wis es and their role in european policies

With the financial support of the European Commission

WISEs and their role in

European policies

National Report - Poland

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The Report has been written by Tomasz Sadowski (Barka Foundation for Mutual Help) and Lidia Węsierska

(Barka Foundation for Mutual Help). It has been translated by Ewa Sadowska (Barka UK).

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CONTENTS

A. DESCRIPTION OF TYPES OF WISE 7

A.1 Type of WISE: Limited Liability Company of a non-profit type 8 A.1.1 Brief historical description 8 A.1.2 Statistical overview 8 A.1.3 Supporting umbrella structures 8

A.2 Key organizational features 8 A.2.1 Goals pursued by the WISEs 8 A.2.2 Legal form 8 A.2.3 Types of workers targeted 9 A.2.5 Type of goods or services produced by the WISEs 9

A.1. Type of WISE: Non – governmental organizations 9 A.1.1 Brief historical description 9 A.1.2 Statistical overview 10 A.1.3 Supporting umbrella structures 10

A.2 Key organisational features 11 A.2.1 Goals pursued by the WISEs 11 A.2.2 Legal form 11 A.2.3 Types of workers targeted 11 A.2.4 Mode of integration provided by the WISEs to the worker 11 A.2.5 Type of goods or services produced by the WISEs 11 A.2.6 Types of resources 12

A.1. Type of WISE: Centres for Social Integration and Clubs for Social Integration 12 A.1.1 Brief historical description 12 A.1.2 Statistical overniew 13 A.1.3 Supporting umbrella structures 13

A.2 Key organisational features 13 A.2.1 Goals pursued by the WISEs 13 A.2.2 Legal form 14 A.2.3 Types of workers targeted 14 A.2.4 Mode of integration provided by the WISEs to the worker 14 A.2.5 Type of goods or services produced by the WISEs 15 A.2.6 Types of resources 15

A.1 Type of WISE: Social cooperatives 16 A.1.1 Brief historical description 16 A.1.2 Statistical overview 16 A.1.3 Supporting umbrella structures 17

A.2 Key organizational features 17 A.2.1 Goals pursued by the WISEs 17 A.2.2 Legal form 18

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A.2.3 Types of workers targeted 18 A.2.4 Mode of integration provided by the WISEs to the worker 18 A.2.5 Type of goods or services produced by the WISEs 19 A.2.6 Types of resources 19

A.1 Type of WISE: Centres for Occupational Activation 19 A.1.1 Brief historical description 19 A.1.2 Statistical overview 20 A.1.3 Supporting umbrella structures 20

A.2 Key organizational features 21 A.2.1 Goals pursued by the WISEs 21 A.2.2 Legal form 21 A.2.3 Types of workers targeted 21 A.2.4 Mode of integration provided by the WISEs to the worker 22 A.2.5 Type of goods or services produced by the WISEs 23 A.2.6 Type of resources 23

A. 3 Supported Employment Enterprises - legal requirements 24

B. ANALYSIS OF POLICIES 26

B.1 Policy overview 26 B.1.1 Specific public scheme 26 B.1.2 Other public support not specially targeted at WISEs 34 B.1.3 Public procurement and WISE 38 B.1.4 Private Sector support (non-profit or profit) 39 B.1.5 Ongoing political debates and trends 39 B.1.6 Coordination of the sector 56

B.2 Programme analysis 60

C. BEST POLITICAL PRACTISES 90

C.1 Act on Social Employment 90

C.2 The act regarding social cooperatives 93

D. CONCLUSIONS 95

D.1 Political debates and trends 96

D.2 Challenges 98

D.3 Recommendations for integrated policies 99

BIBLIOGRAPHY 103

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Report on Work Integration Social Enterprises (WISE) in POLAND

A. Description of types of WISE Summary of chapter A In the chapter A, six types of WISE were elaborated upon: limited liability company of non-profit character,

non-governmental organisation, social integration centre, social cooperative and centre for vocational

activation. Limited Liability Company of non-profit type does not differ in legal terms from regular limited

liability company which is based on a commercial law. It is the objectives included in the Articles of

Association as well as the way the funds are used, which make them different. Limited liability company of

non-profit type aims at pursuing social goals and it is social goals that financial surplus is used for.

Due to the level of founder’s capital (50.000 PLN) this type of WISE is not popular in Poland and there are

single cases of it. This is the reason why there is a lack of detailed statistical data on this field.

With regards to the second form of WISE which are Non-governmental Organisations, the statistical data

on organisations conducting statutory chargeable and economic activity was presented (this is less than

10% of the total number of organisations). The organisations’ target beneficiaries are unprivileged groups

of people who are in very difficult life situations. Organisations rely in the first instance on public funds to

implement their activities. Income from other sources is only 30%.

Social Integration Centres, the third form of WISE, can run commercial and productive activity which is not

an economic activity but it is treated as a form of vocational activation of the unprivileged groups.

Social Cooperatives, the fourth form of WISE, run economic and re-integration activities for the benefit of its

members. Cooperatives do not share the profit as it is allocated in the following funds: resource fund,

investment fund and re-integration fund.

Fifth form of WISE is Centre for Vocational Activation of the disabled, which run service-oriented,

production and economic activity. The profit is allocated in Entrepreneurial Fund of Activation which covers

the cost of rehabilitation of the disabled persons, purchase of equipment as well as the cost of

accommodation support.

Another form of WISE are Supported Employment Enterprises. The status of Supported Employment

Enterprise was received by cooperatives of the disabled people which employed no less than 40% of the

disabled (including 10% of people with serious mental impairment).

Commercial companies can also receive a certificate of supported employment enterprise as long as 40%

of they employees are the disabled and under a condition that they operate from appropriate locations and

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use special equipment. The profit of the supported employment enterprises are not subject to a share.

Companies which run such enterprises benefit from the State Fund for Rehabilitation of the Disabled

(PEFRON), the tax reductions, reimbursement of social insurance premium of the disabled. Supported

employment enterprises created by commercial companies are very criticized in Poland.

A.1 Type of WISE: Limited Liability Company of a non-profit type

A.1.1 Brief historical description

Principles of operating Limited Liability Companies were set up in Germany in 1892 (German term

“Geselshaft mit beschränkter Haftung”, short: GmbH). The German pattern was adopted in Austro-Hungary

in 1906 and in England in 1907 (as a private limited company). In 1925 it was incorporated in legal systems

in France, for example. In Poland, the rules for limited liability companies (spółka z.o.o.) were for the first

time regulated under the decree dated on the 8th of February 1919. Legal regulations of Limited Liability

Companies, which are in effect contemporarily, are relatively convergent in different countries. However,

they can significantly differ in very basic details.

A.1.2 Statistical overview

It is not possible to define number of Limited Liability Companies of a non-profit type. They are registered

as Limited Liability Companies. Due to the fact that the nominal capital of the company ought to be

minimum 50.000 PLN, this is not a commonly practised form of activity with a social goal. We can estimate

that these are single cases in Poland.

A.1.3 Supporting umbrella structures

It is predicted that development of Limited Liability Companies of a non-profit type is not going to be

dynamic due to the level of nominal capital. Non-profit organisations do not posses sufficient capital to set

such companies up. Yet it is assumed that it is non-profits which are most interested in such kind of

enterprises.

Small number of Limited Liability Companies determines the fact that neither now nor in the nearest future

the sector is capable of developing a consortium.

A.2 Key organizational features

A.2.1 Goals pursued by the WISEs

The main mission of Limited Liability Companies is to lead socially beneficial activities in the area of public

tasks.

A.2.2 Legal form

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Limited Liability Company is based on a commercial law and its operations are regulated by commercial

law. It is a liaison of a few subjects (stakeholders) who are held accountable to companies’ creditors only

up to the level of their personal shares in the company (with the exception of tax debt). Personal shares are

recorded in the company’s agreement.

The law does not limit the number of stakeholders which means that a stakeholder can be both a single

individual and a thousand individuals. Stakeholder can be a person and a legal entity or an organisation

which does not have a legal status (e.g. registered partnership) under the condition that the founder of one-

person Limited Liability Company is not another one-person Limited Liability Company.

Limited Liability Companies of a Non-Profit type are not regulated by any separate codex and they only

differ from other Limited Liability Companies in the following aspects:

- The agreement of Limited Liability Company of a Non-Profit type includes social objectives.

- Profits are reinvested in social causes defined in the agreement of Limited Liability Company of a Non-

Profit type (with a prohibition to pay out the worked profit of the Company to stakeholders or owners). A.2.3 Types of workers targeted

This is not defined by regulations. Limited Liability Company of a Non-Profit type can employ any worker no

matter what their life situation is. However, the Company agreement can include a clause explaining that

the disadvantaged group is the preferable one.

A.2.5 Type of goods or services produced by the WISEs

Types of services and products produced by this type of WISE are accepted by regulations defining the

activity of Limited Liability Companies.

A.1. Type of WISE: Non – governmental organizations


In Poland, non-governmental organizations, foundations and associations came into existence

approximately in the same time as in Western European countries. At first they were occupied mainly with

charitable activities, later they also started to conduct commercial, cultural, educational and academic

activities as well as activities connected with promoting the idea of a social development and a social

solidarity. Some of them were of a religious character while others were entirely secular. In time of II

Republic of Poland (1918-1939) the non-governmental organizations were growing very fast. During the II

World War and in the time of the domination of communism (which came after the war), the level of social

activity and civic engagement had fallen. Some of the non-governmental organizations were closed down

(their property was taken over by the state). Others were incorporated in ideological structures.

After 1989, non-governmental organizations experienced their resurgence and revival thanks to the

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regained right to associate and establish associations. Some of the non-governmental organisations started

extensive chargeable and economic activities. These organisations and their profile are described below.


According to the data in the Registrar of Companies dated May 2007, there are over 78.000 non-

governmental organizations in Poland, herein around 70.000 associations and around 8.500 foundations.

Out of those, approximately 4.000 organisations meet the criteria described in the EMES (European

Research Network) definition, which makes up for almost 10% of all organisations. Statistical data

presented below refer exclusively to non-governmental organisations defined as an acronym SEE (Social

Economy Enterprise).

The number of SEE employing paid staff: approx. 2400 which are 60%.

The number of SEE employing workers through employment contract: approx.: 2000 which is 50%.

There is a lack of data with regards to the number of those employed in organisations which met the EMES

criteria.

In the whole sector there are 120.000 employees (64 full time jobs).

One can assume that at least 10% from them are employees of SEE, which are over 12.000 people. The

number of SEE using voluntary support: approx.: 2000 which 50%.

45% used “permanent” voluntary engagement (volunteers engaging on regular basis).

Revenue:

In 2005 85% of SEE had a budget exceeding 10.000 PLN.

45% of SEE declares that they have some financial reserves which could be used in a situation when the

up-till-now income is cut off.

For 50% of SEE, the average yearly dynamics of budget accrual in the last few years was approx. 115%.

10% of SEE gains more than 20% of their income thanks to formally registered economic activity or

chargeable activity.


During 2001-2003, 25% of all non-profit organisations were created. At that same time 34, 9% of SEE-s

were registered. This indicates that the organisations being newly established rely increasingly on acquiring

at least a part of resources on their activities on the basis of their own economic ventures. This is partly a

consequence of the enforcement of the Act on Public Benefit Activity and Volunteerism. Thanks to this Act

non-profit organisations were enabled to lead their chargeable projects not for profit which were different

from traditional economic activity. In Poland there are no networks which would consist of SEE-s only.

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There are many networks however, associating non-profits including SEE-s. The SEE-s sector did not unite

enough nor became autonomous therefore there is no need to create larger SEE-s structures.

A.2 Key organisational features


The mission of SEE-s is to lead public benefit activities in the area of public tasks.

A.2.2 Legal form

Legal form of non-profit organisations is defined by Act on Public Benefit Organisations and Volunteerism

dated on 24th of April 2003.

Non – profit organisations are entities which do not belong to public finances sector - according to

regulations on public finances. Non-profit organisations do not act in order to maximise profits. They are

legal entities or those which do not have legal status and are established based on legal acts’ regulations

including associations and foundations.

A.2.3 Types of workers targeted

The exemplary groups : long-term unemployed, those taking advantage from social welfare, the

handicapped, the mentally ill, the addicted, the homeless, prisoners, youth leaving orphanages/group

homes, youth entering labour market, individuals aged above 50 years old, individuals who desire to

combine children’s care with professional career, immigrants and refugees.

A.2.4 Mode of integration provided by the WISEs to the worker

Social and professional reintegration: engagement of beneficiaries in being professionally active; creation

of work places for people at risk of falling into difficulties on the labour market; providing members/workers

with services adopted to their needs and economic potential; economic co-operation between members,

common production/activity in the area of business/trade ensuring the provision of financial help to

members in case of crises, treating each worker as a subject and ensuring their profound participation in

the process of management and organisation of work conditions.


Economic activity of SEE-s is first of all about providing training services (up to 45% of SEE-s) and

educational services.

Services on social care, organisation of leisure activities, domestic services (e.g. cleaning), building and

construction, gardening, environment are a bit less popular.

Area of activities appointed by SEE-s as most important:

- Sport, tourism, recreation, hobby (31, 9% of SEE-s)

- Culture and art (18, 3% of SEE-s)

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- Education and children’s upbringing (15, 5% of SEE-s)

- Social services, social care (5, 2% of SEE-s)

- Health care (5, 8% of SEE-s)

- Local development in the social and material dimension (2, 3% of SEE-s)

- Labour market, employment, professional activation (3, 5% of SEE-s)

- Environment protection (3, 2% of SEE-s)

- Professional issues, workers’ rights etc. (6, 4% of SEE-s)

- Scientific research (3, 5% of SEE-s)

- Support of institutions, non-profit organisations and civic initiatives (1, 1 % of SEE-s)

- Other activity (3, 3 % of SEE-s)

A.2.6 Types of resources

The main source of SEE-s income is resources granted by public authorities (up to 40,6 %), secondly

contracts with public bodies (26,8%) and resources received by donors (5,4%), income from sales of

commodities and services (4,5%), financial donations as well as donations in kind from private individuals

(2,2%) and others (20,5%) are members’ fees, legacies, capital investments, exemplary damages/smart

money/vindictive damages/punitive damages and added damages (regulations of the penal code allows the

ability to predicate by tribunals added damages as well as command a financial contribution for non-profit

organisations.

A.1. Type of WISE: Centres for Social Integration and Clubs for Social Integration


Centres for Social Integration and Clubs for Social Integration function on the basis of the Act on Social

Employment from June 13, 2003. The Act looked up to the experience of Barka Foundation during 1989 –

2002. The justification to the Act’s existence was a description of activities run by Barka School whose aim

has been to integrate socially excluded individuals and groups. The initiator of the Act was the

contemporary Deputy Prime Minister and Minister of Labour and Social Policy professor Jerzy Hausner. In

the Act a conception of social exclusion occurred for the first time. The Act contributed to discontinuation of

previous practice of social assistance being based on passive and relief programs only. The legislation

came into existence during the time when the level of unemployment in Poland was over 20% and in some

regions reached 30%. The opponents of the Act were groups connected with a traditional model of social

help such as the Polish Agency to Solve Alcoholic Problems. The Agency did not wish that the Centres for

Social Integration were financed from the resources allocated for alcoholism-prevention projects.

In July 2007, amendment to the Act on Social employment was made. New regulation brought in some

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important changes which facilitated the implementation of programs of social and vocational reintegration

run by Centres and Clubs of Social Integration. The pack of social impact elements such as an incentive

bonus was enlarged. Also, some changes in class discipline were made (e.g. limit of days on medical

leave). The amendment extended the list of individuals, who qualified participate in activities of Centres of

Social Integration adding disabled people as well. Also there were new regulations made which allowed

the Clubs of Social Integration to organise local programs of public benefit activity.

A.1.2 Statistical overniew

There were 55 Centres of Social Integration in Poland by the end of 2007, among which 60% were created

by non-governmental organizations, and 40% were run by local governments. In 2007 the number of the

participants of Centres of Social Integration amounted in approximately 2500 people. Moreover, in 2006-

2007 there were over 300 Clubs of Social Integration created in Poland.

The income of Centres of Social Integration formed as follows:

25 % of CSI had budget not more than 10.000 PLN

44 % of CSI had budget between 100.000 – 500.000 PLN

19 % of CSI had budget between 500.000- 1.000.000 PLN

12 % of CSI had budget over 1.000.000 PLN


There were many different actions undertaken in favour of building common understanding of social and

vocational integration of the excluded groups of people.

In 2002 Barka Foundation established an Alliance of Organisations for Social Employment, whose aim was

to lobby in favour of the Act on Social Employment and promote creation of Centres of Social Integration.

23 organizations joined the Alliance, which put the Act on Social Employment to vote in Parliament on June

13, 2008.

Another initiative came from organizations and institutions which run the CSI. In 2006 the Alliance of

Centres for Social Integration was established in the City of Torun. Among them there were 21 Centres

whose role was to represent all CSI and lobby in favour of building system-based solutions of financial

support for Centres of Social Integration. However the Alliance is not active and it is the first Centres of

Social Integration created in Poland in 2004 which are most active in integrating associations and

institutions which run the CSI.

A.2 Key organisational features


The mission: social and vocational reintegration of socially excluded groups and those endangered with

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social exclusion. The support of socially excluded people is led by realising individual programs of social

employment and running classes organized by CSI. Up-till-now experiences proof a high effectiveness of

active forms of support which allow reaching an indicator of a new employment of 60%-70% achieved by

those at a special risk of social exclusion.

Individuals aged 45 – 50 are a dominant group of participants of CSI. There are several to several dozen

workers employed in CSI. There are around 3-5 participants per one worker. Each year 2500 participants

on average attend activities of CSI. It is said that between the years of 2008 and 2010 the number of CSI

will increase to 100, and that CSI will be attended by 7500-1000 participants from groups socially excluded

involved in this form of activation.

A.2.2 Legal form

CSI is a financially and essentially separate institution, created by a non-governmental organization or by a

representative of a local government (village-mayor or leader of the council). The status of the Centre for

Social Integration is given by a regional governor for a five-year-period and it is the governor who

supervises and controls it. 60% of CSI are currently run by non-governmental organisations and religious

groups. The remaining ones are managed by local authorities.


The following groups qualify to participate in the program of Centres for Social Integration and Clubs for

Social Integration:

- Long-term unemployed (12 months of unemployment which occurred in two-year period);

- The homeless who follow an individual CSI program for overcoming homelessness;

- Alcohol and drug addicts who completed rehabilitation;

- Ex-prisoners;

- Refugees;

- Disabled people;

- Mentally ill individuals.


Centres for Social Integration realise processes of social and vocational integration for the period of 12

months. (In exceptional cases this period can be prolonged to 18 months). In social reintegration the

emphasis is placed on the ability to play social roles, manage earned resources and learn team-working. In

vocational reintegration on the other hand, the focus is training, up-grading skills and building up new

qualifications as well as requalification. Participant’s stay in CSI is legally treated as a time of employment

and it counts for the retirement. It is in the form of so called, social employment.

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A person attending the CSI program has a status of a participant. The choice of the activities and

workshops is made on the basis of Individual Program of Social Employment. Besides the participation in

activities and courses, a participant can receive an integration benefit which equals 100% of an

unemployment benefit (120 EURO per month), and they can additionally receive a bonus of 20% of

integration benefit for some extraordinary engagement. While taking part in CSI, a participant gathers work

experience in companies and enterprises (hands-on-training). A participant, who has successfully gone

through a probation period, can end up with being employed. Employer, who provides a job opportunity to a

dysfunctional group representative, is entitled to receive a refund of insurance contribution for a 12 months’

period.

The participants of the programs are represented in a management of CSI.


Centres for Social Integration can be compared to Italian cooperatives type A. It provides training services

as far as a general and vocational education for excluded groups of people is concerned. It also sells

products made by participants in vocational workshops and runs different types of services for support to

the local community.

The staffs of CSI consists of instructors, psychologists, pedagogues, social workers, who are very good

qualified professionals.


The monthly cost of training and education of a single participant equals approximately 1000-3000 PLN; it

also depends on the quality of the offer and the size of CSI, etc. The number of participants is between 25

and 200 people in largest Centres of Social Integration.

Centres of Social Integration gain their funding from the following sources:

- Marshall Office (funding can be received for the first 3 months of the activity and the adaptation of the

workrooms);

- Grants from resources of the Commune (the ratio of the amount agreed by Local Council to be spent

per each participant and the total number of participants & employees);

- European Social Fund;

- Trade and service-oriented activity run by CSI are not legally considered to be a commercial activity

(with the exception of alcohol, tobacco and fuel production as well as coloured metals)

- Commercial activity, which should be separated from the activities run in favour of social and vocational

reintegration

- Labor Fund which covers reintegration benefits for the participants of CSI.

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A.1 Type of WISE: Social cooperatives


In Poland the cooperatives’ movement came into existence when Poland did not exist as a country and

territory. The initiation of the cooperatives’ movement was perceived as a sign of regaining identity and

defending sovereignty as well as a counteraction to the social injustice. The first cooperative was

established in 1816 by a priest Stanislaw Staszic. The cooperative was called "Rescue from Misery

Cooperative".

In Poland, the cooperatives’ movement is being perceived negatively. This is a heritage from the

communism period. The cooperatives’ movement was then incorporated in a system of centrally governed

economy and it became the tool of the State. It was an opposition to rebuilding civic society and arising

democracy after 1990.

A new type of cooperatives, so called social cooperatives came into existence on the 20 of April, 2004,

together with the Act on Employment Promotion and Labour Market Institutions. The inspiration was Italian

social cooperatives and the activities run by some non-governmental organisations. In 1995 Barka

Foundation representative brought a copy of the Italian Act on Social Cooperatives dated 1991 to Poland.

The Act pointed out possible directions of development. In April 2006 Poland adopted own Act on Social

Cooperatives which was patterned after the Italian Act.


The research indicates that by the end of 2007 there were 156 social cooperatives operating in Poland.

They had about 1000 members and the number of employed staffs was 699. The remaining persons

worked as volunteers awaiting an employment opportunity. The majority (60%) were men.

According to the Act on social cooperatives, 80% are people from groups socially excluded: unemployed

people (12 months of unemployment which took place during a two-year period), people who completed the

social and vocational reintegration in CSI and disable people. So in most cases the employed people come

out of dysfunctional groups.

The turnover in social cooperatives in 2007:

- 44 % of social cooperatives did not gain any income, which means that they did not undertake any

activity;

- 42 % of the cooperatives report the turnover between 10.000 PLN to 100.000 PLN

- 14 % of the cooperatives report the turnover more than 100.000 PLN.

The majority of social cooperatives do not have savings (only 3, 5% of the cooperatives reported that they

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had some savings). The earnings in social cooperatives are maintained on the level of the minimal wages

which is around 970 PLN gross per month; the highest salary is 1500 PLN gross per month, and the lowest

– 450 PLN gross per month.


Social cooperatives in Poland are not incorporated in the sector of cooperatives’ movement. This is a

reason why social cooperatives did not automatically enter into already existing structure of cooperatives’

movement in Poland and are subordinate to support structures of non-governmental organizations. 77 % of

social cooperatives do not belong to any networks. 22 % of cooperatives belong to alliances of non-

governmental organizations.

Until now there was one attempt to establish an alliance of social cooperatives. In 2006 the Social

Cooperatives’ Scrutiny Alliance came into being. The Alliance’s aim is to support social cooperatives and

control their functioning in financial aspects every three years and make sure that the cooperatives follow

the rules of the Act on Social Cooperatives. Only 22% of social cooperatives joined to the Alliance. Despite

the fact, that another 60% of social cooperatives would be willing to join the Alliance, the tendency to

integrate was meagre in the sector. This is a consequence of the fact that the cooperative movement is still

very weak: in some regions of Poland social cooperatives were not established at all, in others they are

struggling with many difficulties (i.e. management issues, concentration on the running activities). In the

projects of EQUAL Community Initiative, many different forms of support for social cooperatives were

tested. A model which brought positive results was local partnerships’ creation. A partnership consisted of

local community representatives and representatives of social cooperatives. Those examples of partnership

brought positive results such as social cooperatives’ creating local services and market of products to

support the local community.

During 2005-2006 Regional Funds to Support Social Cooperatives were established which provided

training, advice and financial support to set up social cooperatives.

During 2006 – 2008 Centres of Support to Social Cooperatives were established by those non-

governmental organizations which provided training and advice and had a grant-fund to support to social

cooperatives. Previous support structures were built more by non-governmental organizations and local

partnerships than by social cooperatives themselves.

Further development of social cooperatives in Poland may facilitate creation of a platform of cooperation of

social cooperatives which would resemble Italian consortiums.



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Mission: Social cooperatives run economical and social activities through individual work of members. As a

result representatives of underprivileged groups rebuild their qualifications and abilities as well as

relationships with society. An unemployed person becomes a worker as a result of self-employment.

A.2.2 Legal form

Social cooperatives are registered in the Registrar of Companies as social enterprises, but in accordance

with the amendment of the Act on Public Benefit Activity and Volunteerism they are going to be transformed

into non-governmental organizations. Social cooperatives can run social activities in the area of public

tasks, which bring benefit to the public. They can also apply for grants for social reintegration projects

likewise non-governmental organizations. One must bear in mind that clause of the Act which allows social

cooperatives to run activities similar to the activities of non-governmental organizations are an additional

element. These activities cannot replace the aspect of running economic activity.


The social cooperatives can be established by:

- The long-term unemployed (12 months of unemployment which occurred in the period of two years),

- The homeless realizing individual program of overcoming homelessness,

- Individuals who completed the reintegration program in CSI (the homeless, the addicted to alcohol and

drugs, ex-prisoners and refugees),

- The disabled people.

There can be as well highly qualified individuals employed, but their number cannot exceed 20% of a

general number of social cooperative employees.


Social cooperatives were to be an intermediate form of employment for beneficiaries on the pathway from

the social exclusion to the open labour market.

In the process of reintegration of socially excluded groups the emphasis is placed on various kinds of co-

ownership, among others the co-ownership of a social cooperative which all cooperative members should

aim to achieve as stated in the Act on Social Cooperatives. This aspect often makes the cooperatives to be

perceived as a place of a target employment. At the current stage of social cooperatives’ development, it

has not been reported that members move to others forms of employment at the open labour market

(besides few exceptions). Cooperative members perceive the cooperative as their property. Despite of

many difficulties which the members face and often low salaries, they prefer to invest in and develop

economic activity in their social cooperatives rather then enter an open job market. The majority of the

members are employed through an employment contract. The Act on Social Cooperatives says that

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members personally conduct the works in their cooperatives and are represented in the cooperatives’

authorities.

Besides the vocational reintegration social cooperatives plays also role of social reintegration for the

members and their families.


Social cooperatives deliver all kinds of services, among which the most popular are: catering, recycling,

gardening, taking care of the Elderly and disabled people, construction, cleaning, training, printing, etc.


The financial support to establish a social cooperative includes an opportunity to receive a grant from the

Employment Fund. The grant is up to 300 % of the average of the national wage per each unemployed

person who is a founder-member of a social cooperative. Additionally the members of social cooperatives

can be exempt from the fee for registration in the Registrar of Companies as well as for reporting their

registration to the Judicial and Economic Monitor.

The legislator allows supported employment for all social cooperative members. In practise, this provides a

refund for social insurance contribution for the first 12 months employment period.

Social cooperatives received also the support from EQUAL Community Initiative, where each social

cooperative could gain on average 100.000 PLN. Other grant opportunity for social cooperatives was

provided by the Centre of Support to Social Cooperatives where grants amounted around 15.00 0 PLN per

social cooperative.

A.1 Type of WISE: Centres for Occupational Activation


Along with Supported Employment Enterprise and open labour market entities, Centres for Vocational

Activation are a very significant element in the system of vocational rehabilitation for disabled people. They

create a link between the process of social & vocational rehabilitation and employment. In the first Act on

rehabilitation for disabled people from 1991, there were only Supported Employment Enterprises (Zaklady

Pracy Chronionej) mentioned. In the Act on vocational and social rehabilitation and employment of disabled

people from August 27th 1997, Centers for Vocational Activation (Zakłady Aktywizacji Zawodowej) were

introduced. The first agreement with the organizer of Centers for Vocational Activation (the organizer were

non-governmental organizations) was signed by the State Fund of Rehabilitation for the Disabled. First

agreements were signed by the State Fund with 9 Centres for Vocational Activation from which one did not

start to work. Other 8 Centres for Vocational Activation are one of the largest and the best prosperous

20

Centres in Poland. The first organization which opened the Centre for Vocational Activation was the “Polish

Association to Support the Mentally Ill” in August 2000. Another Centre for Vocational Activation was

created by „Support to the Blind Foundation” in Stanislawow. The first organization which opened the

Centre for Vocational Activation was the “Polish society to support the mentally ill” in August 2000. Another

Centre for Vocational Activation was created by „Support to the Blind Foundation” in Stanislawow. Since

2002 the agreements with organizers of the Centres for Vocational Activation have been signed on the

level of voivodship (before they were signed on the central level).


So far there have been 47 Centres for Vocational Activation established and most of them came into

existence in the last 3-4 years. The Centres for Vocational Activation are mainly created by non-

governmental organizations but also by the Communes. The Centres employ on average 30 staffs. The

smallest Centre for Vocational Activation employs 9 staff members and the largest one employs 60 staff

members. According to the data from the All-Polish Forum of the Handicapped, Centres for Vocational

Activation employ 1.529 staff members which makes up for 731 full-time jobs. Activities of Centres for

Vocational Activation are supported by the work of around 62 volunteers in all Centres for Vocational

Activation.

The incomes of Centres for Vocational Activation are as follows:

- 11 Centres for Vocational Activation report turnover between 150.000 - 500.000 PLN;

- 15 Centres for Vocational Activation report turnover between 500.000 – 1.000.000 PLN;

- 9 Centres for Vocational Activation report turnover between 1.000.000 -2.000.000 PLN;

- 5 Centres for Vocational Activation report turnover between 3.000.000 PLN.

A few Centres for Vocational Activation did not provide information on what their turnover was.


Centres for Vocational Activation can be established by non-governmental organizations whose mission is

to help the disabled. They can also be established by authorities of districts/regions and local communities.

Non-governmental organizations working in the field of supporting the disabled people create networks and

forums such as the All-Polish Forum of the Handicapped. Networks and alliances of organizations, which

establish Centres for Vocational Activation, are not being established yet. Although 10 years had passed

since the Act on social and vocational rehabilitation and employment of the disabled people was

introduced, the service of a number of Centres for Vocational Activation is still unsatisfactory and they do

cater for the needs. Creating alliance of Centres for Vocational Activation would be desired to promote this

form of WISE in different regions of the country, and as a platform for exchanging experiences and support.

21



The mission of Centres for Vocational Activation is vocational rehabilitation including job advisory, training

and “supported employment” that aims at helping to find a job on the labour market and maintain it. The

long-term objective is to support a disabled person to reach and maintain a suitable employment through

taking advantage of vocational counselling and training.

A.2.2 Legal form

According to the legislation, local communities, magistrate regions’ authorities, foundations and/or other

non-profit organizations (whose target is the vocational and social rehabilitation of the disabled) can

establish a financially and organisationally separate entity and receive the status of the Centre of

Vocational Activation.

Receiving such status is possible if the following conditions are fulfilled:

a. Adequate percent of disabled individuals in proportion to non-disabled employees;

b. Another condition is connected with the infrastructure of Centre for Vocational Activation and certain

services which should be provided for the disabled. For example: rooms have to be in line with

regulations and health and safety rules and must take into account the needs of the disabled.

Moreover, Centres for Vocational Activation must provide medical care, counselling and rehabilitation

services.

c. The third condition which guarantees the status of Centres for Vocational Activation is to allocate some

income to Entrepreneurial Fund of Activation (Zakladowy Fundusz Aktywnosci), which is used to

support different forms of activities for the disabled workers of Centres of Vocational Activation.

d. The last condition is to receive a positive opinion from the regional governor, proper to a place, where a

particular Centre for Vocational Activation is located.


Centres for Vocational Activation run social and vocational rehabilitation programs and employ disabled

individuals who come under an appreciable and moderate degree of disability. These are mostly individuals

disabled both physically and mentally, but also the long-term unemployed within so called “public works”

(the cost of employment of those persons is for 12 months cover by Job Centre).

1. Centres for Vocational Activation must employ persons who are rate to appreciable level of disability in

adequate relation to non-disabled employees (this indicator depends on the kind of activity):

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2,5 disabled persons falls on 1 non-disabled (in a situation when the Centre runs productive activities)

3 to 1, if the Centre runs service activity

2,75 to 1, if the Centre runs productive and service activity

On July 30, 2007 first amendments to the Act on vocational and social reintegration were introduced. The

amendments referred as well to changes in the employment law for the disabled individuals. The main

difference regarded the employment indicator. The most significant aspect concerns an opportunity for

employing individuals with the moderate degree of disability and including them in the employment

indicator. The status of Centre of Vocational Activation can be received by those entities whose disabled

employees will make for at least 70% of all employees. (The disabled employees should be referred

through Regional Job Centres). They must be diagnosed with an appreciable level of disability or a

moderate level of disability (in particular those diagnosed with autism, mental handicaps or mental illness).

This group includes individuals who were assessed by Supported Employment Workshops (Warsztaty

Terapii Zajeciowej) as individuals who ought to undertake vocational reintegration process through the

supported employment in Centres for Vocational Activation.

However, the number of persons with a moderate level of disability cannot exceed 35%.


Disabled individuals are employed in Centers of Vocational Activation based on an employment contract

and the majority does not work fulltime (this requires the Act on rehabilitation and employment of disabled

people and they receive an integration benefit connected to their disability. Centres for Vocational

Activation are a specific employment institution which is exempt from taxes and fees. The resources gained

from the exemption as well as the income from running economic activity are allocated to Entrepreneurial

Fund of Activation. Resources from the fund are destined for tools and additional instrumentation of

workplaces, which allows the disabled to function more independently in an employment work institution.

This also allows purchasing equipment which helps a disabled person to run an independent social and

private life. The funding is used to refurbish and renew the workshop rooms as well we to equip the

individual and collective housing. It is also spend on the participation of the disabled individuals in leisure,

cultural activities, etc.

The work of Centres for Vocational Activation aims at educating and rehabilitating the disabled. It is

expected in the Act fully prepares the disabled for employment in the labour market. However, this function

of Centres for Vocational Activation was not fully successful. People with a moderate degree of disability do

not willingly undertake employment in the open labour market. Therefore Centres of Vocational Activation

often become a long-term employment form for the disabled individuals.

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Centres for Vocational Activation can run production and service-oriented activity, apart from products

which are excisable, for example different kinds of alcohols, tobacco, fuels, and products made of precious

metals. The research conducted by the Klon/Jawor Association indicates that most popular activities

undertaken are: trade, production and service-oriented activities, training, tourism and transport, room

leasing, catering, printing and typography, etc. Klon/Jawor Association classifies Centres for Vocational

Activation according to the area of activity. The Centres describe themselves as being most active in the

field of labour market for the disabled, employment, vocational activation and also in the area of health

care, social services and social assistance.

A.2.6 Type of resources

The State Fund for Rehabilitation of the Handicapped (PFRON) provides the Centres of Vocational

Activation with a grant for starting-up and running Centres of Vocational Activation. PFRON finances a

significant part of the service-rehabilitation activity (the funding is distributed by the Marshal Office). In turn

each Centre for Vocational Activation has to hammer out resources to run day-to-day activities. On average

Centres for Vocational Activation spend approximately 1.500.000 PLN to start up. The organizer of the

Centres for Vocational Activation can also count on reimbursement of salaries for the disable workers,

however not more than 100% of the lowest wage in Poland. Due to the fact that working hours of

individuals with a moderate degree of disability must be shorter than usual working hours (no longer than 5

h and 26 min, and no less than 3 h and 51 min), their salaries are lower accordingly. Their wage does not

exceed the mentioned amount so that they can receive an integration benefit. Moreover, one must bear in

mind that State Fund for Rehabilitation of the Handicapped (PFRON) is not obliged to cover all costs

defined in the regulation, but only a proportional contribution connected to the rate of the disabled in the

Centre.

Other sources of funding besides PFRON:

- Income from the economic activity

- Public resources (from various ministries of central government, regional and local governments, etc.)

- Refund for employment and rehabilitation of disabled people (State Fund for Rehabilitation of the

Handicapped and Regional Job Offices);

- European Social Fund;

The cost of a single person working in the Centres for Social Activation is between 3.500 PLN and 5.000

PLN per month.

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A. 3 Supported Employment Enterprises - legal requirements

Cooperatives of the disabled have a long-standing tradition. Some of them were created during

the interwar period. The structure and hierarchy of the requirements to set before those entities was close

to current requirements of set before social cooperatives. The priority was to create employment for the

disabled freely associated in the cooperative and economic activity was only a tool to serve this goal.

Management of the entity was in the hands of its members and the support of the State was only a

supplement source of financing of a cooperative run by the disabled. In late 80ties cooperatives enjoyed

privileges in the field of supplies, tax reductions and a monopoly for producing a number of items such as

brasserie and protective clothing.

During transformation years a dominant part of the support mechanism was not practiced as it was not

compliant with market economy principles. Cooperatives were ill-prepared to function in a new

environment. They had to pay out rehabilitation and social benefits and were deprived of privileges given by

the State, and therefore they encountered difficulties.

It is only the Act on Vocational and Social Reintegration & Employment of Handicapped Individuals dated

27 August 1997 provided new opportunities for cooperatives of the disabled through the creation of a new

entity – so called Supported Employment Enterprises. The cooperatives of the disabled can also transform

into social cooperatives according to the Act on Social Cooperatives.

Supported Employment Enterprises are run on the basis of the regulations of the article 28 in the Act no 1

on Vocational and Social Reintegration & Employment of Handicapped Individuals dated 27 August 1997.

In order to receive the status of an employer who runs supported employment enterprise, the employer

must:

- runs business activity for the period of at least 12 months and employs no less than 25 staff members

that count for a full time working hours

- achieve employment indicators of disabled individuals for the period of at least 6 months.

Act on Vocational and Social Reintegration & Employment of Handicapped Individuals obliges all

employers to employ at least 6% of disabled individuals. The charges paid for not having fulfilled this

requirement create the State Fund to Support the Disabled (PEFRON).

The existing in Poland cooperatives of invalids which employ at least 40% of the disabled (including 10% of

seriously injured), were given the status of Supported Employment Enterprise. This opened up a path for

commercial and private entities to apply for the status.

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In exchange, an employer gains a right to be exempt from paying the majority of taxes and social insurance

contributions. With time the number of private Supported Employment Enterprises by far exceeded those

which were established within cooperatives of invalids. Unfortunately private supported employment

enterprises, which were to contribute to achieving progress in the area of employing the disabled, abused

and omitted the binding laws and regulations. The tax exemptions and grants which they received for

creating work places for the disabled did not result in increasing employment opportunities but they were a

way of taking advantage of allowed entrepreneurial forms to run a dishonest competition.

Entrepreneurs defended themselves arguing that the new EU regulations exacerbated the availability of

public support for entrepreneurs thus forcing them to take up more of a market-oriented approach.

Reception of the Supported Employment Enterprise status

Employer gains the status of Supported Employment Enterprise if:

1. the indicator for employing the disabled equals:

a. at least 40% including at least 10% of all employed are persons with a significant or

moderate degree of disability,

b. at least 30% of the blind, the mentally ill or persons with mental handicaps with a

significant or moderate degree of disability,

2. locations and buildings used by the enterprise:

a. meet the standards of health and safety regulations

b. cater for the needs of the disabled persons with regards to well-adapted work places and

sanitary rooms as well as an easy access to them.

In addition:

3. An emergency and specialist medical care, counselling and rehabilitation services must be

provided.

It is an employer’s initiative to apply for a status of running supported employment enterprise.

The decision whether such status will or will not be granted is made by a relevant regional governor (who

covers an area where the enterprise premises are located).

The scope of activities being implemented

The scope of activities is unlimited. Accepted are all activities permitted by law.

The limitations which are binding for Centres of Vocational Activation are not obligatory for supported

employment enterprises. For example, Centres of Vocational Activation are not allowed to run activities

connected with production of fuels, tobacco, alcohols and spirits above 1,5% nor products made of

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precious metals. The Centres cannot trade such products either.

Supported Employment Enterprise should be perceived as a Social Enterprise despite of the fact that the

entity which runs Supported Employment Enterprise earns profit which cannot be divided between staff

members. Yet Supported Employment Enterprise meets the criteria described in the definition of Social

Enterprise in the chapter regarding the necessity that the activities focused on social integration of a local

community.

Moreover, the entity which runs supported employment enterprise is obliged to open up a fund for the

disabled reintegration. The resources from the fund are to be allocated for covering the costs of vocational

and social reintegration, insurance and treatment including individual reintegration programs of the

disabled. (Such programs are designed by special committees established by employers). There is a

regulation which in details describes the way of resource spending.

B. Analysis of policies

B.1 Policy overview

B.1.1 Specific public scheme

Summary In this chapter legal acts which regulate activities of non-governmental organizations and social enterprises

are described. Presented are three types of activities which a non-governmental organization can

implement, these are : non-chargeable statutory activity, chargeable statutory activity and economic

activity. Despite of the realization of social objectives, non-governmental organizations are treated just as

other entrepreneurs.

Presented here are other legal acts which enable creation of institutions for social and economic integration

of unprivileged groups as well as the tax system applied to those groups. Institutions in question are

centers for vocational activation, social integration centers, social cooperatives, foundations and

associations undertaking entrepreneurial activities as well as active forms of support to the unemployed

such as public works and social benefit works.

The currently existing legal system in Poland seems to present a holistic and integrated offer which enables

vocational reintegration and employment of the socially excluded and those at risk of exclusion as well as

handicapped individuals.

The system consists of:

A. Act on Vocational and Social Reintegration & Employment of Handicapped Individuals dated 27 of

27

August 1997,

B. Act on Social Employment dated 13 of June 2003;

C. Act on Social Cooperatives dated 27 April 2006;

D. Act on Foundations;

E. Act on Associations;

F. Act on Public Benefit Activity and Volunteerism dated 24 April 2003,

G. Act on Employment Promotion and Labour Market Institutions dated 20 April 2004.

Ad. A) Act on Vocational and Social Reintegration & Employment of Handicapped Individuals

consists of a pack of elements which are helpful in connecting them with labour market.

The first opportunity is created by Centres for Vocational Activation which provides employment for

individuals with a significant as well as moderate degree of disability. The salaries of the disabled

individuals as well as costs of their rehabilitation and treatment are being refunded.

Another opportunity is support provision to the disabled in order for them to establish own economic and/or

agriculture business. In this case the funding to establish own business by a disabled individual come from

Regional Job Offices which provide a grant up to 42.000 PLN based on a submitted business plan.

Regional Job Office can also provide a grant to establish a social cooperative, whose member is a disabled

individual. Within this scheme a grant can be provided to a disabled person to cover the interest of a bank

loan. In turn an employer of disabled individuals received a refund of all costs connected with adaptation

and equipment of a disabled person’s work room (this refers to employers who have employed a disabled

person for the period of 36 months). Employers can also count on a refund of a disabled employee’s salary

and their social insurance contribution. These provisions are only taken advantage of at a small scale due

to the excessive bureaucracy requirements which discourage potential beneficiaries.

Act on Vocational and Social Reintegration & Employment of Handicapped Individuals describes a venture

called Supported Employment Workshops which prepare disabled individuals vocationally and socially to

undertake employment in Centres for Vocational Activation.

Supported Employment Workshops should not be perceived as Social Enterprises due to their inability to

run trade, production and service-oriented activities. Legislation on Supported Employment Workshops

ought to be changed. Supported Employment Workshops should be given larger legal rights to sell their

products. If this was the case, Workshops could run their business activity, start a production process and

search for the market to sell the products. Such approach would speed up the reintegration of the disabled

who, having realised that the job bring benefits, engage even more responsibly in what they do.

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Ad. B) Act on Social Employment

Centres for Social Integration (CSI) function on the basis of the Act on Social Employment from June 13,

2003 (Dz.U.03.122.1143).

According to the Act, the long-term unemployed, the homeless, ex-prisoners, alcohol and drugs addicts,

disabled persons and refugees can participate in a yearly program of social and vocational reintegration

within so called supported employment. After a year of participation in the activities in the Centre (in

justified cases the participation period is shorter than a year) Regional Job Office can refer a participant to

work:

a) at employers’

b) in CSI (within their economic activity);

c) participants can start joined economic venture in form of social cooperative on basic of rules

defined Act on Social Cooperatives;

d) a participant can start their own business activity.

Employer who decides to employ a CSI participant can sign an agreement with the regional governor

whereby, in lie of bund to employ this person for at least 18 months, the employer receives a right to get a

refund of a part of the person's salary through the 12 months of employment period. So far this form of

employment has not succeeded. The problem is that employers do not want to take such kind of bunds for

people, whose health and problems with addictions can stand in a way to fulfil the bund towards the

employer. In connection to this, an employer protecting the business of their company - applies for funding

not for a certain CSI participant, but for a certain position created for people like this. (Such opportunity

came into existence along with the Act on Supported Employment and Labour Market Institutions). This

kind of solution helps an employer to employ CSI participant, and when they stops to meet the obligations

or simply stop showing up for work, the employer can hire another worker, also a CSI participant.

Resources from the Employment Fund provide a CSI participant with an 80% cover of the costs of legal

aid, consultancy and counselling in the field of economic activity.

When it comes to former CSI participants, who were later employed in social cooperatives on the basis of a

cooperative employment contract, part of the fee connected to insurance, can be funded from the

Employment Fund resources for a 12-months period. This is done according to an agreement between the

regional governor (who covers an area where the cooperative is located) and this particular cooperative.

The Employment Fund gives grants to the unemployed in amount up to 300% of an average wage in

Poland in recent year, for establishing a social cooperative. Refund of social security contribution likewise

29

the grant for establishing social cooperative is given de minimis support according to the ordinance of the

Committee (EC) no 1998/2006 dated 15 December 2006 on the implementation of the articles 87 and 88 of

the Treaty for de minimis support (Dz.Urz. UE L 379 z 28.12.2006, str. 5).

CSI can run production, commercial and service-oriented activities, excluding activities based on

production and trade of fuels, tobacco, alcohols and spirits and other products that contain more than 0,5%

of alcohol as well as precious metals products.

But yet, economic activity of CSI according to the legislation is not an economic activity in accordance with

the regulations on business activity.

In connection with this, CSI are exempt from paying income-tax form private persons.

Due to the fact that economic activity rules for CSI must be revised in the Act on Social

Employment and that there is a statutory obligation to separate CSI financially and organizationally from the

subject, which created it– we must accept that the activity run by the CSI can be treated as a Work

Integration Social Enterprise (WISE). During so called vocational and general education workshops CSI

participants learn concrete professions through production and running services which can be sold on a

free market.

The Social Enterprise of CSI is separated from the entity which created CSI. That is why any possible

income from the CSI can be allocated exclusively for the CSI activity. CSI can also aim at reaching an

economic profit, but the priority of the enterprise is the social benefit.

It is obvious that within the activities of a Social Enterprise of CSI, a profit can be elaborated. But the

essential target of the enterprise is the social reintegration of the CSI participants who work in its social

enterprise.

The Act on Social Employment talks about Clubs for Social Integration.

Legal requirements for the Clubs’ existence

Entities which establish Clubs for Social Integration

Clubs for Social Integration can be created by local governments or non-governmental organizations which

run social and vocational reintegration for people who are socially excluded and due to their life situations

are not able to appease the basic needs. They are in a situation which causes them poverty and reduces

their participation in a vocational, social and family life.

The Act does not set any particular rules for creating the clubs by non-governmental organizations.

Therefore the best form of action is treat the Clubs as a non-governmental organisation.

30

On the basis of regulations (article 9, chapter 1 of the Act dated 8 March 1990) Clubs for Social

Integration can be run directly by Regional municipalities (Dz.U.01.142.1591). The article says „in order to

implement its tasks, local municipality can create organisational entities as well as sign agreements with

other entities including non-governmental organisations”. The regulation indicates that Clubs for Social

Integration run by local municipalities can act as its organisational entity. Local municipality, in the process

establishing a Club for Social Integration, must equip the organisational entity in the Club for Social

Integration’s regulations.

Such Clubs can also be run as a specialized entity of Social Support Centre. Such solution is accepted

according to the regulations (article 15 , point 6 of the Act on Social Assistance dated 12 March 2004

(Dz.U.04.64.593). The Act is in favour of “developing new forms of social assistance within the identified

needs”. Social Support Centre can run Clubs for Social Integration as one of its units in the Department of

the Community Aid.

In particular, the clubs for social integration conduct the following actions and activities:

1) help in finding a job for a defined period of time or to complete a defined task on part time or full

time basis; providing services based on the written agreement under civil law; preparing for

undertaking the employment

2) public benefit work;

3) public works;

4) counselling;

5) mutual help in the field of employment, housing and social matters.

Establishment of the clubs for social integration and their activities can be financed in particular by:

1) the European Union;

2) grants from the local municipality.

The Clubs do not run economic activity. The activity run by in the Club is based on public benefit works and

public works realized on the local market and whose costs are covered by Employment Fund. Therefore

economic activities of the Club for Social Integration are limited.

Ad. C) Act on Social Cooperatives

Social cooperative runs the activity in favour of social and vocational reintegration of the long-term

unemployed, the homeless, the addicted, disabled people, ex-prisoners, refugees, etc., through an

individual work of its members.

People establishing social cooperatives can receive a grant of 300 % of average of national wage which is

31

about 8.500 PLN per person from the Employment Fund.

The statutory scope of a social cooperative which partially embraces the social and vocational reintegration

of its members, is not considered an economic activity in accordance with the Act on Economic Freedom

dated 2 July 2004 (Dz. U. Nr 173, poz. 1807, z późn. zm.6), and it can be run as a statutory chargeable

activity.

With regards to a statutory chargeable activity, one must follow the regulations described in the Act on

Public Benefit Organisations and Volunteerism dated 24 April 2003. Employment in a social cooperative

takes place on the basis of the cooperative employment contract. The contract does not include the right of

division in case of account surplus.

The account surplus is divided as a result of the vote of the general meeting and it is allocated for:

1) increase of the reserve fund – no less than 40%;

2) for social reintegration purposes – no less than 40%;

3) investment fund.

Social cooperative can join only with other social cooperative and divide only to social cooperatives, with

2/3 voted members.

In case of liquidation of a cooperative, its property that comes out from public sources has to be returned to

the Employment Fund or the State Fund for Rehabilitation of the Disabled (it depends on which institution

supported the cooperative).

Cooperatives of invalids can transform to become a social cooperative as a result of a vote (by a majority of

votes).

A social cooperative can participate in the bid for the implementation of public tasks organized by public

entities. It is the cooperatives which take an initiative to submit applications. The grant can be used for

social and economical reintegration of its members and for providing services for local society.

In connection to legal regulations, social cooperatives can benefit from dismissal from: stamp duty, tax from

civil and legal activities, income tax, and council tax. Those simplifications emphasize the social targets of

social cooperatives and their character as a Work Integration Social Enterprise.

Ad D) Act on Foundations dated on the 6th of April 1984. According to the Act on Foundations (Art.1), a

foundation is established to implement objectives that are convergent with the basic interests of the

Republic of Poland and which are socially or economically beneficial; in particular: health protection,

development of economy and science, education and upbringing, culture and art, care and social support,

environment protection and monument care. Foundation can run economic activities as long as it serves

32

the realisation of its objectives. A decision on economic activities implementation must be included in the

memorandum of association of the Foundation.

Ad E) Act on Associations dated on 7 April 1989.

In agreement with the Act on Association (Art. 34.), an association can run economic activity however it

must follow general principles defined in separate regulations. Income from the economic activity of an

association serves the realisation of the statutory objectives and cannot be divided between its members.

Ad F) Act on Public Benefit Activity and Volunteerism dated on 24 April 2003.

According to Act on Public Benefit Activity and Volunteerism, a non-profit organisation can run 3 kinds of

activities: a) statutory activity free of charge, b) statutory chargeable activity and c) economic activity. The

two first kind of activities represent statutory goals listed in the memorandum of association along with the

ways of their implementation. Both chargeable and unchangeable activities are ventures not for profit.

Public benefit activities free of charge are those for which an organisation does not take any salary. An

organisation acquires financial grants for its activity from a variety of sources (applies for donation, seeks

for donors and sponsors, organises public collections), takes advantage of volunteers’ work which enabled

them to run services free of charge for clients (eg. organises training for which the participants do not have

to pay, serves free meals etc.).

A chargeable public benefit activity is a statuary activity of a non-profit organisation which an

organisation earns salary for. The salary earned by an organisation for produced services or goods in a

specific area cannot be of a higher value that the one which results from direct costs of the activity.

In organisations which run chargeable activities the employees’ salaries are limited.

The Act foresees two particular kinds of chargeable activity for public benefit:

- Sale of commodities or services produced or run by individuals direct involved in the public benefit

activity especially in the scope of rehabilitation and adapting the handicapped to enter employment .

- Sale of objects which were received in a form of donation for the purposes of public benefit activity.

The term economic activity is defined by the Act on Economic Freedom dated on the 2nd of July 2004.

According to article 2, an economic activity is a chargeable, reconstructive/restorative, building-

construction, service-oriented activity as well as seeking, recognising and exploiting natural resources and

also a professional activity performed in a continuous and organised way. A chargeable public benefit

activity of non-profit organisations is an economic activity if:

1. The salary acquired within a particular activity or business, is higher than the one which is results from

the calculations of direct costs of this activity/business.

33

2. The salary of a natural person by virtue of employment to implement statutory activity free of charge

as well as chargeable activity exceeds by 1,5 the average monthly salary in the enterprise sector

announced by the President of the Central Statistical Office for the previous year.

One is not allowed to run a chargeable public benefit activity and economic activity within the same subject

of activity.

Non-profit organisations can run two kinds of social enterprises:

1. Those, which support social objectives and the needy individuals allocating the elaborated resources to

reach this.

2. Those which employ mainly individuals with difficulties to find a job: the handicapped, the homeless,

the long-term unemployed, the addicted and those who use social care.

WISE is implemented when an organisation runs a chargeable public benefit activity and/or an economic

activity under the condition that they employ workers from disadvantaged groups and run reintegration

programs which involve these workers (the second kind). Legal act do dot regulate these matters. Whether

an organisation will or will not run a social enterprise and what kind of groups will be involved in

reintegration activities, depends on records included in the statute of an organisation.

Ad) G. The Act on the employment and promotion of institutions of the labour market will be

described in the next part.

Tax exemption

A. Income tax

Foundations and associations are not exempt from taxation duty to the State.

Non-profit organizations are obliged to pay income tax just as other entities. This is due to the fact The Tax

Act does not allow subjective tax exemption of the non-profit organizations. Nonetheless, the majority of

non-profit organizations don’t pay income tax. This may be associated with the fact The Tax Act covers a

broad spectrum of objective tax exemptions. The revenues spent on social cause purposes, listed in the

Tax Act are exempt from taxation. This leads to tax exemption of the majority of revenues acquired by non-

profit organizations. It must be stressed that only revenues spent on strictly defined purposes may benefit

from tax exemption. Income tax exemption may only benefit organizations carrying out statutory activities

that fall within the frames set in The Tax Act.

Entities that have been granted public benefit organization status are entitled to a broader range of tax

exemption. Tax exemption in this case includes revenues spent on all statute-defined objectives falling

within a sphere of public benefit and not only set out by The Tax Act. This applies to statute activities with

exclusion of business activities.

34

Additionally, according to the 17 article of the Act on legal person’s income tax, tax exemption may benefit

partnerships that are solely owned by registered associations. However only this part of partnership’s

revenue is covered by tax exemption that was given to the owner – an association and was spent on the

objectives defined in the same article. Legislator decided on tax allowances for financial donations

supporting non-profit organizations. These allowances apply to those of the tax payers who are subject to

corporate and personal income tax settlement, but on slightly different rules. Every year the maximum

amount is subject to tax allowance changes.

B. Tax on goods and services (VAT)

Non-profit organizations are not automatically subject to VAT exemption. The Act of 11th March 2004, on

goods and services tax, treats social cause activities of non-profit organizations as business activities

(article 15). VAT exemption is defined in the article 43rd of the above mentioned Act. From the associations

and foundations perspective, significant is the provision reading „services provided by membership

organizations, not classified elsewhere (statutory organizations exclusively) (marked with a symbol PKWiU-

91)1” are subject to tax exemptions. The above mentioned exemption is not dependent on the range of

revenues associated with those services.

If the organization’s activities don’t fall within the remit set in the VAT exemption services catalogue,

organization can only exercise tax exemption if the total income of the activities run didn’t exceed the

equivalent of 10,000 EUR in the previous or present year.

Goods donated (for example by corporations) for the benefit of non-profits are liable to tax (article 7). The

acquisition/purchase cost serves as a tax base. If this however does not apply, it is the production cost that

serves as a tax base.2 The Act allows numerous objective tax allowances. Financial donations for non-

profits are subject to VAT taxation.

B.1.2 Other public support not specially targeted at WISEs

Summary In the chapter described are support forms available to all entrepreneurs, which can also be used

by WISE. These support forms are solutions within the policy of employment: interventionist works,

reimbursment of the costs of equipment in a work place, one-off reimbursment of social insurance costs,

1 There are different interpretations of this legal provision. Unfortunately Revenue Offices, usually apply narrow

interpretation, stating that the above mentioned provision refers only to services provided by an organization for the

benefit of its own members, but within the limit of the membership fees, namely without the remuneration for the

particular service. 2 When items donated lost its economic and commercial utility according to entrepreneur’s judgment, it is better for

a non-profit organization to purchase items for a symbolic amount of money. Then the purchase price will serves as

a tax base.

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social benefit works and public works. These forms are atractive for stable entrepreneurs who are able to

quarantee employment for the unemployed persons for at least two years. Due to a weak condition and

very uncertain prospects for the future, WISE use only those forms which do not require two-year

employment period such as social benefit works and public works. Aid to entrepreneus, including WISE, is

controled by regulations on de minimis support.

Act dated 20th April 2004 on the employment and institutions of the labour market promotion establishes following instruments of the labour market that may be beneficial for entrepreneurs, including

WISE:

I. INTRVENTIONIST WORKS

Objective: employment support for the unemployed “in a specific situation within the job market”.

Who can be employed within the frames of interventionist works?

- unemployed up to the age of 25,

- long-term unemployed (registered in a State Labour Office for no shorter than 12 months within the

last 2 years, excluding the period of on the job and vocational training),

- unemployed above 50 years old,

- unemployed without job qualifications (without any qualifications supported by a diploma, certificate

entitling to the job performance),

- unemployed single parents raising at least 1 child of the age of up to 7,

- handicapped unemployed.

Period of employment: depending on the above mentioned categories, interventionist works may last

from 6 to 48 months (in case of refund for every second month).

Level of financial support: refund of a part of remuneration and social insurance contributions based on

refunded remuneration (maximum amount of refund constitutes of the amount of unemployment benefit

increased by social insurance contributions); in case of people who after interventionist works qualify for the

pre-retirement benefits, the level of the refund may amount to up to 80% of the minimal remuneration.

Employer’s costs: employer spends monthly an amount of at least the minimal remuneration along with

margin, refund of some of the costs follows.

Comments: after the refund period, employer is obliged to further employment of the unemployed over the

period depending on the character of public assistance (in case of small and medium enterprises – up to 24

months).

II. REFUND OF THE COSTS OF PREPARATION AND FURTHER IMPROVEMENT OF A WORKPLACE

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Objective: support of economic entities in the employment of the unemployed

Who can be employed: every unemployed.

Period of employment:

- 2 years - for micro, small and medium enterprises

- 3 years – for other economic entities

Level of financial support: refund of up to 5 times an average remuneration for a creation and further

improvement of a newly created workplace

Employer’s costs: employer incurs full costs of the employment

Comments:

- in order for an entrepreneur to be entitled to a refund, the business activities must run for at least 6

months

- unemployed must be employed full time

III. SOCIAL INSURANCE CONTRIBUTIONS AS THE BASIS OF SINGLE REFUND COSTS

Objective: support of unemployed employment.

Who can be employed: the unemployed

Conditions for the refund obtainment: recommended unemployed worked full time for no less than 12

months and after that time is still employed.

Level of financial help: up to 300% of the minimal remuneration

Employer’s costs: employer incurs full costs of employment

IV. WORKS FOR SOCIAL BENEFIT

Objective: stimulation of the unemployed not entitled to benefits, receiving help from the social aid.

Time and place of the works: works for social benefit must be undertaken in a place of residence or stay

of the unemployed and may not exceed the number of 10 hours per week.

Level of financial help: The commune/municipality receives a refund from Work Fund, accounting for up

to 60% of the minimal amount of the unemployed service entitlement.

Employer’s costs: for every hour of performing social benefit works, unemployed is entitled to a

remuneration not smaller than 6, 20 PLN per hour; 2, 48 deducted from that amount is not refundable.

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Comments:

- social benefit works may be organized by a commune in organizational units of social aid, statutory

organizations and institutions of charitable character or those working for the local community,

- person performing social benefit works is covered by heath and accident insurance.

V. PUBLIC WORKS

Objectives: support of the unemployed for the time of no longer than 12 months aimed at labour and social

reintegration. In the light of the social employment law, the works are organized by communes, non-profit

organizations that on the basis of their statute deal with: the protection of the environment, culture,

education, sport and tourism, health care, unemployment, social aid, and also water companies and their

associations. The works must be funded or co-funded through state budget, local government units, non-

government organizations, special purpose funds, water partnerships and their associations.

Who can be employed?

- The long-term unemployed persons (registered in a State Labour Office for no less than 12 months

within the last 2 years, excluding the time of on the job and vocational training),

- The unemployed above 50 years old,

- Unemployed single parents raising at least one child of the age no older than 7.

Time of employment:

- up to 6 months,

- up to 12 months (in case of the refund for every second month)

Level of financial help: partial refund of spending on remuneration, awards, social insurance contributions

over the period of up to 6 months, up the level of 50% of an average remuneration and social insurance

contributions based on that remuneration.

Employer’s costs: employer incurs monthly costs of at least minimal remuneration along with margin;

partial refund of the costs follows.

Comments: it is possible for the mayor to apply for the money from the budget of the Work Fund, when an

organizer of the public works claims for it. The money is spent on remunerations and payment of the social

insurance contributions.

Public assistance

Public assistance rules regulate support that can be received by companies. Public assistance may be

defined as public money spending or diminishing public giving in order to support companies or production

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of particular goods, for the economic benefit of the receiver. According to universally agreed rule, public

assistance for the firms is unacceptable due to the fact it breaks free and equal competition. Polish law, as

well as other countries’ systems, allows exceptions from this rule that are of quality, subjective or objective

character. One of the exceptions is de minimis support. European Commission systemizes the use of the

de minimis rule. It established that support for a firm, which worth is below 200 000 EUR over 3

consecutive tax years and fulfils certain criteria isn’t considered state help in the light of the article 87, 1

Treaty. It is considered that the above mentioned help doesn’t influence economic exchange and free

competition. Therefore there is no obligation of reporting upon receiving such help

B.1.3 Public procurement and WISE

Summary Public procurement in Poland does not include any preferences for WISE. Public administration units can

commission certain public tasks to non-governmental organisations (including WISE) according to the Act

on Public Benefit Organisations and Volunteerism. The commissioning takes place in the form of support or

subcontracting. In both cases applications are considered in the bidding process.

The Act dated on 29th January 2004. Public procurement law does not predict preferential treatment of the

entities considered to represent social enterprises sector. The may take part in biddings as well as all of the

other entities.

Currently works on up-dating the Act on social co-operatives from 2006 are undertaken. Amongst others,

introducing a change in The Public Procurement law is proposed. The change in the above mentioned law

focuses on adding the following paragraph to the 91 article:

„3b. Ordering body, no matter the conditions set out in the paragraph 2, may decide on particular criteria of

the offer assessment with relation to the employment of at least 50% of people defined by the social

employment law by the delivering organization. Particular criteria must be presented in the public

procurement offer or in the procurement documentation”.

This change would enable public sector entities to employ preferential treatment towards social enterprises,

namely social co-operatives, ZAZ-y and also non-profit organizations. It is not known whether the Office for

public procurement accepts the proposed amendment. If it does, an information and promotional campaign

aimed at local governments and state’s bodies will be necessary in order to encourage them to exercise

this opportunity.

It has to be stressed that the Act on Public Benefit Organisations and Volunteerism establishes that public

administration bodies:

39

1. support public assignments delivery through non-profit organizations running statutory work in

particular field;

2. award public assignments delivery to non-profits. Delivery and awarding follow running and open offer competition, unless other laws set out different

procedures. In an open offer competition non-profit organizations, social co-operatives and public

administration dependent and controlled organizational units bid. Awards nomination may take place

according to different procedures, if certain assignments may be delivered more effectively in a different

way, defined by separate laws, particularly through a purchase of services on the basis of the public

procurement rules, with comparison of cost calculation methods and taxation comparability. Delivery

support and assignments awarding may take place according to the rules and procedures set out in the Act

from 28th July 2005 on public-private partnership.(Dz. U. Nr 169, poz. 1420).

B.1.4 Private Sector support (non-profit or profit)

Summary Private sector supports WISE mainly through donations in kind. More serious support comes from other

national and international non-governmental organistions.

6,7% of social enterprises (PES) benefit from other national non-profit organizations (foundations in

particular). 3,7% receive support from foreign non-profit organizations. Apart from that WISEs also receive

donations, mainly in a form of items. Giving donations for social benefit causes is supported by the state

through tax system, namely allowance in income tax. Private entrepreneurs may cooperate with WISE

through ordering a delivery of certain parts of assignment. Currently this form is not used efficiently due to

the fact that the WISE sector is not yet developed and private entrepreneurs aren’t aware of these

possibilities.

B.1.5 Ongoing political debates and trends

Summary

In this chapter described are current on-going public debates with regards to WISE, among others a debate

on the European Union Services Directive and its impact on national law. The discussion on the

implementation on the Services Directive in Poland is first of all about possible negative outcomes which

this process can bring for WISE activities. There are concerns that the differentiation to chargeable

statutory activity and economic activity run by non-governmental organisations will be abolished as this

would be very unbeneficial to the organisations.

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Other debates concern the relevance of introducing new legal regulations in the field of creation of social

enterprises in Poland. Some debaters believe that a new entity of social economy whose name is “social

enterprise” must be legally separated. Then it could be can be established by NGOs and commercial

companies (as separated organisational and financial entities).Negative experiences in the area of Supported

Employment Enterprises being created by commercial companies, cause a lot of oposition to new proposals for

social enterprises to be established by commercial companies. Another imporatant questions is whether commercial

companies can receive „public benefit certificate” as NGOs do, and whether commercial companies are responsible

for social development or their obligation is focusing on generating profits only.

I. Debates 1. Debate on service directive Currently there is a heated debate in Poland concerning the results of the Service Directive implementation

(Directive 2006/123/WE European Parliament and Council from 12th December 2006 on services within the

domestic market) with reference to the “third sector”. The objective of the service directive is to bring down

the barriers that service deliverers encounter within the inner market. However, some groups believe that

its provisions may significantly change the law context for the non-profit organizations in Poland. Directive

refers only to those public benefit services that are provided in the economic interest and do not apply to

public benefit social services. However, till present it hasn’t been decided, what public benefit services are,

including social services. It means, that it hasn’t been decided what in practice will be excluded from the

spectrum of services Directive. European Court of Justice agreed that every activity based on goods and

services delivery within a particular market constitutes an economic activity, no matter the legal status of

the entity and sources of its financing. The Court also decided services delivered in exchange for financial

rewards must be regarded as economic activity in the light of The Rome Treaty.

Decisions of the European Court of Justice may have fundamental meaning for the future shape of the Act

on public benefit activities and volunteerism, in the light of which non-profit organizations may run free of

charge, chargeable and economic activities. It is worth noting the intention of the Legislator was to develop

chargeable statutory activities that would at the same time be regarded as non-commercial. Implementation

of the Directive may lead to categorizing non-chargeable statutory activities as economic activities that

would undermine the differentiation between public benefit activities and volunteerism introduced by the

Act. It is not the only possible scenario though. Everything depends on the way the Directive is

implemented to the national law. European Union gives member countries certain freedom with regards to

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the above mentioned implementation. A question arises, what will the social meaning of co-operatives,

running only chargeable or economic activities be?

There is a number of terminological confusion linked with the term used in The Directive (for example. what

are the services of “non-economic” character? what is the relationship between the services defined as

“social” and those that are labelled as “welfare”?) In Poland discussions on the scope of the changes that

will be triggered by the implementation of the Directive have just started along with identification of the laws

that will have to be amended as a consequence.

2. Debate: Is a separate act on social enterprise needed?

Debate was another stage of a project implementation to create regulations for social entrepreneurship in

Poland. The authors of the assumptions to the bill on social enterprise are Professors Jerzy Hausner and

Izdebski. The authors justify the necessity to bring to life the Act on Social Enterprise. They argue that the

analyses of a variety of legal forms of social economy in Poland indicate that the status of social enterprise

has not been regulated in Polish legislation neither on the objective nor subjective grounds. In professors'

opinion, the establishment and management of such enterprise are possible, though it is very difficult. The

main reason is that the legislator allows non-governmental organisations and regional municipalities to

conduct chargeable activities or wider economic activity but they attempt to limit it in order for it not to be

become an enterprise. It is as if the legislator followed the rule: "social economy - yes, social enterprise

- no". In other words, the legislator notices the necessity to establish legal forms to run economic activity

focused on social objectives; however does not allow social entrepreneurship’s development. In practise

this is an obstacle to achieve an essential aim which is a social integration of the excluded through market-

oriented and professional activation. The quintessence of such partial solution is the absence of regulations

in polish legislation which would conform to the activities of non-profits organisations or not-for-profit thus

public benefit companies. Practically this means that public benefit activity cannot be run in a form of an

enterprise. It must fit in the framework of associations or foundations or possibly be run by public entities in

a form of centres of social integration or centres of vocational activation. It can also be run in a form of a

company based upon regulations on communal economy which are essential in meeting social objectives.

The above-mentioned thesis has been corroborated by the analyses of the Supreme Court's jurisdiction

which emphasizes that the economic activity must not constitute organisation’s aim; it can only be the

means to achieve statutory objectives. It stressed the fact that economic activity can only be of a side and

servant character to the main activity, which is the statutory activity. Non-profit organisations running

economic activity, no matter for what purpose, are an entrepreneur according to the law. The authors

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believe that the hampering factor to social enterprise development in Poland is an inadequate legislation,

which stops its growth rather than promotes it.

The authors distinguish the following fundamental features of social enterprises:

- production or providing services that combine with the market and economic verification of the effects

of this activity;

- activity that is directed to social integration at the level of local community;

- management based on partnership and participation;

- democratic control from the part of relevant stakeholders;

- a principle that the fabricated surplus and accumulated capital are not individually appropriate, but

serve to fulfil certain social mission.

In the social consultancies taking place across the country, there have been voices advising to enforce the

Act. There have also been voices against it. The followers believe that despite of existing opportunities to

run business activities by non-governmental organisations, there is a necessity for a legal separation of

these activities, which would create a basis for the act on social enterprise.

Up till now non-governmental organisations were allowed to run economic activity such as limited liability

companies or social cooperatives (according to the amendment to the Act on Social Cooperatives, the local

councils are now also allowed to establish social cooperatives).

Limited Liability Company however is not a good solution in neither legal nor institutional aspect. The first

reason is the necessity to bring 50 thousand PLN as a nominal capital which is an obstacle for local entities

especially local non-governmental organisations.

Associations and foundations which would like to provide job opportunities to the groups being

underprivileged in a labour market, usually do it within the economic activity which they themselves run.

Such solution is dangerous to organisations’ good image as their best capital is social trust. Therefore it is

appropriate to exclude social entrepreneurship from an economic activity of an organisation and make it a

separate entity. The entity is linked with an organisation in a way that the profit earned by the social

enterprise is allocated to the statutory activity of a non-governmental organisation. The legislation’s bill talks

about making a social enterprise independent from an entity which established it.

Authors of the legislation’s bill believe that the entity which established a social enterprise has

entitlements to it and duties to fulfil which are comparable with entitlements of an entity which established a

non-public medical care centre or a non-public school.

A social enterprise, acting within legal capacity of an entity which established it, has its articles of

association and it is organisationally separated from this entity. It is also has separate tasks, it owns a

separate properties and runs a separate finance. Moreover, it has separate supervision organs whose aim

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is to ensure the participation in management process and certain autonomy to the entity which established

it.

The essence of the finances ought to be no outflow of profits outside a social enterprise including no

overtaking it by an entity which established it or employees of an enterprise.

Profit can only be allocated to economic activity and statutory activity defined by legislation.

The limits of salaries defined by legislation would also be appropriate (they should be more flexible though

than they are in the Act on Public Benefit Organisations and Volunteerism) in order to unable the transfer of

the actual profit outside a social enterprise.

Social enterprise status would require a suitable confirmation (entry in the register, issue a certificate) by a

relevant authority.

The privileges are there to enable social enterprises to sustain themselves on the market. This is more

difficult for them then it is for typical enterprises taking into consideration the fact that their main objective is

the social reintegration of the groups disfavoured on the labour market through creating jobs for them or

producing services/goods which are demanded among less well-off groups. It is worth to emphasize that

social enterprises do not only provide employment to the long-term unemployed, the disabled, etc., but also

build social capital and create a favourable atmosphere for a local development – under the condition that

they are established in the process of a partnership cooperation of local entities.

Similar solution was adopted in the legal systems of a number of European Union countries.

The authors refer to British experiences for example. In Great Britain, social enterprises (Community

Interest Company – CIC) are not a separate company but an organisation which can be set up by existing

legal persons and can be registered as a social enterprise, as long as it fulfils certain criteria.

Social consultancy emphasized that regulations which applied to typical enterprises, could not apply to

social enterprises. In particular, social enterprises should be exempt from income tax (due to the fact that

all income is spent on social reintegration). As VAT payers, social enterprises should be entitled to count it

off taxation. Moreover, they should be exempt from the registration charge and insurance contribution, at

least in the first period of activity when a social enterprise does not yet earn income (similarly to the

solutions applied currently to establishing an economic activity by a legal person).

In exchange for the privileges granted, social enterprises must fulfil certain requirements, which are to

guarantee the implementation of social objectives. Therefore a prohibition to spend financial resources by

an enterprise on other targets than social and vocational reintegration and support to local community is a

key. This means that the earned income must be allocated to social and vocational reintegration of the

excluded (i.e. building human capital) but also to supporting the development of local community (building

44

social capital). In particular, the profit cannot be distributed between the employees of an enterprise. The

opponents of introduction of the Act on Social Enterprise expressed an opposite view on defining a social

enterprise by a minimal number of employees at risk of social exclusion. Adversaries of such solution

presented examples of institutions which undoubtedly realised social objectives but did it in ways other than

a vocational integration of at-risk-individuals (eg. Elderly care centre)

Another assumption to the legislation’s bill that caused a lot of controversy is the resolution of the catalogue

of goods and services with a social meaning which a social enterprise must follow in order not to lose its

status. A third most detailed and problematic assumption turned out to be the limitation of a territorial reach

of an enterprise’s activity to a single commune area.

It is mainly pro-organic ventures was condemned to limit their reach.

In a few months next amendments to the bill on social enterprise will be introduced.

3. Debate: Public benefit status for companies

Almost two months ago the Polish Ministry of Labour and Social Policy expressed a negative opinion on an

opportunity to gain a public benefit status by commercial law companies. The department argued that

companies which entered into a Registrar of Companies are considered to be entrepreneurs according to

the tax and account law. Moreover, as their definition says, they work for profit. As a consequence they

cannot be granted the public benefit status which is reserved exclusively for non-profit organisations (their

definition is described in the Act on Public Benefit Organisations and Volunteerism).

There have been experts’ reports presented on this topic such as KOMPAS project report. Their message

is the reasoning of the Ministry of Labour and Social Policy is irrelevant. According to the law, there are no

rationale which would argue for non treating non-profits and non-for-profits as public benefit organisations.

Last year this opinion was proofed right in practise. In June at the Companies Registrar in Wroclaw there

was a resolution issued (as an answer to the application submitted on the 8th of March) for allowing a

registration of a one-person Limited Liability company A therapeutic and leisure Centre “TIM-OUT” sp. Z

o.o. The company was then granted the public benefit status. A few days ago the Supreme Court’s

resolution reaffirmed the rightness of previous interpretations.

As Rzeczpospolita Daily informs in the article dated 13 January 2006, the Supreme Court as an answer to

a question asked by one the courts of the second instance, undertook a resolution (sygn. III CZP 122/05)

which states that joint-stock companies are also allowed to be granted the public benefit status according to

the Act on Public Benefit Organisations and Volunteerism. The Courts’ resolution regarded the Warminsko-

Mazurska Regional Development Agency. The Agency, which is a joint-stock company, applied to the

Registrar of Companies for the public benefit status. The Courts of First Instance refused to grant the

45

status. However, the Court of the Second Instance was doubtful. Finally the Supreme Court decided that

the Agency is allowed, as a company, to be granted the public benefit status.

4. Debate: Corporate Social Responsibility vs. Social Economy

Debate on the topic was initiated by various groups within the EQUAL projects. There are a lot of

controversial aspects of corporate business responsibility with regards to the fact whether an enterprise

should engage in the activities for social development. The opponents of social responsibility of enterprises

refer to the authority figure in the field of economy, a Nobel-Prize Winner, Milton Freidman. Friedman

emphasizes that the aim of the business world is such activity which maximizes profits of an enterprise,

acting in line with the free competition rules, with no fraud and deception. The followers of the discussed

concept do not exclude profits but they reject it as the only one reason for the enterprise economic activity.

The adversaries talk about the legal personality of an enterprise in accordance with the existing law. In their

opinion this legal personality exempts a company from having moral obligations because a company is not

a moral entity and does not have a conscience. The followers on the other hand argue that an enterprise

as an entity whose actions can result in negatives causes as well, cannot entirely escape from a moral

responsibility for its activities. Making benefits from the existing natural resources and running a defined

economic activity, an enterprise contributes to contamination of the environment and exhaust natural

resources. Therefore a company should engage in the activities to protect the environment. In addition,

unpunished contamination of the environment and undertaking other actions which invade the safety of

society gives evidence that enterprises can be very powerful. In the debate, an opinion was quoted that as

long as business does not accept social responsibility, the vacuum which results of the reluctance is going

to be filled with those who will lead towards the state control and inevitable moral and societal collapse.

Meanwhile corporate social responsibility defines the responsibility of a private sector for not only

maximisation of profits but also for a social development.

Participants of the debate wondered together whether the co-existence of social economy entities and

commercial enterprises is at all possible. The answer was positive. Each modern enterprise becomes a

social enterprise in fact. The dichotomy between a commercial organisation producing economic value and

a social organisation producing social value is already untrue at this stage. Both types of organisations

create social and economic value at the same time. Therefore in their activities they must search for a

sensible balance between those at times contradictory objectives. Yet there are stereotypes which make

the cooperation difficult:

1. Most often social enterprises consider business as a funding source and not a partner to whom they

46

present specific benefits and whom they engage in specific ventures.

2. Business managers consider social enterprises as ineffective and extravagant, at times competing in

a dishonest way; usually do not focus on monitoring results of their ventures and professional

management.

In a debate there were achievements from Italy and Belgium introduced. Examples showed how employers

cooperated with the social economy sector and how the business sector accepted so called “social clause”

which, during bidding process, prioritized entities which employ the disadvantaged.

Polish employers should also accept this kind of clause in the Act on Public Procurement (so far the

alterations to the bill are being discussed). The clause gives an opportunity to grants points to the

application’s submitter for taking into account the social aspect i.e. employing up to 50% of persons from

disadvantaged groups to realise a public task. Representatives of the Parliament Commission believe that

the proposal is accurate but is brings opposition from the business lobby. The business sector, having

undertaken cooperation with the social economy institutions, participates in the process of transforming

passive attitudes of the socially excluded to entrepreneurial and consumer attitudes. This enlarges the

market and, in the long term, it is in the very interest of business.

There were important questions asked during the debate:

1. Can market economy be friendly to people, society as a whole or a selected group only?

2. Can market economy, even the one of a very responsible character, resolve serious social problems

or deepen them?

3. Do enterprises exist for profit? Is profit the goal or a means to achieving the goal?

4. Can CSR be a source of opportunities, innovation, competitive advantage, or is it a noble deed,

additional expense or a forced duty?

II Legal nonsense

Summary

In the chapter described are examples of lack of cohesion within the existing legal system regarding WISE as well as

examples of lack of cohesion between departments of employment policy and social assistance. As a consequence

certain solutions proposed by one department within WISE are being limited by legislative proposals of other

department.

No coherence in directives and regulations of the Operational Programme Human Capital during

2007-2013

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Below I am assuming an attitude to a decision undertaken in the last six months at central governmental

and local municipal level with regards to directions of legislations’ alterations and directives on

implementation grant competitions, which indicate lack of communication flow and correlation between

different departments, institutions and legislations. This is consequence leads to difficulties in continuing

the projects for social and vocational integration. In many cases it weakened social partners and in ultimate

cases it eliminated social partners.

In the last couple of months the results of grant competitions have been announced realised within the

Operational Programme Human Capital (the 7th Priority, subchapter Social and Vocational Activation of

individuals at risk of social exclusion). In the majority of regions, social economy institutions such as Centre

of Social Integration or other organisations supporting development of social entrepreneurship including

social cooperatives were not admitted to receive grants within the competitions. The analyses of decisions

taken at the local municipality level indicates that commercial companies were much closer to the

conception of social integration then non-governmental organisations with many-year experience in the

field (this was the opinion of Regional Job Offices which were intermediate institutions between Ministry of

Regional Development and beneficiaries). As a result of a little knowledge among the jury members and

still a low culture of solidarity a few dozen Centres for Social Integration in Poland were forced to close

down.

At the same time Social Support Centres, Communal Centres to families’ support received additional

funding (besides those which they already had for the running costs). To be allocated to social and

vocational activation of the unemployed, social assistance clients, group homes’ pupils, as well the

handicapped. The funding came from so called system-based projects implemented at national scale.

In this no competitions is being organised and project is admitted to take part in the implementation

process. Many of those institutions which received the funding for the first time will implement this kind of

tasks. Some Social Support Centres do not join however; as they do not believe they are sufficiently

prepared. Others commission commercial companies to do the training. It is interesting to know why

Centres for Social Integration have not been invited to join the system-based projects. Centres for Social

Integration are public benefit institutions and the status is granted to them by the regional governor. They

function on the basis of the Act on Social Employment and specialise in the social and vocational

integration. Why then, the agreed strategy on social and vocational integration omits Centres for Social

Integration and Clubs for Social Integration which are the existing social integration institutions?

In Constitution of the Republic of Poland there is a clause on auxiliary role of the State. What does the

48

clause mean in practise? It means that communities of families, neighbours, local and civic communities

realising activities to support its members in different fields (social, education, culture, health, enterprise,

sport, etc.) should receive the support from the State but they should not be replaced by the public

administration in implementing these tasks. The above mentioned examples deny this.

Amendment of the Act on Employment promotion and labour market institutions

It is also the amendment to the Act on Employment promotion and labour market institutions which leads us

in the opposite direction.

An important issue is lack of cohesion between the Act on Social Employment and the Act on Employment

promotion and labour market institutions which is being amended. The essence of the changes proposed is

the increase of activity of the long-term unemployed who are registered in Job Offices. Again the existing

Centres for Social Integration and Clubs for Social Integration are not taken into account (and there are

ideas to establish new institutions – Centres of Vocational Activation by Commune Job Offices). This

means that Job Offices will be new entities within the Commune which are a separate part of the Office in

charge of working with long-term unemployed. One can presume that originator’s idea was that the new

entities are of reintegration character. The main question is whether the reintegration can be run at the

office level.

How can an officer supervising an unemployed beneficiary, transform into a person who makes the

unemployed client open up to talk about their problems? Where will this part of the office’s activity be

located?

The analyses of the originator’s proposal points out at the lack of a joined inter-departmental strategy for

social problems resolving. The Act on Employment Promotion and Labour Market Institutions describes

new entities - Centres of Vocational Activation, which replicate the model of Centres of Social Integration

which function on the basis of the Act. The only difference is that Centres of Vocational Activation are

included in public employment forces while Centres of Social Integration are omitted. The law on changes

to the Act on Employment Promotion and Labour Market Institutions omits what has been worked through

the implementation of the Act on Social Employment dated 2003. Again it shows that the problem of Polish

legislation is incoherence of its acts. Moreover in the Act’s amendment, employment agencies and other

training institutions are treated on far better terms. The Act on Social Employment, which creates conditions

for tackling long-term unemployment and its consequence: social exclusion as well as provides legal tools

to work with the long-term unemployed, becomes marginal.

In general, the Act’s amendment does not at all refer to social economy which is an instrument of the labour

49

market which proofed successful not only in Western Europe. Projects implemented in the previous period

of EU funding (2004-2006) within EQUAL Community Initiative showed a lot of examples of effective

employment of the long-term excluded from the job market. Negligence of those experiences seems

groundless.

Amendment to the Act on Public Benefit Activities and Volunteerism

Another example regards the Act on Public Benefit Activities and Volunteerism which foresees that the

funding earned from 1% mechanism could be allocated exclusively to running public benefit activities.

Taking advantage of this funding will also oblige an entity to fulfil additional reporting tasks. The authors of

the amendment plan to put a ban on allocating resources gained for statutory activities – to an economic

activity. (such ban is planned to be included also in the Act on Foundations although there are similar

doubts to it). Why public benefit organisations are prohibited to spend the funding for economic activity

(having received the grant-giver permission) while any economic activity run by such entities can serve only

statutory goals anyway? And all income from such activity must be spent on those purposes).

This regulation awakes doubts due to the desires of some public benefit organisations to create own ”iron

capital” which in polish setting is inevitable connected to the necessity of conducting an economic activity (it

could at least be investing in the stock market). In the context there is another doubt regarding the inclusion

of social cooperatives in the definition of non-governmental organisations as social cooperatives will also

be able to receive the public benefit status. Such organisations will always run some form of economic

activity and according to the law being designed, they will be treated as public benefit organisation of the

second category (ones which are not allowed to enter into public-private partnerships as the clause in the

Act prevents social cooperatives from it as well as they are not allowed to use funding gained to spend on

statutory activities - to run economic activity).

To end this brief elaboration on the amendment to the Act on Public Benefit Activities and Volunteerism one

must not forget about another important matter. Proposed changes include strengthening the control over

non-governmental organisations with public benefit status. This means that receiving the status will be even

more difficult for organisations interested in gaining it. The amendments mention the introduction of

personal responsibility of board members of public benefit organisations for any kind of harm caused by

such entity. The personal responsibility for harm will also be bear by a possible liquidator of the

organisation.

Moreover, the law will allow loan-holders of public benefit organisations to take possession of board

members’ property in case debts could not be covered from the assets of the organisation itself. It is clear

50

then that the authors of the amendment plan the increase of supervision over the public benefit

organisations by the increase of personal responsibility of individuals managing these entities.

Finally it is also foreseen that the commissioning of social assistance tasks to non-governmental

organisations is going to be standardized. Nowadays the overlap of regulations from the Act on Public

Benefit Activities and the Act on Social Assistance is a frequent source of misunderstandings between

organisations and public administration.

The fact not to be underestimated is that as a response to the criticism to the previous amendment, a

regulation which discriminated against creation of consortiums of non-governmental organisations

(interested in submitting applications within grant competitions in the field of social assistance) has been

cancelled.

No coherence in decisions at the level of Ministries regarding the continuation of activities within

the EQUAL projects

Department of Assistance and Integration at the Ministry of Labour and Social Policy, together with social

partners, is preparing a system-based project in the framework of elaborating local standards to overcome

homelessness. It is quite problematic as such standards have already been elaborated as model solutions

within the EQUAL projects. Therefore it would be more useful to spend the funding for implementation the

already existing standards and good practises, rather than elaborating such standards from scratch. The

elaborated standards have paved the way for social and vocational integration of the excluded groups in

the local community. These models regard a development of various social groups including the homeless

which prevents from the stigmatisation of one selected social group.

The standards of overcoming homelessness elaborated in the “Social Economy in Practise” Development

Partnership regards the following:

1. therapy/rehabilitation and inclusion of a homeless beneficiary in the life of a hostel/shelter,

encouraging them to participate in different types of self-educational groups as well as general and

vocational education within Centres of Social Integration and Clubs of Social Integration,

2. inclusion into a wider local community within local partnerships for social integration established

within the project,

3. Centres of Social Economy’s support to the socially excluded in establishing a social cooperative

which do services for the sake of local community and enable self-employment of cooperative

members,

4. the final element is provision of a social flat or terminal communal flat.

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Such standards have been implemented in a few regions of Poland and can be replicated elsewhere. An

important issue is the continuation of the elaborated models as well as enabling their implementation during

next stages of financing (up to 2013) instead of starting all over again the processes of elaborating

standards of overcoming homelessness.

1. Changes in VAT regulations within a scope of non-profit organizations Summary In Poland each institution which runs economic activity is VAT taxpayer. Unfortunately, also chargeable statutory

activity implemented by NGOs is subject to VAT taxation . In this chapter presented are postulates of NGOs in this

area.

When in 2004 the tax on goods and services Act was amended to comply with European law, unfavourable

changes towards non-profit organizations were introduced. The results can still be felt. Ministry of Finance

is not willing to take up any negotiations with regards to preferential taxes for non-profit organizations.

Every institution, non-profit organization as well, is a VAT tax payer, if it runs independent economic

activities, no matter the location, objectives and the results. Chargeable statutory activities are liable to VAT

tax, even if they’re not economic activities. Demands listed by non-profit organizations in Poland are as

follows:

I. Recognition that the transactions of goods and services between organization (legal entity) and its

branch are not liable to tax.

II. Introducing 0% VAT rate on the delivery of goods and services for the benefit of non-governmental

organizations.

III. Expanding the catalogue of VAT exemptions for public benefit organizations, through adding social

aid services group 85.3 described in 85.3 group of Polish Classification of Products and Services

(PKWiU).

IV. Precise definition of “small amount” with regards to giving donations that are VAT tax exempt.

V. Equal tax treatment for organizations having status of public benefit organization and those that run

public benefit activities without having such a status.

III. Legal Gaps

Summary

In this chapter presented are examples of obstacles in the development of social economy. Developemnt of

social economy instituions requires approproate educational programmes to be shaped. These

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progarmmes would be formulated by the Ministry of Education. Currently there is a lack of such

programmes in higher schools curricula. (There are only two recent examples of post-graduate studies

tested within EQUAL which included classes on social economy). As a consequence there is a lack of

leaders which would initiate and develop social economy projects in local communities.

Challeges are also faced by Social Integration Centres which, as new social economy instituions, do not

find sufficient system-based support. In many cases their functioning is in danger which resembles the

situation of newly established social cooperatives.

Despite legal proposals, the preferences in public procurement for social economy entities were not

introduced. There are other obstacles in social cooperatives’ development. This is connected with the

unemployed wanting to obtain support from Job Centres - but due to their debts they face difficulties to

receive a quarantee for the Job Centre grant (the grant is for unemployed individuals establishing a social

cooperative).

1. Knowledge on social economy is not very vast and therefore creation of WISE type institutions

undergoes serious obstacles. There is no act on life-long learning which would strengthen the tradition of

life-long learning among the underprivileged groups in Poland. There should also be resolutions prepared

by the Ministry of Education on starting new specialisations with regards to social economy creation and

management at the already existing faculties such as social communication, rehabilitation, psychology and

economy. There should be post graduate studies programme in this field initiated (such pilot post graduate

studies were tested within EQUAL projects by the Economic Academy in Cracow and by the Warsaw

University).

2. The program of Centres of Social Integration and Clubs of Social Integration are subordinate to the

Department of Assistance and Social Integration at the Ministry of Labour and Social Policy. The

department is in a large part based on the old philosophy of social assistance which is far from the

conception of social and vocational activation. Centres of Social Integration subordinated to Department of

Social Assistance find it difficult to define their role in the development of neglected groups and to locate

system basis for funding. Centres of Social Integration are not considered labour market institutions by the

Ministry of Labour and Social Policy. Currently Centres of Social Integration were not supported within the

Operational Program on Human Capital “fell on deaf ears” despite their functioning on the basis of the Act

on Social Employment and they have a public benefit status granted by the voivod. One should consider

the inclusion of Centres of Social Integration to the life-long learning strategy at the Ministry of Education.

Entering into life-long learning field would strengthen the culture of continuous learning also among the

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socially underprivileged groups and it would lift the level of general life resourcefulness.

3. Up till now the main obstacle in commissioning services to social cooperatives was the Act on Public

Procurement which defines detailed procedures of tender’s implementation.

Previous amendments to the Act on Social Cooperatives allowed public procurement course without

bidding for a contract. However this proposal has not been accepted due to the opposition of the business

groups and Competition Protection Office. Currently the amendment to the act on public procurement

includes a clause which enables a client to define specific criteria of tenders’ evaluation in the area of

employing by a contractor 50% of workers mentioned in the Act on Social Employment (the unemployed,

the disabled, the homeless, addicts who completed rehabilitation etc.). This proposal gained support of all

institutions working for social economy development in Poland. The opposition came from the business

groups. The clause brings polish solutions closer to Italian or Belgian ones which adopted far reaching

conveniences for social cooperatives and social enterprises including preferences in the bidding processes.

4. Another issue regards problems in gaining resources from Job Centres by persons establishing social

cooperatives who have debts to pay mainly on account of child maintenance.

The debts make it impossible to lease locations for social cooperative’s activity due to checks of national

debtors’ lists performed by administration. Local partners (mainly non-governmental organisations) decided

that for the received support they would cover first rent expenses for a cooperative and continue doing this

until they earn income from cooperative’s activity, or they gave warranty. It is worth to further consider the

system-based opportunities to regulate the debtors’ situation so they can better organise their lives.

5. The amendment to the Act on Social Cooperatives includes a proposal to increase the percentage of

employees who do not belong to the socially/vocationally excluded group from 20% to 50%. These

proposals of legislation’s modification regarding changes in proportion of disabled individuals from 80% -

20% to 50% - 50% including with a suggestion to extend the stay in a Centre for Social Integration for those

participants who prepare themselves to establish a social cooperative, were already evaluated positively by

some groups.

6. Extension of the Centres for Social Integration’s program to include new forms of support for Centres’

graduates which continues also after leaving the Centre and entering a social cooperative, seem to be a

very accurate direction. Within this framework there could be a system created which would guarantee the

continuous assistance to the unemployed or the disabled both during one-year training (education program)

of the Centre for Social Integration and during further periods leading the beneficiaries to their full

vocational activation.

The debate emphasised that many among the existing social cooperatives, did not undertake any activity

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due to a meagre preparation of members and lack of an incentive and motivation factors, positive examples

to be followed and support in building relationships with the local community. Such proposals may be

justified especially that there have been 160 social cooperatives registered in Poland so far and around

only 60% of them are capable of sustaining themselves on the market, which can be due to insufficient

members’ abilities and lack of support from the local community. Yet bearing in mind that social and

vocational reintegration process is long and difficult, one should search for solutions in strengthening

partnership system, education and counselling for social cooperatives. The increase of numbers of

employees with high qualifications within social cooperatives can cause a danger that socially excluded

groups’ representatives or those at risk of exclusion, who are less resourceful, skilled and independent, will

be perceived as a cheap labour force and not as co-owners of an enterprise.

7. The amendment to the Act on Social Cooperatives extends the group of possible social cooperative’s

founders to include legal entities such as non-governmental organisations or communes. Allowing legal

entities to establish social cooperatives causes a lot of controversy as it takes away the sense of being a

co-founder from the members and, consequently, decreases members’ responsibility for the cooperative. In

this situation an indirect solution was proposed which enabled legal entities to cede entitlements for the

social cooperative to previous members when they are capable of undertaking a full responsibility for the

cooperative. Dangers appear when legal entities (at least two of them) are the only ones that establish

social cooperatives. According to the proposal they are obliged to employ at least 5 persons from

dysfunctional groups. An important issue is that social cooperatives provide a co-ownership opportunity for

the founding members. Also, social cooperatives are treated by a majority of members as a terminal form of

employment even though the conception of the legislator was probably different. Co-ownership creates a

sense of belonging and influences the level of members’ engagement in their own company. Such

situation positively influences the process of restoring responsibility and facilitates the stabilisation of life

situations of persons establishing social cooperatives. In the case where a social cooperative is established

by legal entities, members’ co-ownership aspect does not appear and that can be harmful for the social and

vocational reintegration process of the members. Therefore such solution only seems to be right for an

initial period and only until cooperative members are capable of taking over the control and supervision of a

cooperative. Legal requirements regarding social cooperatives should be directed towards empowering its

members through the co-ownership idea. In Poland one can observe a tendency to strengthen security

measures (while the characteristic of social entrepreneurship is to undertake risks!) which lead to creation

of work places in social enterprises for the dysfunctional groups by non-governmental organisations and

regional municipalities’ units rather than establishment of membership and co-ownership ideas among the

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socially excluded groups. In consequence, this can cause the limitation of autonomy of persons for whom

social cooperatives were brought into existence in the first place.

8. Persons who establish a social cooperative are entitled to receive a single grant from the Employment

Fund to economic activity’s start up. One of the conditions which has to be fulfilled for the grant to be

awarded, is a warranty which secures the received funding in case the agreement conditions were not

fulfilled. Social cooperative founders are not able to meet to requirements of property security and for the

majority of them this is an obstacle not to be overcome. In addition, Job Centres do not apply unified

principles of granting a donation from the Employment Grant. Some Job Centres agreed for the cooperative

members to give a warranty to one another which was a step forward to ease the situation. However, the

majority of Job Centres did not accept this. The amendment to the Act on Social Cooperatives points out

that it is possible to receive a warranty from the Commune for a grant from a Job Centre to support the

unemployed. It seems that such kind of cooperation will require a public-private partnership to be created.

This will be formally possible thanks to the amendment to the Act on Public Benefit Activities and

Volunteerism. In practice, putting such partnership together is a rather long process and it may after all be

ineffective. Therefore there should be a mutual warranty allowed (social cooperatives give a warranty to

one another). The proposal embodies the spirit of the solidar economy i extends the scope of solutions

within modern forms based on social capital and mutual trust.

9. The answer to a question on whether the models initiated within EQUAL programs will endure is

dependent on many factors such as public-social-private partnerships. Introduction of amendments to the

Act on Public Benefit Activities and Volunteerism, which would allow for all local partners including

entrepreneurs and social cooperatives, to join education and integration processes for social economy

development in the local community is recommended.

The amendment to the Act on Public Benefit Activities and Volunteerism brings about the opportunity of an

opportunity to formally tie up a public-social partnership i.e. representatives of the Commune and non-

governmental organisation come together to realise a specific project (task-oriented partnerships). Such

partnership can be joined by entrepreneurs under the condition that public and social partners agree to it.

The situation disrupts the equality rule among the partners. The most alarming extract in the amendment to

the Act concerns the exclusion of social cooperatives from local partnerships.

It is difficult to understand why on one hand these entities are included in the definition on non-

governmental organisations (which in the context of a developing social economy movement is a very good

idea) and on the other hand they are disposed of a very essential opportunity to cooperate with the local

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council on partnership basis. Perhaps the problem can be solved in the course of parliamentary works.

10. In discussions on social entrepreneurship development another matter of argument is the liquidation of

social cooperative phenomena. One can ask what will happen to the social cooperative property. The

amendment to the Act assumes that after the expenses due were paid, the amounts covering disputable

debts were secured and salaries were paid to workers, all left resources can be divided among the

cooperative members at a degree no higher than 20%. The remaining resources must be conveyed to the

Employment Fund or the State Fund for Rehabilitation of the Disabled. This regulation however should only

concern the public resources. In fact, it does not empower cooperative members through the co-ownership

idea. The members should undertake efforts to increase income and to multiply the cooperative property.

One ought to distinguish public resources and the earned resources (property) which, during the

cooperative’s liquidation, should be divided entirely between the cooperative members.

11. In the Act on Social Employment the system of practises at employers (realised by Centres for Social

Integration) and its rules should be reinforced. During the practise’s duration, employers can better know a

candidate for an employee. While the candidate has a chance to learn many skills required for a certain

post. There may be job coaching or other forms of assistance applied to a person with serious social and

mental problems as it was already tested via different modules within EQUAL partnerships.

12. Up till now employers have not used supported employment opportunity with regards to graduates of

Centres of Social Integration. As a result of the supported employment opportunity employers can receive

refund of insurance contributions for a twelve-month-period once they have committed to employ a

dysfunctional worker for eighteen-month period. It is necessary to introduce amendments to the Act on

Employment Promotion and Labour Market Institutions with regards to simplifications of procedures for

insurance contributions’ refund as an incentive for employers to employ the long-term unemployed.

B.1.6 Coordination of the sector

Summary

In the chapter presented are organizations and institutions who are candidates to become coordinators of

social economy institutions’ sector in Poland. There are among others Stała Konferencja Ekonomii

Społecznej (The Continued Conference of Social Economy) and newly established networks of

organistions which consists of institutions working locally and at a grass-root level e.g. Barka Cooperation

Network. The Committee on System-based Solutions on Social Economy initiated by the Prime Minister is

now launching its program. Its aim is to build a strategy and legal, institutional, financial and educational

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mechanisms for social economy as well as promotion and monitoring.

Currently there is no one central institution in charge of the coordination of the social economy sector. This

is a serious problem which results in a lack of coherence in undertaken decisions and directions shaping

the legal, financial and education systems. Currently WISE institutions are scattered and are coordinated

by various ministries and agencies. Ministry for Regional Development is in charge of the management of

European Social Fund in Poland. The Ministry prepares directives and monitors the implementation of

system-based solutions. Ministry of Labour and Social Policy consists of a few departments which

coordinate activities of different social economy institutions. Department of Aid and Social Integration (at

the Ministry of Labour and Social Policy) is responsible for all issues regarding Centres of Social

Integration, Clubs for Social Integration and social cooperatives. Within this Department, Centres for Social

Cooperatives’ Support are financed (there have been 5 such Centres established in Poland). The scope of

the Department of Aid and Social Integration includes problems of the disabled (Centres for Vocational

Activation, Supported Employment Workshops, etc.) , and manages the State Fund of the Disabled’

Rehabilitation which provides funding to Supported Employment Centres, Centres for Vocational Activation,

Supported Employment Workshops etc,. Department of Public Benefit (at the Ministry of Labour and Social

Policy) is in charge of the non-governmental organisations’ sector and organisations with the public benefit

status in particular. The Department manages Civic Society Fund which grants resources to civic activities.

Department of Labour Market is responsible for job centres which at regional levels organise training for the

unemployed and legal/financial counselling for the unemployed who establish their own business or a

social cooperative, and covers the costs of public works and interventionist works, etc,. Institutions which

act as a go-between at the regional level are marshal offices which implement their tasks through Regional

Job Centres or Regional Social Policy Centres.

In October of 2004 in Cracow, Regular Conference on Social Economy was initiated whose task is to bring

together institutions and organizations cooperating in building up a platform of exchanging ideas,

information and experiences on social economy. Continued Conference of Social Economy (SKES) is a

voluntary, multilateral alliance which is open to organizations and individuals representing social economy

strand. The alliance aims at implementing non-paid social tasks. The main goal of SKES is joint working

towards development and promotion of social economy model in Poland:

1. promoting social economy as solution to economic development of Polish society;

2. implementing activities which integrate social economy

entities;

3. creating mechanisms for exchange of knowledge, expertise and good practice in the area of social

economy;

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4. undertaking activities for creation of legal and social harmony which will contribute the

development of social economy in Poland;

5. puruing scientific initiatives connected with social economy discipline in Poland and in the world.

SKES achieves its objectives through not-for-profit atctivities and in particular through:

1. organizing seminars, conferences and training (including Social Economy Meetings);

2. promotion activities/information distribution;

3. publications (books and magazines)

4. running scientific and educational projects

5. creating territorial and thematic structures

SKES exists based on a multilateral agreement signed by SKES members. The agreement was signed by

SKES members on the 29th of September 2006 during First National Social Economy Meetings in Cracow.

Currently the signatories of the agreement are:

- DNB Nord (formerly Bank of Socio-Economic Initiatives)

- Foundation for Poland

- Foundation for Socio-Economic Initiatives

- Scrutiny alliance of Employment Cooperatives

- Institute for Social Services Development

- Foundation for Civic Society Development

- Public Matters Institute

- The Microfinance Centre (MFC)

- UNDP

Remaining founders of SKES:

- National Alliance of Cooperative Banks

- Association of Non-Governmental Initiatives’ Forum

- National Cooperative Savings and Loan Bank

- Mutual Insurance Society (TUW)

- PA CO BANK

- BARKA Foundation

- Socio-economic Investment Society

- Responsible Business Institute

- Polish –American Loan Fund for Civic Initiatives

Leading organ of SKES is SKES Committee which consists of representatives of all partners. KSES is

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represented by Secretariat whose functions are at present fulfilled by Foundation for Socio-Economic

Initiatives.

There have been other groups integrated around social economy initiatives as well. For example in 2003

there was an Alliance of Organisations of the Barka Cooperation Network created which is represented by

both non-governmental organisations and new social economy entities such as centres of social

integration, social cooperatives and social enterprises ( it consists of almost 60 entities).

In 2006 Alliance of Centres of Social Integration was established. The Alliance is not active however, but a

few Centres have been outstanding to integrate other centres.

In 2006 Social Cooperatives’ Scrutiny Alliance was started whose aim is to integrate social cooperatives

and inspect them once every three years (according to the Act on Social Cooperatives). The Alliance is not

fully represented though as there are about 15 out of 156 social cooperatives which registered with the

Alliance.

Currently a bill is being prepared for a Resolution of Prime Minister who established Interdepartmental

advisory committee on social economy whose name is Committee on System – Based Solutions for Social

Economy. The tasks of the Committee include: preparing a strategy of social economy development,

creation of legal and institutional solutions to enable functioning of social economy entities, design of

financial solutions for social economy entities, setting up guidelines for educational system in the field of

social economy, preparation of recommendations in the area of promotion and monitoring of the elaborated

solutions.

The Chairman of the Committee is Secretary of State in the Ministry of Labour and Social Policy and the

Committee members are: representative from the Ministry of Regional Development, representative from

the Ministry of Finance, representative from the Ministry of Economy, representative from the Ministry of

Education, representative from the Prime Minister Chancellery, six representatives of local municipalities,

six representatives of social economy sector (including 3 representatives of the Committee on Public

Benefit Activity, 2 representatives of SKES and one representative from the Scrutiny Union of Employment

Cooperatives), representative of Trade Unions, representative from an employers’ organisation and 3

representatives of scientific groups.

There will also be a working group on social economy divided into selected-topic sub-groups, which is

going to be represented by social economy institutions, public administration as well as researchers and

scientists.

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The first meeting of the newly-established group took place on the 13th March 2009.

B.2 Programme analysis

Summary

In this chapter presented are basic national planning documents i.e. National Development Plan for 2007 –

2013, National Strategic Reference Framework for 2007 – 2013, National Employment Strategy 2008-1010

with regards to social economy and social employment aspects. Next, presented here with detail are

activities of three operational programs which WISE can use: Human Capital Operational Program,

Wielkopolski Regional Operation Program and Civic Initiatives’ Fund. Human Capital Operational Program

describes activities towards enterprises with regards to training of staff and towards individuals who

undertake economic activity including social cooperatives with regards to advisory and financial support. It

also addresses institutions which aim at accomplishing social integration as well as institutions which

support the development of social economy and local partnerships with regards to advisory, training and

promotion. Wielkopolski Regional Operation Program elaborates on activities towards small and medium

enterprises with regards to support with advice and investment. Civic Initiatives’ Fund was already

explained earlier. WISE willingly take advantage of the proposals from Human Capital Operational Program

and Civic Initiatives’ Fund’. Wielkopolski Regional Operational Fund however is not attractive to WISE due

to the required own capital.

National Development Plan for 2007-2013

In September 2005, National Development Plan for the years 2007 - 2013 was prepared. Amongst its

strategic priorities Social Integration understood as a state of just, free from inequalities social structure,

was mentioned. The just state is achievable thanks to community led activities based on a dialogue,

reciprocation and equality, that results in a society enjoying social harmony, defined by participation, rule of

law and cultural differences acceptance, where basic human and citizen rights are binding and respected

and individuals along with groups are supported in achieving their life goals.

It is stressed that within this area a country will focus on: activities ensuring equal access to social rights,

family support and elimination of exclusion factors. Building career and social activation system has an

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important meaning for the groups endangered by social employment and other forms of social

economy, bringing together social activity and solidarity. Achievement of this priority requires different

sectors’ cooperation and development of public-social partnership.

The National Strategy of Cohesion/ The National Framework of Referral

In the latter part of 2005, following the general elections to the Polish Parliament, a new Government was

nominated. In May of 2007 the Government issued a document named “The National Strategy of

Consistency/Uniformity” (officially known as “The National Framework of Referral”). The document replaced

the initially elaborated “The National Framework of Referral” Project which referred to the National Plan for

Development in 2007-2013.

According to the project of a decree of the European Council, the regulations regarding the European

Regional Development Fund, the European Social Fund as well as the Cohesion Fund, the European

Council is working on the Community Strategic Guidelines (CSG) referring to social economic and territorial

cohesion, determined the scoop of the funds’ intervention. Based on the CSG each member country

prepares “The National Framework of Referral” which combines the community and the national policies,

as per the Article 27 of the Decree 1083/2006 of the Council of the European Union of 11th of July of 2006,

and describe the socio-economic social strategy in 2007-2013.

The document explains the support policies from the funds available in the budget of European Union

within the 7 forthcoming years in the framework of the European Fund of Regional Development, (EFRR),

European Social Fund (EFS) and Cohesion Fund. The National Strategy of Cohesion is a referral tool to

prepare the operation programmes which are based on the records in The National Development Strategy

for 2007-2015 (SRK) and the National Reform Programme for 2005-2008 (KPR) (which responds to the

challenges outlined by the Lisbon Strategy).

One of the challenges mentioned in the National Cohesion Strategy considers poverty:

„Support for the families in raising and educating their children is one of the challenges. At the same time it

is necessary to help social assistance institutions regain their integration and social stimulation function that

were restricted by only interventionist character of this element of social security. In the process of

implementation, social assistance should be supported by social employment institutions, different forms of

social economy, activities within the scope of career and social rehabilitation of handicapped”.

Unfortunately, this is the only fragment that mentions social employment (Centres of social integration) and

social economy. Neither objectives nor National Cohesion Strategy priorities refer to the last two. However,

the role of the job market institution and social care is stressed.

Priority 5.4.2. Improvement of Human Capital quality and higher social cohesion. Active job market policy,

where raising employment levels of people in a production age in a population, with the help of active job

market policy is mentioned, it is also stressed that decisive role in this matter will be performed by the

job market institutions and also social care. The last two should promptly and effectively respond to the

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challenges of social and economical restructurization. Therefore the activities must be based on the

support and improvement of the job market and social assistance institutions. Access and effectiveness of

the services provided by those institutions should be improved and adjusted to the real needs and

beneficiary groups.

Active policy within the job market is based here only on the activities undertaken by the job market and

social care institutions. The last fragment of the description of this priority mentions social partners, but

doesn’t explicitly refers to social economy (tele-work is mentioned for example). However, the role of the

social partners wasn’t defined. 3

Action against poverty and social exclusion prevention National Cohesion Strategy doesn’t mention social

economy, social enterprises and third sector role that create a natural environment for the social

enterprises development.

The comparison of the two described documents suggests a rather significant shift: National Development

Plan stressed the role of social partners and social employment along with social economy that where

explicitly included in the Social Integration priority. National Cohesion Strategy evidently shifts the

importance onto the role of labour market institutions and social care. Social economy is mentioned only

with reference to the challenges that are set before the strategy, but is entirely omitted in the priorities

description. It is worth to emphasize that a draft of National Cohesion Strategy prepared by the former

government included direct reference to social economy and social employment, e.g.:

1. s. 16 „It is worthwhile to emphasize the role of social economy entities present in Polish economy

(cooperatives, mutual insurance societies, associations which run economic activity and certain

foundations). According to the National Registrar from 22nd of April 2005 and following the records in the

cooperatives’ registrar there are 11984 entities and based on the records in the entrepreneurs’ registrar

there are 6351 entities.

At the same time, there are over 30 thousand non-governmental organisations which employ in total

around 200 thousand staff. These organisations are supported by over 2 million volunteers. A lot of areas

of life would not have been able to exist without the non-governmental organisations’ engagement.

Social Economy defined as an activity run by organisations which include in their objectives both economic

and social aspects is an integral part of the economic life. It fills an economic gap in which traditional

enterprises do not function due to the fact that it is not economic to run such an activity and typical social

3 In the National Development Plan for the years 2007 – 2013, institutions of the social care and labour market

weren’t mentioned with regards to analogical priority. At the same time, activities oriented on achieving higher level

of social trust, strengthening social capital and support for the self-help were mentioned.

63

organisations are often not able to act effectively and encourage members to take part in activities

contributing to social cohesion and balance as well as building society based on solidarity, democracy and

pluralism. Support to economic stability of social economy enterprises should be provided at two levels:

economic and social in particular through social and economic development, development of social

relationships, administrative and management support, consultations and research as well as cooperation

and exchange of experiences”.

2. s. 34 „Another challenge for Poland is limiting the scope of poverty. As diagnosis show, it is the

difficulties on the market experiences by Polish people which, to the largest degree, contribute to their

impoverishment. The relation between labour market and social situation has a bilateral direction.

Difficulties experienced on the market imply the decrease of people’s standards of living. Financial

problems on the other hand, which limit access to goods and services, set barriers in finding employment.

First of all the challenge is how to improve conditions of life of families and support them in bringing up and

education children. At the same time it is necessary for social welfare institutions to regain the function of

integration and social activation which have been limited through an interventionist character of this

element of social protection. To implement the above, social assistance institutions should be supported by

social employment entities and various forms of social economy and activities in the field of professional

as well as social rehabilitation of the handicapped persons.

He changes implemented have gone the wrong direction and a few years are needed to make up for it.

The Polish Strategy for Employment for 2007-2013

The Document has been accepted by the Polish Government on the 6th of September 2005.

Document accompanying realisation of the national plan of development in 2007-2013

The Polish policy in aid of maximising the employment level is a new area of cooperation among the EU

member states. The European Strategy for Employment assumes coordination of the employment policy in

EU countries with guidelines, elaborated by the European Commission and national action plans. Poland,

as a member of European Union, is bound to implement the European Strategy for Employment and the

Lisbon Strategy assumed by the EU in 2000. Within its national plans Poland is obligated to particularly

acknowledge integrated guidelines generated as a consequence of critical evaluation of execution of the

Lisbon Agenda in the last period. The response to this is the National Reformation Programme (Krajowy

Program Reform) for the period 2005–2008, which is a document describing the actions to be taken by the

Polish Government to accomplish the reviewed Lisbon Strategy. The key challenges to be faced by the

Polish economy were taken into consideration.

64

The Polish Strategy for Employment for 2007–2013 on one hand takes into consideration various

circumstances and challenges of social-economical nature that Poland will confront. On the other hand the

document includes the goals resulting from accepting the Lisbon Agenda and the European Strategy for

Employment.

The actions that will determine the policy of the Polish State in 2007–2013 with respect to the labour

market, refer to seven priorities:

1. Support in creating new places of employment by means of development of entrepreneurship and

innovation. Among other things, it consists in helping to generate new companies, helping the

enterprises in accessing the knowledge and consultancy and being favourable to the process of

creating employment posts that require excellent qualifications and are highly remunerated.

Construction, private services and transport infrastructure will also be reinforced.

2. Progression in persistent education and improvement of studies quality. This priority takes aim to

equalise the educational chances of pupils from different regions, which would lead to their having

better chance for employment. It is expected that the society is involved in education to maximum

extent: starting from the children’s early education and finishing with the programmes supporting adult

education. It is assumed not only to improve the quality of learning but also to prepare the pupils to

face the situation in the employment market.

3. Enhancement of the adaptive skills of the employees and of the enterprises and improvement of the

flexibility of labour market. The process will imply tax reductions and other costs of employment and

building the relations regarding the individual employment law in accordance with the EU standards.

Untypical forms of employment will be promoted (including self-employment, telecommuting and

outsourcing. Furthermore, this priority aims at a progress in social dialogue and discussing employees’

problems, among others incorporation and reinforcement of employees’ advice.

4. Elicitation of the unemployed and the individuals at risk of social exclusion. It will be carried out by

increasing access to employment and enrich forms and methods of employment agencies, also a wider

access to employment consultancy services. A special emphasis is put on help with mobilising

individuals over 50 years old, youth under 25, the disabled, the long-term unemployed and women.

5. Mastering the institutional assistance of the labour market. Improving efficiency of the employment

market is related to increase the quality of services provided by employment agencies, employment

consulting and by the EURES system and also improving the network of educational services. A

research will be conducted to verify in which professions there is a shortage and which are very

65

popular in the labour market. The results will enable to coordinate constantly the tendencies in

choosing training courses for the unemployed with the needs of the labour market.

6. Minimising regional differences and taking precautions against discrimination practices in the labour

market. The intention of this priority is creating equal chances in access to education, including high

schools and, as a result, to employment for the youth both from towns and from villages. Development

of human resources should lead to the increase of the competitiveness among regions. In the areas at

risk of structural unemployment intensive actions in favour of professional activation will be conducted.

This priority is also intended to promote equal chances for men and women in the labour market.

7. Conducting efficient migrant policy. This priority consists in applying the community law which is in

favour of professional mobility and recognition of qualifications and of accomplishing the migrant policy

in employment context – it is designed in order to protect the Polish labour market and the Poles

working abroad.

Records in National employment strategy referring to the ‘economy of inclusion’

The priority 4.2.2 of National Employment Strategy ‘Support in generating new employment opportunities

by developing entrepreneurship and innovation’ emphasises that an important source of new work places

will be a sector of Social Economy constituted by a network of non-governmental organisations that

provide non-profit services to local communities. Public benefit organisations will be supported by the local

authorities. The investments in infrastructure, telecommunication and housing estates made by the local

governments, require reinforcement.

Priority 4.2.4

Activation of the unemployed and those at risk of social exclusion

Employment market programmes addressed to elderly people, youth and women will be continued and

developed. They cover the following issues:

- Programme ‘Promotion and Progress of Cooperative Forms of Activity among Youth’ covers: promotion of

cooperative forms of income-generating activity among the young, training and consulting services and also

creation of a lending fund in aid of Economy of Inclusion. The programme is addressed to non-

governmental organisations.

Giving an easier access to the labour market is a distinct problem. This task is especially difficult under the

circumstances of high unemployment and limited number of job offers.

66

On one hand, some actions should be taken in order to provide the disabled with useful skills in the labour

market, on the other hand the employers should be encouraged to offer jobs to the handicapped.

It is necessary to start adapting the existing institutions to employment market with the intention of

increasing the standard of their services in the area of professional mobility of the disabled. An important

role in the professional integration could be played by institutions providing this type of rehabilitation and

also health and social rehabilitation therefore building such units seems justified.

A special function could be performed by the social employment and social enterprises programme. It

will be carried out alongside with solutions which assure that the income from work will be higher from the

ones gained from social welfare. Such initiatives should be taken up with aid of support funds and the

widest possible participation of the non-governmental organisations operating in the local employment

markets.

The actions within the framework of social employment programmes started in 2004, with establishing the

Social Integration Clubs, and were intensified in the next year. According to an estimation, at the end of

2005, there were approximately 50 active centres who prepared groups of individuals matching difficult

categories in the labour market and endangered by social exclusion, to return to the labour market. It is

indispensable to organise a media promotion for the ventures. The addressees should be communal

governments of communes and local authorities of provinces. Special actions must be addressed to the

homeless, addicted, mentally ill, long-term unemployed and dismissed from penitentiaries and refugee, who

are victims of social exclusion and, due to their life situation, are not able to satisfy their basic living needs

themselves, are in situation causing poverty and disabling or limiting their participation in professional,

social and family life. To sum up, the point is to stand up against social exclusion of individuals and whole

social groups.

Among actions described in National employment strategy there is the priority 5.1: ‘Actions to back up the

priority: Support of creation of new employment opportunities by means of progression of entrepreneurship

and innovation.

Action 8 is as follows:

8. Triggering development of employment outside of the market

The aim is creation of work places in social economy sectors

The activity is going to be implemented through::

a) building of social enterprises

b) triggering the development of social cooperatives, centres of social integration and other institutions

which create work places outside of the enterprise sector

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c) popularisation and promotion legal solutions regarding social cooperatives

d) implementation of regional programs for creation of social cooperatives using he funding from the

European Social Fund

Ministry of Economy, Ministry of Labour, social partners and local councils are responsible for the

implementation of this activity.

Indicators:

- number of the employment places created in the sectors of social economy.

5.4 Actions supporting the priority: Elicitation of the unemployed and at risk of social exclusion

12. Establishment of finance institutions in aid of social partnership

The action is aimed at reinforcing the system of finance of the social organisations improving employment

in the local environment.

The action will be carried out by means of:

a. Support for the Programme of Civic Initiatives Fund

b. Launching regional Social Economy Funds

The Polish Ministry for Social Policy is responsible for the action.

Indicators:

- Number of financial institutions which support development for the social partnership,

- Number of employment places created as a result of the activity of financial institutions which support

development for the social partnership,

- More active participation of the third sector in the actions of the employment market.

The “National Strategy Reports on Social Protection and Social Inclusion for the Period 2008-2010”

Programme

(Document accepted by the Polish Government on 16th December 2008)

The European Commission has obliged all the European Union member states to present their National

Strategy Reports on Social Protection and Social Inclusion for the Period 2008-2010.

Poland is also bound by this obligation due to its participation in a simplified and faster method of

coordination. The national programmes embrace three areas of activity: social integration, pension system,

healthcare and long-term healthcare.

68

To make the document’s structure more integrated the European Commission introduced the member

states to the guidelines how to produce their “National Strategy Reports on Social Protection and Social

Inclusion for the Period 2008-2010”. The member states ought to follow the guidelines in order to increase

the efficiency of the open method of coordination which is a method of mutual help, exchange of learning

experiences and of information. The document is destined to intensify the interaction between the open

method and the Lisbon Strategy, to create the economic growth and increase the employment.

As per the guidelines of the European Commission, the National Programme consists of four parts. The

first one is the Community Overview and includes a socio-economic situation assessment. The parts from

two to four explain the thematic plans referring to three components: The National Plan of Actions for Social

Integration, The National Pension Strategy and The National Plan for Healthcare and Long-term

Healthcare.

Records on social economy and social employment

The priority 2.4 “Integration through Mobility” contains records on the development of social economy.

Action 2.4.1 Development of social economy

The development of social economy has been supported due to the unification of the activities of

employment, social integration and social services. The back up of social economy is one of the elements

of building welfare which will enable development of local services adapted to individual needs which will

generate new areas of social activity. At the same time, they will be an element of public policies. The main

source of mobilisation within the social economy area are the local municipalities which cooperate with the

civic sector.

Building the support infrastructure for social economy

The Operational Programme named “Human Resources” (Priority VII) takes into consideration creation of

institutions which provide services and advice to the social economy subjects. It has been anticipated that

there will be a target of forty institutions will be established. They will operate within the social economy

sector (at least two in each region). The services provided include:

- legal services, accounting, marketing and financial consulting,

- counselling of individuals and groups, teaching the knowledge and skills required to be active within the

social economy sector,

- development of social economy through reinforcement of local partnership,

- promotion of social economy and the employment opportunities within this sector.

Building the support network is one of the detailed goals to accomplish the Priority VII (named “Promotion

of social integration”) of the “Human Capital” Operational Programme. Priority I of the above mentioned

programme of the Ministry of Labour and Social Policy will back these actions up by means of including the

69

regional supportive institutions in the national network of support and a vast educational and counselling

programme. The addressees are staff of the public entities and the NGOs and also to the representatives

of the public authorities.

The 2008 was supposed to initiate the era of a programmatic institutionalisation of social economy through

a working group, nominated by the Government, and reporting to the Ministry of Labour and Social Policy.

The working group would consist of representatives of the Government Administration, of local

municipalities, of social economy and of specialists. The team will work on strategy of developing social

economy. The team will come up with legal, institutional and financial solutions and launch educational

activities related to the functioning of subjects of social economy in Poland.

Support to Social Integration Clubs and Centres

Support to the excluded people will be continued thanks to launching individual programmes of social

employment and courses taught by Centres of Social Integration and Clubs of Social Integration. The

experience gained so far proves the high efficiency of active forms of help which enable reaching the rate

of re-employment in groups of special risk of social exclusion at the level of 60-70%. The participants of the

courses are mainly 45-50 years old.

In a scale of a year the Centres of Social Integration attend the average of 2.5 thousand of participants. In

2008-2010 the number of 7.5-10 thousand of people is evaluated to benefit of this form of activation. The

project started within the framework of the “Human Resources” Operational Programme (Priority I)

assumes launching a few supportive projects for developing subjects of social economy. They are: the

National Educational and Counselling Centre and four regional centres for social economy and social

employment, which provide analytic, methodical and educational services to the employees of institutions

of social employment. The commented big project also offers the possibility of financing the new and the

existing Centres and Clubs.

Other activities to be mentioned are creation of a consolidated IT network to satisfy the needs of the Centre

of Social Integration and building a pilot Internet system giving information on the available job offers for the

graduates of the courses held by the Centres.

Support of the development of social cooperative movement

At the moment there are 149 social cooperatives which reunite approximately 1,000 people at risk of social

exclusion. In order to accelerate the development of these subjects, it was assumed that in 2008 of the law

on social cooperatives would be amended. There were a few new solutions planned to be initiated. The first

one was that the proportion between the individuals at risk of social exclusion and the rest of the

cooperative members was going to change in favour of the first group, to the level of 50 against 50. The

70

next step was to facilitate funding social cooperatives by regional government entities and non-

governmental organisations, and increase the subsidiaries for the social cooperatives from the Employment

Fund. Also an increased support and reimbursement of costs of social insurance was planned and with

regard to social clauses – when public procurements are placed the priority would be given to the subjects

that employ the socially excluded.

Moreover, within the framework of the “Human Capital” Operational Programme an additional component

was expected to be accomplished (Priority VI) which would help the unemployed in creating cooperatives

(training, support subsidiaries from different sources). It is estimated that due to the regulative changes and

financial support, in 2013 the social cooperatives will employ 7-10 thousand people.

Operational programs

National Cohesion Strategy uses individual operational programmes as its instruments, Operational

Programme, Human Capital (ESF) and 16 Regional Operational Programmes (EFRR). PO KL mirrors a

tendency that was discussed above within the context of National Cohesion Strategy. Big part of the

activities and expenses are directed towards strengthening of public job market institutions and social care.

Marginal focus on the third sector and social economy can be easily observed. Only one activity (7.2.2)

gives the possibility of launching funds for the support of social enterprises. Within the scope of the (6.2.2)

activity newly set up co-operatives may apply for financial support for launching their activities. Social

Integration Centres along with all other projects that focus on social integration were treated as (7.2.1)

activity. That led to the liquidation of some of the Centres. They didn’t receive financial support from PO KL,

(they are relatively expensive form of work with socially excluded persons and therefore they are not very

competitive) having no other sources of funding.

Below a set of particular PO KL priorities and one of the Regional Operational Programmes.

Programme title Operational Programme Human Capital 2007-2013 (PO KL)

Summary of the entire strategy The main objective of the PO KL is to raise the employment and

social cohesion level. This objective will be achieved through career

stimulation, development of the adaptation potential of the enterprises

and their employees, the raise of the level of society’s education and

diminishing the areas of social exclusion along with supporting the

effective mechanisms of management in public administration. The

Programme will support following areas: employment, education,

social integration, employees’ and enterprises’ adaptation ability,

issues related to development of human resources in the rural areas,

71

building effective public administration and a partnership state and also promotion of healthy lifestyle amongst working people. Activities

undertaken within the frames of the Programme intend to raise and

develop the levels of potential of entities working within the areas of

the ESF, support and also promote programmes supporting

employment and social integration. Initiatives aiming at activation of

unemployed and those passive in the career context, social exclusion

prevention and provision of an equal access to employment for

groups and people suffering discrimination in the labour market will

be addressed through development of alternative sources of

employment, support of social economy employment,

entrepreneurship promotion and self-employment.

Which priority can

it be placed

within?”

Sub-activity 2.1 Development of modern economy human resources

What is the

measurable

objective?

Activity Objective: Raising and adjusting to the demands of the economy based on the

employees’ and entrepreneurs’ knowledge. New forms and methods

of work organization, management and strategic planning that will

lead to more effective usage of human capital and raising company’s

adaptation potential are required. Activities within this area will

strengthen the competitiveness capacity of the companies and will

also maintain the existing workplaces and balance between elasticity

and competitiveness and the security of employment.

What are the

activities

supported?

national level (at least 5 regions) open training projects (general and specialist) and advisory for the entrepreneurs and employees - post-diploma studies for the entrepreneurs - multiregional projects for the strengthening of enterprises adaptation potential through support of new solutions within following areas: work reorganization, forms of work contracts, economic change management, promotion of qualifications improvement, social responsibility of businesses, achieved by representative union associations and representative employers’ organizations.

What are the

predicted target

groups?

- Entrepreneurs - company’s employees (including people hired on the basis of civil-legal contract)

- representatives of the employees’ organizations - representatives of the union associations

What is the 504 224 045 EUR

72

available budget?

What kinds of

innovations are

supported?

-

What is the

commission for the

international

cooperation?

-

How are WISE currently

engaged in achieving this

objective?

Introduction of organizational, management and planning standards

in WISE are supported through advisory services and trainings lead

by non-profit sector.

What are the main obstacles in

the strengthening of the WISE

engagement in achieving this

objective?

WISE sector is relatively young and poorly developed. Its standards

compared with private sector are much lower. Barrier is founded on

the weak preparation of the management staff.

What political occasions are

opened?

What are the main issues to be

discussed?

what organizational, management and planning standards should be introduced in WISE

how to implement the above mentioned standards in WISE

PO Human Capital

Which priority can

it be find within?

5.4 Development of the third sector potential

What is the

measurable

objective?

Activity’s Objective: Support the potential of the third sector organizations towards their effective and professional participation in the mechanisms of partnership, particularly within the areas important for the realization of The Lisbon Strategy Treaty and Country Reform Programme. It is anticipated the support will be directed mainly towards non-profits’ human resources strengthening (amongst others, employees and volunteers). Non-profits will be entitled to receive training and advisory support from regional and local non-profit support centres. This solution will enable tailoring training offers to the needs of the third sector in particular region. Specialist trainings, such as accounting, finances, project management, interpersonal skills and law-related courses will be preferred. It is necessary to match trainings with the needs of beneficiaries.

73

What are the

supported

activities?

- Research, studies, analyses and expertise on civic dialogue, its conditions, functioning, perspectives, development barriers and the needs of dialogue participants.

- Monitoring and evaluation of the public administration and non-profits cooperation.

- Popularization of the public administration and non-profits cooperation with respect to public policies.

- Strengthening of the broadly interpreted social consultations on legal regulations and settling public policies, including electronic consultations.

- Public administration staff competence strengthening to achieve more effective cooperation with social partners and non-profits.

What are

anticipated target

groups?

Amongst others:

- non-profits - public administration - higher education schools - science units/institutions

What is the

available budget?

100 238 968 EUR

What innovations

receive support?

-

What is the

commission for

international

cooperation?

-



objective?

There is a wide range of trainings suited for non-profits available on the

market. However, they are mainly paid trainings that non-profits cannot

afford. Free of charge trainings are of lower quality when compared

with commercial ones. Third sector representatives use free of charge

trainings, but are not satisfied with their quality.


raising WISE engagement in

achieving this objective?

Lack of thorough free of charge trainings.

What are the political options

open?


discussed?

Which priority

does it fall within?”

6.2 Support and promotion of entrepreneurship and self-employment.

74

What is the

measurable

objective?

Activity’s objective: Promotion and support of solutions and initiatives focusing on job

creation and enforcement of creative attitudes, self employment

support and entrepreneurship development.

What are the

activities receiving

support?

- support for people intending to start economic activity (including cooperatives or social cooperative) through incorporation of the following instruments (one or a few):

- consulting (group and individual) and trainings enabling gaining knowledge and abilities that are needed for launching and running a company - awarding financial means for entrepreneurship development (including the form of cooperative or social cooperative – as long as all share holders started the activities as an effect of participation in a project within the frames of Activity) up to the level accounting for the equivalent of 40 thousand złotych (or 20 thousand złotych per person in case of cooperative or social cooperative)

- support within a period of 6 to 12 months from the commencement of economic activities, including financial support paid monthly in an amount no higher than the equivalent of minimal remuneration in force on the day of subsidy payment, accompanied by advisory support on the effective usage of the subsidy (exclusively for people that started economic activities within a particular project)

- entrepreneurship and self-employment promotion through promotion and information campaigns

- good entrepreneurship practice development

What are the

anticipated target

groups?

Persons intending to start an economic activity (with exclusion of

people who had a registered company within a year before joining the

project), in particular:

- people remaining unemployed for a period of at least 12 consecutive months within the last two years

- women (those entering or re-entering the job market after a break caused by giving birth and raising children in particular)

- people no older than 25 - handicapped - people above 45 - people living in rural and urban – rural communes and people living in towns of up to 25 thousand of inhabitants that intend to find employment elsewhere than within farm/agriculture production area.

What is the budget

available?

400 847 256 EUR

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What innovations

receive support?

-

What is the

commission for

international

cooperation?

-

How are WISE currently engaged in achieving this objective?

Up till now, support for social enterprise launching had two sources of finance: Work Fund (County Work Office) and Social Enterprise Support Centres (the Ministry of Labour and Social Policy Programme). Consulting was provided by various types of social cooperatives support organizations created within EQUAL initiative. Unfortunately, along with the EQUAL termination most of the organizations ceased their activities.

What are the main obstacles in raising WISE engagement in achieving this objective?

Creation of new jobs by WISE is limited due to the lack of sufficient revenues. In majority, they are new and weak entities. At this stage they require significant advisory and financial support.

What are the political options open?

What are the main issues to be discussed?

Should WISE already in existence be financially supported, if so, how?

PO Human Capital

Which priority

does it fall within?”

Sub-activity 7.2.1 Job and social activation of people threatened by

social exclusion – competitive projects

What is the

measurable

objective?

Activity’s objective: Improvement of the access to employment for people threatened by

social exclusion.

What are the

supported

activities?

- support (legal, organizational, training and financial) for the creation and running of the social integration entities, including: centres for social integration, clubs;

- social integration, employment activation and social – employment activation institutions (whose main tasks exclude business activities) except for therapy workshop activities;

- courses and trainings enabling gaining, improvement or change of qualifications and job competencies for the people threatened by social exclusion;

76

- internships, subsidiary employment and social reintegration classes provided by employers;

- psychological, psychosocial, career and other advisory/consulting, leading to social and job integration, aimed at people threatened of being excluded form their environment;

- development of new forms and methods of individual and area support for the job and social integration (including background social work, local activation and animation centres, street working, couching, job training);

- development of social services overcoming individual barriers in social integration, including re-entering the job market

- development of social skills and competencies, essential within the job market;

- support for creation and functioning of background institutions stimulating physically and mentally handicapped

- volunteerism promotion and support, within the context of integration of excluded and those threatened by social exclusion

- support for the creation and functioning of after-school forms of youth social integration; (community centres, including socio-therapeutic programme and clubs) accompanied by activities aiming at social and job reintegration;

- organization of actions and promotion-information campaigns within a scope of equal opportunities, job flexibility and mobility, active attitudes promotion and fight against social exclusion;

- dialogue development, public – social partnership and cooperation for the human resources development at the local and regional level

- conduction, publication and popularization of research and analyses on regional social policy (including activities aiming at preparation and implementation of municipal and parish social problems solving strategies)

What are the

anticipated target

groups?

- long-term unemployed - unemployed, receiving social benefits - handicapped, including mentally handicapped (to be qualified as a project participant, one must present a statement he has not so far used same form of support within the Activity 1.3 PO KL projects).

- people excluded from participating in the job market due to taking care of children or other dependent persons;

- people re-entering the job market after maternal and parental leave - people above the age of 50 (50+) - youth between 15 – 25 years old, threatened by social exclusion (to qualify as a participant, one must present a statement he has not so far benefited from the same form of support within the frames of Activity 1.3 PO KL projects);

- refugees and foreigners enjoying stay approval and foreigners with a settlement permit, permit to live for a restricted period of time,

77

having European Community permit for a long-time residency or covered by the complementary protection, experiencing difficulties with social and work integration (to qualify as a project participant, it is necessary to present a statement clarifying one doesn’t receive support from the European Fund for the Refugees);

- ethnic and national minorities representatives (one can be qualified as a project participant on condition he provides a statement he hasn’t received same form of support from the projects run within 1.3 PO KL Objectives);

- people leaving foster families, caring and raising facilities and institutions listed in the 88th article of the social assistance act, experiencing difficulties with social and work integration;

- people released from prison or other penitentiary institutions (up to 12 months upon the release);

- people with alcohol or other addictions, undergoing a treatment or after its completion;

- people socially excluded (within background projects, consulting, promotion projects and supporting activities)

- social assistance and integration institutions and their employees; - economic and social partners

What is the

available budget?

271 758 559 EUR

What innovations

receive support?

-

What is the

commission for

international

support?

-



objective?

WISE per definition support access to employment for people

threatened by social exclusion.



the objective achievement?

Lack of advisory centres working within a long time frame (lack of

continuous funding); lack of friendly local environment that would

support WISE via procurement (bigger revenue, more jobs).

What political opportunities are

open?


discussed?

Number of people excluded within social co-operatives. The scale of

economic activities run by non-profits (growing rates of economic

activity amongst companies of the third sector) Economic activity

development is linked with the creation of new jobs.

PO Human Capital

78

What priority does

it fall within”?

7.2.2 Social economy support

What is the

measurable

objective?

Activity’s objective: Development of social economy sector

What activities

receive support?

- Financial support for setting up and functioning of the background

institutions of social economy sector, providing following services:

legal, marketing, accounting and financial advisory

- consulting (group and individual) and trainings that enable gaining skills and knowledge needed for launching and running social economy activities;

- local partnership building for the development of social economy; - social economy promotion and promotion of employment within social economy sector;

What are the

anticipated target

groups?

- social economy entities - job market, social assistance and social integration institutions (within the frames of promotion and partnership projects)

- individuals (within consulting and/or trainings on launching and running economic activities within social economy sector)

What is the

available budget?

163 055 136 EUR

What innovations

receive support?

-

What is the

commission for

international

cooperation

-


engaged in the achievement of

this objective?

How are WISE currently engaged in achieving this objective?




What are the main obstacles in raising WISE engagement in the

objective achievement?

What are the political opportunities open?

What are the main issues to be discussed?

Should functioning of institutions supporting social economy entities be

regulated by law, if so, which act should be considered? What should

the role of the above mentioned institutions be: support of social

enterprise development solely or local environment development (local

partnership) providing support for social economy entities?

79

WRPO

Programme title Wielkopolski Operational Regional Programme for the years 2007-2013 (WRPO) financed by European Regional Development Fund and national sources including public and private funds.

Entire strategy summary (WRPO) according to National Strategic Frames of Reference for the years 2007-2013, support of economic growth and employment (NSRO) constitutes one of the operational programmes serving as a basic tool towards the achievement of goals defined by it, benefiting from European Regional Development Fund. Primary objective of the Programme is to strengthen development potential of Wielkopolska region for the employment and competitiveness growth. The objective will be achieved through realization of the following particular goals: - improvement of the investment conditions - growth of the inhabitants employment rates - growth of knowledge and innovation share in the regional economy.

Which priority does

it fall within”?

Priority I Activity 1.1 Micro- enterprise development.

What is the

measurable

objective?

Activity’s objective Economic and social growth of the region, achieved through direct

support towards micro-enterprises at their initial stage (up to 2 years of

running) based on the increase in their investment capacity and

creation of new jobs.

What activities

receive support?

Scheme I: Investment projects: - investment in durable resources, - legal investment in non-material and legal qualities (technological transfer investment based on patent rights acquisition, license, know-how or non-patent technical knowledge).

On condition that the above investments are related to: - new enterprise creation - development of existing enterprise, - production diversification based on introduction of new, additional products or major changes in the production process within the enterprise.

Scheme II: Specialist advisory projects within areas of: - quality – relating in particular to: - obtaining and renewing compliance certificates for the goods, services, resources, machinery and devices, control and measurement equipment or personnel qualifications,

- delivery of declarations of producer’s compliance within the rules set out above.

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- usage of advanced IT technologies in the enterprise, - introduction of products to new foreign markets, - acquisition of external sources of finance for running economic activities,

- implementation and improvement of new product or service or marketing plans development,

- enterprise development strategies planning - running an enterprise within a territory of other EU country.

What are the

anticipated target

groups?

Micro-enterprises working within a territory or/and having offices within

Wielkopolska Region

What is the

available budget?

25,90 mln EUR

What sorts of

innovations receive

support?

Technological innovations reaching at least regional level.

What is the

commission for

international

cooperation?

-


engaged in the achievement of

this objective?

Innovations concern mainly the production and not services. Most of

the WISEs work within the service sector. Nonetheless there are

WISE's oriented at recycling activities, that introduce innovative

solutions.




Small financial resources, poorly qualified personnel.

What are the political

opportunities open


discussed?

Incorporation of social innovation into the innovation concept/idea

enables WISE to apply for support along this line.

WRPO

Which priority does

it fall within”?

Priority I Activity 1.2. MSP development support

What is the

measurable

objective?

Activity’s objective The objective of the activity is social and economic development of

the region, achieved through direct support of companies within MSP

sector. This support aims at raising the companies’ innovation level,

expanding activities, more flexible responding to the needs of regional

economy and new jobs creation.

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What activities

receive support?

- investment in durable resources; - investment in non-material and legal qualities (investment in technology transfer through entitlements/patent obtainment, license, know-how or non-patent technical knowledge).

On condition, that the above mentioned investments are related to: - new companies creation, - existing enterprises expansion, - production diversification and introduction of new additional products or substantial changes in production process within the company.

Schemat II: Specialist advisory projects within the areas of: - quality – considering in particular: - obtainment and renewal of compliance certificates for products, services, resources, machinery and devices, control and measurement equipment or personnel qualifications,

- delivery of declarations of producer’s compliance within the frames set out above.

- usage of advanced IT technologies by the enterprise, - product introduction to new foreign markets, - winning external sources of finance for economic activities development,

- analysis, implementation and improvement of new product or service or marketing plans study

- enterprise development strategy planning - running an enterprise within a territory of other EU countries. Scheme III: Investment projects based on acquisition and usage of new technological solutions. (used worldwide for no longer than 3 years)

What are the anticipated target groups?

Micro-enterprises run and/or with offices within the territory of

Wielkopolska Region.

What is the available budget?

272,60 mln EUR

What innovations receive support?

-

What is the provision for international cooperation?

-


engaged in this objective

achievement?

As in the previous priority

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What are the political

opportunities open?


discussed?


National Program – Fundusz Inicjatyw Społecznych

Programme title Social Initiative Fund

Entire strategy summary The Civil Initiative Fund is a response to the third sector needs. Third sector wants to cooperate with public administration in public assignments delivery but has limited financial, technical and organizational capacity. Diagnosis of the third sector condition and development perspectives confirms the realization of financial instrument, that through encompassing all of public benefit areas, would include the horizontal character of the initiatives undertaken.. The Civil Initiatives Fund was founded on the provisions of the Strategy of Civil Society Support. Adopted by the Council of Ministers on 7 June 2005 r. Strategy of the Civil Society Support was created as a long-term document aiming to shape the process of civil society development. The objectives of the Strategy focus on achieving optimal level of civil participation in public sphere, quantitative and qualitative development of civil society and creating the basis for a good state functioning. Analyses of the „FIO” Programme implemented within the years

2005- 2007, allowed to state that the „Government Programme – Civil

Initiatives Fund’’, despite the fact it is one of the programme and

finance instruments aimed at supporting non-profit organizations, is a

special Programme that through its horizontal interpretation of the third

sector support formula, in following step of its implementation, opens

new possibilities for equal opportunities in development of civil

initiatives, through reaching socially neglected initiatives.

Which priority does it fall within”?

Entire programme

Which priority does it fall within”?

Entire programme

What is the measurable objective?

The aim of the programme is to raise the level of engagement of non-

government organizations in public services delivery within the frames

of public polices based on assistance and partnership (this strategic

objective refers to both, non-government organizations’ participation in

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public policy making and public services delivery).

Achievement of strategic objective is possible thanks to achieving elementary objectives: - individual activities initiated by non-government organizations within the sphere of public services delivery (areas included in the article 4 of the Act dated on 24 April 2003 r. on public benefit activities and volunteerism, constitute a catalogue of public services, that holistically and complementarily define interests and areas of non-profits and public administration cooperation in the act of civil society building),

- joint-venture civil initiatives within public – social partnership, (adequate cooperation between non-government and public sector as criteria for effective action is necessary to achieve socially and economically beneficial effects of public services’ delivery; development of standards referring to the above should be one of significant results of FIO’s participation in the process of civil society building,

- joint-ventures undertaken on the basis of partnerships within the non-government sector (FIO should become an institution improving the conditions for third sector organizations’ integration, using fundamental values and rules such as social solidarity and equality in opportunities, start and treatment),

- good practice promotion, exemplary solutions in terms of assistance principle, cooperation standards, shaping democratic social order (along with model civil initiatives having application to the sphere of public services, measurement of this objective should also be based on social attitudes oriented at participation, invention and social responsibility).

What are the supported activities?

- Social guarantee - Social integration and activation - Human and civil rights - Education, science, culture and upbringing - Public security and national defence FIO means cannot fund economic activities.

What are the anticipated target groups?

Amongst others:

- elderly - children and youth - families - women - handicapped - discriminated groups - volunteers - communes and local communities

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- non-government organizations - foreigners - ethnic minorities

What is the available budget?

60 000 000 PLN (for 2008r.)

What are the innovations that receive support?

-

What is the commission for international cooperation?

-


engaged in this objective

achievement?

They take part in competitions organized within the frames of EU

Funds and those organized by local governments


the raise of WISE engagement

in achieving the objectives?

Staff poorly prepared for acquiring means to undertake public services

delivery.

What are the political options open?

What are the main issues that should be discusses?

Interactions between the public and non-government organizations’’

sector – risks and opportunities.

National Funds

Competitions organised by Ministry of Labour and Social Policy.

Ministry of Labour and Social Policy announces every year a competition for founding 10 Support Centres

for Social Cooperatives.

Planned tasks for the created Support Centres for Social Cooperatives are: Task 1.Counselling activity, embracing the consulting services within: a) restructurisation of the social cooperative activity profile with the aim to improve their financial situation, b) legal, accounting and financial consulting,

c) advice in starting local groups of employers, scrutiny alliances of social cooperatives and local

partnerships for overcoming the barriers of social exclusion.

Task 2. Giving social cooperatives financial support to be used for: a) guarantee – for the unemployed individuals who intend to launch a social cooperative and apply for

funds from the Employment Fund,

b) loans – to cover the insurance premiums of the cooperatives’ members to whom they will be refunded by

the Employment Fund, as per the Article 12 of the Act on Social Cooperatives of the 27th of April of 2006

(Journal of Laws of the Republic of Poland 94, position 651),

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c) loans – for purchase of the materials and tools necessary to process the delegated public procurement

or carry out the first public task as per the Public Benefit and Volunteer Work Act of the 24th of April of 2003

(Journal of Laws of the Republic of Poland No 96, position 873, incl. further amendments),

d) loans - for guarantee when participating in a bidding process and to ensure the satisfactory fulfilment of

the agreement, which are mentioned in the Act on Public Procurement of the 29th of January of 2004

(Journal of Laws of the Republic of Poland No 19, position 177, incl. further amendments),

e) grants for the active social cooperatives which are ready to restructure their activity profile and for the

recently formed founders’ groups.

The sum of the funds (an additional source of finance of Centres for Social Cooperatives for 2009) is 1000,000 PLN destined for the entire competition. This means that there is a possibility to grant 100,000

PLN to each winning institution. The required own contribution is of at least 10% of the amount applied for.

Examples of Good Practice – Results of EQUAL The WISE was discussed within the framework of the “D” subject of IW EQUAL: Reinforcement of the domestic

social economy, especially the services provided to the local communities and improvement of the employment

places quality.

Examples of results of the D subject projects are:

Result Name Result Description Partners

hip No

Coaching as a method

of professional and

social activity within

three sectors of the

Economy

Coaching is a method of professional and social reintegration of the long-term

unemployed people due to their disability, insufficient or not up-graded

professional skills, gaps in employment (with regards to e.g. women after taking

maternity leave) or linguistic and cultural barriers. Within the framework of this

model, a coach motivates, motivates and supports the beneficiaries and, at the

same time, enables them to gain or develop their skills in an open labour market.

The coach works on improving the strong characteristics of the beneficiary and

compensates his or her disadvantages.

D0391

Activity of a social

enterprise and a

supporting institution

(Centre of Social

Economy) within the

public services.

Methodology of

activating

professionally the

mentally ill individuals

and the long-term

The elaborated principles of functioning of the social enterprise are the main

result. It is shown by the example of a social company, supported by a

counselling and educational institution (Centre of Social Economy). The activity

of a social cooperation combines social and legal aspects because the excluded

people are employed, the obtained income is invested in the personnel

development thus increasing the standard of services. The company offers two

types of employment: permanent and temporary. The first one is available to the

beneficiaries who, due to the necessity of completing rehabilitation, have a slim

chance to return to the open labour market. The other employment type is

offered to the individuals who can access the employment market after

terminating a training (which means their posts within the social enterprise

D0438

86

unemployed from the

rural regions

vacate).

The model of

professional activity for

the Rom population

reached by

encouraging the

establishment of

integrative social

cooperatives

The elaborated result stems from a complex model of establishing new enterprises: integrative social cooperatives, which are adapted to the specific needs of the Rom community. The activity profile of the cooperative is based on the beneficiaries’ skills. The employment places created and the forms of organisation are adjusted to the cultural environment. The Roms gain access to the market information, business training sessions, additional professional training and mentorship. The analysis of the beneficiaries’ skills and the analysis of the market demand and opportunities (finding a niche in the market) are followed by the selection of the activity profile of the cooperative. The possible participation in decision-making process on the cooperatives’ development policy has a high importance to the programme beneficiaries. This helps them to identify with the type of activity conducted. Setting up and enterprises’ operation involves the members of the Rom-Polish families, who contribute their essential qualifications and act as a bridge between the two environments. What constitutes an important element of the described model is the mechanism of cooperation of the recently established Rom social cooperatives, the local Rom community and the Rom associations with the local authorities and other participants of the labour market. The external subjects form the Managing Group which provides the counselling services to the cooperatives and enables them to integrate into the local employment market.

D0406

Model of ecological

economic activity for

the non-governmental

organisations

The created ecological economic activity model is compounded by: legal and institutional solutions, methods of raising funds and implementation of ecological economic activity. Examples of good practice in environment-friendly establishments, applied in Western Europe and in Poland, are available within the model. It helps to create new places of employment and admits for the local population to benefit from ecology. Within the framework of this model there is a code of good practice presenting the unique characteristics and the current situation of the Polish non-governmental organisations, including all the circumstances (also the legal ones) connected with initiating and developing the ecological economic activity. Within the framework of the model, concepts of centres of local development were created. These are established as partners of the non-governmental organisations, local governments and private companies. The centres of local development are aimed at ecological education in general understanding (organising conferences, excursions for schools in natural environment, publishing activity). Their main tasks involve: local community integration, initiating ecological economic activity by non-governmental organisations (and fundraising), creating and development of the ecotourism, promotion of the local products, commercial activity on a small scale, counselling services and training. The centres of local development in communes carry out the role of animators for development for environment-friendly economic activity, which implies exchange of knowledge and creating partnerships. The described category determines also the model of environment-friendly economic activity

D0442

87

(agricultural and environment-friendly actions, agro-tourism, eco-agriculture, local products, health and safety regulations in agriculture, groups of manufacturers, organic food, cultural tourism, renewable energy, renaturisation of rivers, ecolabelling and certification). Selection of the activity is pending on the organisation potential, demand for specified type of services and other local circumstances.

Model of the

mechanism of local

social economy’s

subject based on the

economic activity of

non-governmental

organisation

Making this model work is advantageous for activation of the third sector of economy in terms of forming the local labour market. Developing the economic activity allows the non-governmental organisations generate income, employ individuals at risk of social exclusion and provide services influencing the balanced development of the region. Assuming a new economical role, the non-governmental organisation becomes an autonomous institution – a social company, department or cooperative –whose services and products, based on the local resources of natural world and culture, derive from the needs of the tourist market (known as heritage tourism). The surplus of income from the economic activity can be spent on achieving charter goals of the institution. The non-governmental organisations, who decide to conduct economic activity, create new employment opportunities and actively build the local employment market. The job offers can be addressed to any target groups, pending on the needs of the local market (among others, to the youth and to the long-term unemployed). In some cases, employing a definite beneficiary will require directing him or her to appropriate training courses. An economic entity can promote its own offer or enter into cooperation with the local manufacturing or service subjects, in order to mediate in sales of the products and services of the local manufacturers. Such a wide range of activities makes it easier for various organisations to unite social and economic functions harmoniously, which stimulates increasing human resources and the mechanisms in the local employment market.

D0443

Model of incubator of

social economy

The result aims at systemic support of creating employment places in social economy (in the third sector), especially in social cooperatives. The solution lies in the Virtual Incubator of Social Economy (Wirtualny Inkubator Gospodarki Społecznej) . This institution serves as a small counselling body and encourages (with help of Internet) creating new subjects in the field of social economy – from the moment of searching a niche in the market until generating documents and raising funds essential for establishing a new subject. New enterprises can benefit from a support network which provides educational services, facilitates obtaining funds in the initial stage of the company existence and helps to gain orders and clients. An integrated support system, along with the whole process of establishing a social cooperative, has been elaborated. The system was build taking into consideration local circumstances and legal framework. Furthermore, the tools used in the open market were adapted to the needs of the third sector. They include business plans, feasibility studies, risk assessment procedures and financial montages. Thanks to creating new employment opportunities in the third sector, especially in social cooperatives, the long-term unemployed, the disabled and the representatives of other excluded groups are given a real chance for employment.

D0603

88

Model of social

enterprises which

operate in the

franchising system

The presented result is a model of creation, functioning and financing social enterprises which operate in the franchising system. Apart from that, the system consists of the following components: incubator of entrepreneurship, brand creation strategy and the Daytime Care Home (Dom Dziennego Pobytu) concept. The social enterprises take aim at revitalisation of regions with poor employment markets and professional mobility of the long-term unemployed groups. This model describes the social cooperatives which are active in the traditional product branch and offer tourist or tourist-related services. The model embraces two operating aspects: economic and social (a part of the generated income is invested in social goals like professional training, founding daytime care centres for children and daytime care homes for people dependent from the cooperative’s staff). One of the tasks of the social enterprises is a cooperation with the local employers and local authorities with regards to promoting the region and developing the social infrastructure. These actions efficiently support entering the open labour market by the people who benefitted from the social employment before. The mentioned activities also increase the knowledge about creating new employment opportunities in the third sector and enable creating a model of cooperation and communication among the local communities.

D0681

The model of social

and professional

reintegration of the

young excluded

individuals (leaving

reformatories and

penitentiaries)

The suggested model allows the social and professional reintegration of the young people who leave reformatories and penitentiaries. The related actions taken by now by the local institutions and organisations have not been coordinated. One could notice both lack of cooperation between the institutions and penitentiaries and unfamiliarity with methods of support for young individuals dismissed from reformatories and penitentiaries. The reintegration of the beneficiaries is possible thanks to consolidated and systemic cooperation between penitentiary units with local institutions and it can be also carried out through coordinating the actions of bodies of social welfare. The result is based on a properly prepared programme of educational and socialising intervention, which allows the beneficiaries to become independent by establishing and conducting a social cooperation. Within the framework of this model there was created an institutional system (an agreement of local organisations and institutions), content-related system (socialising, educational and supportive actions) and legal system (recommendations of legal amendments).

D0219

Model of generating

social cooperatives of

the disabled with

participation of the

local communal

government or under

its auspices, with

participation of local

non-government

organisations and the

disabled people

The developed model of establishing social cooperatives of disabled individuals meets the socio-economic conditions of small towns and villages and aims at intensifying professional activity of the beneficiaries. The model includes a detailed description of the process of starting a social cooperative and instruction of building it. The model presents three areas of cooperative activity: social services satisfying the needs of the local community (repairs, tailoring, food processing, delicatessen, cleaning), the natural environment protection (e.g. recycling) and tourism and leisure (running tourist information centres and agro-tourist agencies). The type of conducted activity can be adapted to the needs and demand of the disabled.

D0249

89

Cohesive model of

support for the national

social economy seen

as a mechanism of

social development

and assimilation of

excluded collectivises

A cohesive system of support for the national social economy is a new tool of socio-economic progress at the local level. The elaborated model of education, which is based on the EU countries’ experience, includes the basic academic knowledge and allows develop practical skills. The result is addressed to the beneficiaries who get ready to establish social cooperatives, to other subjects in the given region, to the employees and to the outreach workers who assist the victims of social exclusion or the ones at risk of becoming them. The result consists of a few elements. The first one is a concept of an innovative professional system of education for the employees, staff of social enterprises and local leaders, including the representatives of the public institutions who are responsible for the progress of the local services. The next element which constitutes the result is the Polish Bank for Support of Social Economy (Polska Kasa Wspierania Gospodarki Społecznej), a model of a consulting system and financial support for the local establishment initiatives and the for the local subjects of social economy. The result is also formed by: a model of diagnostics of the potential and function of social economy and by a model of a monitoring centre for social economy (The National Monitoring Centre of Social Economy).

D0456

System of support for

social economy’s

initiatives (taking into

consideration the

unemployed and the

excluded) introduced in

three local

environments: village

commune, town

commune and a capital

of a province

One of the system’s components is the mechanism of building local partnership, based on drawing attention of the local subjects to the new methods of solving problems of the local community. This model requires nominating a leader for the organisation, working out a local partnership programme, establishing a centre for social integration within the commune and starting self-training groups for the leaders. Furthermore, the system embraces also an informal programme and a method of education for adults, organised in self-training groups. The first step is participation in the programme of education, related with social economy, by the leaders. This programme teaches them to build partnerships, solve social problems and operate within the social economy institutions. Next, the leaders give similar self-training classes within their local communities (the respective study materials are available). The following element of the described system is a model showing function of a centre of social economy, which specialises in conducting systemic actions to initiate and develop social economy undertakings in local communities and improves methods of financing and cooperation with the local partners, especially from the business sector. Such centre prepares the end beneficiaries to become active within the labour market and establish subjects of social economy. They are provided with the legal and financial support and the help within the accountancy area. A centre of social economy seeks for market niches where the social enterprises and local cooperatives could operate. Moreover, it guarantees promoting the products and services provided by these subjects. A centre of social economy is an integration and mutual support platform for social enterprises and local cooperatives. It assures the contact with institutions and organisations present in the employment market (social welfare centres, parishes, non-governmental organisations, local government units, business partners, local community tenants, schools, housing associations). The last element of the local support system is the mechanism of creating social enterprises. These are initiated with involvement of local partnerships and centres of social economy. The described model covers the mechanisms of creating new employment places and the ways of how the established subjects become independent. The scheme also determines the function and operation area for the enterprise within the local environment.

D0104

90

Popularisation of a

model consulting

institution and social

enterprises and

promoting good

practise which improve

the professional

situation of the

mentally ill and those

affected by long-term

unemployment

The result is the model of consulting institution which assists the existing social enterprises and those being set up and, also, the model solutions for creating social enterprises. The result enables increasing the number of employed individuals who suffer from mental illnesses and improving the quality of employment places destined for this social group. Help for the mentally ill involves three areas: encouraging development of social enterprises, providing information and consulting and educational activities. The counselling services for the social enterprises are provided in personal appointments and via Internet. The elaboration of the best solutions (based on the local and outside opportunities, administrative structures and the target group circumstances) results from cooperation of business experts, public administration representatives, specialists on mental health and the beneficiaries. The methodology of the cooperation of the interdisciplinary group of advisors was tested in the newly established social enterprises. Within the framework of this result there is a description and analysis of the consecutive stages of the consulting process – from the moment of identifying the need of support, through its following procedures, until the effects of consulting could be monitored and measured. Moreover, model solutions for creation of the social enterprises were elaborated. They refer, among others, to the management and finance structure, marketing, gaining orders, internal cooperation (among the employees, and the external one (involving the higher level authorities). The described models were based on examples of four model organisations of this type (delicatessen, catering, bicycle rent and cleaning services), whose activities combine the social and economic aspects.

D0519

C. Best political practises

Summary:

The essay describes good practises with regards to legal solutions on integration and social economy in

Poland. It includes historical aspect of building new legal system in Poland during 2002- 2006 supported to

the large extend by Vice Prime Minister Jerzy Hausner and with an active participation of non-governmental

organisations.

C.1 Act on Social Employment

During 2002-2003 there was a real civil campaign concerning, in the first place, the final shape of the Act

on social assistance and then the Act on Social Employment which had a lot of opponents such as the

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State Agency for Alcohol Problems Solving.

The new act on social assistance did not satisfy the circles of non-governmental organisations due to the

exclusion of NGOs from acting on equal terms with the public sector. After the President of the Republic of

Poland Alexander Kwasniewski signed the new act, Tomasz Sadowski, member of the Public Benefit

Activity Committee, who took an active part in the campaign, submitted a letter to the Undersecretary of

State Cezary Mizejewski. It reads: “I hope that soon, as a result of the public debate forecasted by the

Deputy Prime Minister Jerzy Hausner, there will be new assumptions defined to a social policy which the

Prime Minister called “the policy of a new generation”. I am convinced that in our country we will be able to

reach a united and integrated social assistance system instead of having two incoherent systems whereby

one is run by the public administration and the other by civic groups within communities, NGOs and

churches. (….) Integrated social assistance system is not a utopia. Its configuration will serve a fuller social

integration, increase chances for more effective activities in the transformation period and facilitate creation

of free market economy and democracy so a citizen will not have to be a “client in their own country”. I wish

that organisations created by citizens to enhance the development of the endangered groups of society

were, according to the constitutional principle of subsidiarity, supported by a “superior” community that is

local or central government administration and that they are neither replaced nor pushed out from their

natural settings. (….) Public administration is often identified with the „State” while the limitation of its roles

is associated with “forcing the State out”. Citizens cannot force the State out but they can limit its role and it

is necessary in countries with post-communist or totalitarian traditions. „The State” is all public and civil

institutions and the administration should play an auxiliary and serving role. This is where the subsidiarity

principle for citizens and their communities comes from” (Tomasz Sadowski, 16 March 2004).

The regulations resulting from the subsidiarity principle were not included in the Act on Social Assistance.

For a change, after long and heated debates, the Act on Social Employment was enforced and a record on

social cooperatives was included in the Act on Employment Promotion and Labour Market Institutions.

Later a separate act on social cooperatives was set up.

Influence of socio – educational programs on the origination of the Act on Social Employment

A great advocate of civic activities and system-based solutions in social-policy was the Deputy Prime

Minister Professor Jerzy Hausner. Professor was acquainted with the Barka Foundation even before he

became the Minister. He learnt more about the Foundation during seminars which he organised for

students from the Academy of Economics in Krakow. In 2002 after professor Jerzy Hausner became the

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Minister of Labour and Social Policy, he visited Barka School in Poznan (since 1998 the School has been

implementing projects for activation of the excluded groups through a variety of workshops such as sawing,

carpentry, construction, cooking and computers. The school also operated a medical emergency for those

participants who did not have an easy access to medical care and a nursery which enabled female

participants to come to workshops whiles their children enjoyed the nursery).

Barka’s School became a prototype of centres for social integration operating on the basis of the Act on

Social Employment dated 2003. The description of the Barka’s School operations and the gather

experiences were a justification for the law’s introduction. The law’s origination was assisted by heated

debates on its legitimacy, relevance and costs it would bring for the State.

There were discussions whether the emerging centres for social integration would contribute to the change

of the passive social policy in Poland and whether they would help transform pretension attitudes into pro-

growth and pro-personal development attitudes.

According to the Act, Centres for Social Integration can be established by non-governmental organisations

and local authorities (on the basis of a resolution of the president, local governor or a village-mayor). The

Act says that an unemployed person (there must be an at least 12-months-unemployment period which

took place in 2 years) who participated in CSI receives an integration benefit which equals 100% of an

unemployment benefit. Participants are allowed to take part in the program of Centres for Social Integration

for the period of 12 months, however in exceptional cases this period can be prolonged to a year and a

half. Referrals to Centres for Social Integration are issued by social welfare centres. This part of the Act

causes certain complications especially in those cities where besides Centres for Social Integration there

are vocational activation programs operated by the public administration institutions as well. In this situation

we come across the phenomena where people are encouraged by programs’ representatives to take part in

the programs run by “their” institutions. If in this context one referred to the constitutional subsidiarity

principle (which is about the State’s auxiliary role to its citizens and not about replacing them), one must

admit that the principle is not respected. Multiplication of the State institutions when citizens are ready to

take the initiative causes the hamper of the civic society development.

The State Agency for Alcohol Problems Solving submitted a petition against parts of the Act which

concerned financing of the activities from the alcohol fund, arguing that these resources are to be spent for

rehabilitation and not for vocational training or general education.

Again there were heated discussions taking place on the websites: www.ngo.pl and www. barka.org.pl and

thousands of individuals expressed their views. There were letters submitted to members of Parliament and

senators opting for introducing the Act.

93

Meanwhile it turned out that a large part of CSI participants are individuals addicted to alcohol (in Centres

for Social Integration in Wielkopolska there are over 50% of them). Besides a much smaller number of

Centres for Social Integration was established then it was expected. Majority of them benefits from the

European Social Fund therefore only few use local authorities’ funding (Centres of Social Integration in the

country-side are not funded by local authorities at all).

Nowadays no one doubts that CSI is a modern form of assistance which breaks strong pretension attitudes.

A participant is obliged to every-day participation in the program for 6-8 hours. Thanks to this it is possible

to combine the received integration benefit with the commitment to change.

The forms applied up till now strengthen passive attitudes. CSI run production, service oriented activities

and trade which allows verifying the quality of services and products by the market. Unfortunately at a

national scale still an insignificant percent of individuals uses the CSI. Up till now there have been 56 of

them established. Taking in into consideration that around 50 persons benefits from them, their role in

transforming a passive social welfare is meagre and concerns as many as 2500 individuals.

C.2 The act regarding social cooperatives

The background of social enterprise has been developed by non- governmental organizations in Poland

during the transition period. In spite of lack of proper law and adequate financing, these were working to

create programs of integration for the groups that were in most difficult circumstances during that period.

One of such organizations was the Barka Foundation, which as early as in 1989 began programs for

Communities based on the individual work of their participants. These programs have been developed in

both the rural and urban areas. Tomasz Sadowski in the article „Social Economy in Poland – new

perspectives for counteraction of social exclusion (Rynek Pracy, 3 /2005) describes this period:

„Entrepreneurial activities of Barka were ahead of the existing legislations, in particular of those regarding

social cooperatives, and faced a lot of adversities. Social cooperatives were treated by government and

local administration as commercial companies. They risked taking loans. There were many difficulties with

establishing a balance between the social and economic aspect of activities of social cooperatives due to

rapidly increasing number of individuals stricken by poverty and the necessity of satisfying basic needs. Of

all the staff working within the quasi -cooperatives almost 80% were volunteers with roughly 20% in paid.

The success was endangered by economic instability caused amongst others by the lack of qualifications

of employees in the enterprises”.

The not - for – profit activities aimed to create favorable conditions for social and vocational reintegration of

socially excluded groups. The resources obtained helped to maintain various kinds of social activities. For

example in Poznan a shelter for homeless people was created. The social program was created that

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enabled to give work to people with a long history of unemployment. Without that support there would have

been little chance of finding jobs for individuals with low qualifications and little or no work experience.

The evidence gathered by Barka during the last 19 years, is somewhat similar to what had happened in

Italy prior to introducing the legislations regarding the social cooperatives. The catholic non-governmental

organizations were campaigning for new opportunities for social and vocational reintegration of the

disabled, the addicted and the former prisoners.

The in-depth knowledge about the structures of Italian social cooperatives had existed in Barka since 1995.

In that year the Polish Foundation Forum organized fact-finding visits

to Italy for one of Barka’s employees. The Italian act of law dated 8th of November 1991 was translated by

Barka and presented to the Deputy Prime Minister Jerzy Hausner , who inspired with the Italian example,

called the law ‘Act of New Generation’. On this basis the discussions and analysis were started and then

the chapter about social cooperatives was introduced to the legislation regarding Employment Promotion

and Labor Market Institutions in 2004. In April 2006 the separated legislation regarding social cooperatives

was introduced to the Polish law.

In the first case some representatives of Social Policy Commission from Civic Platform Party (Platforma

Obywatelska) were opponents. They were presenting doubts about the category of people which were

supposed to set up social cooperatives (setting up social cooperatives by homeless and addicted people

was said to be less probable). They were also in fear of embezzlement by unfair businessmen, who could

simulate collapse of company and set up social cooperatives. But thanks to the pressure putted by

organizations, the act was outvoted by the Parliament and signed by the President.

This legislation is a considerable achievement in Polish Social Policy, as it contributes to the transition

between the passive and proactive social policy. The significance of this legislative lies in transforming the

attitudes of the socially disadvantaged individuals from those of dependency on benefits to those of actively

seeking means of self efficiency. For the first time instead of distributing goods for these people there was

given an opportunity for them to be part of exchange of these goods. This fundamental difference in

support of long term unemployed is the only mean of transforming these social clients into actively working

members of social cooperatives and also into the members of management teams and generally

contributes to the change in financial and social circumstances of the former social benefits seekers.

At the moment the number of social cooperatives is still disappointingly small. The 156 existing social

cooperatives are creating employment for just around 700 people. Some of their members work as

volunteers whilst seeking for paid employment. Their salaries are based on the minimum wage level that is

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about 970 PLN per month. In spite of the formal registration, nearly 40 % of all social cooperatives have not

yet started working. Social cooperatives are meant to be a transitional form of socio- vocational

reintegration for excluded groups. For these reasons the percentage of all members of the cooperatives

should be 80% of those from the disadvantage background with 20%recruting from the general public. The

recent amendment of this act assumes the change of proportions to the 50% to 50%.

Reasons of difficulties in social cooperatives development are:

- lack of staff prepared to socio- vocational reintegration of people from excluded groups

- strong structures of social welfare, based on goods distribution and on traditional relation client -

service receiver, social worker – service provider

- too little knowledge about social economy in local communities, shortage of energetic leaders capable

of instigating that decisive action in local communities and among social workers

- legal barriers eg. difficulties with getting bails from banks by members of social cooperatives

- inability of getting support in case of debts

- there is a distinct lack of support from various institutions

- stereotypes, mistrust and lack of tradition of cooperation between sectors in local communities

The priority in the coming years should be creation of the system of support for the continuous growth of

social cooperatives ie. long term education for candidates and for members of social cooperatives,

education for local leaders, legal advice system, accountancy, financial and training, creation Local

Partnership for Social Integration and creating the consortium of social cooperatives when they are

stronger and more popular.

D. Conclusions

Summary

The chapter includes reflections on directions of social economy development in Poland and challenges of

the next few years as well as recommendations for integrated policies. Here an analysis is conducted on

the stage of the development of social economy entities in Poland in the European context. Polish solidarity

is still an immense value which commits to creating conditions for development for most vulnerable

member of society. Education in the field of social economy cannot be limited to a technical training only. It

ought to include elements of ethical formation which will prepare for relations based on mutuality, inclusion

of excluded groups into the circle of exchange of goods and services in local community as well as building

local partnership with the participation of public, social and private sector representatives.

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D.1 Political debates and trends

There are some models of social economy, which ought to be emulated in Poland. It should be considered

whether the Polish patterns based on the past experiences and on the findings of Equal projects in the

recent years are sufficiently informative or whether we should rely more upon the Europeans outcomes,

for instance on the Italian example. The previous European inspirations were very significant. The Italian

legislation regarding social cooperatives, which was presented by Barka’s member in 1995 was very

inspiring and showed some directions for future development of Polish law. Today Poland is on another

stage, and despite seeking for international inspirations, we have to find some Polish good practices and

models of social economy support. The Project realized within the Equal Program is still quite unsatisfying,

although the integration aspects are very strong. The reason for that is the fact that ideas of solidarity and

equality have existed in people’s minds since the communism era. By comparison to the other EU

countries, Poland has some good achievements in subject of the social economy.

We would strongly suggest that the Eastern Europe’s experiences is of some significance in relation

to what the Western Europe Has experienced. As far as Polish achievements are concerned, it is

important to highlight our knowledge about reintegration of extremely excluded groups of individuals. Those

groups had been prepared for the active participation within the structures of the social cooperatives

and social enterprises, even priori Equal project realization. There is no tradition in western European

countries of inclusion of the most vulnerable people into social economy projects. Towards this group the

western European Policy simply presents the option a of welfare state and therefore these policies

themselves seem to be experiencing some crisis in the recent years. This was confirmed by the

representatives of local authorities in Hammersmith and Fulham, West London, whilst visiting the Social

Economy in Practice Partnership in May 2007. Their report the stated: “The Social Economy in Practise

Partnership realise a modern social economy model founded on a belief in self-help and is unfettered by

the Victorian era version of Christian charity, still so common in the United Kingdom today, that has a

palliative approach as its heart. The United Kingdom’s congestion of agencies may offer an option of

methodologies that commonly respond to need but do not require any commitment to change. This

therefore encourages service users to choose “paths of least resistance“- (John Downie, H&F, 09.05.2007).

This opinion shows, that what we have achieved in Poland within the Equal Project, might be of

significance and an inspiration for the Western Europe countries. That in itself is and important message

for the social economy development in Poland. There is also a strong need for the creation of the social

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economy models in some countries of Eastern Europe, especially, it seems, Ukraine, Belarus, Georgia.

There is a huge necessity to educate local leaders, who would in turn be left in charge to create new

initiatives for the social economy within the local environments. Training shouldn’t be commercially

oriented, but should show the importance of the social mission in the local social economy. At present

within the existing educational programmes there is no space for values based on solidarity and social

justice. There is a significant risk of private companies taking over the social economy training

scheme, which would be commercially oriented and concentrating purely on the economical aspects.

Indeed the priority should always be the aspect of integration and improvement of the individual’s

personality and his long-term welfare. The significant difference between free-market economy and social

enterprises is in community aspect, which in this kind of trainings is often missed. Consequently social

and integration aspects are less important and for that reason some social enterprises aren’t recognized by

local society.

The experiences of Equal Project show, that creation of support system for social economy structures

requires new quality of relations between institutions and new initiatives in the field of entrepreneurship,

society, economy, culture, sport and integration. The process of creating partnerships between sectors in

communes should be implemented by institutions, which usually function only in cooperation with similar

entities. Setting up local partnerships with public, private and social sector is necessary condition for

development of social economy. The multi sectors participation ensures wide range of activities,

coordination, and multiplication of local potential, creation new markets and new possibilities for excluded

groups. As a reason of cooperation growths the number of work places in local communities. In addition

every part of local society takes part in development, also those marginalized.

The improvement of intensity and quality of cooperation is a challenge to be met in following years. There is

a need of cooperation between institutions coming from old and traditional social economy – labor

cooperatives, mutual insurance societies, provident funds, traditional third sector organizations and those

which belong to the “new social economy “ group such as Centers for Social Integration, social

cooperatives, Centers for Vocational Activation, etc,.

Social economy in Poland as a young and not well developed part of Polish economy is threatened with

loosing proper proportions between gain and social mission. Lack of funding May be on some stage, but

when it’s too big, may cause spirit of entrepreneurship. There is a real threat that Commercial methods of

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management could be used in social sector. It may cause some difficulties in the integration aspect towards

social cooperatives members. Some social enterprises, which start functioning as another business

enterprise, resist including less able and competitive persons (the addicts, the disabled, the ex-prisoners)

into the realized activities.

D.2 Challenges

1. A serious challenge is to trigger cooperation between new social economy entities and to build up their

representation. It is recommended that a community aspect of activities and not the individual aspect is

emphasised to a larger degree. Such approach indicates that it is not about individual institutions or single-

sector partnerships but about multi-sector partnerships and cooperation networks which create foundations

for development of local communities. It is necessary to undertake efforts to create joint representation,

integration, technical support, self-help activities and work towards common standards of activities for all

social economy groups.

Social Economy based upon the idea of solidarity assumes that those successful (individuals and

institutions) should support those who are only in the beginning of the way.

2. The challenge for newly established social enterprises is a search for a balance between the support for

integration functions for social economy institutions from the State and the ability to function in a

competitive environment of the market. Another challenge is to find a balance between a social missions

and the business activity. While taking care of the right proportions, the process of making the third sector

more business-oriented should be promoted as an opportunity for at least a partial independence from

public administration and charity activities. Also one needs to think ahead and ensure the continuation of

activities after 2013 when the resources to build social capital within European Social Fund will finish.

3. Shaping new relationships between beneficiaries and staff of social economy institutions is another

challenge. The essence of social economy is that beneficiaries or programs’ participants increasingly

became co-partners and co-administrators of the activities being operated and are not only a subject to

influence (this would lead to increasing dependency and hampering processes of becoming independent).

This is a challenge not only for welfare institutions but also for programs’ participants who are not always

willing to realistically take co-responsibility for their lives. On both sides what often come to surface are old

habits, expectations and fears which prevent from taking on new commitments.

4. In order for social economy to grow and develop it is necessary to initiate activities for widely perceived

consumers’ education. It is the consumers’ choice that determines whether, when buying a product or a

service, one will consider goals of an enterprise, corporate social responsibility, fair trade etc,. Nowadays

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buying a certain product is opting for certain directions of entrepreneurship’s development, corporate social

responsibility and generally for values of a greater social justice.

5. A conception of corporate social responsibility is still barely known in Poland. The business sector has

been only developing for less than 20 years which results in the fact that the sector is mainly occupied with

the maximisation of profits. There is still little number of entrepreneurs involved in social development.

There are very few entrepreneurs who perceive the sustainable development as a source of opportunities,

innovation and comparative advantage of companies and not as a noble deed, additional cost or forced

duty. It is necessary to continue political debate with the business participation and to build within the sector

the knowledge on social economy and responsibility for social development which is already so popular in

Western Europe and other regions in the world.

Employers in Poland do not yet have a sufficient knowledge on social economy institutions. In many polish

regions there is a shortage of Centres for Social Integration, Clubs for Social Integration, social

cooperatives, Centres for Vocational Activation, local partnerships creating a favourable environment for

social economy initiatives. As a consequence, the cooperation channels between social economy

institutions and businesses are not well-developed. Sometimes such initiatives are perceived as a

competion. Business circles should understand that social enterprises are not a dishonest competition for

commercial companies. Social enterprises are a way to solve social problems by using mechanisms which

are considered the best by business itself. Persons who found themselves in difficulties do not have to be a

problem or a burden for a local community but they can become co-workers in building new social

relationships. In this context one should consider an amendment to the Act on Public Benefit Activities and

Volunteerism. The amendment heads a direction of building public-social partnerships which omit business

partners as well as social cooperatives which are social entrepreneurship’s partners. It is recommended

that the amendment is modified in this respect.

D.3 Recommendations for integrated policies

3.1. A suitable legislation is essential to support development of proper solutions at a scale which answer

the needs. In Poland the existing legal solutions in the area of social economy seem to be comprehensive

yet the activities being implemented are still at a too little scale - taking into consideration the enormity of

needs. This is connected to insufficient preparation of staff and meagre knowledge on social economy and

mechanisms of inclusion. If in the nearest future development strategies of widely perceived public policy

replaced the sectorial strategies and if the European Union funding was used in a way that it strengthened

social coherence based on an integrated legal system, Poland would reach genuine social changes and

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wide integration including the integration of the excluded groups.

3.2. Development of social economy institutions should become a political priority of the State because it is

a tool which enables integration of not only the socially excluded groups but it also facilitates the activation

and a socio - economic coherence of all groups of society. For this purpose it is recommended that Social

Economy Development Strategy is set up which would include a comprehensive plan of activities.

Currently, after the EQUAL program has been completed in Poland, one observes intensification of

opposition attitudes towards the social economy. There is an urgent need to establish an inter-departmental

committee on social economy supervised by the Polish Prime Minister and arrangements to realise it have

already been made. The committee will consist of the following Heads of Ministries: Minister of Regional

Development, Minister of Labour and Social Policy, Minister of Economy and Minister of Education. There

will also be a working group on social economy called into being, which is going to be represented by social

economy institutions, public administration as well as researchers and scientists. Without work being

undertaken as a matter of urgency, the future of social economy in Poland is endangered.

3.3. Social economy institutions are increasingly becoming a partner to the public and business sectors in

the course of completing different services and orders.

Social economy institutions do not only provide public services or services for the labour market in

cooperation with entrepreneurs, but also act in favour of local communities’ development and run trade and

production activities with profits being allocated to social causes. Further development of social economy

initiatives requires transformation of departmental and sectorial strategies into a comprehensive system of

public policy based on coherence-building in the area of legislation, strategic planning and implementing

adequate solutions. Social economy is a very good tool of realising strategic development plans of local

communities, regions and the whole country. This requires well-planned and well-implemented

comprehensive fragmentary strategies both in the field of social assistance and employment policy and in

the area of education, culture, health protection, ecology, economy, etc. For this purpose there should be

another inter-departmental committee responsible for building a coherent national strategy for social

economy development which would then allow further sustainable development of initiatives and groups.

The committee should include experts on education, social policy and employment culture, social

entrepreneurship, economy, health, agriculture, building & construction, sport, banking, self-governance as

well as scientists, researchers, church representatives, etc.

Many examples indicate that there is currently a lack of coherence between departments, legislation,

decisions etc., at level of the central government.

3.4. The level of cooperation between the public administration and the third sector is unsatisfactory. The

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main feature of the Act on Public Benefit Activities and Volunteerism is commissioning public tasks with the

participation of social economy entities. However, what’s missing is interaction, consultancies, co-creating

of guidelines, actions plans, local strategies etc. This entails a danger of instrumental treatment of social

partners. It is important to build new forms of partnerships which falls within the rules of the modern

management philosophy. These emphasize that networks of institutions and coordination are more

important than traditional and hierarchical management models, and that commissioning tasks is more

beneficial than performing these tasks by the public administration apparatus which occurs very often in the

polish reality. According to the new approach, non-governmental organisations are not only a performer of

tasks commissioned by the administration but also a co-author of local strategies and policies. The

organisations can then play a double role: on one hand they are a service provider and on the other hand

they are a co-author of strategies defining directions, ways and rules for cooperation in a local community.

3.5. Social enterprises are mostly innovative initiatives which tackle brand-new challenges or approach

social problem solving in a non-standard way. This means that a most basic support in their further

development would be causing the greater flexibility of regulations concerning different legal forms of

running activities so that social economy enterprises could take advantage of their potential to the fullest

extent.

3.6. Within the Polish model of education in the field of social economy one should refer to the value

systems based on solidarity and social justice. In this model of education what’s important are the

philosophical aspects which reveal a relationship-enhancing and integration character of work and its

functions leading to the improvement of a human being themselves, and not only material aspects of work

which are to ensure existence (and this of course cannot be dismissed).

Another important element of social economy, which goes beyond the market, is the community-based

approach in the functioning of the social enterprises. This is a significant element which distinguishes a

social enterprise from individualistic and competitive thus less inclusive forms of economy. It is worth to pay

more attention to a widely perceived “surrounding” of the social economy. In the western world an

increasingly significant roles are played by integrated systems of interrelationships and co-influencing at the

local level as well as a management based on networking which caters to increasing needs for sustainable

development in different regions of the world where the tendencies for limiting roles of nation states and

sectorial strategies are becoming even more clear.

3.7. It is worth to seriously consider ensuring legal and financial conditions for the development of social

economy initiatives. The example of Centres for Social Integration established on the basis of the Act on

Social Employment, many of which had to be liquidated as they did not receive funding from ESF, indicates

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that we are missing a strategic vision for further development of the sector and ensuring its continuity. It is

recommended that Centres for Social Integration are included in the system-based projects implemented at

the central government’s level and are that they included in the life-long learning scheme of the Ministry of

Education so they find a system-based and long-term cover for its mission.

3.8. In terms of working with the long-term unemployed, individuals at risk of social exclusion and the

disabled, a coherent approach is very important. The approach should be put to practise by an integrated

social policy system whereby the activities of Social Assistance Centres, Job Centres, social economy

institutions, non-governmental organisations and life-long learning institutions complement one another

leading to the independence of the beneficiaries. In Poland, the current institutional and legal system

clearly lacks such a comprehensive and integrated approach which would result with the consolidation of

fragmentary policies into one integrated system. Basically activities of the above mentioned institutions are

not coordinated and the needy individuals move passively from one institution to another, and do not reach

independence in majority of cases.

3.9. Another remark concerns a modernisation of social policy system which is necessary for a

development of the social economy conception in Poland. Social workers are prepared to distribute

services/benefits to dysfunctional group members rather than awakening their potential, searching for

opportunities for beneficiaries’ participation and cooperation with a local community, animating education

and enterprise activities.

In order for the situation to change, it is important to, on one hand change the system of staffs’ training, and

on the other hand, to reform social policy models. One of the fundamental changes should be a division of

Centres of Social Assistance’s functions from those concerning social protection and those concerning

social and integration work. This requires Social Insurance Office (ZUS) to take over a part of tasks which

are currently realised by social assistance centres and it entails changes in the legislation on social

protection and the legislation on social assistance.

Translated by Ewa Sadowska

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Barka Foundation for Mutual Help

ul. Św. Wincentego 6/9

61-003 Poznań

www.barka.org.pl

e-mail: [email protected]

0048 61872 02 86

With the financial support of the European Commission

wis es and their role in european policies

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