian Federation and by the foundation “Centre of Strategic Developments – the Region”, one of the speakers from the foundation “Institute of City Economics” put forward the concept of demand-led provision of social services. According to this concept, users of social services would receive financial support in the form of vouchers, which they could then use to pay the providers of the services they need. On this basis, both not-for-profit organisations and small business organisations could become competitive suppliers of social services to the population. This represents a change from the traditional system whereby budgetary resources are estimated and distributed [by the State] to contracted service suppliers. The traditional system constitutes an effective monopoly on budgetary resources, whereas a demand-led system could encourage the emergence of more not-for-profit organisations and small businesses, and introduce some competition in the provision of social services, to the benefit of the state, which must fulfil its obligations to provide social services, and to the benefit of the population.


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