The end of optional subsidies could cause the disappearance of nearly 13% of non-profit organizations in the non-profit sector

The end of optional subsidies could cause the disappearance of nearly 13% of non-profit organizations in the non-profit sector
The end of optional subsidies could cause the disappearance of nearly 13% of non-profit organizations in the non-profit sector
Absence of framework, torpedoing of Smart Move, management of ministers Gatz and Vervoort: the reasons for the budgetary wreck of the Brussels government

Reduce services

And it’s not just the fear of closures. The federation also considers that 37% of associations will have to reduce or eliminate services, to the detriment of their beneficiaries. And that 33% of them will cancel current or future projects, thus limiting innovation. “Some associations are preparing to have to pass on the loss of funding to users. This could result in a reduction in the volume of activities and an increase in the cost contribution requested from beneficiaries, with the certain risk of excluding the most vulnerable.” The federation also fears “an increase in the financial contribution of participants in courses and workshops”. “We would no longer be competitive compared to other structures, resulting in attendance that would quickly see a decline, which would lead to an acceleration in the liquidation of non-profit organizations.”

The health care budget will be increased as hoped by the sector

In the medical sector, for example, Codef fears that there will not be “no other choice than to increase the price of therapies.” “It will therefore be directly the beneficiaries themselves who will be impacted.” In the help that certain associations provide to the homeless, many potential problems are also mentioned. “We will reduce our offer and will no longer be able to support the most excluded people. While politicians want to fight against homelessness, by this measure, the number of homeless people will increase, because we will not be able to work upstream and intervene in risky situations”, explains Mathilda Passanisi again.

Social action

A survey carried out among members of the federation highlights the diversity of associations which could be affected by the reduction in optional subsidies. “The sectors most affected would be social action (31%), the environment (18%) and non-commercial tourism (16%). These associations which benefit from optional subsidies “employ an average of eight workers.” “But some impacted structures employ up to 30 workers. This demonstrates a real threat to employment in the Walloon Region and the Wallonia-Brussels Federation because 31% of these associations have announced that the reduction of their optional subsidies could lead to layoffs. And for good reason: among 33% of associations, optional subsidies represent at least 50% of the annual budget. On average, they represent 35% of the associations’ budget.”

Federal training: “It’s excessively complicated”, no progress yet on the budget

The two governments are therefore asked to clarify as quickly as possible their intentions in relation to the question of optional subsidies and even to ensure the sustainability of these subsidies over time. “When a so-called optional subsidy has in reality been recurring for more than 20 years, we wish to reclassify it as a more permanent program contract. Long-term recognition would be much more in line with reality.”we conclude at Codef.

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