The “Baltic Way” was a philanthropic, civil society movement in 1989 which connected more than one million people across 400 miles between Vilnius (Lithuania), Riga (Latvia), and Tallinn (Estonia) in protest of Soviet occupation, and it has become a symbol and foundational pillar for the rebirth of independent Lithuania. Encouraged by political dissidents, religious clerics, and civil society leaders, the Baltic Way captures the robust philanthropic spirit of the country.
Lithuania is a democratic republic in north-eastern Europe with a population of three million and a GDP per capita of just over $25,000, according to the World Bank. Lithuania has deep historical ties to Latvia, Poland, Russia, and, to a lesser extent, Prussia. Since gaining independence from the Soviet Union in 1991, the nation has turned firmly toward the West by joining the European Union (2004), the North Atlantic Treaty Organization (2004), and the Schengen Area (2007).
Over the last thirty years, Lithuania has experienced marked economic, political, and social change. This transformation includes a strong sense of anti-authoritarianism with concomitant support of the freedom to engage in voluntary action for the public good. For instance, the national parliament declared 2022 “The Year of Volunteering.” Or, to choose another example, trust in non-governmental organizations (NGO)s, which is often low in formerly Soviet countries, increased from 32% to 57% between 2012 and 2021 in Lithuania.
Current estimates indicate the country has approximately 23,000 NGOs—a dramatic increase over the approximately 250 NGOs that existed in the early 1990s. Lithuanian law distinguishes between nonprofit organizations, including public schools, hospitals, and churches, and the narrower category of NGOs. Additionally, the legal code divides NGOs into three categories: foundations, associations, and public service providers. Currently, the NGO Information and Support Center of Lithuania is working with the national government to update its registry of NGOs by removing defunct organizations and organizations that receive more than one-third of their funding from the government. This process has resulted in a reduction from nearly 40,000 to the approximately 23,000 registered NGOs mentioned above. On a closely related note, Lithuanian law requires NGOs to file annual financial and operational reports. Now, the government closes any organization that neglects to do so for two years.
Regarding funding, a recent study of philanthropy across seven countries in Central and Eastern Europe reports that 50 percent of Lithuanians give to philanthropic purposes; Lithuanians give at the second highest rate, behind Romania. In addition, the Lithuanian government provides significant and increasing funding for the philanthropic sector: local and national governmental support of NGOs grew from €62M in 2021 to €133M in 2023.
A crucial tax code innovation has encouraged the growth of philanthropy in Lithuania. Lithuanian law enables any resident or citizen to direct 1.2 percent of their income tax payment to a registered nonprofit organization of their choosing. Because only about one-third of Lithuanians take advantage of this opportunity, civil society leaders are petitioning the government to incorporate this option within the annual tax declaration itself—not to require a separate process as is currently the case. In addition, a new law has narrowed the scope of organizations eligible for such funding. Beginning in 2025, Lithuanians will only be able to direct 1.2 percent of their income tax payment to NGOs. Other nonprofit organizations, such as government-funded schools and religious congregations, will become ineligible to access this funding source. Based on 2022 financial reports, this change will result in the loss of €4.75M of funding for schools and religious organizations.
In 2013, the Lithuanian government passed a “Law on Development of Nongovernmental Organizations” whose first objective is “to create a favourable environment for non-governmental organizations”—a significant statement of support for voluntary action. Reflecting this national sentiment toward philanthropy, Civicus rated Lithuania as one of the world’s ten most open “civic spaces.” Furthermore, the European Commission’s 2023 “Rule of Law Report” observes that the government of Lithuania increasingly views non-governmental organizations as “vital partners” in response to emergencies such as COVID-19 and the invasion of Ukraine.
Speaking of war, one major reflection of Lithuania’s philanthropic ethos is its response to the Russian invasion of Ukraine. The threat of Russian military aggression is very close to home for Lithuania due to nearly fifty years of Soviet occupation (1944-1991) and more than a century under the rule of the Russian empire (1795-1918). In addition, Lithuania shares a border with both the highly militarized Russian exclave of Kaliningrad and the authoritarian Russian ally, Belarus.
In this geopolitical context, Lithuanians have shown solidarity with Ukraine. Not only do Ukrainian flags dot Lithuanian homes, schools, and offices, but giving toward organizations working on war-related causes has been substantial. More than one-third of Lithuanians surveyed reported providing financial support for Ukraine. As one illustration of this outpouring of assistance, the income of the Lithuanian Red Cross increased from €4.5M in 2021 to €18M in 2022—Russia invaded Ukraine on February 24, 2022. This growth occurred on top of a nearly fifty percent increase from 2020 to 2021 in response to COVID-19. Similarly, RADAROM, a collaborative fund-raising initiative between the national television service and several civil society organizations, raised €14M in 2023 and €8.5M in January and February 2024 to support Ukraine. In addition, the Lithuanian Blue/Yellow campaign, which was established in 2014 after Russia invaded Crimea, has raised €51M since its inception for supplies of non-offensive goods for the Ukrainian military.
Yet, as practitioners, political leaders, and scholars know, voluntary action’s impact on the public good is much more than the sum of financial contributions to philanthropic organizations. As such, the Lithuanian government is developing a measure of the “civic economy.” This calculation includes, in addition to funding, the number of people volunteering and the hours they contribute to various philanthropic purposes. The estimate for 2022, the first attempt to compute this measure, is that Lithuania’s civic economy accounts for one percent of the national gross domestic product. However, that number only counts formal volunteering for registered philanthropic organizations. An important example of a broader category of volunteering, both formal and informal, is the countless hours dedicated by Lithuanians to hosting and supporting the approximately 72,000 Ukrainian refugees who migrated here in 2022—the UNHCR estimates, as of early 2024, that 65,000 Ukrainian refugees are living in Lithuania.
All told, Lithuania is a remarkably philanthropic nation. In the face of painful historical experiences and contemporary regional threats, the Lithuanian people and their government boldly promote voluntary action for the public good. This is a remarkable achievement for a nation whose formal philanthropic sector was nearly non-existent thirty years ago. Considering the three decades of rapid growth, proactive governmental support, and significant innovation, the future of Lithuanian philanthropy and civil society is quite promising.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official views of the IU Lilly Family School of Philanthropy.
About the Authors
Andrew L. Williams
Andrew is Director of the Institute for Philanthropy and assistant professor of international relations and development at LCC International University in Lithuania. Before pursuing a PhD at the Indiana University Lilly Family School of Philanthropy, he spent several decades as a nonprofit practitioner, including four years in the Dominican Republic and three years in Rwanda. His research interests include religion and philanthropy, the intellectual history of human rights, non-governmental organizations, and international humanitarianism.
Saulius Ramanauskas
Saulius Ramanauskas, a native of Lithuania, is a Research Fellow of the Institute for Philanthropy at LCC International University. His principal employment is as a Finance Specialist for Citco Fund Services Lithuania UAB. In addition to researching Lithuanian philanthropy, Saulius has studied the impact of microfinance on poverty. He will pursue a master’s degree in social scientific data analysis at the University of Lund (Sweden) beginning in the fall of 2024.
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