40% of social entities are in debt due to administrative delays

BarcelonaPublic administrations owe money to 39% of social organizations in Catalonia; that is, four out of ten are experiencing payment delays for services or activities they provide. This situation is causing cash flow problems. This is one of the findings of the report. The Yearbook of Employment in the Third Social Sector of Catalonia 2025 The report, prepared by the Confederation, the employers' association for these non-profit organizations, was presented this Wednesday in Barcelona.

The financial difficulties of these organizations are a structural issue, since, unlike in education or healthcare, the sector operates on a model where 92% of income comes from grants awarded on an ad hoc or periodic basis, forcing them to constantly monitor the arrival of funding. However, the agreed-upon money is often transferred after the activity has already begun or even finished, so the organization has to cover the costs out of its own pocket.

According to the report, three-quarters of the organizations opt for lines of credit (which charge interest only on the capital used) to maintain services and pay staff salaries. A smaller percentage, two out of ten, seek support from other associations, and only 13% decide to postpone activities until they receive the funds. The Catalan government (Generalitat) is by far the most indebted administration (84%), followed by municipalities (52%), provincial councils (26%), and Spain (11%). The total debt represents 27% of these entities' funding.

"We are a sector under government intervention; our room for maneuver is small," warned the president of the Confederation, Jordi Roman, given that nearly 60% of the entities are supported by public funds. For this reason, he demanded "a commitment from the administration regarding funding, at least," and advocated for the approval of the law on concerted action, according to ACN.

Gender pay gap

Based on data from the employers' association, the sector is characterized by a "strong feminization" of its workforce. While women are the majority in all job categories, their numbers increase as one moves down the professional ladder. Despite this significant female presence, the sector is not immune to the gender pay gap, although it is smaller than in other economic sectors. The greatest disparity is found between men and women in management and executive positions: although men only make up 33% of the workforce, they earn 7.3% more. The average salary is €17,600, and half of the organizations report paying the minimum wage. Between top and bottom positions, the salary difference doubles or even triples, depending on the size of the organization. Roman noted that the sector employs 120,000 workers, representing 3% of the total workforce in Catalonia. The profile of the third sector is completed by considering the size of the organizations: micro-enterprises predominate (30%, with fewer than 10 employees), followed by small (38%, between 11 and 50 employees) and medium-sized (24%, between 51 and 250 employees), but the presence of larger organizations is also noteworthy (7%, with 5.2% between 5 employees and 2.5% between 1 and 25 employees; with more than 500 employees).