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

2. 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

3. 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

4. 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…

5. 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

6. „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

7. 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

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

9. 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

10. 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): – 2012
Key issues:
Which will be the funding programmes available for CSOs inside and outside EU?
CSO-only and CSO-friendly programming

11. 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.

12. For further information:
Thank you!
For further information: