The conference "Prospects of Business Development and Philanthropy in Lithuania" addressed the legal foundations for charity and support and analysed the prospects of private and corporate giving in the context of private sector development in Lithuania. The participants shared views on the role of philanthropy and corporate giving in business and society at large. The conference was staged by the Lithuanian Free Market Institute (LFMI) as part of a project "Promoting Philanthropy in Lithuania".

President of the U.S.-Baltic Foundation Linas Kojelis extended his thanks to the conference organisers for building partnership between non-governmental (non-profit) organisations and the business community. "You are struggling to break the ice that was broken over a hundred years ago in the United States. We sincerely believe that it will take less time for Lithuania to develop its philanthropic traditions", the speaker said. Kojelis referred to a popular American saying "doing well by doing good". Regretfully, the Lithuanian thinking is different. The notions beautiful, strong and powerful are rarely associated with the notions generous or kind. In Lithuania the popular image of a solicitous person-a person anxiously and eagerly concerned and caring about others-still persists. Many continue to believe that only such, but never well doing or prosperous, people can be kind. The U.S.-B.F. president expressed his hope that LFMI and similar initiatives would continue to contribute to changing people's thinking.

Curtailing government authority and making way for private initiative are the cornerstones of the ongoing socio-economic transformation, LFMI's President Elena Leontjeva noted. Yet, changes are being hindered by a widespread apprehension that free-market oriented reforms will aggravate the current situation. One should realise that the welfare of economically passive people depends on how well businesses do. Today, however, businesses are shackled by a mass of regulations, rampant bureaucracy, complicated and cumbersome taxation, and in many ways entrepreneurs work for the government more than they do for themselves.

Widely longed-for tax cuts are unfeasible without a steady reduction in public spending. A reduction in public spending, in its turn, is impossible without a steady decrease in public functions. LFMI's mission, its president stressed, is to show the right path so that these ideas are implemented consistently.

The LFMI's president objected to the popular belief that entrepreneurs' mission is to share their profits with others. Their sole purpose is to efficiently employ the money earned, an act critical to society, for people's self-interested unrelated actions work together to form a harmonious whole beneficial to all citizens. It is business that creates jobs and enables people to utilise and develop their skills. Otherwise, many would become beggars pleading for government handouts. People are used to being guided by government rather than by what is economically expedient to themselves. Thus, many entrepreneurs call for government interference in, and regulation of, economic processes, interference whose consequences they suffer themselves.

Leontjeva concluded that it is vital to promote voluntary co-operation in filling common public needs. One of them is easing resistance to economic reforms. LFMI believes that one day conscious and voluntary co-operation will become a kind of self-government building on private initiative to do what people choose to do together and leaving government responsible for very few functions.

LFMI's Vice President Ugnius Trumpa elaborated on the historical and philosophical origins of philanthropy. The Lithuanian tradition of corporate giving is only six years old and therefore not always palpable. Philanthropy derives from a human drive to share things with others, a quality on which communities and relationships between people build.

LFMI's Legal Expert Remigijus Šimašius addressed the principles of non-profit organisations and weaknesses in NGO and charity/support legislation. Charity is being encouraged by tax breaks. Instead of encouraging giving, however, they erect barriers to both donors and recipients. The documentation of charity is another source of concern, for it has become a cumbersome bureaucratic process. Restrictions have been placed on the areas of activities NGOs can get involved in. These and other legal and regulatory inadequacies hinder NGOs' ability to develop into viable and self-sustaining organisations.

Director of the Open Society Institute (London) Bill McAlister shared his impressions about the links between business and giving in Great Britain. Businesses, he stressed, give not out of love but seeking benefit. People used to think that business and charity pursue different aims. Today, however, businesses are beginning to recognise close parallels between them. They are beginning to look at giving as a practice beneficial to themselves.

The guest speaker from London illustrated his point with an example, a success story about the relationship between businesses and arts. The goal of the Business Support to Arts Association in Great Britain is not to provide financial assistance to artists but to lend moral support to business people who sponsor arts. The association holds annual honorary ceremonies during which prominent and respectful personalities-the Prince of Wales among them-give awards and proofs of honour to businesses active and successful in sponsoring art projects. McAlister assured that funding of such events brings more benefits and satisfaction than direct financing of artists.

Kevin Murphy, Managing Director of McDonald's restaurants in Lithuania, spoke about the corporation's philanthropic philosophy and traditions. McDonald's corporation has over 21 thousand restaurants in 101 countries all over the world, and 1996 saw the first restaurant open in Lithuania. The philanthropic strategy of the corporation is to give back to children and families who make McDonald's successful. The objective of Ronald McDonalds Children's Charities, which was established as an independent non-profit charity in memory of McDonald's Corporation Founder Ray Krok, is helping communities across the globe by providing a healthier and happier world for children and their families. Among other examples Murphy mentioned Ronald McDonald's House which provides housing for family members of seriously ill children so that they may stay nearby the hospitals. When the door to the first Ronald McDonald House opened in 1974, no one could have imagined that the program would grow into one of the most highly regarded charities around the world.

The presentations provoked numerous comments about philanthropy in Lithuania. Achema company's representative Algirdas Pukelis disagreed that philanthropy should not be promoted. Giving does not pay, he said, therefore tax breaks for giving are essential. Leontjeva argued that the new law on charity and sponsorship will tax exempt all giving activities, a provision that is non-interference. She disputed the need for additional incentives and said that paradoxically entrepreneurs are amazed to hear that "you give by giving" but not "take by giving". As the economic environment becomes increasingly conducive to business initiatives and taxes are cut down, people will have more money to spend on whatever they think is necessary. They will have more freedom to co-operate for community purposes.

Chairperson of the Open Society Fund Lithuania Irena Veisaitė revealed the fund's plans to initiate major changes in NGO law. She supported the opinion that the crucial thing is non-interference in giving and the need to change people's thinking. "Regretfully, private business is frequently viewed as a disreputable undertaking. Entrepreneurs are thought to be crooks piling up riches in dishonest ways. Such attitudes need to be changed. Business people should be respected, for they are leading the nation to economic well-being", Veisaitė said.

USAID's Project Manager Raimondas Sidrys gave some insight into giving traditions in the U.S. American NGOs rely for the most part on small donations from individuals. The American tax system allows givers to deduct from their taxable incomes 500 dollars a year. It encourages giving because an American donating 25 dollars actually gives only 15, said Sidrys. Unlike in the U.S., in Lithuania only legal entities enjoy such a privilege.

LFMI's Fellow Audronis Raguotis insisted that the notions business and philanthropy are incompatible. When used together, they form an oxymoron, just as "cruel kindness". Corporate philanthropy, the speaker pointed out, is impossible because only individuals inspired by certain feelings can donate. The sole purpose of a business is to make profits. A legal entity does not and cannot have feelings. Instead of devising ways to promote philanthropy, he suggested cultivating human values and qualities such as mercy, generosity, compassion and love-values that are universally considered to be morally good and right.