Nearly four out of ten social entities in Catalonia face debt and significant financial strain due to persistent payment delays from public administrations. A new report reveals this startling figure, highlighting a systemic issue pushing many of the region’s vital non-profit organisations to the brink.

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La Confederació, the employers’ association representing these organisations, presented these findings in Barcelona on Wednesday. They were published in the ‘Anuari de l’Ocupació del Tercer Sector Social de Catalunya 2025’ (2025 Yearbook of Employment in the Third Social Sector of Catalonia). The data shows 39% of entities are due money for services already rendered, creating severe treasury tensions that jeopardise their ability to operate.

A Flawed Funding Model

The third sector, encompassing non-governmental and non-profit organisations, forms a cornerstone of Catalonia’s social fabric. It employs over 120,000 people, or 3% of the region’s total workforce, as detailed in a recent Barna.News report on the sector’s employment figures. However, its financial foundation remains precarious.

Unlike the more stable funding models for public education or healthcare, 92% of the social sector’s income comes from grants and subsidies, the report highlights. These funds often transfer long after a project has started, or even after completion. This forces organisations to front service and salary costs from their own pockets, a practice that proves unsustainable.

To cope with the cash-flow crisis, three-quarters of affected entities resort to taking out credit policies, incurring interest charges simply to maintain services and pay staff. About two in ten seek support from other associations, while just 13% feel they can delay activities until promised funding arrives.

Public Administrations Under Scrutiny

The report breaks down the debt sources. It identifies the regional Generalitat de Catalunya as the largest debtor, responsible for 84% of late payments. City councils account for 52% of cases, followed by provincial councils (Diputacions) at 26%, and the Spanish state at 11%. In total, this outstanding debt represents a staggering 27% of entities’ annual funding.

This situation starkly contrasts with the financial health of some public bodies. For instance, the Barcelona City Council recently posted a €51.8 million surplus for its 2025 budget. This highlights available public funds while the third sector struggles with arrears.

“We are an intervened sector; our room for manoeuvre is small,” warned Jordi Roman, president of La Confederació, during the report’s presentation. As nearly 60% of social entities depend on public funds, he stressed the need for systemic change.

“We demand a commitment from the administration regarding financing, at the very least,” Roman stated, as reported by the news agency ACN and initially covered by Ara Cat.

Roman advocated for approving a proposed ‘concerted action’ law (llei d’acció concertada). This legislative change would shift the sector away from ad-hoc subsidies towards more stable, long-term contracts for providing public services.

A Feminised Sector with a Pay Gap

The yearbook also sheds light on the workforce propping up these essential services. It describes the sector as “heavily feminised,” with women making up the majority in all job categories. However, their representation increases in lower-ranking positions.

Despite this female majority, a gender pay gap persists. The disparity is most notable at the management level, where men, accounting for just 33% of directors and managers, earn on average 7.3% more than their female counterparts. Across the sector, the average annual salary is just €17,600. Moreover, half of all organisations report paying only the minimum wage, underscoring the precarious conditions for many workers.

As the social sector continues to bridge critical gaps in public services, the report from La Confederació serves as an urgent call for reform, warning that without reliable and timely funding, the very organisations Catalonia relies on for social support are at risk.