The “NGO Loan Program” of the Resource Center Foundation is implemented with the financial support of the Open Society Foundation Bulgaria, the Arts&Culture Network Program of the Open Society Institute- Budapest and the Soros Economic Development Fund.

The “Loans for NGO`s” Program is an integral part of the activities of the Resource Center Foundation aimed at providing assistance to NGO`s in Bulgaria to strenghten their role as an active and effective element of the civil society in Bulgaria.

The Program is a supplement to the ongoing activities of the Foundation in the field of providing services and consulting assistance to the Third Sector. The NGO Loan Program for business activities of the NGO`s aims at enhancing enterpreneurial approaches to the activities of the non profit organizations.

The one year pilot phase of the Program started in November 2000 by setting up of a Lending Fund.

In April 2001, the Sub-Board on Arts and Culture proposed to the Resource center Foundation the allocation of $300 000 for the pilot phase of a Loan Program for NGO`s, active in the Arts & Culture field as a supplement to the existing one. The promotion of this second element of the Loan Program took place on July 3, 2001.

By the end of 2001 the Resource center envisages the introduction of technical and training assistance to NGO`s, applying for loans under the Program.

Our model is unique in CEE in that loans are extended without the intermediary of a commercial bank This is a cost saving approach that allows us to set lower interest rates without infringement to the market principles.

The mission of the Program is to help Bulgarian NGO`s achieve sustainability, including financial self-reliance in the long run as well as current financial soundness. As a result, they should be able to pursue their social role more efficiently.

The implementation of the program will introduce an additional element to the set of mission goals of the Foundation itself, namely- a gradual acquisition of partial self-financing potential.

The objectives are differentiated according to the two types of loans provided for by the Program:

- Bridge Loans, extended to cover current expenses for activities of programs/projects, secured by future financing from foreign or local donor organizations.

- Loans for business activities.

The objectives are:

• To build the capacity of the NGO`s;
• To increase the flexibility and the quality of the program activities of the organization;
• To enhance the sustainability of those activities;
• To provide relatively more easy access to financial resources at more favorable terms;
• To stimulate business co-operation and implementation of joint projects with local businesses and municipalities as well as foreign companies;
• To stimulate implementation of joint projects with other NGO`s, especially those with similar activities;
• To stimulate the establishment of “social enterprises”, i.e. business entities operating in a given market, providing goods and services with the aim of not only receiving income but use it for social benefit purposes.
• To achieve financial self-reliance and long-term sustainability.

It is our belief that the successful implementation of the program will lead to the creation of a pool of institutionally strong and financially sustained NGO`s, thus setting a model for development.

The implementation of the program shall lead to the creation and/or further development of viable social enterprises.

It shall introduce market and self-reliance approach in the activities of the NGO`s against the background of gradual phasing out of big donors support.

The program presents a tool for the Resource center Foundation to gain financial self-reliance.

Alexander Savov - Program Director
20, Serdika Str., 1000 Sofia, Bulgaria
Tel. + 359 2 / 915-48-10
e-mail: savov@ngorc.net

For more information, please write us to info@ngorc.net