Patterns of interaction between NGOs working with disabled people and state authorities in the context of austerity policy: case study of Russia and Finland

Approaches to study relations between state authorities and non-governmental organizations. Finnish and russian case: dynamics of interaction between NGO and state. Changes in funding. Patterns of interaction between state and NGOs in Russia and Finland.

Рубрика Социология и обществознание
Вид диссертация
Язык английский
Дата добавления 30.10.2017
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These aspects are contributing to the development of social capital as a result of joint activity, then such interests and values are subsequently promoting the realization of private interests of each member of the solidarity groups.

Lytkina argues that ideal type of solidarity among citizens in case of the common efforts and capabilities help them not only to grow social capital and solve personal troubles but also solve social problems in general. However, such ideological practices are not evident for every-day reality. Author added that the social capital has own limits and depend from sources of people included in the solidarity group. And if such solidarity group is limited by own sources both material and human sources), the efficiency of social capital is going to be low, due to the limitation of sources shaped by the phenomenon of social inequality Лыткина Т.С. (2012) Социальный капитал в решении социальных проблем: практики солидарности бедных в Республике Коми // Журнал социологии и социальной антропологии, т. 15, №3. - pp. 134- 140.

Commenting Lytkina's idea of social solidarities, it might be interesting to mention that the more stable existence of the social capital and practices of solidarity could be traced among the socially-vulnerable groups of citizens, especially among the people with disabilities. The investigations of issues affecting in people with disability is associated with Jan Tшssebro, Philip Ferguson, Colin Barnes Tшssebro J. (2016) Scandinavian disability policy: From deinstitutionalisation to non-discrimination and beyond. Alter - European Journal of Disability Research. Vol. 10 (2). P.6

Wehmeyer Michael, Steven Noll, J. David Smith (2013) The self-advocacy movement: Intellectual disability in late modern times. Vol. 6, P. 120

Barnes C., Sheldon A. (2010) Disability, politics and poverty in a majority world context, Disability & Society vol. 25, no. 7, P. 775 works. They are investigating different aspects, among of them are the phenomena of social policies regarding the disability, the features of certain kind of disabilities and relations between disability and culture, education and etc.
The russian specialists in that sphere is Yarskaya-Smirnova, Holostova, Romanov, Grigoryeva and Kelasyev. Most of mentioned Russian scientists are investigating disability in the social work's framework or as problematic issues in the state social policy.

It can be concluded that phenomenon of social capital and practices of solidarity will be used as components for description of the certain patterns of interaction between the state and NGOs working with disabled persons.

1.5 The New Public Management theory as interpretation of austerity policy phenomenon

As it was mentioned before, my interest was focused on the study a certain picture of relations in recent time, considered in my research as the context of austerity policy. In my opinion, the recent realities of state-NGOs' relations might be called an austerity policy due to the existence of examples the state's actions generally associated with austerity. However, due to my theoretical investigation of the term's usage in sociological literature I revealed the following idea of representation austerity as the instrument of a more general theory called a new public management (NPM-further). In general, this term has taken attention to the increase the state's efficiency due to standardization of the work-process in the different perspectives. I can refer to the work of Sophia Lowe, Ted Richmond and John that the new model Shield is arguing for social services based on the NPM's idea produced by NGOs limits their advocacy and autonomy. At the same time such model is integrating market driven, new public management and “best practices” Sophia Lowe, Ted Richmond and John Shields (2017) Settling on Austerity: ISAs, Immigrant Communities and Neoliberal Restructuring. Austerity Urbanism and the Social Economy. p. 21 or neoliberal restructuring of social provision. The NPM's policy supposes to use austerity policy on a permanent basis.

Such kind of theory might be testified through the different components of the state-NGOs features of interaction with the neoliberal policy. The first component is a responsibilization of the non-governmental sector by Kelly and Caputo. Their idea is associated with the strengthening of the power of the provision of social services among the local public authorities and non-governmental institutions established by the state Kelly, K. and Caputo T. (2011) Community: A Contemporary Analysis of Policies, Programs, and Practices. Toronto: University of Toronto Press.. The second component is the process mentioned by Baines Baines, D., Campey, J., Cunningham I., and Shields, J. (2014). Not Profiting from Precarity: The Work of Nonprofit Service Delivery and the Creation of Precariousness. Just Labour: A Canadian Journal of Work and Society. pp, 74-93 and called the alternate service of delivery (ASD) associated with raising the shortages of the state social services and orientation to the non-governmental provision. Theoretically, in process of providing social services by NGO the scientist argues about the reduction of the labor expenses and the increase of the control of the state finance's implementation. The third component can be traced through the change in the funding of the social service. The scientist Eakin has argued that the previous flexible long-term oriented financial support has gone. It has verified dependence from short-term programs based on competition among the non-governmental organizations and regulations from the funder Eakin, L. (2007) We Can't Afford to Do Business this Way: A Study of the Administrative Burden Resulting from Funder Accountability and Appliance Practices. Toronto: The Wellesley institute..

Concluding, I would point that the certain idea described the NPM's theory and earlier mentioned components that were narrowing and specifying the financial situation in the state-NGOs relations will be used further in my comparative case study analysis. Thus, I am going to verify the phenomena of responsibilization, alternate source of delivery (raising shortages of social services and orientation to the non-governmental service' provision), change in funding might be additional components for verification the impact of new public management during my comparative case study.

1.6 The key interpretations of social capital as a ground for the comparative case-study

It should be noted that the existence of certain patterns of interaction between the state and NGOs working with disabled people is theoretically elaborated from the generalizations of the other sociologists ideas mentioned in the first chapter. For the formation of certain patterns, I use the ideas of Ranta, Pestoff, Wikstrцm, Tшssebro, Block and Golovin associated with the descriptions of the Nordic welfare states Ranta T. (2008) Network Intensity in the regional innovation environment of Seinajoki. Innovation.no. 11,, p.100.

Pestoff, V., Wijkstrцm, F. & Zimmer, A. (2011) The Winds of Change. The Consumer Cooperative Movement in Sweden & Cooperatives and Democracy in Scandinavia. The Case of Sweden, Nordic Civil Society at a Cross-Roads. Transforming the Popular Movement Tradition. Nomos, Baden-Baden, pp.109-126.

Wijkstrцm F. (1998) Different Faces of Civil Society,EFl,Stockholm,Sweden.

Tшssebro J. (2016) Scandinavian disability policy: From deinstitutionalisation to non-discrimination and beyond. Alter - European Journal of Disability Research. Vol. 10 (2).. Their ideas commonly defied the egalitarian model of the state based on an equal distribution of state's resources among all citizens, including the citizens with special needs. Under the pressure of capitalization, commercialization and individualization, the overall responsibility of citizens and the social capital phenomenon are not destroyed. Moreover, these phenomena are gained and multiplied. The citizens of the Nordic countries retain the respect for the state. There is an understanding that the state is an apparatus for preserving and multiplying civil interests. The commercialization taking place in these countries is tied to the existence of a common good that is supported by citizens. Citing Lars Trдgеrdh: "Even with the emergence of the new elements, regarding the quality of reporting and the spreading of social services emerging in the Nordic welfare states, I would say that they are very different from the American marketing society. Even the "wind of change" is unlikely to blow away the features of the Scandinavian civil society. " Henrik Berggren, Lars Trдgеrd (2012) What's so special about the Nordics? World Economic Forum, Davos.. Scientists argue that, despite the recent changes, the civil society in Scandinavia will not lose its specific impression of equality for everybody. However, at the same time, there is an opinion that Scandinavian civil society is being pushed towards the corporate way and becoming more and more business-oriented but still in that process is not deeply investigated.
Thus, I would point that relations of the state and NGOs in the Nordic welfare states shaped by the egalitarian perceptions of well-being. That gives me a right to consider the existence of an egalitarian pattern of interaction shaping the Nordic welfare states.

In contradiction to the process of gaining the social capital and shared responsibility by the egalitarian pattern of interaction. I would mentioned the Lytkina's investigation of the social capital in Russia. The author has verified the recent situation with social capital of the Komi Republic, scientist's results testified the crisis of confidence among the social institutions in Russia today. The mentioned crisis prevents the development of the necessary level of person's confidence in the society and trust for its non-governmental organizations, therefore it failed the interaction between them. Another challenge presented by Lytkina associated with the inequality in the process of interaction between different members of one social group. Unprofitable exchange of people's resources contributes to the problem of reproduction of social networks: The situation might be even worse for socially-vulnerable groups of citizens Лыткина Т.С. (2012) Социальный капитал в решении социальных проблем: практики солидарности бедных в Республике Коми // Журнал социологии и социальной антропологии, т. 15, №3, C. 135.

Thus, the availability of solidarity groups is not guaranteed the solution of social problems and economic prosperity. The lack of trust for civil organizations and inequality in the process of interaction between social groups members, the lack of respect towards the state institutions turns to the lack of opportunities for the accumulation of the social capital. In that situation the state is loosing the potential for further social development. This contributes to the rise of the state's paternalistic behavior due to the lack of trust towards the civil organizations. Also, it grows of the attempts to impose the state's power in the state-NGOs policy development. According to Lytkina, the phenomenon of social capital does exist, but it doesn't grow now. In my opinion, it is justified by the realities of the recent state-non-governmental relations.

Thus, Lytkina's challenges and problems might refer to the picture of paternalistic relations between the state and civil society and its institutions. That gives me a right to consider the existence of a paternalistic pattern of interaction describing the recent situation of the Russian state-NGOs' relations. It can be concluded that the combination of several sociological phenomena considered in this chapter presents the certain idea for my comparative case-study analysis of the existed patterns of interaction. The phenomenon of de-commodification argued the notion that the state and non-governmental organizations do the control of the spreading welfare benefits and social solidarity for socially-vulnerable groups of citizens.

In addition to the notion of the de-commodification, such feature as loosing state's sovereignty shows the actual reality of interaction between the state and non-governmental actors in the process of globalization, commercialization and individualization formed by three components: territoriality of the global economy, the ascendance of governing cross-border transactions, virtualization of economic activity. The phenomenon of social capital and practices of solidarity are the most promising for applying of my research. They might be tested through the comparative case study analysis in a way how such theoretical components can explain the existence of egalitarian and paternalistic patterns of interaction between the state and NGOs working such socially-vulnerable groups as persons with disabilities. The responsibilization, alternate source of delivery (raising shortages of social services and orientation to the non-governmental service' provision), change in funding might be additional components for verification the impact of new public management during my comparative case study.

  • Chapter 2. Finnish case: dynamics of interaction between NGO and state
  • The aim of the chapter is to identify the practices of interaction between the state and NGOs working with impaired persons in Finland during the neoliberal turn through analysis of changes in legal status and organizational structure, ways of formation, missions and sources for economic sustainability, main activities and strategy of cooperation with state authorities in solving the specific social issues.
  • The analysis is based on the case-study of Finish non-governmental organization the Kehitysvammaisten Palvelusддtiц (KVPS). During the four weeks, I was doing an internship in the Kehitysvammaisten Palvelusддtiц's administration office in Tampere. I had an opportunity to carry out the participant observation of employees' work, to conduct interviews with NGOs' specialists, representatives of state authorities, volunteers, experts of Finnish non-governmental sector, NGOs' clients with intellectual disability and members of their families. In general 14 interviews were conducted.
  • During participant observation I had the possibilities: to see practical process of interaction between administrative specialists of state institutions and KVPS's employees, to visit national institute for health and welfare as well as municipal offices in Helsinki and Tampere, to contact with the clients of KVPS's in day-care organization “Sinikello” and local social houses operated by KVPS social entrepreneurship called KVPS Tukena ltd. Such experience helps me to reveal personal views about practices of interactions between state actors and non-governmental organizations working on issues of disability from different perspectives of third sector specialists, state-representatives, experts, volunteers and clients of organization.
  • The general description of case describing the recent practices of interaction between previously mentioned actors in the austerity policy context then was analyzed further.
  • 2.1 Organizational features of Finish case: legal status, structure and types of activities
  • Legal status. The Finnish case represented by Kehitysvammaisten Palvelusддtiц or Service Foundation for People with Intellectual Disability (KVPS) - the national non-governmental organization-operator working with people with intellectual disabilities or other groups who need special support and their families. KVPS is established in 1992 as a non-governmental organization and guided by principles of reliability, non-profit and effectiveness for its clients.
  • Structure. Organization is aimed at development and production of high-qualified services (diversified and individualized solutions) for people with intellectual disability to make sure that they can live as their life as people without disabilities. Service Foundation for People with Intellectual Disability owns a socially-oriented organization called as KVPS Tukena Ltd. This is an umbrella chain of private institutions responsible for providing the residential care services, supported living services and daytime activities all over Finland owned by KVPS. Both mentioned organizations are headed by the chief executive officer, who was recruited by KVTL's board members to the administrative position in 1998 to construct the organizational structure and adapt it to the challenges of that time. During development and spreading of the new activities and responsibilities, he got the chief executive officer's position of Kehitysvammaisten Palvelusддtiц. He still has been effectively working as the CEO of the nonprofit organization and profit social entrepreneurship at the same time. The CEO has a deputy person who is head of the developmental activities department. The second, but anon less important employee is the head of property and housing department. Both positions are occupied by highly-educated specialists who are responsible for the organization of new projects, activities, representation KVPS at the international events and the state structures, maintenance of the working of conditions the existing housing estate and the construction of new buildings for the NGO's clients. Beside the mentioned persons, there one more head of department is responsible for the respite care services department. Such person is heading the department providing temporary respite care for intellectually impaired persons that helps family members to give a rest from their everyday responsibilities.
  • All in all, the employment structures of the NGO and its social entrepreneurship have counted 500 people. There are 80 employees involved in the work-processes of KVPS and 420 people in KVPS Tukena Ltd. Majority of specialists are fully-employed, except several persons with disabilities working in the administration building. Both organizations are headed by one CEO with the executive board represented by parents or family-members of intellectually impaired people. According information presented on by KVPS's website, organization and its social entrepreneurship provide the social services approximately for 1000 clients and 120 municipal or local authorities. Also KVPS arranges 300 individual apartments and 390 group homes for intellectually disabled people in 2015.
  • Types of activities. The activities of KVPS take place in majority of Finnish regions and local municipalities. The main objectives of the KVPS' work are: 1) building up and maintaining of the housing properties for people with intellectual disabilities all over Finland; 2) providing 24-hours and short-term respite care services for intellectually impaired persons; 3) providing different kind of developmental activities (events, projects and trainings) for people with intellectual disabilities and the other groups with intellectual diagnoses who need special support and their family members; 4) providing educational courses and one-time seminars for state district and municipal persons working with people with intellectual disability; 5) lobbying social issues related to intellectual disability and advocating to reach sustainable conditions for people with intellectual disability and their families.
  • There is one additional activity of KVPS which is running socially-oriented company. For organization of commercial activities, Finnish NGOs used to create profit organizations for own aims, where they become founders or co-founders together with other NGOs and conduct socially-oriented profit activities under of the commercial structure. In 2007 KVPS established social entrepreneurship for these aims. This organization was established in legal form as Limited Liability Company associated with profit-oriented companies, at the same time organization defining itself as “socially-oriented entrepreneurship”. The choice of a recent status is determined by changes of the national legislation, especially emergence of public procurement and tendering process in social sphere Act on Public Contracts №348/2007 (Unnoficial translation). Retrieved from: http://www.finlex.fi/en/laki/kaannokset/2007/en20070348.pdf Reacting on these changes and requirements of receiving money from the main funder that is Finland's Slot Machine Association, KVPS has to create own brand KVPS Tukena Ltd. This organization is responsible for providing 24-hours diversified and qualified types of residential care, personal assistance and comprehensive rehabilitation for intellectually impaired persons Full list of Tukena's activities. Retrieved from: http://www.tukena.fi/palvelut/. The services are based on the contract agreements between municipalities, clients, and other commercial or non-commercial actors. The website of KVPS Tukena claims that organization earns money to arrange accommodation and provide services for people with intellectual disabilities in a socially sustainable way. Thus, it is a kind of "social entrepreneurship" established as a private firm, but has some other morals than the simple earning of money. All mentioned activities are delegated towards three departments: the developmental activities, property and housing, respite care services.
  • 2.2 History of organization: way from national association toward social service provider
  • The organization was founded in 1992 by parent organization called «Kehitysvammaisten Tukiliitto ry» or «Inclusion Finland, KVTL» (KVTL-further), - the national association of family members with intellectual disability based in Tampere, Finland. The parent organization was founded in 1961 by parents of children with intellectual disabilities towards providing support for family members and other nearest persons. During 56 years of development, the idea of support families with intellectually impaired persons was shared more than 17 000 individual members. According to the respondents' information, KVTL was responsible for the majority of issues delegated by the Finnish state, but it didn't get any kind of support. Referring to historical facts, the country was divided into fifteen districts responsible for organizing services for people with intellectual disabilities. In overall, there were only a few private players and several charitable NGOs working in this sphere. “Inclusion Finland” presented the new idea of building special accommodation and developing a provision of new social care service that will meet the personal requirements of people with intellectual disability, strengthening their independence and give a rest or free time for other activities to their parents and finally, the idea was supported by the state.
  • During successful permanent support towards the organization's clients, KVTL started to build homes for people with intellectual disabilities in 1980. Then, the organization realized that the development and maintenance of social houses, provision of social services are very risky and time consuming, because of additional responsibilities and efforts for personnel. The KVTL chairman's vision (Tapio Suni, heading KVTL during 1992-2008, nowadays - passed away) moves forward a desire to create a partner organization for operating the housing care and other social services. “There is a vision of Mr. Suni behind us and a lot of enthusiasm, passion and strong idea that it is the right way to establish service foundation” - argues one of the KVPS' employees. According to informants, KVTL collected 2.000 of Finnish marks to establish a new NGO. This amount was given as an inheritance; another part was donated by KVTL members. Citing the one of the directors of departments: “This process of getting money for the foundation was definitely private. There was nothing to get from the state for foundation”. Thus the KVTL organization has become the founder of Kehitysvammaisten Palvelusддtiц. The history of interaction with state-representatives was started from that time, KVPS hadn't special funding from the state, but the development new services of living support for people with intellectual disability has forced by the organization was starting the communication with local municipalities in question of service provision. “As our old members of organization board say - it was very difficult, nobody hadn't donated before,” - says an employee of KVPS. Specialist supposed that in that time board of organization hadn't any idea how to make a long-term offer to municipalities for organization services for people with intellectual disability. There was system with the special districts with the majority of intellectually impaired citizens, so govern institutions of these districts organized one-time grant for KVPS for providing care of people with intellectual disability. Specialist argued that he doesn't believe that organization had special funding instruments. He added that at the beginning of the provision of housing support services, KVPS hadn't any written agreements with the state institutions, there were a few agreements with municipal leaders who wanted to provide something for people with a certain kind of intellectual disability.After that, they just sponsored one of the first KVPS' cases of provision social services to testify intentions and capacities of the organization and further they were excited by the results. During that time, quite many NGOs were merged, so the instruments of interaction with the state authorities and the attracting of the state economically-stabilized sources have become important.
  • One of the important features is that Kehitysvammaisten Palvelusддtiц and KVTL Inclusion Finland are very closely related to each other, CEO of KVTL included to the executive board of KVPS and vice versa, the same situation with one position in the executive boards of both organizations. The majority of board members of KVPS is mainly representatives of families-members of KVTL association. “There is a strong basis of family and local associations of families in our background and the way of decision making, so it's not really, that's local or state authorities have a big role in our organizations”, - said head of the project activities department. The picture 1 visually describes the structure of non-governmental organizations' relations.
  • Studying the history of the organization I feel important to highlight the creation of socially-oriented company in 2007. The main idea was to establish 24 hours-working person-oriented services for housing people with intellectual disabilities outside the institutional system of care. The running of the new type organization requires collecting a big cost for staff salaries and bills for housing and communal services. Due to that, KVPS is run such services as commercial company where clients pay for renting personal rooms for long-term perspective, and municipality pay for the provided services. Thus, KVPS Tukena, clients with intellectual disabilities and municipalities make agreements based on legislative requirements and KVPS legislatively avoided the stoppage of financial resources from one of the main funders.
  • In general, I would argue the close connection between the KVPS and its parent organization giving the opportunity to move forward to the organized provision of services for intellectually impaired people. From the establishment KVPS was focused on development the innovative ideas of service provision.
  • The client-orientation and renovation might be traced through the whole history of the organization. The provision of the non-governmental social care services for the intellectually-disabled persons gave a certain level of choice among governmental actors and KVPS as a social service provider. Since 2007, the trend of orientation toward the client-oriented services is institualised and positively influenced to the spreading KVPS's activities. Due to the emergence of new challenges as commercialization and raising a competition in the provision of social care KVPS has regularly reformulated own services and developed new ones to react to the particular individual needs of the Finnish citizens with intellectual disability.
  • 2.3 Current mission, values, goals and strategy: shift to commercialization
  • During the interviews of employees and analysis of KVPS's documents, there was gained information about the mission, values, goals, KVPS' perceptions and future trends, changes and challenges.
  • The mission of KVPS defined as the provision and development person-oriented services to support persons with intellectual disabilities and people without a diagnosis of the intellectual disability but has special needs and their caretakers (their family members or nearest relatives).
  • Polling staff revealed the following values: 1) respect for the human as a basis of everything; 2) reliability of the organization for the clients; 3) effectiveness in all activities without money-profit as a clear direction; 4) renovation of the organization under the slogan «life is a motion». In addition, KVPS annual report was describing that people with intellectual disabilities and others who need special support should have a good life and participate in usual community. All people should trust to each other and especially trust their families. The organization doesn't make boundaries for any kinds of disability, but mainly focuses on three groups who are persons with intellectual disabilities, people who have a certain level of intellectual disability without official diagnosis and their family members.
  • During the 2015, KVPS and KVPS Tukena's members, clients and employees participated in common reformulation of the strategy and development issues, reacting on the globalization and predicted challenges in the world. According to that, the latest strategy consists of following goals: 1) to continue to provide best services and excellent customer's experience; 2) to bear responsibility for the community and society; 3) to establish a sustainable economic organization process for further growth oriented on clients' needs; 4) to use money effectively and wisely; 5) to provide of the attractiveness and welcoming characteristics for all KVPS new employees, partners and members; 6) to organize the low-hierarchical structure of organization's management (organization is non-conservative and shared views, perceptions of the staff).
  • KVPS also formulated the actual goals: 1) development skills, trainings, motivation with orientation on the clients; 2) organization the diversity for housing opportunities; 3) making efficacy and effectiveness of marketing communications; 4) increasing organizational power of working networks and the value of partnerships with different companies and actors.
  • Finally the organization developed following analytical assumptions of the future global trends:
  • 1) the ageing of the population;
  • 2) the growth of the individuality and customer orientation values;
  • 3) the emphasis on social and spiritual needs;
  • 4) the growth of inequality among clients;
  • 5) the changes of working conditions;
  • 6) the development of digitialization processes in the world which influence on work conditions and attitudes;
  • 7) the Internationalization, multiculturalism, and social networking;
  • 8) the environmental changes in the world.
  • Referring to the KVPS staff personnel, during process of working, the mission, goals and values weren't dramatically changed. The provision help for the person with intellectual disability is still the central aim of the organization; however the external factors have impacted as positively as negatively to these issues.
  • The data gained from KVPS's booklets and information from KVPS's personnel gave evidence about the formulation of theoretical thoughts, such as actual mission, strategy, values and vision are formulated due to the process of development of various social care services, projects, and ideas for the KVPS's clients. The phenomena of personalization of social welfare, globalization and commercialization of social sphere logically impacted on mentioned theoretical thoughts and made the particular frameworks for the state authorities and non-governmental organization's activities.
  • The KVPS's mission, values, goals and strategy were reformulated due to the shift to the personally-oriented commercial services for clients with special needs and their family-members or people without a diagnosis but have special needs. There is a growth of awareness of KVPS's work among the citizens and responsibility for clients with disabilities. I can conclude that the previous ideas of support and providing services for intellectually impaired persons were adapted to the recent realities of commercialization social sphere and decreasing the state's responsibility for people with intellectual disabilities. It's interesting to mention that in time of decreasing the features of the welfare state, KVPS presented the increase of social capital due to widening own target group through the people with intellectual specialties without the diagnosis.
  • 2.4 Changes in funding: the key points for financial stability
  • Describing Kehitysvammaisten Palvelusддtiц, it seems useful to mention about the sources of funding. The non-governmental organizations in Finland have the opportunity to get regular or temporary support from government's financial sources at different levels: national or municipal to perform useful or innovative social services for small groups of socially-vulnerable people to answer their recent needs.
  • Kehitysvammaisten Palvelusддtiц is a charitable non-governmental organization, so its income is obtained from the different funding sources and not distributed among board members and employees. However, it doesn't hurt the financial stability of the sources described further. The material sources of KVPS mainly associated with the social housing property that were built for providing housing and caring 24-hours services for the clients across all the country. The KVPS has several apartments which were given to the organization as a bequest from the family-members of the organization. The administration building belongs to the Inclusion Finland KVTL.
  • According to gained information from persons chosen as the experts of the NGO-state relations and KVPS' specialists, the state authorities are the most significant sources for NGOs which are commonwealth organizations or for those which activities related to disability issues. Referring mentioned experts and specialists KVPS' funding from the governmental sources equals 70% of all income. Approximately 30% is shared between social entrepreneurship's income (20%), charity (2%) and usage of crediting instruments (8%). I will elaborate it deeply further.The state funding delegated to fourth actors: the Ministry of social affairs and health responsible for financial benefits as well provision of social services, state special institutions such as the «ARA» responsible for building social group-houses and «KELA» responsible for the provision of appropriate health conditions for the citizens. The actor requires a more detailed description. The common revenue of Veikkaus' beneficiaries is used for the common benefit of the Finnish society and partly spread for social, cultural and sport affairs. It is distributed among the beneficiaries as the RAY company by the responsible ministries Information about Veikkaus gambling company. Retrieved from: https://www.veikkaus.fi/fi/yritys#!/about-veikkaus. Thus, RAY is financing a majority of the list of KVPS's social activities for a long time. This organization is the historical result of emergence eight non-governmental organizations working on health care and social security and governmental institutions in 1938 into the one unique instrument providing financial support for non-governmental sector. The last important institution for KVPS is «RAY Slot Machine lottery» included in the Veikkaus Finnish gambling company in January, 2017.. The RAY's activities are defined by the Lotteries act (1344/2001) Lotteries Act №1047/2001 (Unnoficial translation). Retrieved from: http://www.finlex.fi/fi/laki/kaannokset/2001/en20011047.pdf , guaranteeing special opportunities for investment and funding for the third sector. Under the common brand Veikkaus, RAY is funding KVPS's activities according to the legislative requirements and tasks designated them by the Finnish government.
  • Here I want to describe the significant part of funding received from the RAY Slot Machine Association. According to official webpage «the RAY Assistance Database», the organization is planning to transfer 4 389 000 euros to support KVPS activities in 2017. This amount was divided on different funding and investment nominations of KVPS's activities such as: 1) providing at home a comprehensive relief services in order to facilitate the everyday life of parents of intellectually disabled child - 745 000 euros; 2) increasing promotion and development of the KVPS's services such as the development of personal budgeting, personal assistant's activities, possibilities of tutor's program - 200 000 Euros; 3) conducting «life-changes activities» to support people with intellectual disabilities and people with special needs and their families in different stages of their life changes, functions of adult's inclusion in emergence of new change or challenge in client's life - 215 000 Euros; 4) strengthening the role and social cohesion of people with intellectual disabilities by improving services for them and developing their participation and autonomy to support models and practices with the active support of regional development model called “ATAK” - 80 000 Euros; 5) conducting non-profit activities of the foundation - 208 000 Euros; 6) support for the purchase of housing for the intellectually disabled persons in all districts of Finland. According to the legislation, residents must be selected by health, social or economic reasons (Act on Slot Machine funding, 1056/2001). The amount of money is 2 400 000 Euros; 7) development and representation services for support children's opportunities to grow in their own neighborhood rather than using institutional care (“Do not miss the childhood - Alternatives to institutional care of children” program, 2016-2018) - 181 000 Euros; 8) realization of self-determination services for people with intellectual disabilities living in Southern Ostrobothnia region, development of territorial networks in self-determination service, reinforcing services and abolishing barriers for training, development of this service and peer support. (“Naturalization keys - self-determination the strengthening of group-housing” program, 2016-2018) - 130 000 Euros; 9) reducing of the loneliness of intellectually impaired and other clients with special needs by producing informal social activities (“No one would remain alone” prorgram, 2017-2019) - 230 000 Euros. The statistical data of receiving financial support from the RAY association are presented below in the picture 2.
  • Table 1. Finance from “RAY Slot Machine association”
  • Finance from “RAY Slot Machine association”

    Years

    2012

    2013

    2014

    2015

    2016

    2017

    Total amount in thousands of Euro

    3100

    4729

    3968

    4048

    3969

    4389

    Funding of annual activities and development of new services approved by RAY Slot Machine Association

    1282

    1308

    1358

    1448

    1448

    1701

    Funding of non-profit KVPS's projects

    600

    620

    610

    200

    289

    288

    Investing into the purchase of housing for intellectually disabled persons

    1100

    2500

    2500

    2400

    2232

    2400

    • Another part of the state financial support is derived from the national and local state institutions. This source has a variety of funding, depending on what kind of governing structure (on national or municipal level) provides money for KVPS. All municipalities of Finland are responsible for the provision of common benefits through the managing of social services from KVPS and other social providers. On the national level, the social insurance institute “Kela” pays financial benefits for people with disabilities. Also, there is a national institution ARA which mainly invests state finance for the building new social housing apartments for intellectually impaired clients. The last information from ARA institution is dating 2016 year; for the building 3 houses for 45 clients (15 of each), KVPS has received 3 600 000 Euros from ARA institution which covering 50% of total building costs. Another part was covered by the long-term credits loaned from Finnish commercial banks.
    • To use financial help, KVPS has to apply a certain set of documents for both investors; in that case governmental structure presented by the Slot Machine association requires the structured report based on the requirements the state authorities' report. The financing process is directly dependent on the activity of the organization, if the KVPS' property is built on 30%, after verifying this fact, the investor allocates 30% of the total amount. One of the interesting processes related to management of income is the verification of all organizational activities together with the costs financed by the Slot Machine. In my experience I've faced with the inspection from the Slot machine association that are verifying the recent situation in funding, organizational process, the quantity of people written in applications for financing produced by KVPS. Referring to the administration of KVPS, such events happen annually and the verification process takes about the 3-4 days of verification.
    • Next way of funding is an investment of a certain amount of money established by national grant systems from the state budget in case of winning the possibility to conduct projects with state authorities. Under of that funding-destination, there are provision financial benefits for people with disabilities, conduction of many projects such as the clients' abilitation for own life-changes, tutor assistance, experts' work, education of practical specialists and state administration personnel. It's important that mentioned activities are also supported by European Union institutions, or other countries-members. Such process is available as well for national authorities, as for municipal specialists.
    • I can add certain information about crowd funding and fundraising: KVPS has sufficient experience in the provision of such activities for raising financial resources. However, during my observation I didn't reveal certain usage of these instruments. Such activity is equal approximately 2% of all KVPS's income.
    • During my investigation, I realized that the state is mainly oriented to maintain the existing activities than to invest in innovative ideas and projects. The possibilities of creating the new social services are not observed in current KVPS's activities, because of the lack of additional financial sources from the state. Analysis of KVPS's organization practices shows that every new project or development of the service is obliged to fix previous experience, using the same amount of budget from the national or local funding institutions. The recent phenomenon of financing could be evident not only in the state funding. The Slot Machine association presents the same ideas of economy. There are no vivid shortages of financing, but the idea of cost savings is quite depicted in public discourse. These phenomena of money-saving features can be traced the rationalization, commercialization processes together with a certain level of individualization (personalization) occurring in the world. Reacting to the economic challenges, KVPS is going to adapt own activities and need of financial sources to the recent economic reality of optimization the state costs. Together with that I can mention the tan existence of particular attempts to impact on financial issues by lobbying, cooperating with other organizations and protecting rights of disabled people. These activities are referred to the unification of the common benefit of all citizens, especially or those who born with an intellectual disability.
    • Summarizing the financial sources, I would point that KVPS has a several key actors for funding NGO's activities. The stability is provided by Slot Machine Association' support together with the state institutions' support. The state authorities are the major actors in the provision of funding for KVPS.
    • 2.5 Institutional framework of interaction with the state: civic engagement and shared responsibilities for social affairs
    • There is a lack of information describing the practices of interaction in Finland, I would argue that practices of interaction are comprehensively structured in reality and might be traced through the proper application of the particular legislative acts combined into the strategies or through the informal practiced interactions between the state authorities and non-governmental organizations working with disabled people.
    • Legal basis.
    • The study legislative frameworks related to non-governmental sector and describing relations between the Finnish state and NGOs was conducted. Referring to the gained information from different sources such as the website of the Ministry of social affairs and health, overviews of KVPS's lawyers, legislative documents of the state responsibilities in the healthcare, welfare and security promotion the general overview about Finnish welfare policy was presented further.
    • The provision of social welfare for the Finnish citizens are based: 1) equality; 2) participation; 3) the necessary services and support. The provision of these rights is constructed by the following principles: 1) universality in getting social benefits and services; 2) strong support of state institutions and funding the rights through the taxation instruments; 3) eager treatment of clients and customers Social Welfare Act, No. №710/1982 (Unoficial translation). Retrieved from: http://www.finlex.fi/fi/laki/kaannokset/1982/en19820710.pdf. The legislative discourse about the interaction of nonprofit organizations working with disability issues and government agencies in Finland are not presented by a particular legislative act that established a certain forms of interaction. This topic could be represented through the lenses of several branches of the law. The first branch is a legislation describing the rights and opportunities dedicated to the people with disability through Social Welfare Act (710/1982), Healthcare act (1326/2010), Law of intellectual disability (519/1977), Disability service act (380/1987), Services and Assistance for the Disabled Act (380/1987), Act on Support for Informal Care (937/2005), Act on the Status and Rights of Social Welfare Clients (812/2000), Adoption act (153/1985), Act on slot machines grants for (1056/2001). This combination of acts scrupulously informs the clients about their possibilities. The second is related to rights, responsibilities of associations and governmental organizations, such acts as the Finnish Associations Act (503/1989) and Social Welfare act (710/1982, 13 and 17th sections; 4, 5 chapters), Act on Cooperation on Client Services within Rehabilitation (503/2003), Act on Supporting the Functional Capacity of the Older Population and on Social and Health Care Services for Older Persons (980/2012), Act on Qualification Requirements for Social Welfare Professionals (272/2005). According to these documents, I could argue that responsibilities of social welfare and health services structurally organized with a right of certain personalization: the responsibilities of provision social services are delegated to the state local authorities; but there is a possibility to choose whether the state or NGO will provide service for the client. The last branch dedicated to the European requirements for public procurement system presented by The directive on public procurement by entities operating in energy, water, transport and postal service sectors (24/2014), another important document is the Act on public contracts (348/2007). With regard to my research, this legislation defines the principles of equality between state, non-governmental, and business institutions in the issues of providing social services for intellectually impaired persons. Together with that, such actors are placed in a certain competition for economic reasons, giving a certain favor for the statе to choose more useful and less-expensive actor for provision welfare benefits according to the public agreement.
    • To reveal the most important documents for my investigation, I conducted the interview with the KVPS's lawyers. According to their information, the basic fundamental document for non-governmental organizations is the Finnish associations act (503/1989). This document establishes basic rights and procedures for founding, registration, making decisions, voting, auditing and making dissolution of non-governmental structures. This document doesn't regulate the receiving of the state money, but it provides a verification required for all non-governmental structures gaining the economic support from the state.
    • Due to the development ideas of outsourcing and commercialization of public service by supranational EU-institutions, the Finish government established the Act on Public contracts (348/2007) that might be associated with a certain formalization of interaction between state authorities and non-governmental actors. Nowadays the document was reformed to give rights for the companies and other communities can offer supply, service and public works for municipalities through the participation in the process of public procurement. This act gave an opportunity to get financial resources for non-governmental activities from contracting state institutions, especially from the municipal authorities, on the principles of equality and profitability, transparency and non-discrimination.
    • ...

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