The Malta Independent 29 July 2026, Wednesday
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Addressing The financing of Homes, Institutions and NGOs

Malta Independent Friday, 6 January 2006, 00:00 Last update: about 13 years ago

It is said that it is more blessed to give than to receive and this has, in fact, been the case with the Maltese nation during the festive season.

Over the last four weeks or so, fund-raising campaigns organised by political and other organisations have seen not only the collection of substantial amounts of money but was also an example of burden-sharing.

First and foremost the nation is grateful for the time that was given and the organisation that was carried out by the hundreds, if not thousands, of volunteers who, year in year out, go that extra mile to make these campaigns a success. There are times when some of them are regarded as pests because of their insistence. However, when one sees on the media the results of the work carried out by the various foundations and institutions, then it is “hats off” to all the helpers.

With Lm271,000 collected by the PN, a further Lm78,000 collected by the MLP, Lm1,377,000 collected by L’Istrina 2005,during the two auctions and the TV marathon on Boxing Day, Lm24,000 collected by RTK for the funding of Children’s Homes and a final Lm152,000 collected for the Dar tal-Providenza – the Maltese people have proved that when called upon, they come up trumps.

The total collected, at Lm1.9m, means that on a per capita basis, the Maltese people have each donated Lm5. Obviously, when this calculation is adjusted to take into account children of a tender age, as well as older people in homes and in health institutions, the per capita contribution spirals upwards substantially.

This amount excludes the money collected during the year by Eden Foundation and other organisations, whose invaluable work among the needy also requires constant financial input.

This is no small feat when one considers the financial burdens of each family during the festive season. The fact that every family manages to find that something extra to donate to these causes shows that, by and large, the whole of the population will go out of its way to help.

If one were to discount the money collected by the two main political parties, the balance is still very substantial. In spite of what many say regarding Maltese generosity towards the alleviation of difficult situations abroad – last year’s tsunami is the most obvious example – this time the general public has donated over Lm1.5m towards worthy causes at home.

However, these collections make one consider how we should really address the ever-growing cost of keeping up the invaluable good work carried out by voluntary workers. Although substantially assisted by NGOs, their existence and operation still require substantial amounts of money to keep them afloat. The water and electricity bills have to be met, and decent food, health and sanitary needs, as well as accommodation costs, are a daily demand on their limited resources. Apart from the recurrent running expenses, substantial capital expenditure is also required to keep things up to standard.

Perhaps it is time to address the problem differently.

In Malta there are thousands of companies, business entities, professionals, businessmen etc – some considered as being micro operations/ businesses, others considered as being medium sized and some even large entities. Each company works to meet its economic goals, and although a very large proportion of them make it, there are some which do not make the grade. The latter fall behind with payments and find themselves in financial difficulties. Although in some cases this is due to the diversification and change in economic trends, in others, the reason for failure is mismanagement: not sufficiently addressing the problems as soon as they arise, choosing to continuously postpone the taking of the bull by the horns until a later date.

If financially sound companies, operators, professionals and businessmen were to be given the chance to contribute to a scheme that would not be too expensive but at the same time tax deductible, I am sure that with a sound marketing drive, well considered planning and inexpensive administration, which would be subject to scrutiny by the donors, the Maltese would contribute much larger amounts. If anything, we would not have to deal with instances where NGOs and other charitable foundations find themselves operating substantially in the red if not on the brink of bankruptcy.

It is time for the government to address the situation. At the end of the day, if such institutions close down, the government will find itself in the position of having to create and finance similar operations to assist those who find themselves in need of financial assistance or with physical and mental special needs.

Once the economy is performing, notwithstanding the continual struggle to provide an environment for more jobs in the future, I think it will be high time for the government to give the necessary tax exemptions to those interested in helping the financially needy. These exemptions would be given within reasonable limits and under proper scrutiny. Obviously, the institutions or organisations that would benefit from such schemes would have to be examined and filtered before they are considered as being eligible in this regard.

In the meantime, I thank all those who have, one way or another, helped in the fund-raising activities in aid of the needy. The contributions made by so many, whether physical, monetary or otherwise, have helped those in need in no small way. But this should be an all-year-round ongoing process.

Tony Abela is Parliamentary Secretary in the Office of the Prime Minister

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