LITHUANIA: PERCENTAGE DESIGNATION VAIDOTAS ILGIUS

LITHUANIA One of the three Baltic states. restored its in joined European Union in Population of 3 million ◦(~1 million private income tax payers).

BEGINNING the result of successful NGO lobbying campaign based on Hungarian know-how (started 1999) Study visit to Hungary, feasibility study, conference in Parliament Social-democrats with liberals started, conservatives finished enacted in 2003, applied since 2004

RECIPIENTS - public benefit non-profit entities: ◦ governmental and non-governmental: ◦NGOs (regardless weather they might be considered as public or mutual benefit) ◦Churches (and other non-profits) ◦state-run public institutions: ◦schools, kindergartens, hospitals, museums etc. - since % can be designated to political parties

Recipient‘s legal form Year 2013 Number of designationsNumber of recipientsAmount (Eur) Association Public (state run) institution Public (non-profit) establishment Charitable foundation Condominium (gardeners, apartment owners etc.) Political party Traditional church Trade union Church Private family orphanage Chamber of commerce 000 Total

REFORMS 2008, 2012 no possibility to collect designation forms designators get confirmations 2+1% for political parties up to 5 years designation term attempt to give undesignated 2% amount for communities development programe (fund)

RESULTS AND IMPACT half of tax payers designates (54% in 2014) vast majority designates to single recipient top achievement in 2008 – 21.2 MEUR “warm rain” – 21 thousand recipients, average amount €630 important for private giving development and participation

PROBLEMS (NGO) criticism for unfair support to state-run entities lack of accountability, remaining high level of mistrust abolished private income tax deduction for individual donors constant attempts to add political parties, individuals (e.g. artists)

FUTURE NGO council NGO development law, NGO foundation (community development program), draft law on mecenatism etc. more data to the public compulsory public reports on expenses – above 10000? no proposals to stop designation system.