A Culture Left Behind: Why Isn't Donation Culture Developing?

Despite its rich historical past in Azerbaijan, donation culture faces numerous problems in modern times. Issues such as transparency in reaching the target audience, declining public trust, and the absence of sustainable support mechanisms are major challenges in this field. Additionally, the weak promotion of donation culture prevents its broader acceptance and development within society. Both education and modern solutions are crucial to enhance the social impact of donations.

Donation Culture in Europe

Sociologist Sahib Altay notes that the development of donation practices encompasses more than just providing financial aid; it holds a broader social and cultural significance. In developed countries, donations primarily support social values and the development of science and the arts. According to him, the culture of donations began historically with churches and religious organizations in Europe, and over time, it aimed to support the social development of any community.

"During the Renaissance in Europe, supporting the arts through donations became a common practice. For instance, in Italy, the famous Medici family directed their wealth to support the arts and sciences. This family not only provided financial assistance but also served as a role model in society for their interest in arts and sciences. Such examples and family support gradually expanded and turned into larger projects supported by other businessmen and companies. This type of donation culture has significantly influenced the development of science and arts, especially in European and American societies."

A Past Culture We Have Failed to Shape

The sociologist states that philanthropists like Haji Zeynalabdin Taghiyev have sent students abroad at their own expense. However, we have failed to properly shape this culture. For a culture of donation to form, it needs to be aligned with common interests and have significant biological and sociological layers.

"For example, in our country, the development of science or the arts has not been transformed into a national value or a common interest. Hence, a donation culture aimed in these directions has not formed or existed. Haji Bey Zardabi and Shafika Afandizade tried to establish it, but it was not successful, and there has been no significant change from that time to this era."

Donation Culture in Azerbaijan Is at Zero Level

Based on his observations on social projects and major science conferences in Azerbaijan, the sociologist says that compared to other societies, the donation culture in Azerbaijan is at a zero level.

Social media and the internet have a significant impact on donation culture. Like in every field, the internet today operates on the principle of limitless information access. We do not see examples that are purely donation-oriented or sponsorship-oriented, whether by companies or individuals.

"According to my research, our country mostly has a culture of donations characterized by assistance. That is, if someone is ill, people help them, or if someone is in a bad situation, they are helped with food aid. This form of donation exists in our country. It stems from our held beliefs and is a type of donation that receives more support."

Need for Successful Examples

Sahib Altay mentions that there might have been misappropriations from the donation budget, causing distrust among people. Individuals and communities draw from examples. The sociologist says that for this tradition to form, there needs to be an example that leads to massive support for development in any field. Azerbaijani legislation allows for the formation of foundations, but it's challenging to implement broadly due to current country realities and the legal side, which needs clear reports and transparency in development.

"However, because donation activities should be independent and transparent, they need to be organized in such a way that the legal and technological basis is fully transparent to the people."

The sociologist also highlights that independent forces should start this culture. Because it is an independent activity, only Azerbaijani businessmen and companies can form it. This way, individual efforts are unnecessary.

A Tradition That Has Not Formed Locally, Even If It Has Elsewhere

Drawing an example from neighboring Turkey, he mentioned that he worked with Turkish scholars on social projects, and the type of donations supported by companies and individuals in Turkey has developed at a high level. There are supporting businessmen, foundations, and funds. Even when students apply, there are supporting funds and foundations.

"In Turkey, the culture has already formed. I think that the broad corporate market plays a role in shaping this culture. There is a moment where national interest and national consciousness are at a higher level. Today's Turkish citizen already considers it a tradition."

Sahib Altay says that this tradition has not existed here. Even if it has, it has been copied from somewhere and has not significantly impacted society in Azerbaijan. To form it, we need to promote it through media and internet technologies so that people understand why they should play a role in donation activities.

Legal expert Rasul Jafarov notes that the provision and acceptance of donations are determined based on laws about grants, non-governmental organizations, and a 2015 decision by the Cabinet of Ministers regulating donations. He mentioned that both local NGOs and donations made by foreign organizations are regulated under these three normative legal acts.

"Whether it's local or foreign organizations donating to another NGO, each donation, regardless of the amount, requires registration. If not registered, the respective NGO cannot utilize the donated funds."

Rasul Jafarov notes that a standard application form must be filled out. The application should contain complete information about the donor. If the donor is an individual and the amount exceeds 200 manats, relevant bank details must be provided. According to the law, only donations up to 200 manats can be given in cash. Any amount over 200 manats must be transferred via a bank account.

"Even if it's one manat or five, it must go through a sufficiently complex procedure. It must be confirmed, registered, and the respective NGO must be notified."

Donations Are Not Completely Tax-Free

Rasul Jafarov says that there are various tax rates depending on the field, and these donations are allocated not for a specific project but to support the general statutory purposes of the organization, such as science, education, healthcare, culture, humanitarian, and charity foundations.

"I believe that the tax rates are quite high. Your last question was about what amendments or additions could be made. The suggestion regarding taxes is that these rates should be reduced and the fields should be expanded."

Rasul Jafarov states that tax incentives for donations to legal NGOs should be implemented, and generally, the entire donation registration system should be abolished. A notification and information system could be applied instead. For example, NGOs could initially inform the Ministry of Justice or other agencies about the donations they receive quarterly. Such a system existed before and is still in place. For example, NGOs must submit an annual financial activity report to the Ministry of Finance.

Rasul Jafarov highlighted that the implementation of the registration system in 2015 created serious problems for NGOs in serving citizens, financing, and generally, the formation of a donation culture.

The failure to establish this culture creates invisible barriers to the development of various fields. Without finance, the development of crucial societal fields like arts, education, and law slows down. Fundamental changes are necessary for its formation.