FUNDING OF THE KOVACS FOUNDATION
To sustain Foundation activities, several
forms of funding have had to be established.
Moreover, the Institution understands that non-profit organizations
must guarantee an optimal management even more rigorous than
that employed in for-profit organizations, since any inefficiency
in the handling of its resources, rather than a reduction
in profits, entails instead a reduction in its activity. As
a result, it reduces its usefulness to society and thus questions
its very reason for being.
Furthermore, the Foundation believes that non-profit organizations
should take measures to ensure the transparence of their financial
management, with particular zeal, as that also benefits the
effectiveness of their management. To this end, the Foundation
subjects itself voluntarily to strict mechanisms of control.
Thus the following are discussed:
-
Origin
of Funding
-
Control
Mechanisms
Initially, the contributions made by the
members of its Board of Directors of its Trustees constituted
the only source of funding of the Kovacs Foundation. Nonetheless,
the income derived from the Institution's activities has increased
constantly over the past years. In 2003 this income represented
63% of its budget, and in 2004, it is expected to represent
80% of its budget. Over mid-term, it is expected that this
income will be sufficient to maintain all of its activities,
including those which by definition are not profitable in
themselves, such as medical research or charitable health
care.
In a not-for-profit institution that has clearly defined
objectives, that uses rigorous methods to achieve them and
that is effectively managed, the volume of its resources is
the essential factor determining the range of its activity.
The greater the resources available, the more activities it
can take on and the greater the number of its beneficiaries.
For this reason, and while the Foundation intends to continue
increasing its income from its own activities, additional
contributions representing new possibilities for action are
always welcome.
Currently, the Foundation's funding comes from donations,
specific subsidies or grants and the income derived from its
activity.
1.1 Donations
Institutional donations to the Foundation
come from the members of the Board of Directors of its Trustees
and personal donations from its individual members. The
Foundation's Board of Trustees is the highest governing
and representative organ of the Institution. The Board of
Directors of the Trustees is made up of the highest-ranking
executives of Spain's leading institutions and companies,
which contribute to maintain it. Their contributions are
voluntary and are renewed yearly. To make a detailed tracking
of the Foundation's activity, the members of its Board of
Directors name an executive to be in charge of his or her
own entity that forms part of the Foundation's Tracking
Committee. This Committee behaves as an advisory organ for
the management and control of the Foundation's economic
activity. The Foundation's members are private individuals
who, in a personal capacity, decide to collaborate with
the maintenance of its activities. Their contributions are
also voluntary and renewed annually.
1.2 Specific Grants
Some companies and public and private entities co-finance
certain of the Foundation's activities. For example:
-
Some of the Foundation's research projects
are co-financed by private entities (such as GESA) or
public ones (such as the Fund for Health Research of
the Spanish Ministry of Health and Consumer Services,
the Agencies for the Evaluation of Health Technologies,
or the COST program of the European Commission).
-
Its charitable health care is co-financed,
for example, by the Department of Social Services of
the Municipal Government of G.
-
Some projects for the promotion of
public health are co-financed by public entities such
as IMSERSO, the Office of the Presidency of the Government
of the Balearic Islands, or private companies such as
Flex, Sa Nostra-Caixa de Balears (Sa Nostra Savings
Bank of the Balearic Islands), Confederations of Business
Associations and the Matthias Kühn-Illes Balears
Foundation.
The co-sponsors are identified in the description of each
activity.
1.3 Income from Activity
This means of funding includes:
-
Health care. The Foundation's
income from health care comes from three sources:
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Compensation of the expenses the
Foundation incurs in attending patients referred
from the National Health System or Workmen's Mutual
Insurance companies
-
Private patients treated in Kovacs
Back Units in its own clinics
-
A percentage of the billing from
the Kovacs Back Units situated in cooperating clinics.
The funds thus obtained allow the institution
to maintain its charity care in its own clinics and
the mechanisms of quality control that it applies in
all the Units.
-
Its contracts, which refer essentially
to:
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The design, realization or supervision
of research projects for third parties.
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Sponsorship or advertising contracts
for the Web of the Back.
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The design and application of programs
to improve occupational health.
The Foundation assigns the funds thus
acquired to finance its own projects in research and
the promotion of public health.
-
Other, lesser proceeds
come from student registration at the Back School and
registration fees for its training seminars in research
methodology and documentation, from its agreements with
sports and medical rehabilitation centers, from the
sale of informational books and pamphlets on the back
and its ailments, produced by the Foundation, etc. This
income is allotted to finance the Institution's projects
in research and the promotion of public health.
FUNDING OF FOUNDATION ACTIVITIES
EVOLUTION OF THE ORIGIN OF THE FUNDS
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