Central government provides funding to CSOs by contracting for service delivery and dispensing project grants through its line ministries. The Ministry of Labor, Social Affairs and Equal Opportunities contracts CSOs to run a number of its services such as, care centers, training and education centers and vocational training. The Ministry of Tourism, Culture, Youth and Sports provides a total of approximately 740,000 EUR for CSO projects in the fields of culture, arts, sports, cultural heritage and youth. Other ministries, including the Ministry of Integration, Ministry of Education develop financing agreements with CSOs on a less systematic, case-by-case basis for service delivery.
Recent positive efforts are made by the Albanian Government with regards to the improvement of the legislation on civil society. In October 2007 the Albanian Council of Ministers decided on an Albanian State Budget line “For the support of Civil Society”. Also, in January 2008 Budget Line No. 88 “For the support of Civil Society” was included into the 2008 Albanian State Budget voted on by the Albanian National Assembly. The total amount of money allocated was 150.000.000 Albanian Lek, which convert roughly into 1.2. Million Eur, which has not been spent due to the lack of institutionalization of the Civil Society Support Agency (approved in 2009). Besides, the 2009 state budget allocated 100,000,000 Lek which convert roughly into 0.7 Million Eur (a decrease of approximately 34% of the amount of money compared to the 2008 state budget). With regards to the 2010 budget, official data from the Ministry of Finance indicate no specific budget line allocated for the civil society.
The law “Law on the Organization and Functioning of the Agency for Supporting Civil Society” (Law No. 10093) was adopted by the Albanian Parliament on 9th March, 2009 after consultation with civil society organizations. It was published in the Official Journal of Albania on 2nd April, 2009. The mission of the Agency is to encourage the sustainable development of civil society and the creation of favorable conditions for civic initiatives for the good of the public. It will offer financial assistance for programmes that encourage and strengthen the sustainability of non-profit organizations, inter-sector and international cooperation, civic initiatives, philanthropy, volunteerism and democratic institutions of society, as well as other programmes that facilitate the fulfillment of its mission. The principal structure with the Agency is the Civil Society Fund. In addition to supported organizations, part of its funds will go to individuals for research, participation in international events, and trainings and scholarships related to civil society. The Agency is constituted as an independent body at “arms length” from government, and its Board will include a majority of 5 civil society representatives, with a further 4 civil servants from the central public administration. Board members will serve four-year terms, with the possibility of being re-elected only once. Since the Law came into force in early 2009, the Council of Ministers has prepared the procedures for the nomination of Board members, as well as established the full regulatory and implementing framework necessary to make the Agency functional. However it has not yet appointed the first supervisory board, so that the Agency still has a little way to go before becoming operational. It is an initiative to be applauded but still seen with skepticism from civil society at large, due to very tide control of the Prime Minister himself on the appointments of staff and as such of the procedures as well.
According to the USAID NGO Sustainability Index 2008 and USAID 2009, local governments are beginning to increase support to CSOs which provide services in the community, although, overall, local government funding is limited in scope and size.
Basing on the CSO legal package, CSOs are eligible to compete for state funds. With the increase of local government capacities, in the frame of decentralization, chances for CSOs to compete for services contracted by the local government are also augmented. However, NGO funds from the private sector and state budget continue to be very scarce. The current fiscal legislation does not offer incentives to private businesses to support NGOs activities or charitable events, while the state budget shows the will but lacks legislation to tackle the problem of NGO financing. The diversification of funding rarely occurs;