Assessment of the Impact of Legislative Changes regarding Public Benefit on Public Organisations

AED Report on Public Benefit 

Study goal: Evaluation of the impact of the changes adopted in June 2010 to the Law on Public Associations regarding public benefit. The study answers the following questions: What are the costs of conformation and how will they be borne by non-governmental organisations and by the industry in general? What is the interest of organisations in the public benefit status? What needs to be done to implement the adopted changes, especially to mitigate the additional administrative costs they created? 

Main conclusions of the study:

The adopted changes entail the following additional costs for non-governmental organisations: elaboration of annual activity reports, including financial reports; publication and mass dissemination of annual activity reports; creation of a supervisory body; and ensuring the functionality of internal organisational structures.

Public authorities will bear the following additional costs: ensuring transparency of their operation; making public the organisations that hold the status of public benefit; development of instructions aimed at regulating the activity of public benefit organisations.

 Main recommendations of the study:

Prompt implementation of the adopted changes, especially establishing the new composition of the Certification Commission, following a transparent process of selection and appointment of Commission members.

 Development and adoption of requirements and specific patterns of reporting on activities and funds that are to be submitted by organisations in order to obtain the status of public benefit and for their annual reporting; the requirements and patterns shall be recommended by the Certification Commission and then adopted by order of the Minister of Justice.

 Development and adoption of the Operation Regulations for the Certification Commission, which will ensure its transparency and openness to public view.

 Development and adoption, within reasonable time limits, of fiscal mechanisms and stimuli provided by the current law on public associations and by the Civil Society Strengthening Strategy; development of instruments for public benefit organisations’ access to subventions and public tenders.

 The PBO research study was deeply discussed at the round table organized by CReDO in order to enhance the possibility of its awareness and promotion. The round table took place on the 18^th of February in the CReDO training hall and the PBO study was presented, during the presentation the accents were put on the analysis and conclusions and the main recommendations of the study. The most of the participants that were present at the round table were from NGOs. At the event were invited also Ms. Elena Gritco, the director of the Noncommercial Organizations Direction from the ministry of Justice as well as Mr. Oleg Efrim the vice-minister of the same Ministry.

 The participants agreed that it’s important to have a stronger dialog with authorities in order to explain and show what are the benefits of Public Benefit Status and also having awareness actions at the local level.