A report called “Giving More for Research in Europe” that believes philanthropy can play an important and effective role in raising funds for research has just been released.
This potential, states the report, “comes up against a harsh reality”: The share of private non-profit sector investments in R&D is poor in Europe (1 per cent of total investment), when compared with both the situation in the US and with the reminiscent share made up of Government and Industry participation. Total investment in R&D by foundations varies within a range of 0.002% of GDP in Greece to 0.08% of GDP in Portugal, according to Eurostat.
The report points out that the relief of tax and administrative burdens for foundations is the key to boosting contributions to R&D. National members states are urged to review the tax treatment of foundations with a view to making tax benefit schemes more effective and to simplify and improve the legal and regulatory environment for foundations.
“Both companies and individuals should be entitled to an income tax deduction or credit with respect to donations” with “generous limits to be applied and governments envisaging increasing current limits” says the report. “The tax treatment of foundations shall also be reviewed with a view of turning tax benefits broader, clearer and more user-friendly”.
“The creation of an enabling environment also involves reviewing existing legal and regulatory arrangements, in order not to put an unnecessary burden on foundations” it continues. Furthermore, it is also considered relevant the independence of the regulatory bodies for foundations, with member states being urged to ensure this.
Investment in R&D is considered fundamental in order to achieve sustainable growth. According to studies, the 3 per cent of GDP for research objective set up by the EU member states in the Barcelona Council is likely to promote long-term growth up to 0.5% per year.
By: N. Peter Kramer
