Who controls funds and foundations?

(Photo: Ivana Vuksa)

Decision that funds for kids to be medically treated abroad should be collected on a separate public-private fund supported by the Government, should result in stopping machinations in money usage which has been collected in the previous years this way. Big humanitarian actions have big affairs.

As difficult as fund raising is to explore who controls its spending in foundations and funds. The law on endowments and foundations is entrusted to the Ministry of Culture and Information which, as they say, supervises its usage. The fund can be set up by the Republic, province or local self-governance and individuals, any legal entity can set up foundations.

Supervision over the legal operations of the funds is entitled to municipal authorities in charge of cultural affairs where the headquarters of a fund is. In the sense of financial operations, authorities such as Tax directorate, financial police and others have the control over foundations and endowments, the Ministry of Culture and Information says.

Budget inspection comes when budget funds are spent, the Ministry of Finance explains. There is no more precise explanation what happens with the citizens 'money spending control. Supervision of municipalities over the funds is the heritage from the laws in 1989 while as of 2011, instead of at the Ministry, foundations and endowments are registered at the special registry of the Agency for business entities.

Misuses are possible if activities are observed by the public and strongly supported by the institutions which is confirmed with teh cases ending up as affair - Katarina Rebraca Fund or the Bishop Artemije. The money flow in case of medical treatment of Tijana Ognjanovic also remained unclear. The fact that this, so-called, non-profit drvtort is not clearly governed, opens the way to misuse, experts say.

- It is weakness of non-profit organizations which should deliver the reports to donors - whether individuals and companies, how the money is spent, that kind of transparent reporting is the best control measure because in case of violation it is already late - Aleksandar Bratkovic from the Non-Profit Sector Development Center.

Serbia has 580 local foundations and endowments and 19 branch offices of foreign foundations and endowments.