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Foundations: An Excellent Opportunity for Companies to Leave a Mark on Society

Domestic companies, especially state-owned ones, are known for frequently and willingly sponsoring various activities, projects, and initiatives of humanitarian, educational, or other socially beneficial character. This is a custom that emerged from the economic system abandoned in the 1990s, where state business entities, following political directives, gladly supported all sorts of initiatives, including top-tier football clubs. Although this practice is diminishing in Croatia, it has not been completely abandoned; however, foundations, which have slowly begun to develop in Croatia, are more interesting than this type of community return. They are not widely spread, but large domestic companies have started to establish them while simultaneously relinquishing control over the distribution of donated funds to independent influence, unlike those previously mentioned.

Private philanthropy in the Western world has been notably recognized by families such as Rockefeller, Rothschild, and Getty. Typically, their foundations began as corporate philanthropic organizations and have evolved into globally influential networks that, with professional management and strategy, support the arts, local communities, public health, and similar causes. In Croatia, the phenomenon of corporate foundations is new, but the current intensity of their activities indicates a change in business culture.

From Medicine to Heritage Preservation

– With secured initial funds of ten million kuna (at the time of establishment, ed. note), the Adris Group allocates one percent of the profit from the previous year for the Foundation’s financing annually. In 19 previous competitive cycles, 8.5 million euros have been allocated for projects and more than 400 scholarships. Leading Croatian intellectuals, who operate without the influence of Adris Group management, are involved in the work of the Adris Foundation, thereby nurturing high standards of independence and expertise. The quality of the project, contribution to achieving the Foundation’s goals, originality, degree of innovation and progress, and transparent financial assessments are evaluated in the assessment of submitted projects and candidates. The criterion of national geographical distribution is also important in project selection – they conveyed to Lider from Adris, which initiated this trend with the establishment of the Adris Foundation in 2007.

Among the specific projects of the Adris Foundation, the robotic system for stereotactic neuronavigation RONNA stands out, developed in collaboration with the Faculty of Mechanical Engineering and Naval Architecture (FSB), Dubrava Clinical Hospital, and the Medical Faculty of the University of Zagreb, which is now, in its fourth generation, in regular use at the hospital in Dubrava. The Rovinj Adris Foundation supported the Bank of Reproductive Tissue – a project through which the Medical Faculty in Zagreb has enabled young oncology patients to preserve fertility by storing ovarian and testicular tissue before the start of treatment. This advanced procedure has so far enabled the birth of 185 children worldwide, which excellently illustrates how beneficial and contemporary foundation activities can be. Additionally, the Adris Foundation has financed numerous medical and technical research, donated funds to FSB’s CRTA for new research in the field of robotic and AI medicine, provided scholarships, and has been involved in many heritage preservation projects. With its help, the cortina of the Historical and Maritime Museum of Istria, the Pauline Monastery of St. Peter in the Woods, the Blaca Desert on Brač, the old town of Kožljak in the municipality of Kršan, and the old town core of the city of Buje have been preserved from decay, and the access to the church of St. Nicholas and the promenade along the ramparts in the historical core of Nin have been arranged.

Mental Health of Children

Recently, the Novo sutra Foundation, established by the First Gas Company (PPD), or the founder of that company Pavao Vujnovac, has been most present in the public eye. Novo sutra has so far secured around three million euros for financing more than 60 projects and scholarship systems.

– Through the scholarship system of the Foundation, just under 200 students have passed, who are currently provided with some of the most generous scholarships in Croatia. They amount to 560 euros per month and are awarded to the best students from the poorest Croatian counties. The Foundation has also supported exceptionally talented artists and their education and training abroad. After the earthquake in Banija in 2021, a project was launched that provided continuous support for more than 50 children from the areas of Sisak, Glina, and Petrinja. These are children from homes, foster care, and socially vulnerable families, and they have been provided with scholarships, summer vacations, IT equipment, driving tests, and Christmas gifts until the end of their regular schooling. After the outbreak of the war in Ukraine, a project to assist refugees was launched, under which nearly 80 people were accommodated in 28 housing units in the Osijek area, with covered costs of rent, utilities, and food – stated the Novo sutra Foundation.

This year, Novo sutra is notable for the ‘Forest Court’ project of the Lotus Association from Rijeka. The ‘Forest Court’ project is worth 440 thousand euros, and its goal is to provide support for mental health through education and socializing in nature for children and youth, as well as to enable children with developmental difficulties to have therapeutic riding opportunities. The Foundation is generally eager to finance support for children with special needs.

The Power of Innovation

Podravka is also one of the giants of the domestic economy that has ventured into establishing a foundation. This is the ‘Zlata Bartl’ Foundation, which was revived this year by Podravka’s management under the leadership of Martina Dalić after a long period of inactivity.

– The statute defines that Podravka allocates up to 0.5 percent of the normalized net profit from the previous year annually, ensuring the implementation of program activities, the awarding of scholarships and support, and financing socially beneficial initiatives. This year, it successfully conducted the first competition within the ‘Power of Innovation’ program, which encourages the development of innovative solutions in the food and agricultural sector. Three projects stood out, which the Foundation also finances in the total amount of 64,750 euros – ‘AgriCon’, ‘NADES Design’, and ‘Crystal Idea’ – which innovatively respond to the needs of the agricultural-food sector and society as a whole – Podravka responded to Lider’s inquiry.

Podravka’s foundation measures the success of its activities by indicators such as strengthening sustainability, encouraging women entrepreneurs, collaboration with educational institutions, and economic indicators such as revenue growth and opening new markets.

Diverse Focus

The focus of domestic foundations is evidently diverse. The Croatian Post Foundation was established in 2010 and is financed by a commission from contracted life insurance policies for children without parental care and an annual payment from the founder of 13,272 euros (formerly one hundred thousand kuna). It collaborates with 22 children’s homes across Croatia, and to date, it has contracted 603 life insurance policies worth 3.8 million euros. The policies are paid out over 24 months after the young people leave the homes, which means a monthly rent of about 400 euros in the first two years of independent living.

– Young people who have become independent and functional members of society with our support gladly share their personal successes and special life situations with us, such as obtaining a diploma, employment, marriage, etc. Information about long-term social integration regularly reaches us from certain children’s homes that conduct this research for their needs. Their research shows that there has been a significant positive shift compared to 10 to 15 years ago. The latest research showed that more than 87 percent of young people have successfully organized their independent lives after leaving homes and alternative forms of care. We often hear that this insurance policy is the largest financial support they have ever received, but that the moment and manner of payment, which provides them with security in the early days of independence, is even more important, encouraging and motivating them for their own engagement – emphasized the Croatian Post.

The Croatian Post Foundation is exploring the possibilities of another form of support that would enable young people to more easily resolve housing issues.

HT’s PrijaTelj Foundation was established in 2014, and its primary focus is on employee care. Since its establishment, the Foundation has helped more than a thousand HT employees, paid more than 1.4 million euros, and provided support to individuals in serious health conditions, rehabilitation, procurement of special medications, orthopedic aids, and the restoration of homes damaged in earthquakes and severe weather. Hrvatski Telekom allocates about 67 thousand euros annually, and employees contribute through voluntary donations.

– The Foundation typically covers about 50 users per year. Each situation is approached individually, and the amount of assistance is decided by the Foundation’s Management Board depending on the specifics and available budget. All employees can turn to PrijaTelj for help in difficult situations, and the Foundation’s board decides on the incoming requests – HT informed us.

The collaboration of Atlantic Group with the Solidarna Foundation, publicly active in promoting human rights and assisting vulnerable groups in society, from the areas hardest hit by earthquakes to assistance for seriously ill individuals, is also well known. Atlantic Group responded that their support for the Solidarna Foundation is focused on the ‘Culture in the Community’ programs.

Good Returns Good

Since antiquity, philanthropy has been associated with the idea that those who have should give the community something more than mere taxes. For example, Gaius Cilnius Maecenas has secured his place in history more through his support for poets than through his role as an advisor to the Roman Emperor Augustus. His name has become synonymous with patronage in numerous languages, perhaps thanks to the supported poets who praised him.

Good deeds are also present in the roots of Christian teaching, which particularly addresses the wealthy when discussing this. Our people have summarized the reciprocal arithmetic of philanthropy in the proverb ‘Good returns good!’, but true philanthropy does not seek thanks or returns. Therefore, foundations are an excellent opportunity for large companies and wealthy domestic families to leave a more lasting mark on society. By relinquishing control over donations, the best message is conveyed that thanks or returns are unnecessary.