Community Foundation Slagalica

Annual Report

2017

January 2018

To talk goodness is not good… Only to do it is. Chinese proverb

2 2017 ANNUAL REPORT Introduction

Over the last year the Community Foundation Slagalica (further referred to as CFS) has awarded last 30 grants out of 258 in total grants under the public call for civic actions “Our Contribution to the Community”. After nine years, the National Foundation for Civil Society Development in Croatia (further referred to as NFCSD) terminated its re‐granting partnership (Decentralised Programme of Financing Civil Society Development in Republic of Croatia ‐ DEM) with four local/regional foundations with no evaluation of the partnership programme or any kind of impact assessment of this particular model on the development of local communities or any other explanation.

Positive outcome of the long‐term cooperation with NFCSD has influenced over 80, mostly small sized communities (some with only hundred inhabitants), who have invested around 3,300,000 HRK ($ 526.338) in total for the improvement of quality of life in their communities. Approximately 952,000 citizens had benefited from the implemented actions out of which 398,000 as direct beneficiaries (children, youth, elderly population, handicapped persons, women etc).

Cooperation with Ministry of Demography, Family, Youth and Social Welfare (further referred to as MDFYSW), and the Governmental Office for the Suppression of Drug Abuse(further referred to as OSDA) for the so‐called extended DEM for which CFS acted as Implementing Body 2 for eastern Croatia was also terminated without any explanation, in‐spite of positive informal evaluation of cooperation. CFS provided additional service in administration of the evaluation process for OSDA’s decentralized program.

Two new grant‐making programs, Lokovez and Superseniori, were funded through the Thematic Fund for the Development of Philanthropy launched by NFCSD in the fall of 2015. Thematic fund was an opportunity to develop sustainable and relevant programmes, and invest into capacity building for local foundations. Although planned as a four‐year program it was also terminated at the beginning of 2017. The same as DEM, there was no explanation or announcement of another program oriented at promotion and development of community philanthropy. Both programmes became just another “victim” of significant reduction of funds for civil society in Croatia and new programme strategy of NFCSD. Without external support, Program Lokovez has no options for continuation at the moment. However, connections with new CSOs and local communities are certainly positive outcomes to build on.

Program Superseniori continued in 2017, primarily due to a good cooperation with Foundation Zajednički put from Zagreb. National fundraising campaign named “Punjač za seniore” resulted in 72% of planned 60,000 HRK, raised for the new round of Superseniori ‐ grant‐making program for the elderly. It was the first time that new on‐line donation platform Doniraj.org was used on the national level. Foundation Zajednički put have collected the rest of planned fund though individual actions in cooperation with media company Story.hr and the City of Zagreb, its founder.

During 2017, the project Building Trust in Community Philanthropy finished after 20 months of implementation. Accomplished results are solid base for further development. Award Johann Kohlhoffer for corporate philanthropy has grown to the regional level, providing for stronger visibility and developmental potentials. Support from the President of Croatia, two ministries and national trade and craft chambers contributed to the Award visibility. First national research on individual and corporate philanthropy in Croatia was presented at several occasions and each time provoked productive discussions. Several local organizations have already used new on‐line donation platform/web‐site Doniraj.org. Although all community based fundraising campaigns were successfully finished, Doniraj.org is a new challenge for underdeveloped area with population mostly unsure in internet payments. Solid base is set up for a new CF PUT (Path) in Baranja aiming to support youth after exit the foster care families.

3 Additionally, CFS’s visibility was significantly improved. Visibility and dissemination conditions for all EU grants were met in such a way that all segments and developmental potentials of community philanthropy were in the focus of media (published research results, regional Award, promotion materials, video materials etc.). Closing conference held in Osijek should be emphasized as the first regional gathering of donors, OCD’s and experts. Participation of foundations from Serbia and Bosnia and Herzegovina who strongly motivated participants with their experiences and positive stories was an added value.

In cooperation with Regional foundation Momentum ten primary schools from Slavonia took part in activities oriented at development of school philanthropy. In addition, four local SME’s have developed their first giving strategy with CFS support. Positive cooperation outcomes are motivation to continue with promotion and support to other SMEs in Slavonia interested in development of giving strategies.

Second Philanthropy Week in Osijek took place on several locations in Osijek during the last week in September. New partnership with Foundation Srce grada Osijeka enriched the event with new activities. Traditional Philanthropy Walk and public discussion on actual philanthropic themes was last year accompanied with Philanthropy Tram and well organized philanthropy flee market event FilantroPIJA.

Yearlong fundraising action titled Za mene za Osijek / For Me for Osijek has gathered over 40 individuals, families and work teams around seven months fundraising‐endeavour for local actions in Osijek. Three local actions were realized. Over 1000 flower balls with different seeds was delivered to citizens, open space sitting area was created in one primary school while public space in the city edge area was transformed to walkway with education trails.

At last, but not least, 2017 was marked with a significant increase of individual and business donors as result of several new CFS fundraising actions and tools such as: local fundraising action Za mene, za Osijek/ For me, for Osijek, implementation of philanthropy flee market named FilantroPIJA during the second Philanthropy Week, continuity in motivation of Philanthropist Club members, and especially setting up a new tool for online donations – www.Doniraj.org.

However, last year was marked with several difficulties as well. The biggest one was an absolute absence of structural support to community philanthropy development. There was no specific calls for applications for this particular topic, newly drafted Law on foundations trapped for years in the administration drawer is still labelled as “to be done”, individual and corporate donors are urged to “patch/ mend” social or health issues which government have already had to cover through its regular structures. By that approach there is no (enough) space for giving to other less emotional or touching issues. Philanthropy is recognized and promoted primarily as charity or humanitarian aid, which is certainly neither the only nor the most important of its purposes.

In conclusion, CFS will focus on reorganizing / restructuring in the following period. Although new strategic plan is yet to be done, revised work plan for 2018 excludes previous re‐granting of lottery funds and increases basic elements of community foundations activities. Focus is on promotion and development of individual and business donors through strengthening of existing and development of new tools / actions. Through cooperation with other foundations (similar values and issue orientations) capacities of both will be built while joint actions will be the main toll to improve visibility and accelerate engagement of local foundations in the community development.

Inspiration for new directions is rooted in the past. Just as Osijek has a rich philanthropic history, so has CFS to build on previous productive and rich 10 years.

4

I Philanthropy development as investment in/for future through promotion and valorisation of culture of giving and philanthropy related education and research activities

Specific goal Expected outcomes 2017‐2018

I. Individual giving to CFS is recognized as a ‐ Increased number of individual donors trustworthy mechanism/tool/instrument for ‐ Increased number of repeated individual quality and timely response to community donors needs. ‐ Launched two annual fundraising and promotion campaigns (A Little for A Lot, Superseniors) ‐ Individual donor database Achieved results 2017

Variety of activities was designed in order to achieve goals and expected results in this section. Visibility of results/impact of donations in the local community through stronger public presence is increased. CFS asked more frequently and through a variety of mechanisms. Variety of opportunities for giving is provided which enable current donors to hear from us frequently and feel a greater connection to CFS's mission. It was also a way to move annual givers to more frequent donors. A several types of events were designed in order to introduce new potential donors to CFS's cause. Individual philanthropy is promoted through the Philanthropist Club and local actions/ campaigns. Doniraj.org, on‐line platform is a new tool to stimulate a culture of giving. CFS held six fundraising actions during 2017; either alone or in cooperation for specific programs/actions. CFS has developed donor base which is continually updated.  2017 was marked with a significant increase of individual and business donors. A number of individual donors increased for 395%, while a number of business donors/ legal entities increased for 280% related to 2016. All together CFS mobilized 160 individual donors out of which 126 persons and 34 legal entities (16 SMEs and 18 CSOs). Baseline of 40 repeated donors is also increased to 46, out of which 39 persons and 7 legal entities.

 CFS, alone or in cooperation with other CSOs (foundations and associations), raised amount of 69,228.45 HRK (11.041 USD), which is increase by 736% compared to planned 1,500 USD. It is all result of several new CFS activities, all further listed and described.

 CFS's giving boxes are used on regular basis as a part of all public events organized by CFS (FilantroPIJA, public promotion of fundraising campaign for Program Superseniori at local Antique fair etc. "Investment box" is introduced for local fundraising action Za mene, za Osijek ‐ designed as money box/piggy bank for individual weekly deposits during 2017 (February to August‐ September). This FR action presents a new approach for collecting donations for the CFS's grant‐ giving program A Litle for a Lot. The action shows how large number of citizens with regular small contributions can influence their community. For the first time 41 donors (individuals, families, work teams, friends) pledged to a several months of „saving“. From February to September 2017, participants were encouraged to save 5 HRK weekly (0.8 USD) in branded saving box. Amount of 12,055.23 HRK (1,923 USD) was raised, which is 12,05 % more than expected. The same amount was matched by CFS. Received feedback and commitment as well as raised amount show that interest, understanding and potential for such actions exist. Citizens positively responded to small projects implemented by three local associations (results presented under grant‐giving program A

5 Litle for a Lot).

 Doniraj.org was developed with an aim to support grass‐root CSOs to generate additional funding for their activities that enhance community development. This is a joint venture tool that relies on local organisations and their knowledge on the community needs, as well as local resources that can be mobilised to provide support to the action. CFS as a facilitator brings parties together, it provides guidance and mentoring in the process. In total 108 citizens and 9 legal entities (business and CSO’s) donated through Doniraj.org.

CFS implemented six (6) public campaigns through web‐site, social media, and local media through articles, direct mailing and on‐line giving web‐site Doniraj.org. Five public campaigns were realized primarily through Doniraj.org in combination with of‐line public events and other supporting mechanisms. New approach is developed for the sixth one ‐ CFS’s A Little for A Lot Program; local fundraising action Za mene, za Osijek / For me, for Osijek.

Public campaign for Superseniori Program was implemented in cooperation with Foundation Zajednički put from Zagreb. That was the first time national campaign run through Doniraj.org. Media agency „Utorak“ pro‐bono developed campaign named „Punjač za seniore“. Promo spot was several times presented at national TV, radio etc together with several off‐line campaigns held in Osijek and Zagreb. New call for applications for elderly people benefit will be announced early January 2018.

The following table presents total amounts collected through Doniraj.org and those donated directly to the respective organisation:

Campaigns carried out via Surplus County Target group Planned Raised Doriraj.org Deficit Citizens Democratic Children and Initiative Project, Beli Osijek‐ youth from Manastir: Campaign to Baranja 5.000,00 6.144,80 foster care support founding the new county 22,90% system CF in Baranja Association of persons with mental disabilities Virovitica‐ People with Jaglac, Orahovica: Training Podravina mental 15.500,00 17.666,97 equipment for people with county disabilities 13,98% disabilities Stup, Brodski Stupnik: Brod‐ Children 3‐15 Campaign for renovating Posavina 14.000,00 14.020,00 0,14% years of age children’s playground county Association „Our Chidren“ Slatina: Campaign for Virovitica‐ Children 3‐11 renovating the “House of Podravina 5.000,00 4.211,00 years of age fairytales” with children’s county climbing wall ‐ 15% CFS, Osijek and Foundation Elderly people Zajednički put, Zagreb: from three Campaign for program National counties: 60.000,00 56.114,00 Superseniori – projects for level Osijek‐Baranja, enabling better quality of Vukovar‐Srijem elderly people life and the City of ‐ 6,5%

6 Zagreb

Local campaign Za mene, za Osijek/For me for Osijek CFS, Osijek: Campaign for Citizens of all grant‐giving program A ages; in Little for a Lot – small City of particular 7.500,00 12.055,23 projects and actions for Osijek youth, children, enabling better quality of school staff, life elderly etc. 61% Total amount in HRK: 107.000,00 110.212,00 3 %

 Philanthropists Club – Work on the strengthening of individual philanthropy through Philanthropists' Club continued in 2017. Although number of individual donors varies through the time, a solid number of those “repeated donors” is encouraging. Several tools/ mechanisms are set in order to inform and motivate current and potential members: 4 regular quarterly newsletters and 1 annual gathering for members in late December every year. Occasional events, like last year introduced fundraising campaign Za mene, za Osijek, significantly raise the interest of individual donors; not always repeated donors. Funds raised through Philanthropist Club and other local fundraising events are available for local grant‐giving program A Little for a Lot (Osijek area).

 National Research on Philanthropy Increased funding pressures and reductions for CSOs support suggest potent roles for philanthropy as a funding source for community development. The first National research on individual and corporate giving in Croatia, undertaken by CFS, was set to measure resources invested into charitable giving, understanding of philanthropy and philanthropic behaviour, positive examples of philanthropic activity as well as level of motivation for giving in both individual and corporate sector. All over Croatia 1100 respondents were included where 1000 individuals and 100 companies. The Research Booklet was complemented with two reviews from TRAG foundation Belgrade and the National Foundation for Civil Society Development Zagreb. The Research was promoted at two press conferences in Zagreb and Osijek, at five public events (Pula, Osijek, Zagreb, Osijek, and Zadar) and via interviews in the media. Final document is available on the CFS's web page https://www.zaklada‐ slagalica.hr/upload/docs/Slagalica_Filantropija_TISAK_03‐05‐2017.pdf General audience was introduced with the definitions of the key terms such as philanthropy, donations and community foundations, through the Glossary (1100 copies) used/distributed alongside the questionnaires for individual citizens and private enterprises throughout Croatia. Remaining 400 copies were used for promotion of the new CF in Baranja (during the 4 local campaigns) and on other events.

The final research data show that philanthropic potential in Croatia is evident; citizens are aware of their co‐responsibility for public benefit and see care for community development as their duty. However, society and particularly foundations have to work on development of this potential as giving is still not developed as habit and culture in Croatia. More than half of citizens know very little about foundations although they see benefits of giving to foundations in the sense of security those funds will be transparently and appropriately delivered to community. 68,3% of citizens took part in one or more public fundraising actions for a public benefit purposes. 84% of companies at least one per donate goods, material or funds. Greatest number of donations goes

7 to humanitarian actions to help vulnerable individuals and groups. Nonetheless giving for public good is given little importance and the main reason is the poor material and financial situation in the country. High percentage of respondents are not aware of tax incentives (80.6%) and those who know of it, consider the incentives to be insufficient and not stimulating to give (59%). Research has shown that the biggest problem concerning giving is the lack of own funds/resources (62.4%), and the second is the lack of trust that the funds will be used for the right purposes (40.2%).

The most important reason to support any action is the feeling of doing something good and noble (38.1%) and that we are moved by the cause (41.5%). However, no less important is the feedback on raised funds, ways of spending and the results of action (58.4%). Media is pointed as key stakeholder in starting (meaning give public visibility) and informing citizens about any/all public fundraising actions. Incentive legal regulations as well as monitoring and evaluation mechanisms may improve trends.

Specific goal Expected outcomes 2017‐2018

II. Local SMEs1 partner with ‐ Three local SMEs developed giving strategies in cooperation with CFS on community CFS development ‐ Entrepreneurial Fund is set up and it includes at least three local SMEs prepared to support one youth initiative per year

‐ Three local SMEs support public fundraising campaigns (A Little for A Lot and Superseniori) Achieved results 2017 Since 2016 CFS opened a dialogue with several SMEs from the religion in order to develop and apply strategic approach to giving for the community. In partnership with Regional foundation Momentum from Zagreb, CFS improved its capacities for strategic philanthropy in Croatia with an aim to increase the presence and the number of cooperative models of strategic philanthropy in Slavonia. During 2017, CFS built on experience and positive feedback from three SMEs involved in mentorship program in 2016; continue to support their giving efforts. It is a new approach to strategic and socially responsible philanthropy that relates not only to providing financial support but also to ways of understanding community needs and precise building and construction of mutual trust and interests. CFS goal was to develop a monitoring model for giving and investing in community and model for monitoring of results achieved in community by their donation.

 Four businesses (SME’s) from Slavonia and Baranya: Eurco and Lotusmeida l.t.d. from Vinkovci and Ofir l.t.d. and Ravlić Meat Industry Ltd. from Osijek have developed their giving strategy for community. Through individual approach they harmonize individual philanthropic gals with the context of their business. Each placed strategic documents on their web pages and monitor giving. Three of them based their strategies on giving material and financial resources. Together they received more than 150 requests with estimated value of 45.000,00 HRK. The fourth company publish calls for interns. Last year, two out of four involved students were eventually employed in the same company.  CFS’s organizational structure and resources to effectively respond to SMEs requests and needs for mentoring and counselling for corporate philanthropy are still in the process of setting. Idea is to develop call for participation and face‐to‐face meetings with SMEs to develop and document giving history.

1 Small and Medium Enterprises 8  Development of Entrepreneurial Fund with local SMEs will be in focus during 2018‐2020.  16 local and regional SMEs supported CFS's fundraising campaigns A Little for A Lot (9), Superseniori (5), and 4 campaigns on Doniraj.org web‐site (2)

Specific goal Expected outcomes 2017‐2018

III. Philanthropy is recognized ‐ Topics on philanthropy are part of elementary school curricula on local level as useful and for civic‐education in at least 6 elementary schools in Osijek important for community ‐ Participation in national Philanthropy Week Program development ‐ Two Annual Regional Philanthropy Awards presented ‐ Vital Signs research successfully implemented and findings are

disseminated among all relevant community stakeholders Achieved results 2017 CFS fully achieved two expect results connected with implementation of Philanthropy Week which confirmed importance of joint national level campaign with variety of locally organized actions and events, and delivery of annual Regional Philanthropy Award as promotion of corporate philanthropy. The Philanthropy Week is an ideal form for citizens to learn about history of philanthropy as well as to meet today’s philanthropist and values of joint investment into community. The culture of giving within the corporate sector is promoted through the of Slavonia and Baranja. Award Johann Kohlhoffer for Philanthropist Introducing philanthropy is part of elementary school curricula for civic‐education in elementary schools in Osijek was not fully achieved. During 2017 focus was on final stage of joint project with Regional Foundation Momentum related to promotion of philanthropy in schools. One out of ten involved schools was from Osijek, while others were from different places around Slavonia and Baranja region. As project finished at the same time as school year, there was no time for solid preparation to start new activity with a new school year in September. Further, formal preconditions (national legislation and policy) for implementation of civic education were still not set by the end of 2017. Therefore, CFS will continue with informal work until in cooperation with other CSO’s, civic‐ education school curricula are developed. Vital signs are in the operational plan for 2018 and in agreement on cooperation with local Foundation Zaklada srce grada Osijeka.  Young Philanthropists and School Philanthropy – CFS continue to work on and promote philanthropy in schools through various activities since 2014. Primary goal is to motivate pupils on understanding of philanthropy and taking school actions in order to influence / change a problem or a difficulty they face through lectures, exhibitions, mentoring of community actions and fundraising projects. Last year CFS worked with 10 schools from Slavonia and Baranja Region as continuation of partnership project with Regional foundation MOMENTUM aiming to develop innovative models of giving where children/youth are leaders. Systematic approach to develop youth knowledge and skills for helping resulted with several actions. There were no specific innovations; schools directed their actions toward usual humanitarian purposes. Most of them were around the Christmas time; collected goods and funds were primarily directed to children with special needs, elderly and helpless population and arrangement of schools playgrounds. More than 5.000 pupils and school staff took part in the project and actions. Primary schools Čaglin from Čaglina and Milan Amruš from Slavonski Brod were selected for a special acknowledgment School Philanthropists 2016, received during the Philanthropy School of the Year" ceremony. One school organized food delivery for elderly single householder in isolated villages. The other one organized production and selling jam; funds used for improvement of symbolic school facilities for children. Involved schools took part in the first Children film festival in Veliki Grđevac (location for the set of the one of the most famous children movies in Croatia Vlak u snijegu /Train in the snow. 9  Philanthropy Week ‐ in cooperation with Foundation Srce grada Osijeka and Tourist Board Osijek, CFS organized four events during the second Philanthropy Week (September 25th to 30th, 2017). Two foundations based in Osijek developed creative events for citizens to learn and raise awareness about importance of philanthropy in the current context. Many locals are still just getting to know about philanthropy; it is important to remind them they live in the city with long and rich philanthropic history. Citizens’ reactions were positive. The second Philanthropy Week program has started with press conference in front of the Osijek hospital which is a synonym and crown of Osijek’s philanthropy. Rich and diversified events included the following: o Public Discussion 'Who are philanthropists today – Legice and lege in action'. Guests were members of the initiative Lege za djecu superjunake and Garmaz ‐ couple who took part via Skype from the heart of Africa, from Ruanda. Discussion gathered 50 participants. o Second Philanthropic Walk ‐ in cooperation with Tourist Board Osijek a group of 30 citizens took a two hours guided tour around town's centre, focusing on rich and inspiring philanthropic heritage of Osijek. Comments and feedback from the participants are more than positive and incentive to continue with this already traditional activity. Local cakes offered to participants made this walk even more attractive in spite of autumn rain. o Philanthropic Tram Ride – was a novelty. Local graffiti artists have painted one tram which is still included in the regular tram traffic. Tram driver was Dragana, CFS's volunteer involved in the first CFS campaign A Litle for a Lot in late 2010. Almost 40 citizens enjoyed the route and small memory gifts. o FilantroPIJA, philanthropy flee market, was held on the last day of the Philanthropy Week. More than 200 citizens took part in the event; supported seven local associations with donations, and finally enjoyed good music performed by local musicians in the yard of Urania Cinema.

 Annual regional Award Johann Kohlhoffer for corporate philanthropy was supported by Croatian President, Ministry of Economy, Entrepreneurship and Crafts of Croatia, and Ministry of Regional Development of the Republic of Croatia as well as Croatian Chamber of Commerce and Croatian Chamber of Trades and Crafts.

The Award Johann Kohlhoffer has outgrown Osijek‐Baranya County and since last year gain regional visibility and importance. More than 80 guests took part at the fifth annual Award Johann Kohlhoffer for corporate philanthropy for Slavonia and Baranja region for 2016 which was held on March 29th 2017. „The Board had a difficult task to choose only two out of twelve nominations, as each nominee, excellent for their philanthropic engagement, confirmed importance of investing in community“, said Dragoljub Siljanoski, winner of the Award for 2014 and member of the Award Evaluation Board.

10 The Award in category SMEs was awarded to the company from Čačinci (Virovitica‐ Podravina County), Pan Parket Ltd. which is recognized for their community service. The company for many years actively supports civil society organizations and public institutions in Čačinci, including the Association of persons with intellectual difficulties JAGLAC. Deni Kelava, representative of Pan Parket d.o.o. has stated „We can’t be immune to problems around us. A need to help others is in the human nature; we are led by that moto and I hope to be able to help in the future as well.“

The Award in category trades and crafts was awarded to Dubravka Ćoralić, owner of the bookkeeping trade Aktivni konto. “Ms Ćoralić provides us with free of charge bookkeeping services for over 10 years”, stated Sport Association of Blind Persons..

Certificate for Philanthropy Initiative was given to „Lege za djecu superjunake /Lege for Children Superheroes” which gathered eleven individuals to support children – superheroes in medical treatment and recovery. By marathon cycling and running they have raised around 30,000 HRK to purchase medical equipment for the Paediatric Clinic in Osijek and finance successful neurorehabilitation of a little girl. Members of the initiative said the biggest award is to see a child playing again as their peers.

 Vital Signs – although planned for 2017, there was no capacities to start with a new comprehensive action before finishing a demanding EU funded project Building a Trust in Community Philanthropy (final report was submitted by end of September). Due to complicated and challenging administrative procedures (for the contracting body primarily and grantee as well) further details and corrections were exchanged by the end of December 2017. Preliminary talks are done with potential partners and stakeholders. CFS Board included Vital Signs in Operational plan for 2018. CFS is looking forward to use the Vital Signs model as it was proven to be practical and useful for many communities. Besides, there was no previous needs assessment of social, cultural and economic context, challenges and needs in Osijek where citizens were fully involved as well.

II Community development and strengthening of civic engagement /activism through grant‐giving programs, donor‐advised funds, and catalytic/solicited community based projects, CSOs, initiatives

Specific goal Expected outcomes 2017‐2018

I Provide timely and ‐ Successful and sustainable three grant‐giving programs adequate support to local ‐ Visible and acknowledged/recognized impact of successfully efforts on improving quality implemented projects ‐ Raised level of civic participation in targeted/ involved

11 of life on community level communities

Achieved results 2017

Specific grant‐giving programs are designed for local non‐profit organizations focusing on youth, community development and elderly though public calls for applications and monitoring of the implementation. “A Little for A Lot”, a CFS grant‐giving program for the city of Osijek aiming to support local non‐profit organizations. Plan for 2017/2018 was to continue with two lines: Youth in Community and Variations in Culture expected to raise around 18.000 HRK and deliver support through one/two public calls for up to 3 local initiatives (up to 6.000HRK/1,000USD per initiative. The following is what is achieved. „A Little For a Lot" – a grant giving program for small projects and initiatives continued in 2017 through the local fundraising campaign Za mene – za osijek / For Me ‐ for Osijek. Within this program CFS accelerate citizens’ activism and finding more creative and efficient solutions /ways of solving social problems. Three supported project were successfully implemented.  Three (things) for five hundred (kids) is action done by pupils and teachers of the primary school Fran Krsto Frankopan Osijek. Benches and recycle bins were settled in the school yard while pupils learned about doing and understanding of philanthropy. The action was accompanied with several other educational workshops.  "Green good deeds" is action done by the Scout Association Slavonski hrast Osijek. Almost 120 scouts have tested and marked educational trail around small lake which is regularly maintained. The new lawnmower made cutting the grass much easier. Action was presented during the workshop “Meteor shower known as the tears of St. Lovre” (mid‐August). New actions are already planned for upgrading of the location with benches, logs and signs.  „Flower balls“ are prepared by the association PLANTaža to promote urban gardening. Colourful workshops in city parks for all resulted with over 1000 balls made by mixing of earth and clay with flower and vegetables seeds. Balls were packed in small textile bags and distributed among citizens. New sawing machine was of huge help. Action „Cvjetne kuglice / Flower balls” left the marks. Contracted financial support for LokoVez (Local Net), a CFS grant‐giving program developed in 2015 with first grants awarded in 2016 was terminated by the one‐sided decision from National Foundation for Civil Society Development at the beginning of 2017. 14 out of 16 awarded projects were successfully implemented during 2017, but with reduced funding due to decreased support from NFCSD. Given that the program was heavily relaying on the external funding (NFCSD) which was suppose to serve as challenge funds for development of sustainable Community Fund (fuelled by local government and local donors), after the withdrawal of NFCSD , local motivation and interest for the Community Fund fell dramatically and the programme was suspended by CFS.

Superseniori, grant‐giving program addressing elderly, was developed in partnership with Foundation Zajednički put from Zagreb in the late 2015. Programme was also funded by NFCSD and as LokoVez above, funding was cancelled without explanation at the beginning of 2017. After first 6 projects awarded and implemented in 2016, both CFS and Zajednički put decided to continue the programme due to the importance of recognized need, i.e. lack of funding for non‐profit organisations working with and for elderly. In 2017 joint FR campaign was launched to raise 60,000 HRK for three new grants

12 (as described earlier in this report) and new call for applications will be published in January 2018.

DEM re‐granting programme “Decentralised model of financial support to civil society implemented though public development” (DEM): calls for applications and we expect to launch 2 calls for civic actions named „Our support to monitoring of the community“ for community based CSOs and public institutions implementation prove to be annually, an excellent tool for Up to 30 civic actions will be supported (15 per call); a maximum development of citizens amount of 13.000 HRK (2,241.37 USD) per initiative or 390.000 HRK activism, strengthening of (67.241.37 USD). citizens participation in community development and Funds are secured by the National Foundation grant. taking over responsibility for their community

Decentralised model of grant‐giving to civil society development (re‐granting)  30 new grants awarded for civic actions and small community projects in the total amount of 292.103,75 HRK  44 civic actions successfully implemented in 32 different communities throughout Slavonia  6 grant‐making programs by different public bodies were administered and 37 grantees monitored. Years of investments and building partnership with key stakeholders across Slavonia as well as monitoring needs and capacities of civil sector in Eastern Croatia, resulted in 2017 with the same high level of absorption of available funds within the "Our Contribution to the Community" grant‐making programme for civic actions. Implemented civic actions contributed to growth of both social capital and social cohesion, at the same time reaching over 54,000 direct beneficiaries. Decentralized implementation of extended DEM secured local support system, visibility and accessibility of key information for CSOs in this geographical region. Key challenge in 2017, which will be even more visible in the next period, was decrease in capacities of local CSOs in underdeveloped areas of Slavonia. Existing support infrastructure was cancelled by different governmental bodies in 2017 and only in rare communities it will be replaced by local action groups (LAG) or by local government. Unfortunately, such support system is completely dependent on political changes, endangering further independence and sustainability of civil society.

Specific goal Expected outcomes 2017‐2018

II Greenway Centre Livadak ‐ New legal entity established in Latinovac owned by CFS enabling is transformed into social social entrepreneurial activities (in the form of coop, agency or enterprise similar). ‐ Three Greenway‐based tourist packages available through new social enterprise. ‐ Greenway Centre Livadak is promoted and recognized on regional level ‐ Annual spring and autumn events along the Greenway route in co‐operation with partners, eco producers, local municipalities, tourist boards etc.

13 Achieved results 2017

CFS was rather over ambitious when planning this segment of two‐year plans. Only regular Bike&Hike Latinovac events twice per year are accomplished in 2017. Preparation and execution of registration process for new social enterprise; business and marketing plan for new social enterprise; capacity building for social entrepreneurship and strategic partnership with local government (Municipality of Čaglin) and County Tourist Board are on the hold for 2018 – 2020.

Greenway Centre Livadak (Latinovac)  Two traditional Greenway events titled "Bike&Hike" Latinovac have been organized in Greenway Centre during 2017, in May and October.  Activities included over 40 guests per event, with several new visitors.  BIke&Hike Latinovac is slowly becoming recognized event for active young families with children as well as active individuals of all ages. This dog‐friendly event proves to be of importance to our guests.  Greenway activities traditionally included hiking and marking new hiking routes, volunteer actions related to environment protection, preparation of traditional food and local green‐ market.

III Strengthening the role and operation of CF Slagalica in national and international affairs through continuing development of cooperation and networking with key stakeholders and internal capacity building (human, financial, technical)

Specific goal Expected outcomes 2017‐2018

I Improve cooperation and 1. Improved cooperation and partnership with ministries, networking with relevant foundations and CSOs on national and regional level on national, regional and community philanthropy and grant giving programs international foundations, CSOs and other key 2. Partnership with Croatian Donor Forum for promotion of stakeholders for exchange, philanthropy and advocacy for improvement of legal and learning and joint actions on financial environment for community foundations promotion and advocacy, re‐ granting, new grant‐giving 3. Extension of partnership with foundations on programs and supporting regional/international level new community foundations.

14 Achieved results 2017 Implementation of the project "Building Trust in Local Philanthropy" that was carried out by CFS in co‐operation with two partner organizations: P.G.D.I. Beli Manastir and ODRAZ from Zagreb from October 2015 until June 2017, together with other programs and actions have significantly improved CFS’s cooperation and partnership with a number of foundations, associations as well as with civic, public and business sector.

The following are key actions and/or results that marked the Foundation’s efforts in the area of cooperation and partnership during 2017:

1.  The new Community Foundation in Baranja, Philanthropist Award and On‐line Giving Module put together CSOs, businesses and local governments in co‐operation and recognition of philanthropy as a tool fostering democracy and good governance, as well as growth of local communities.  With the new Community foundation PUT in Baranja, as venture of cross‐sector financial and non‐financial local support, the community gathered around an especially vulnerable group: children and youth after they leave the State/foster care system.  The new CF PUT to help youth after exit from the foster care system in Baranja has already being set to be registered. It is part of the long‐term CDIP development strategy, it is included in the Intervention Plan for the City of Beli Manastir and the City signed Memorandum of Understanding for a three‐year period committing to support the foundation. This all provides solid base line to the new CF. In addition, the events set to promote the new CF are planned to become traditional tools for motivating local support and raising funds for the foundation (DARko – summer youth games, Christmas fair, International day of the families). CF Slagalica will continuously provide support and mentorship to the new CF. The request for registration of the Foundation PUT has been sent to the Ministry of Public Administration of Republic of Croatia on August 30th 2017. However, the new CF PUT is still not registered due to complicated legal procedure and firstly received negative answer. Apparently, the Ministry of social affairs consider exclusive right on foster care system is in their hands, regardless the fact no security or support is given to youth leaving foster care. Additional documents were submitted by the end of 2017.  With the Philanthropist Award and the On‐line Giving Module, cross‐sector co‐operation was strongly supported. Both Awardees were recommended by several CSOs and were awarded for their continuous support to the civil society activities in the respective communities.  Through OGM 4 initiatives/campaigns in 3 counties were supported. A bottom‐up approach to empower grassroots` voices and ownership over the initiatives was ensured.  The National research on individual and corporate giving in Croatia provided a comprehensive overview of giving in Croatia, as well data on the areas of need where the giving is expected to continue or increase (children, youth, and people with disabilities, human rights, environment, gender equality and culture).  First conference on philanthropy, organized as closing event of the above mentioned project gathered a total of 47 participants from different sectors: representatives of local government, of different foundations throughout Croatia, Serbia and Bosnia and Hercegovina; CSOs; the business and the academic sector attended, media and interested citizens. The conclusions stated that the needs and possibilities to use philanthropy to resolve problems on local level are vast and should be explored with greater attention using experiences of other states in the region and Europe especially, and that the need to continue promoting philanthropy in Croatia and in the region is still great as desirable value

15 and as a tool that can support increasing proactive civil participation and involvement of different sectors in resolving local issues.  Cooperation with local Foundation „Srce Grada Osijeka“ (Heart of the City of Osijek) on preparation and realisation of the Philanthropy Week in Osijek opens a space for new ways and fields of cooperation and development of philanthropy in Osijek and nearby area.  Partnership with Foundation "Zajednički put" around Programme/Fund Superseniori continues through joint promotion, fundraising efforts/campaigns and grant giving. Visibility is raised though national campaign in 2016 and new fundraising campaign in 2017. New circle of grant‐giving program for elderly people targeting growing issue of decreased quality of life and social inclusion of elderly people in Zagreb and in Osijek‐Baranya and Vukovar‐ Srijem County is planned for January 2018.  CFS took part in the round table /public discussion “What is the F? Philanthropy in the service of human rights protection – innovations and challenges”, organized by the Foundation SOLIDARNA. Participants have discussed this extremely relevant topic before celebration of the International Day of Human Rights and entering celebration of 70 years of the Universal Declaration of the Human Rights  Jelena Zloić, Head of Contracting and Monitoring Department, who is a member of the Council for Civil Society Development, an advisory body to the Government of the Republic of Croatia, on behalf of foundation sector advocates for better and systematic support to philanthropy development in Croatia.  Development of new partnership for ESF projects (EU grants) a) the „Culture 54 +“ (City of Osijek, Museum of Slavonija and Museum of Arts) and b) the „Društveno korisno učenje /Service Learning“ (Faculty of Civil Engineering Osijek and Volunteer Centre Osijek) have increased a pool of the CFS's key stakeholders regardless on the results of respectful call for application.  Donor‐advised Fund Krunoslav Sukić continues to support the annual Krunoslav Sukić Award for the Promotion of Peace building, Nonviolence and Human Rights granted by the Centre for Peace, Nonviolence and Human Rights. The Award 2017 is given to Ms Lina Budak, lawyer and human rights activists for her dedicated and brave professional and public work. Certificate "Krunoslav Sukić" 2017 is given to Jadranka Brnčić, Ana Raffai and little sister Vesna Zovkić, initiative against a politization of faith/religion. Certificate Book of the year is given to Mr Ivica Đikić for documentary novel about Srebrenica genocide "Beara" and Nada Glad for biographic study of life and work of Franjo Starčević „Goranski mir(ovi)“. Certificate PEACE SCHOOL is given to elementary school Hugo Badalić Slavonski Brod. Special Certificate is given to a group of international volunteers „No Name Kitchen Šid“ for solidarity with migrants stopped at the border between Serbia and Croatia.

2.  As a member of the Forum za Dobrobit ‐ national philanthropic forum set up in under auspices of NFCSD and coordinated by the European Foundation for Philanthropy and Social Development CF Slagalica had participated at: o national celebration of European day of Foundations and donors in Zadar; o focus group (several members of the Forum za Dobrobit) discussion about the new Law on Foundations (based on the contents of the draft) organized by the NFCSD who is an active member of the legislative drafting working group, set up by the Ministry of Administration in 2017.

3.  The Western Balkans Community Foundation Initiative (WBCFI) gathered six foundations from Serbia, Croatia and Bosnia and Herzegovina including CF Slagalica. Initial cooperation with Initiative Zajecar from Serbia on regional networking of community foundations,

16 development of community philanthropy and improvement of social/financial and legal contexts in respective countries entered a new phase. Foundations from neighbouring countries (Initiative Zaječar and Foundation TRAG and Iskorak from Serbia), Foundation Tuzla from B&H, and Foundation ZAMAH and CFS from Croatia) gathered around the idea to develop and strengthen the sector of community foundations in Western Balkans. The goal is to secure supportive mechanism for nurturing of existing CF's as well as preconditions and support measures to accelerate development of new CF's over the western Balkan area.  Cooperation with Foundation Tuzla from Bosnia and Herzegovina on community development issues, models of community philanthropy actions and on Vital Signs continues.  Based on support provided in the process of development of new CF PUT in Baranja, CFS will continue with capacity building for future community foundations resource and support centre in eastern Croatia. Further need to develop capacities and knowledge is additional reason to cooperate with other experienced organisations and/or joined networks, such as: ECFI – European Community Foundations Initiative. Although CFS had very good results in ongoing partnership with Governmental Office for NGO’s, relevant Ministries and National Foundation for Civil Society Development (NFCSD) on extended Decentralized model of financing civil society in Croatia (DEM), this cooperation will not continue. Previous partnership program secured better regional coverage in delivery of national financial support programs and CFS was recognized as relevant partner based on proven capacities, capability and credibility on regional level. However, as mentioned earlier in this report, without any explanation programme was closed with 2017.

Specific goal Expected outcomes 2017‐2018

II. Improve internal capacities (human, financial 1. Capacity built in fundraising and strategic communication and technical) in order to define feasible strategic and operational plans and to 2. Strengthened financial and operational stability secure timely, efficient and successful implementation.

CFS has capacity, capability and credibility for grant‐giving programs and related issues. Former (2008‐2017) cooperation with relevant ministries, Governmental Office for NGOs and National Foundation for Civil Society Development was an excellent learning polygon. Knowledge and skills will be continually upgrading for CFS’s own grant‐giving programs. Visibility of CFS is significantly improved, as well as all key actions. However, challenge to keep public attention request continues work on visibility and promotion. Intern for promotion of philanthropy and visibility with education in culture management who joined us in 2017 is now a team member. Space for improvement toward sustainability is still enormous. The framework of established On‐line giving module is solid asset for improvement of fundraising campaigns, individual and corporate giving. So far, undertaken fundraising efforts were strategically focused on increasing stability of funds for grant‐giving programs instead on endowment for 2017 period. Strategic asset management of property Livadak remain to be an open challenge. Good mixture of management, maintenance, risk and efficient utilization requests a multidisciplinary team with sound knowledge and skills for which investment in human capacities is still on CFS agenda. After several months of discussions of future benefit and potential risks with the Board, CFS's

17 endowment was invested in 2017 in real‐estate purchase in Osijek. Renting service revenue (expected to be around 1.000,00 HRK / 160 USD monthly) is designated for CFS’s grant giving programs. It is modest but hopefully continuous revenue for community building purposes.

Financial report for 2017 Realized revenue in 2017 in the amount of HRK 1,557,097 (248,351 USD) is 15.14% lower than the year before. Main reason for this decrease is finished contracted IPA 2012 program closed in June 2017. According to the contract final instalment (around of 20% of spent amount) will be received after the approval of the final report (expected in the first quarter of 2018). Additionally, there were no new contracted grants in 2017. However, revenue from individual and corporate donations (Kn 69,228) increased 358% due to several successful fundraising campaigns elaborated in the narrative part of the report.

Realized expenditures in 2017 in the amount of HRK 1,263,720 are 30,11% lower than the year before. Most of the costs of contracted IPA 2012 program was closed in June 2017 were done over 2016, which is the main reason for this decrease. At the beginning of 2017, the independent auditing company "Finar" from Zagreb conducted an audit review of the entire finances of the Foundation for the year 2016. The audit's opinion was positive without any irregularities in the work. Audit review report is available to interested public at our website. Next independent audit will be contracted for complete external audit review for 2018, according to the CFS practise (biannual audit). This is a part of CF Slagalica's quality standard in the area of transparent and efficient financial management.

Attachments:  List of donors and supporters in 2017  Audit review report for 2016 (summary in English)

18 Organizational information Governing Board Ivana Erak, Chair Julia Perić, Co‐Chair Branko Roso Marina Đurašin, Jelena Kasabašić Siniša Gregoran Mirta Jurčević Zlata Živaković‐Kerže Ivana Erak Zoran Vorkapić

Executive Team Branka Kaselj, Director Jelena Gordana Zloić, Head of Contracting and Monitoring Department Doris Šarić Roso, Head of Finance and General Affairs Department (maternity leave) Julijana Mladenovska Tešija, PR Expert Assistant Danijela Marić, Contracting and Monitoring Expert Assistant (maternity leave) Dijana Živaković, Contracting and Monitoring Expert Assistant Ines Perkušić, Contracting and Monitoring Expert Assistant Vlatka Tikas, intern

Contact info: Community Foundation Slagalica I. Gundulića 34 HR – 31000 Osijek, Croatia

phone/fax: 031 213 255 e‐mail: info@zaklada‐slagalica.hr web: www.zaklada‐slagalica.hr FB: zaklada.slagalica Twitter: SlagalicaOS Youtube: Zaklada Slagalica

Founders: Centre for Peace, Nonviolence and Human Rights (www.centar‐za‐mir.hr) Organisation for Civil Initiatives (organization was closed in 2017)

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