When money makes the world go round

Here is a Catch 22: One of the reasons that NGOs cannot access EU funds is because they do not have the funds to do so.

The Malta Resource Centre (MRC), an umbrella organisation for a number of NGOs, comes up against this problem again and again. The EU provides 85 per cent of the funds required for a project - but the NGO has to provide the rest. Given their limited resources - and the fact that the funding project itself requires considerable administrative time - the project is often curtailed, if not aborted completely.

Thankfully, mere obstacles rarely deter the MRC or SOS (Solidarity & Overseas Services) Malta, which have just managed to beat the system. SOS Malta is a Maltese-registered NGO whose aim is to aid people in times of crisis and MRC, which seeks to strengthen civil society NGOs, is its offshoot.

They will train a few dozen people using funds from the Technical Assistance Programme, normally only allocated for technical training and capacity-building in public entities.

"NGOs usually get Structural Funds but the government has often made it clear to us in the past that it did not think we had the capacity to administer them," project leader Godfrey Kenely said.

"We were one of the only countries in the EU27 that did not tap into them. The sad thing is that Structural Funds are aimed at cohesion and that is precisely where NGOs can help, as they work with the grass roots and can really deliver the right solutions."

Malta is only the second country to tap into the Technical Assistance Programme (the first being the UK) and Mr Kenely sees it as an important step towards the Structural Funds themselves... but only the first one.

The second is the lack of a legal framework, talked about for years but now apparently just weeks from becoming a reality.

The third problem is that NGOs have to compete for the funds against government agencies which have millions of liri at their disposal.

The fourth problem is raising the 15 per cent co-financing. Mr Kenely explained why this was not as easy as it sounds.

"We are told to get out and do fundraising but I wish it were that easy. You have to remember that the projects are sometimes aimed at 20 beneficiaries, hardly the high profile work that attracts corporate sponsors. And the beneficiaries are not always the sort of people that have the public's sympathy. It is brutal but that is the truth: Imagine if we tried to raise money to train refugees to make them employable..." he said.

Banks are also less than eager to offer bridging loans for NGO projects.

The MRC and SOS Malta believe the solution would be to tap into money already set aside for social inclusion, like the Good Causes Fund and the Community Chest Fund.

NGOs would submit projects to the Planning and Priorities Coordination Division at the Office of the Prime Minister (the legal framework would also act as a filter) and, once approved, it would be able to draw on those funds.

Their persistence is paying off. Mr Kenely said the indications are that future calls for Structural Funds will be open to NGOs.

"We believe that we are the best agents for change. We can work with local councils to upgrade neglected areas in their locality. We can partner with other countries to share best practice. It is all about creating partnerships. But the bottom line is that, without funds, our ability to deliver solutions is very limited."

SOS Malta and MRC have obtained €11,869 for training through the technical assistance funds. The first step will be to hold a seminar on June 26 for up to 100 representatives from NGOs, local councils and trade unions. There has already been considerable take-up since the seminar was announced a week ago.

Project coordinator Philippa Arrigo said the intention was to organise a series of nine workshops held on Mondays between July and October for about 22 participants. Attendance at the June 26 event will be a prerequisite for selection for the workshops, which range from a half-day each to two days. The topics will start with the development of project ideas and end with their financial management and eventual audit.

The workshops are free but participants will be asked to provide a Lm30 refundable deposit to signal their commitment.

"We will accept five representatives from local councils and five from trade unions, to ensure there is space for bona fide NGOs. We will also expect them to be willing to become involved in future projects," Ms Arrigo said.

SOS Malta and the MRC are very optimistic about the project and are already looking ahead to next year, hoping to be able to repeat it.

"We have really created a precedent by tapping into the Technical Assistance funds. Foreign NGOs are contacting us to see how we did it..." she said.

"Now that we have got this far, we will keep going."

Further information about the seminar and workshops is available on tel. 2124 4123 or on the MRC website (www.mrc.org.mt) under the training section.