Financing

The sources of financing non-statutory welfare services can basically be divided into three groups: remuneration for services, public grants-in-aid and internal funding.
The welfare associations receive remunerations (in the form of fixed care charges) in return for services they provide in certain areas (hospitals, nursing homes and out-patient services among others). Either care recipients have to pay themselves (often with a right to reclaim the charges from social welfare and youth services), or the public welfare agencies pay directly, als they do for the extensive areas covered by social ensurance.
As for funding in the form of public grants-in-aid, its legal basis lies in the public-law obligation to provide appropriate support for voluntary welfare agencies. We can differentiate between investment aid for the building facilities on the one hand and financing assistance for their operation on the other.
This funding is in part stipulated in law, and in part furnished according to political judgement. The form and extent of public grants-in-aid varies according to the respective field of work, and depends on the Land, district or municipality responsible.
Finally, the non-statutory welfare makes a considerable contributes itself. First and foremost there is all the work performed by voluntary helpers, even if these do not appear on any balance sheets as a financial item. Voluntary work saves enormous amounts of money wich would otherwise have to be covered by the public through taxes or insurance contributions.
The traditional sources of income for the welfare associations are the financial and material donations from the public appeals, households and street collections. Internally, the associations receive contributions from their own members, friends and supporters, which may also take the form gifts, bequests, charity-donated fines and endowments. A further self-financing activity is the sale of welfare coupons which contain a surchage. Proceeds from lotteries are also important.