Donations to the public that are not made, real estate that is not utilized, institutions that are operated as a cover for personal use, and tax immunity. The Ministry of Finance and Economy has decided to end a decades-old regime of opacity and bring a complete overhaul to the framework governing the management of public assets.

The bill, coming in the near future, joins the dots between abandoned estates, the housing crisis, tax loopholes and ultra-luxury … institutional Cayennes.

The problem is timeless. Behind labels of “culture” and “beneficence”, mechanisms have been methodically set up that not only do not provide for society, but subsidize – through tax breaks – the personal wealth of others.

For example, in a luxury residence with a view and a Porsche Cayenne parked outside, one can hardly imagine that an “institution” is housed. The property – usually luxurious – is declared as the home of the foundation, which “houses” a painting, a few books or an event hall. The remaining square metres are occupied by the founder or his relatives. Service cars – usually SUVs or boats – are used for private travel. Expenses are covered by the foundation’s budget.

The new bill aspires to accurately document which foundations are truly active and which ones are operating as a front, to clean up the donor registry and to create a friendly but strict framework for those who actually want to give to the public. According to the ministry’s data, there are about 700 foundations registered, most of which do not update their data, with a registered property value of more than €235 million.

The main regulations include the abolition of approvals for budgets, leases and sales of real estate, removing the current regime reminiscent of public procurement procedures. All institutions, regardless of size, will be required to publish audited financial statements every year, while sales and leases will be made by public tender and submission of bids on a platform.

Mandatory use of the National Register of Beneficiaries and Donors is established for every transaction, and the supervisory authority is given the power to replace management of an institution that is inactive or does not implement the will of the testator. A distinction is made between active and inactive foundations, with tax incentives retained only for the former.

For those institutions facing viability problems, a resolution framework is provided with the possibility of restructuring, loans or sale of assets under court approval. At the same time, the possibility of partnering with the state for the use of real estate in housing projects with leases of at least 12 years is introduced.

What is changing at Zappeion Hall

The bill includes a special chapter for the Zappeion, which currently operates as a NPO with just 12 employees and no director. Under the new regulations, it becomes a NPI under the name “Zappeion Heritage Committee”, outside the public sector in terms of hiring and procurement.

It will operate on the model of the EESIP, while ensuring legality through the rules of EU law. It is envisaged that a new staff of executives will be established in view of the Greek Presidency of the EU.

The establishment of a new team to be set up in the context of the Greek Presidency of the EU.

The Olympics and Heritage Committee assumes responsibility and the definition of a new commercial policy for the leasing of premises. Strict clauses and safeguards for lessees will be introduced.

The plan attempts to join the dots between the use of idle property, housing and the need for institutions to operate with transparency and rules – without compromising their public benefit nature