The delinquency of public administrations forces the third sector to go into debt

BarcelonaThe 3,000 third-sector organizations (ranging from those dealing with childhood and poverty issues to leisure and mental health) surpassed the two million-person mark last year. However, the growth in activity is not accompanied by stable funding, and this lack of funding forces associations to go into debt. Without going any further, 41% of these organizations are still waiting for public administrations to pay their committed amounts, according to the conclusions of the barometer presented by the Third Sector Roundtable of Catalonia with data from the year ended 2023. Public debt for that year increased by 5% compared to 2021, with the Generalitat (Catalan government) being the most delinquent administration, followed by local councils. "This causes tensions in the treasury," says Marta Campo, a member of the Roundtable's board, an umbrella entity for organizations and federations. To continue operating, the largest organizations have the strength to take out credit policies with which they obtain a line of financing to manage their day-to-day operations. On the other hand, smaller companies must seek more drastic solutions, such as delaying scheduled activities, a solution that directly affects users and the quality of service.

Financing difficulties are the third sector's major sticking point with public administrations. Although the Generalitat (Catalan government) and companies in the sector have agreed on rate increases, which should also serve to raise staff salaries, these increases are insufficient to offset years of frozen prices and rising CPI. These are insufficient steps, the Board points out, criticizing the fact that "in May, the amounts of money from the large grant application process from the Department of Social Rights and Inclusion," headed by Minister Mònica Martínez Bravo, are still unknown.

Awaiting a separate law

One of the great hopes is that it will finally be approved. the third sector law, which began processing in the previous legislature, and which should entail legal recognition of the role played by associations. It should also guarantee a budget. The goal is to stop depending on the call for grants and subsidies and move toward a model of consultation like that used in the education and health sectors.

At the presentation of the barometer, the presidency of the Board He insisted that the network of organizations is essential for serving people who, without their care, would be left without coverage. In this sense, he spoke of "humanitarian" care, as demonstrated by the fact that in just a few years, the number of organizations working against poverty has doubled and now accounts for 14% of the total.

According to the 2024 barometer, the organizations served 100,000 more people than two years ago, a 5% increase. Specifically, 2,077,000 people passed through one of the associations, most of them dedicated to caring for children, the elderly, people with disabilities, and poverty.

The report also shows that social activity has a direct impact on Catalan GDP and already accounts for 1.94%, a percentage that translates into €3,874.4 million and represents half a point of growth compared to 2022. The sector also has an impact on the real estate sector, valued at 4 and attended to.