Estonia: the third sector

Sector overview

Estonia counts with 26,986 non profit organisations, 26,198 of which are associations and 788 foundations. The number includes about 12,000 housing associations, and of the remaining 11,000 organizations about 1,500 are actual public benefit organizations. It is estimated that about 28,000 people, or 4-5% of the Estonian workforce, is employed in the non profit sector.

The Estonian non profit sector is considered by the Usaid Index 2006 to be one of the most sustainable in Central and Eastern Europe.

Distribution of the sector

From 1998 to 2004, the importance of organizations operating in Tallinn and small towns has increased somewhat, while the percentage of those active in rural areas has decreased. The total number of associations in rural areas has still increased, but at a slightly slower rate. Half of all foundations are registered in Tallinn, while the distribution of voluntary associations is slightly more even.

Source of income

Membership and joining fees are still the most significant financing source of the sector, while support from local authorities comes second in order of importance. Local governments are important financers especially in rural areas and of associations working to preserve traditions and develop neighborhoods while in Tallinn their support is less relevant. Only 8% of associations receive support from the European Union (Eu) while foundations are the more likely recipients of Eu support.

According to the report The institutionalization of Civic Initiative in Estonia: The Organizational Structure and Resources 2005 based on a quantitative questionnaire-based survey of 600 non profit organizations, the source of income is divided as follows:

– membership and joining fees are the most significant financing source.

They have been mentioned by more than half of all respondents (64%),

– on second place, there’s the support from local governments (51%) higher than support from the state (35%)

– only 8% of the respondents mentioned the support from the European Union (Eu); probably because, there are more recipients of Eu support among foundations.