An enabling legal framework for civil society

European Center for Not-for-Profit Law

International Center for Not-for-Profit Law

External Environment

Historical Cultural Social Economic Political Public perception LEGAL

Impact of Law on your work

Great! I am glad this is regulated

I wish this was regulated

This is overregulated or does not need regulation

The Legal Environment as Legal Space

What makes up the legal environment?

More than just an NGO Law …

General life-cycle issue Definition of NGOs Establishment Registration Internal structure Activities External supervision Termination, dissolution

Regulated by: Civil Code Specific laws on NGO

forms Legislation governing

companies Licensing laws

More than just an NGO law …

Fiscal Regulation Public benefit status Income tax exemption Donor incentives Economic activities VAT, customs duties Government funding Investment income Fundraising

Regulated by: Public benefit legislation Income tax law VAT law Law on customs duties Law on fundraising Budgetary appropriations Finance and audit acts Land (duties + taxes) act

More than just an NGO law …

State/NGO Relations Registration External supervision Public policy activities State subsidies, grants,

contracts QUANGOs, GONGOs Policy re: cooperation Liaison offices

Regulated by: All laws listed above Local government act Public procurement law Laws on healthcare,

social assistance, education

Laws establishing various kinds of NGOs

Government strategy re: cooperation

More than just an NGO law …

Public Participation: Public policy activities Political activities Receipt of information Consultations Active participation

Regulated by: Freedom of information

laws Acts on decisional

transparency Legislative process rules Government policy

Enabling or Restrictive Legal Environment?

Enabling: open, accessible, supportive, inviting

Restrictive: closed, difficult to access, constraining, inhibitive

During the past 15+ years

“Global associational revolution” “Renaissance of Civil Society” Comprehensive law reform in region Hungary:

8796 NGOs in 1989 – 47,963 NGOs in 1997 Economic impact (employment data) Social contributions Political impact

“A revolution does not last more than fifteen years, the period which coincides with the flourishing of a generation” 

Jose Ortega y Gassett The Revolt of the Masses

Where are we now?

“It’s nothing against civil society, but….”

Stages of Civil Society Development

Carving out “Circles of Freedom” Right to exist & operate freely

Survival and Identity Setting up basic legal framework, avoiding backsliding, rule of

law, access to resources and information Development and Sustainability

Tax benefits, donor incentives CSO liaison and participation mechanisms, volunteering CSO transparency and improved public image

Improved quality & impact Contracting, quality assurance, public policy engagement

Areas of Regulatory ConcernAreas of Regulatory Concern

Level IBasic Legal Framework- Registration process- Basic activities, basic benefits

Level II

Public Benefit Status and Fiscal Privileges - Fiscal privileges for PBOs, donor incentives - Government grant mechanisms, national funds- CSO sector cooperation & support strategy

Level III

Relationships with stakeholders and society- Incentives for volunteering- Percentage tax mechanism- Contracting out services, endowments

Level IV Self-regulation

Our Shared Challenge: To improve legal environment

An enabling legal framework for civil society

For more information: www.ecnl.org.huwww.icnl.org