Financing of activities
The Foundation's own funds
In 1991, FNP received PLN 95m as its founding fund (a portion of the Central Fund for Development of Science and Technology, which was liquidated in 1990). Since that time, the Foundation has raised funds for its statutory activity as well as to maintain the value of its funds primarily from operations on the financial market.
The Foundation obtained additional funds for supporting science, of over PLN 51m, in 2003 and 2004, pursuant to the Act of 29 March 2000 Amending the Act on Commercialization of Enterprises, which provided that 2% of the proceeds from privatization of wholly owned companies of the State Treasury would be earmarked for contribution to the Foundation's assets, but under the Act of 1 March 2002 on Changes in Organization and Functioning of Central Governmental Administrative Bodies, the recipient of 2% of the proceeds from further stages of privatization would be the State Committee for Scientific Research (KBN). Out of the funds obtained through operation of the privatization law, the Foundation established a separate fund earmarked in its entirety to financing domestic stipends for young scientists (the START programme).
Fundraising
Since 2018, the Foundation has been intensifying its fundraising activities. The main focus is on the START programme. As a result of its fundraising activities, the Foundation:
- receives 1,5% of personal income tax
- accepts donations from institutional partners, companies and individuals
European Funds
Since 2008, the Foundation has been implementing programmes co-financed by the European Regional Development Fund:
- under the Innovative Economy Operational Programme 2007-2013 in the amount of PLN 421 million (programmes completed and settled),
- under the Human Capital Operational Programme in the amount of PLN 35 million (programmes completed and settled),
- under the Smart Growth Operational Programme in the amount of over PLN 1.2 billion (programmes completed and settled)
- under the European Funds for Smart Economy programme (from 2023, in progress)
Financial reporting
The Foundation's financial reports are examined each year by renowned auditing firms and published in the Annual Report, available at FNP's offices and on its website. They are also submitted to the National Court Register and the competent ministries.
The Foundation's investment strategy
The Foundation's activities are financed both from external sources (structural funds, donations) and from income derived from financial market operations.
The basic principles governing the Foundation's financial strategy serve two purposes:
- maximising income, which is the source of funding for the FNP's statutory activities,
- maintaining the real value of the capital held in the long term.
This strategy is based on a financial portfolio designed in such a way that at least 50% of it is made up of safe financial instruments - mainly Treasury bonds, participation units of debt investment funds and money market instruments. A maximum of 50% of the portfolio may consist of higher-risk instruments, such as shares and units of equity funds and other funds not belonging to debt funds, or investment certificates of investment funds. The structure of the portfolio is based on the expected long-term rate of return necessary to maintain the level of programme expenditure and cover other operating costs of the Foundation and protect its capital.
The Foundation takes advantage of tax exemptions and adjusts its investment strategy accordingly. The issue of the possibility of tax exemption for capital investments of non-governmental organisations in Poland is regulated by the Corporate Income Tax Act. Article 17(1e) defines the subject of income tax exemptions for taxpayers allocating income to statutory or other purposes specified in the regulation.
The FNP entrusts some of its assets to licensed entities authorised to provide asset management services. The Foundation cooperates with the following companies in the field of asset management: Ipopema TFI S.A., PZU TFI S.A., and Quercus TFI S.A. The FNP also holds shares in open-end funds belonging to Quercus TFI S.A., Generali Investments TFI S.A. and Caspar TFI.
The FNP also invests in the venture capital sector through its subsidiary FNP Ventures.
Documents
Capital investment
Some of the FNP assets are managed by licensed entities authorised to provide client portfolio management services (asset management). As part of the asset management service, the Foundation cooperates with the following companies: Ipopema TFI S.A., PZU TFI S.A., Quercus TFI S.A. The FNP also holds shares in open-ended funds belonging to Quercus TFI S.A., Generali Investments TFI S.A. and Caspar TFI.
The FNP also invests in the venture capital sector through its subsidiary FNP Ventures.
Tax strategy
Information on the tax strategy implemented by the Foundation for Polish Science can be found in the documents for individual years (in Polish only).