Turkey: the state of philanthropy

Private giving

According to the CSI Turkey Country Report, charitable giving is the most prevalent form of civic participation in Turkey. In 2004, total giving was reported to be about 2 billion US dollars. Organized giving to civil society organizations was slightly more (37%) compared to direct giving (35%).

80% of the population gives an estimated average of 53 $ (34 euros per family/per annum) to charitable causes. This calculation is estimated to amount to approximately 0.9% of yearly household incomes; for an estimated 12.5 million households this adds up to 662.5 million USD (428 million euros). Only 18% of this is given directly to a CSO; the remainder is given directly to individuals in need and street beggars. A common assumption to explain why individuals prefer direct giving is that they lack trust in civil society organizations (CSOs). However, individuals claim that the main reason is that the donation is generally small (53%) and unplanned (21%). Only 12% cited a lack of trust, and 9% a lack of information.

According to the survey on philanthropy Carkoglu 2006 the act of giving appears to be motivated mainly by religious obligations (32%) and traditions and customs (26%). A sense of obligation to serve society (12%), and expectations from society to give (9%) are less significant factors.

Tax incentives to encourage individual or corporate donations, such as credits or tax benefits, exist: up to 5% of annual income can be donated with a tax deduction. However only CSOs with public benefit status can offer their donors a deduction for their donations and the system for granting this status is extremely complicated and constraining.

Corporate giving

Companies in Turkey appear to be increasingly aware of their role as donors and supporters of CSOs. However, they lack sound strategic practices when making grants and working with CSOs beyond a ‘one off’ sponsorship level.

Only a very limited range of CSOs receive funding from the private sector. The term ‘corporate philanthropy’ has yet to enter the lexicon of the corporate sector, which tends to regard donations as sponsorship expenditure. According to the CSI survey, 68% of CSOs do not obtain any funding – sponsorship or otherwise – from the corporate world.

When it comes to ‘corporate giving’ in Turkey, projects based on education, environment, arts and culture appear to hold the greatest appeal. The average amount granted by companies is unknown, but contributions tend to be cash rather than in-kind. Companies report that they do not have separate budgets for these initiatives.