1. An enabling legal framework for civil society European Center for Not-for-Profit Law International Center for Not-for-Profit Law

2. External Environment Historical Cultural Social Economic Political Public perception LEGAL

3. 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

4. The Legal Environment as Legal Space

5. What makes up the legal environment?

6. 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

7. 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

8. 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

9. 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

10. Enabling or Restrictive Legal Environment?

11. Enabling: open, accessible, supportive, inviting

12. Restrictive: closed, difficult to access, constraining, inhibitive

13. 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

14. “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

15. Where are we now?

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

18. 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

19. Areas of Regulatory Concern Level I Basic 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 IVSelf-regulation

20. Our Shared Challenge: To improve legal environment

21. An enabling legal framework for civil society For more information: www.ecnl.org.hu www.icnl.org