The economic power of the German social market is often underestimated. More than a million Euros are being annualy converted by Bavaria´s about 3.500 institutions and by its more than 40.000 Diakonie employees.
But note, that every Diakonie offer is financed by different partners. For example, Diakonie institutions and sponsorships receive funds from church taxes. These taxes are paid by all Bavarian Evangelical-Lutheran church members who have their own income. Some offers receive only a small grant, others, like the KASA (church general socialwork) are completey financed by the national church.
Since Diakonie as a welfare organization takes over functions of the state (principle of subsidiarity), it receives financial resources from the public sector - for example from social welfare authorities. Everybody in Germany who is not able to pay for those services has a legal right for housing and care. This applies to people in need of care as well as for people with disabilities. The welfare agency bares those costs that are not covered by the nursing care insurance and the income or the assets of the individual.
Furthermore, the Free State of Bavaria participates in financing certain Diakonie offers, for example pregnancy counselling and social counselling for asylum seekers. Again, these are public funds.
Insurance benefits, after all, make up the biggest part of Diakonie´s budgets - because whoever is in a social security scheme can claim his/her statutory benefits: Health insurance funds, care funds, pension providers and trade associations finance the medical and nursing care in hospitals and nursing homes. The home care as well is financed by health- and nursing insurances. Other offers such as employment initiatives are in turn financed by the employment agencies.
But: Despite the fact that there is help available for everybody and that this help is free of charge for all clients, neither the public authorities nor the insurances cover all costs in general.
Rising wages and material costs plus other charges that are not adapted to the latest development lead to gaps in the financial coverage. Many offers can therefore only be maintained by Diakonie´s own funds. Donations play an increasingly important role to finance social welfare offers.