Speaking at the conference on Cross-border philanthropy in Europe, European Commission Vice-President Barrot stated that philanthropy is an activity of vital economic and social importance; however there is a persistent lack of Europe in the field. The Single Market is not yet a reality for foundations and philanthropic bodies, which still face legal and administrative barriers in their cross-border work and cooperation and cannot unleash their full potential.

There is a case for considering appropriate EU action to address these hurdles. The European Commission (EC) will therefore review potential options with an open mind, including the development of a European Foundation Statute. Encouraging Member States to ensure a fair-treatment of other EU country-based foundations and their donors by adapting their tax laws in line with the EC-Treaty is another line of action of the Commission, as well as the review of the VAT treatment of public bodies and public benefit organisations, which the EC is starting.

Gerry Salole, Chief Executive of the European Foundation Centre (EFC), stated that the ability to learn from each other’s practices and know-how and to develop innovative legal tools to optimise philanthropic work is crucial if foundations are to address current European and global challenges successfully. Interestingly, and despite the daunting nature of the current climate, the atmosphere in the philanthropic sector is up-beat and optimistic with new ideas to make good use of all available resources to tackle needs, and creative and often collaborative solutions across borders to both old and new challenges. However, EU legislative action is clearly needed to support such initiatives.