Despite the upheaval caused by the Caritas scandal, Luxembourg’s voluntary sector remains one of the cornerstones of public action in the social sphere. In 2025, the State paid out €885m in grants to associations working in the social sector, non-profit organisations (NPOs), foundations and organisations of general interest. These figures were revealed in response to parliamentary question 3860 tabled by Fred Keup (ADR). Relative to a budget that provided for expenditure of €30.9bn, this represents 2.9% of public expenditure. It should be noted that the government only includes direct funding provided for in budget lines. Indirect co-financing or mechanisms outside the budget in the strict sense are not taken into account here.

A clear commitment to community engagement

Beyond the figures, these funding flows reflect the government’s desire to rely on voluntary organisations, which are closest to the needs of the population, to carry out numerous public interest initiatives. The issue is not merely budgetary; it is also organisational and political. The main lesson to be drawn from these figures is that the state is increasingly relying on non-profit organisations to implement its public policies. More than just partners, these organisations have become essential operators of public services. Operators who possess on-the-ground expertise that the administration does not always have. Their work requires a detailed understanding of needs and an ability to adapt that is difficult to replicate within a traditional administrative framework.

It is no coincidence that the main recipients of the funding are the Luxembourg Red Cross (€125.5m), Anne asbl – an association forming part of the Elisabeth network and dedicated to supporting, educating and providing accommodation for children, teenagers and young adults – (€100.9m), Arcus Kanner, Jugend a Famill (€88.8m), Caritas Jeunes et Familles (€55m), APEMH (€47m), Hëllef um Terrain (€31.3m), Yolande asbl (€21.2m), Tricentenaire asbl (€16.2m), Fondation Autisme Luxembourg (€15.9m) and Fondation Kräizbierg (€14.2m).

Flexibility and governance

Luxembourg has thus developed a hybrid model in which the state provides funding, sets objectives and monitors results, whilst implementation is entrusted to non-profit organisations. The advantage for the state is that it allows for a more responsive approach to changing needs. Furthermore, this encourages social innovation. Many initiatives now incorporated into public policy were first trialled by non-profit organisations. Finally, this model helps attract specialised professionals and develop highly specialised skills in fields that are sometimes emerging.

Health, family and education are top priorities

This significant funding covers a wide range of areas, including social solidarity, education, affordable housing, health, the environment, international cooperation and equal opportunities. The trio of family, education and health alone accounts for nearly 76% of the total funding, or €686m. This support can take various forms: direct grants, operating agreements, project funding, the provision of IT equipment, logistical support, or the covering of rent and infrastructure costs. These grants are usually linked to specific agreements, clearly defined tasks or public service objectives.

The Ministry of Health and Social Security is by far the largest contributor among the social ministries, with over €300m in funding recorded. Among the organisations receiving the most support are the Luxembourg Hygiene League (€11.5m), the Jugend – an Drogenhëllef Foundation (€8.8m), the ATP (Sheltered Workshops) with €7.6m, the National Committee for Social Defence (€6.9m) and the Red Cross (€6.1m).

Major investment in education and childcare

The Ministry of National Education, Children and Youth relies heavily on the voluntary sector to fulfil its remit. The funds allocated to contracted services, childcare facilities, school transport and training amount to €282.7m. Arcus Kanner, Jugend a Famill thus receives over €67m for its contracted services, whilst Caritas Jeunes et Familles receives over 46 million and the Luxembourg Red Cross nearly €46m for its activities in the educational and socio-educational sectors.

Social cohesion at the heart of our priorities

The Ministry of Family, Solidarity, Community Life and Integration is also one of the main contributors to funding for the voluntary sector, providing €171.7m. Several organisations working to support vulnerable people, the elderly, people with disabilities and social welfare recipients receive particularly significant sums. Among the largest recipients are notably Hëllef um Terrain (€27.5m), the Luxembourg Red Cross (€25.2m), Yolande (€20.9m), the Tricentenaire (€16.2m), the Kräizbierg Foundation (€14.2mn), the Autism Luxembourg Foundation (€11.1m) and the HMC League (€9.1m).

€77m for affordable housing

Several non-profit organisations and foundations are receiving substantial grants under the Affordable Housing Act, totalling €77m. The Red Cross thus receives over €20m in housing subsidies, whilst Life asbl receives over €8.3m, the Sandweiler Parish Charities nearly €12m and the APEMH €4.7m.

The budget of the Ministry of the Environment, Climate and Biodiversity reached €12m in 2025. Organisations such as Cell, Natur&ëmwelt, the Hëllef fir d’Natur Foundation, the Mouvement écologique and IMS received support to carry out projects focusing on awareness-raising, research, biodiversity conservation and supporting the climate transition.

Finally, the Ministry of Foreign and European Affairs distributed over €65m. Appui au Développement Autonome (ADA) received €8.66m, the Luxembourg Red Cross – International Aid received €7.71m, Care in Luxembourg €6.3m, Friends of Luxembourg €4.48m and SOS Faim €3.4m.