Panel: Legal mechanisms for stimulation of philanthropy and civil society organizations’ financial support from state’s budget

The percentage-law possible in Macedonia too 

On the 3rd December, in organization of the Center for Institutional Development (CIR), in the frames of the NGO fair, the panel titled: “Legal mechanisms for stimulation of philanthropy and civil society organizations’ financial support from state’s budget”, was held.

Katerina Hadzi-Miceva, from the European Center for Unprofitable Law from Budapest, has compared the percentage legislative in Central and Eastern Europe. She mentioned Hungary as the first country to introduce the percentage mechanism, while Romania was the last. In the SE Countries, in the countries that have already introduced these mechanisms, the taxpayer decides where to consign the certain amount of money from the tax that has been paid, for which specific organization. This means that the amount is previously decided upon for whom, and how much money will be separated from the tax the state should receive (1%-2%). Thus, the state helps the civil society organizations. Katerina Hadzi-Miceva said that the Hungarian government has started the whole process and has submitted the proposal to the Hungarian parliament. The NGO had very low participation in the process. The aim of the percentage law is to increase the incomes that flow in it and in this way to stir the philanthropy culture. Depending on the country, in the SE European countries legal and natural persons can provide a certain percentage also, and the percentage is from 1% to 2%. Different subjects can be users, for example, all the NGOs in Hungary and Slovakia, public interest organizations, churches, public institutions in Lithuania and Poland, etc.

Another criteria for acquiring the financial support are: the year of existing, registration, aims, territory of action, etc. The financial support is most frequently intended for unlimited funds. In all the countries, except in Poland, there are special forms that contain the information who receives the financial support, but the NGO doesn’t get this information, i.e. the NGO cannot find out who they received the financial support from.

On contrary, in Poland the procedure is this: you go to the post office and you pay a certain percentage of some organization’s tax.

When the organizations receive the financial support, they can use it for an unlimited period, except in Poland, where it should be used in one year. Through the media, they notify the public for their activities and for the way the financial means are spent.

Slavko Lazovski from the Ministry of Finance mentioned that there are several ways of financial support for the civil society organizations in Macedonia. The humanitarian donations from the citizens are totally insignificant. From the public (state) budget, the financial support is in terms of donations and grants, but it does not have great usage. There are funds for protection of the environment. He mentioned the incomes that Lottery of Macedonia has (around € 9million) but very small amount goes to the civil society organizations. He said that the financial support from the lottery winners’ tax is distributed through a government decision. The characteristics and weaknesses come from the incomplete legal basis; the extended administrating period; the immense space for discretion deciding; narrow frame of users and insufficient transparency. Next year is a possibility for intervention, since new law for lottery games will be passed. At the same time there should be a special law for the financial supporting of the civil society organizations with a decree of 1%, that follows the Hungarian example. The EU requires public financial support from 40% and currently the percentage in Macedonia is 6%.