EU-level issues and initiatives affecting CSOs Nilda Bullain European Center for Not-for-Profit Law

Overview of issues European Foundation Statute Tax effective giving across borders VAT „Code-of-conduct” for NGOs Review of Financial Regulation Multi-Annual Financial Framework Structured Dialogue

European Foundation Statute Initiated by the European Foundation Center Availability of foundation form working across borders within the EU; initial idea: tax benefits deductible across borders 2009 – feasibility study: reinforces need 2010 – public consultation 2011 – proposal for introducing the EFS

Tax effective cross-border giving Two cases at European Court of Justice: Persche case Stauffer case Discrimination in tax treatment of foundations / donors active in another EU country is against EU law EC started infringement procedures against all EU countries – over half compliant by today Hungary: abolished tax incentives…

VAT EU 6th Directive applied in all Member States: focus on type of services, not on legal form of taxpayer List of exempt services related to some kind of public benefit purpose Current plan to include NGOs fully in the scheme NGOs lose out -> ECCVAT initiative www.eccvat.org

„Code-of-conduct” Communication of the DG Justice, Freedom and Security (2005) Dilemma: How to apply the international counter-terrorism policy framework regarding NGOs in the EU? (FATF SRVIII) Initial idea of the Code of conduct met resistance from NGOs as well as some member states DG JFS commissioned two studies to help determine relevant policies (-> ECNL) 2010: Draft of “Voluntary Guidelines for NGOs” by DG HOME – potentially a basis for EC funding

Study on recent public and self-regulatory initiatives improving transparency and accountability of non-profit organisations in the European Union Commissioned to ECNL by DG JFS (2009) Close to 140 initiatives from 27 EU member states and EEA: including over 65 public and over 70 self-regulatory

Role of EU in European level regulation of NGOs Regulator “Qualifier” Facilitator ?

Review of Financial Regulation Financial Regulation and Implementing Rules: prescribe all procedures relating to applying, receiving, managing and reporting EU funding Current review will affect rules of grant applications by CSOs inside and outside the EU Key issues: Percentage of own contribution Eligibility of in-kind contributions Advance payments, timing of payments Overhead percentage

Multi-annual Financial Framework 2014-2020 MFF: determines the allocation, availability and accessibility of all EU funding for the upcoming 7 years Commission proposal: July 2011 Intensive lobbying with EP and Member States (Council members): 2011 – 2012 Key issues: Which will be the funding programmes available for CSOs inside and outside EU? CSO-only and CSO-friendly programming

Structured Dialogue EuropeAid initiative (external funding only) One year process of consultation through active participation by affected stakeholders (CSOs and local authorities) on future priorities of EU external funding Clear acknowledgement of the role and added value of CSOs as development actors Clear recommendations for the MFF agreed by all parties Model of partnership approach to programming – result will depend also on political lobby power of EuropeAid and other actors.

For further information: Thank you! For further information: www.ecnl.org