Baltics

Regional Reviewer: Andrew L. Williams
Institutional Affiliation: Institute for Philanthropy, LCC International University

Overview

The Baltic states of Estonia, Latvia, and Lithuania have shared cultural, religious, political, economic, and linguistic links dating back many centuries. The three nations have also experienced Russian imperialism (in the 19th century) and Soviet hegemony (in much of the 20th century). As such, their commonly held ambition to foster a free and vibrant civil society is not surprising. The dramatic symbol of this philanthropic ethos is the “Baltic Way”—a human chain stretching from Tallinn, to Riga, to Vilnius, as a protest against Soviet occupation in 1989. Since that time, and the subsequent dissolution of the Soviet Union in 1991, the region has changed dramatically. The Baltic republics have become strong proponents of a free and open voluntary sector. According to a 2023 CIVICUS analysis, Estonia (5th), Lithuania (7th), and Latvia (12th) are among the 15 most open civic spaces in the world. The Lithuania government, for example, declared 2022 to be the year of the volunteer. Additionally, the outpouring of philanthropic support triggered by the dual crises of COVID-19 and the Russian invasion of Ukraine has been tremendous.

However, tax incentives are weak in the region; corporate deductions for philanthropic donations cannot exceed 10% of the prior year’s net income in Estonia, persons in Latvia have a low ceiling for deductions (€600/year), and individuals in Lithuania cannot deduct donations from their income tax liability. The poor tax incentive structure is partly the residue of state-centric communism and a contemporary social-democratic societal structure that can undermine voluntary action for the public good. In terms of the political environment, stated intent is strong, but follow-through is less energetic. On the one hand, the Lithuanian government and the Latvian National Development Plan see nongovernmental organizations as key partners. On the other hand, Estonia’s 2035 “long-term development strategy,” and many municipal governments in Lithuania, have less interest or capacity to collaborate with philanthropic actors.

In summary, while the incentive structure for philanthropic donations is weak and the follow-through on government good-will irresolute, the Baltic region places a high value on civil society freedoms and exhibits great philanthropic spirit amidst crises.

View the full 2025 GPEI Baltics regional report:

View Baltics Report