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Non-profit
organisations are a key pillar of the social services system in the capital.
They provide daily care for seniors, people with disabilities, and other
vulnerable groups. However, at the beginning of each year they often face a
difficult situation in which they must cover wages and operating costs without
yet having access to approved and paid subsidies. As a result, they are
frequently forced to rely on commercial loans during the first months of the
year.
“Social service
providers repeatedly, through no fault of their own, find themselves at the
beginning of the year in a situation where they must cover operating costs
without having access to the allocated funds. I consider this situation
unsustainable. This new instrument will bring them greater certainty and
stability for their day-to-day work,” said Alexandra Udženija, Deputy Mayor of
the City of Prague.
The programme launched
today is based on financial assistance in the form of interest-free loans that
will enable selected social service providers to bridge the period from the
beginning of the year until the payment of grants from the City of Prague and,
where applicable, from the Ministry of Labour and Social Affairs (MoLSA). This
instrument eliminates pressure on organisations’ cash flow, reduces the need
for commercial financing and contributes to their overall stability and
efficient management.
“Our goal is a stable
and sustainable social services system that can flexibly respond to the needs
of the city’s residents. This programme is a concrete step towards making it
easier for non-profit organisations to operate. We greatly value their work and
cannot imagine the social services system functioning without them. I would
like to thank PPF Group for their willingness and goodwill in supporting
non-profit organisations, which are an indispensable element of social care in
the capital. It proves that cooperation between non-profits, the city, and the
private sector makes sense,” added Udženija.
The cooperation model
between the City of Prague (also as a shareholder of PPF banka), PPF banka, and
the PPF Foundation is based on the principles of transparency, efficiency,
cost-effectiveness and measurable impact. It constitutes a long-term,
coordinated approach to supporting social services and the public interest in
caring for those in need.
“Non-profit
organisations working in social services perform irreplaceable work, and we are
pleased to take part in a programme that will support their financial
stability. We are also glad that this initiative is being implemented through
the cooperation of our two largest shareholders – the City of Prague and PPF
Group,” said Petr Jirásko, CEO of PPF banka.
The programme will be
implemented by the PPF Foundation, to whose budget PPF banka is a major
contributor.
“This programme offers
a practical and systemic solution to the timing mismatch between operating
costs and income from public grants. The PPF Foundation will provide non-profit
organisations with an interest-free loan allowing them to ensure continuity of
care and focus on their core mission of helping people who need it,” said Jana
Tomas Sedláčková, a PPF Foundation trustee.
The City of Prague will
recommend participating service providers and ensure that the programme is
linked to the city’s grant system. Social service providers interested in this
interest-free bridging financing have already been contacted by Prague City
Hall.
“As one of the largest
providers of field-based personal assistance services in the Czech Republic, we
would like to express our sincere thanks to Deputy Mayor Alexandra Udženija and
PPF Group for creating bridging financing for social service providers in
Prague. This is a unique model of support with no parallel in other regions of
the country. Each year we face significant financial pressure at the beginning
of the year due to delays in receiving grants and have been forced to use bank
loans or overdrafts, often at high cost. The loan provided by the PPF
Foundation with the support of the City of Prague therefore offers a systemic
solution that stabilises our finances and reduces the risk of limiting services
for people in need,” said Jiří Boháček, Chairman and Director of the registered
association HEWER, z. s.
Source: Prague City
Hall Press Release
