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Giving Albania 2021 - Annual Report on the State of Philanthropy

During 2021, Catalyst Balkans tracked media reports on domestic individual, corporate and diaspora philanthropy in Albania. This brochure presents key key statistics on the findings of this research.

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January, 2023
2021
REPORT ON THE
STATE OF
PHILANTHROPY
supported by
1
Introduction
1
Institute of Statistics. Gross Domestic Product. Accessed on 08.08.2022 from http://www.instat.gov.al/en/statistical-litera-
cy/gross-domestic-product/
2
Institute of Statistics. National Accounts (GDP). Accessed on 06.08.2022 from http://www.instat.gov.al/en/themes/eco-
nomy-and-finance/national-accounts-gdp/#tab3
3
Institute of Statistics. Labour Market and Education. Accessed on 06.08.2022 from http://www.instat.gov.al/en/themes/la-
bour-market-and-education/wages/publications/2021/wage-statistics-q1-2021/
4
The rank was based on three indicators: helping a stranger, donating money, and volunteering time; for which Albania had
a score of 57%, 36%, and 8% respectively
5
Charities Aid Foundation. CAF World Giving Index 2022. Accessed from https://www.cafonline.org/about-us/publication-
s/2022-publications/caf-world-giving-index-2022
6
IU Lilly Family School of Philanthropy. The Global Philanthropy Environment Index 2022. Accessed on 04.08.2022 from
https://scholarworks.iupui.edu/handle/1805/28098
7
The overall score represents the average value of six indicators. The socio-cultural environment indicator had a score higher
than the regional average, while the indicators with the lowest score were ease of operating, tax incentives, and cross-border
philanthropic flows.
Catalyst Balkans has been tracking philanthropic activity in Albania since
2013, publishing a unique annual report on the level of giving for each
subsequent year. In recent years, philanthropic activity has taken place in the
context of major social turbulences: the COVID-19 crisis in the year before as
well as the earthquake that struck Albania in 2019. Due to the decreased
economic activity in the midst of the pandemic, economic growth was reduced
by 3.5% in 2020.1
However, the country’s economy managed to recover in
2021, as the GDP increased by 5.5% in the first quarter of 2021 when compared
to the same period in the year before,2
and the average gross wage rose by
5.2%.3
The Report on the State of Philanthropy in Albania 2021 can provide a
summary of how philanthropy has adapted to these challenges and a unique
overview of giving, which adds to the findings of other research. According to
the most recent study from CAF (Charities Aid Foundation), Albania ranked
96th4
on the 2022 World Giving Index,5
while according to the 2022 Global
Philanthropy Environment Index,6
Albania had an overall score of 3.1/5.0.7
However, it is important to note that these studies do not provide a complete
insight into the level of giving in Albania, as both indices are based on survey
data.
2
Total Recorded Giving
The total philanthropic activity during 2021 generated a donated
sum of around 3.6 million euros which were donated through 172
donation instances. Although the year before was unique in terms of
the level of giving due to the increased donor activity during the
COVID-19 crisis, the total recorded donated amount in 2021 was
somewhat higher when compared to the year before. However, it
should be noted that a single donation instance generated a
recorded amount of 1.7 million euros. The donated amount per
capita amounted to 1.3 euros in 2021, which is lower than the
regional average. Nevertheless, the recorded amounts underestima-
te the actual volume of philanthropic activity in Albania.
Recorded amount (millions)
Number of instances
Giving Trend
2015-2021
8
The number of donation instances in 2021 was calculated based on all recorded giving (media-covered donation instances
and donation instances tracked from direct sources), while only media-covered donation instances were included in the total
number in previous years.
2015 2016 2017 2018 2019 2020 2021
85
80
346
102
39
174 1728
0.3
0.4
4.8
3.4
3.6
2.5
0.4
Share of total recorded amount
3
In terms of donor types, Catalyst Balkans differentiates between the
corporate sector, citizens (mass-individual giving), identifiable
individuals, private foundations, and others. The recorded philant-
hropic activity in Albania during 2021 was marked by a high donated
amount by the corporate sector.
Donor structure
Corporate sector
Citizens
(mass-individual giving)
Identifiable Individuals
CSO/Association
84.1%
14.7%
0.6%
0.6%
One-off Support
16.4%
Long-term Support
83.6%
4
In terms of the intended effects of giving in 2021, short-term donati-
ons for humanitarian causes were the most frequent, such as
medical treatments and the donation of food and other necessities,
while the highest donated amount was intended for strategic
support – capital investment in an educational institution.
Intended effects
of giving
Share of total recorded amount
5
According to the data from Giving Balkans, the corporate sector made a
significant contribution to education. The donation instance with the highest
recorded amount was the donation by the Trans Adriatic Pipeline Albania,
intended for the restoration of the concert hall at the University of Arts in
Tirana. The value of the investment was 1.7 million euros, and it was made
through an agreement with the Ministry of Culture. Another action of strategic
support from the corporate sector included the donation of 150 scholarships
by Raiffeisen Invest through the Tumo Tirana program in cooperation with the
Albanian-American Development Foundation and the Municipality of Tirana.
The telecommunication company ALBtelecom also contributed to education
by donating auxiliary equipment, furniture, and books to the Naim Frashëri
High School. Large companies frequently directed their donations to the
support of marginalized groups. For this purpose, Credins Bank initiated the
project “Food Bank” in 2021. As part of this project, food was distributed to
socially disadvantaged families every month. Additionally, Credins Bank
donated funds for the renovation of the Shkozë Community Center, which is
intended to provide educational and psychological services for over 500
families. Within corporate giving, donations toward health institutions were
also recorded. One such contribution was the cooperation between the
companies Divella and Ecomarket Albania which donated six ventilators and
40,000 masks to the Durrës Regional Hospital.
Besides the corporate sector, donations from citizens (through mass-individu-
al giving) highly contributed to the overall philanthropic activity in Albania in
2021. These initiatives included fundraising campaigns and events, predomi-
nantly for the support of marginalized groups. One of the examples was the
action of constructing a new house for a person living in poverty in Librazhd
Municipality. The initiative was organized by the residents of the Hotolisht
Administrative Unit, who also conducted the construction work. Donors
supported the initiative through the gofundme platform and helped in raising
the necessary funds for construction materials. Furthermore, several calls for
raising funds for new houses for socially disadvantaged families and several
recorded calls for donations were also actions initiated by the Albanians for
Albanians foundation. The foundation also initiated calls for donations
intended to provide treatment for children with health issues. During the
previous year, citizens actively supported education. One such action was
organized by Aulon Kalaja and a group of volunteers, with the aim to provide
school bags and other school supplies for children from families affected by
the earthquake in three schools, in Fushë Krujë, Bubq, and Mamurras.
Good Practice Examples
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Giving Albania 2021 - Annual Report on the State of Philanthropy

  • 1. January, 2023 2021 REPORT ON THE STATE OF PHILANTHROPY supported by
  • 2. 1 Introduction 1 Institute of Statistics. Gross Domestic Product. Accessed on 08.08.2022 from http://www.instat.gov.al/en/statistical-litera- cy/gross-domestic-product/ 2 Institute of Statistics. National Accounts (GDP). Accessed on 06.08.2022 from http://www.instat.gov.al/en/themes/eco- nomy-and-finance/national-accounts-gdp/#tab3 3 Institute of Statistics. Labour Market and Education. Accessed on 06.08.2022 from http://www.instat.gov.al/en/themes/la- bour-market-and-education/wages/publications/2021/wage-statistics-q1-2021/ 4 The rank was based on three indicators: helping a stranger, donating money, and volunteering time; for which Albania had a score of 57%, 36%, and 8% respectively 5 Charities Aid Foundation. CAF World Giving Index 2022. Accessed from https://www.cafonline.org/about-us/publication- s/2022-publications/caf-world-giving-index-2022 6 IU Lilly Family School of Philanthropy. The Global Philanthropy Environment Index 2022. Accessed on 04.08.2022 from https://scholarworks.iupui.edu/handle/1805/28098 7 The overall score represents the average value of six indicators. The socio-cultural environment indicator had a score higher than the regional average, while the indicators with the lowest score were ease of operating, tax incentives, and cross-border philanthropic flows. Catalyst Balkans has been tracking philanthropic activity in Albania since 2013, publishing a unique annual report on the level of giving for each subsequent year. In recent years, philanthropic activity has taken place in the context of major social turbulences: the COVID-19 crisis in the year before as well as the earthquake that struck Albania in 2019. Due to the decreased economic activity in the midst of the pandemic, economic growth was reduced by 3.5% in 2020.1 However, the country’s economy managed to recover in 2021, as the GDP increased by 5.5% in the first quarter of 2021 when compared to the same period in the year before,2 and the average gross wage rose by 5.2%.3 The Report on the State of Philanthropy in Albania 2021 can provide a summary of how philanthropy has adapted to these challenges and a unique overview of giving, which adds to the findings of other research. According to the most recent study from CAF (Charities Aid Foundation), Albania ranked 96th4 on the 2022 World Giving Index,5 while according to the 2022 Global Philanthropy Environment Index,6 Albania had an overall score of 3.1/5.0.7 However, it is important to note that these studies do not provide a complete insight into the level of giving in Albania, as both indices are based on survey data.
  • 3. 2 Total Recorded Giving The total philanthropic activity during 2021 generated a donated sum of around 3.6 million euros which were donated through 172 donation instances. Although the year before was unique in terms of the level of giving due to the increased donor activity during the COVID-19 crisis, the total recorded donated amount in 2021 was somewhat higher when compared to the year before. However, it should be noted that a single donation instance generated a recorded amount of 1.7 million euros. The donated amount per capita amounted to 1.3 euros in 2021, which is lower than the regional average. Nevertheless, the recorded amounts underestima- te the actual volume of philanthropic activity in Albania. Recorded amount (millions) Number of instances Giving Trend 2015-2021 8 The number of donation instances in 2021 was calculated based on all recorded giving (media-covered donation instances and donation instances tracked from direct sources), while only media-covered donation instances were included in the total number in previous years. 2015 2016 2017 2018 2019 2020 2021 85 80 346 102 39 174 1728 0.3 0.4 4.8 3.4 3.6 2.5 0.4
  • 4. Share of total recorded amount 3 In terms of donor types, Catalyst Balkans differentiates between the corporate sector, citizens (mass-individual giving), identifiable individuals, private foundations, and others. The recorded philant- hropic activity in Albania during 2021 was marked by a high donated amount by the corporate sector. Donor structure Corporate sector Citizens (mass-individual giving) Identifiable Individuals CSO/Association 84.1% 14.7% 0.6% 0.6%
  • 5. One-off Support 16.4% Long-term Support 83.6% 4 In terms of the intended effects of giving in 2021, short-term donati- ons for humanitarian causes were the most frequent, such as medical treatments and the donation of food and other necessities, while the highest donated amount was intended for strategic support – capital investment in an educational institution. Intended effects of giving Share of total recorded amount
  • 6. 5 According to the data from Giving Balkans, the corporate sector made a significant contribution to education. The donation instance with the highest recorded amount was the donation by the Trans Adriatic Pipeline Albania, intended for the restoration of the concert hall at the University of Arts in Tirana. The value of the investment was 1.7 million euros, and it was made through an agreement with the Ministry of Culture. Another action of strategic support from the corporate sector included the donation of 150 scholarships by Raiffeisen Invest through the Tumo Tirana program in cooperation with the Albanian-American Development Foundation and the Municipality of Tirana. The telecommunication company ALBtelecom also contributed to education by donating auxiliary equipment, furniture, and books to the Naim Frashëri High School. Large companies frequently directed their donations to the support of marginalized groups. For this purpose, Credins Bank initiated the project “Food Bank” in 2021. As part of this project, food was distributed to socially disadvantaged families every month. Additionally, Credins Bank donated funds for the renovation of the Shkozë Community Center, which is intended to provide educational and psychological services for over 500 families. Within corporate giving, donations toward health institutions were also recorded. One such contribution was the cooperation between the companies Divella and Ecomarket Albania which donated six ventilators and 40,000 masks to the Durrës Regional Hospital. Besides the corporate sector, donations from citizens (through mass-individu- al giving) highly contributed to the overall philanthropic activity in Albania in 2021. These initiatives included fundraising campaigns and events, predomi- nantly for the support of marginalized groups. One of the examples was the action of constructing a new house for a person living in poverty in Librazhd Municipality. The initiative was organized by the residents of the Hotolisht Administrative Unit, who also conducted the construction work. Donors supported the initiative through the gofundme platform and helped in raising the necessary funds for construction materials. Furthermore, several calls for raising funds for new houses for socially disadvantaged families and several recorded calls for donations were also actions initiated by the Albanians for Albanians foundation. The foundation also initiated calls for donations intended to provide treatment for children with health issues. During the previous year, citizens actively supported education. One such action was organized by Aulon Kalaja and a group of volunteers, with the aim to provide school bags and other school supplies for children from families affected by the earthquake in three schools, in Fushë Krujë, Bubq, and Mamurras. Good Practice Examples
  • 7. 6 Identifiable individuals contributed to the support of marginalized groups, among other causes, as well. One of the recorded instances was the donation by the singer and songwriter Ermal Meta, who donated musical instruments intended for two social institutions that provide support to socially disadvan- taged children, Rozalba House, and Casa Betania. Another example was a donation from Staki Gafuri, a donor from Tetovo who currently lives in Germany, to ensure a new flat for a family living in poverty, along with a monthly pension of 300 euros, with the help of the Albanians for Albanians foundation. Donations by prominent individuals were also recorded for the support of healthcare. One of the recorded instances was from an anonymo- us donor who answered the call for donations for the support of R.Z., who suffers from health issues, by donating a new oxygen machine. Apart from private entities, donations by the non-profit sector were also recorded for the benefit of healthcare. One such example is the donation of respiratory equip- ment from the Kennedy Foundation intended for the Korça Regional Hospital. In conclusion, it can be stated that despite the post-pandemic socio-econo- mic challenges, both corporate donors and private entities (identifiable individuals and citizens) remained active in giving for the common good.
  • 8. 7 The Giving Balkans database represents a unique source of information on philanthropy in the Western Balkans. For this report, data was collected in the period from January 1st to December 31st, 2021, by media monitoring as well as through other available direct sources. In this period, Catalyst Balkans recorded 47 unique media reports on philanthropy in Albania. Due to the low number of recorded media reports, the report on the state of philanthropy in Albania is abbreviated in comparison to other country reports in 2021. Certa- inly, it should be emphasized that the recorded giving values definitely underestimate the actual volume of philanthropic activities. Primarily, the media does not report on philanthropy comprehensively. Additionally, it is not always possible to precisely monetize the value of donations. Nevertheless, it can be safely stated that the recorded values provide reliable estimates of the minimum giving. Therefore, data from the Giving Balkans database can be used as indicators of the minimal level of development of giving for the common good. Methodology
  • 9. Catalyst Balkans 38 Takovska, 11000 Belgrade, Serbia catalystbalkans.org Proofreading Educo centar Data Collection Adelina Ajdari Abdiu Data Quality Jelena Bekčić Design Dragana Pavlović Author Maja Gligorić Editor Vuk Vuković January, 2023 Belgrade, Serbia Data Source: givingbalkans.org In Loving Memory of Aleksandra Vesić Research Giving Albania 2021: Report on the state of philanthropy and this publication was designed by the Catalyst Foundation (Catalyst Balkans) with the generous support of the C S Mott Foundation and the Rockefeller Brothers Fund. The views expressed in this publication do not necessarily reflect the views of the C S Mott Foundation and the Rockefeller Brothers Fund and their partners.