Dear colleagues,
Our mutual efforts in improving the legal framework for non-profit legal entities were completed successfully.
In May 2005 we carried out a survey among Bulgarian NGOs focused on the problems arising from the legal framework the NGOs face in their practice. The results served as a basis for the drafting of the Concept for amendments in the legislation for non-profit legal entities (NPLE) in Bulgaria, which describes the most important needs for changes in the legislation which Bulgarian NGOs face.
Regarding the common legal framework for NGOs, which is in the Law on Non-Profit Legal Entities (LNPLE), the basic problems shared by the organizations concern the convening of the General meeting of the associations through invitation published in the State Gazette, the registration and reports for the Central registry by the Ministry of Justice and the common need of relieving the legal framework without radical changes in the acting legal framework.
The Bulgarian Center for Not-for-Profit Law drafted a Proposal for amendments and additions to LNPLE, which were put on broad discussions among NGOs all over the country. They were also coordinated with the Central registry by the Ministry of Justice, the Legislative Council by the Ministry of Justice and the respective Deputy Minister of Justice which rendered their support for the Proposal.
In the middle of May 2006 the final Proposal for legislative amendments has been deposited in Parliament by Donka Mihajlova, Lutvi Mestan and Ivo Atanasov – members of Parliament, it was promulgated in the State gazette four months and a half later and is taking effect on October 3, 2006.
The most important amendments in the legal framework for NPLE, which are taking effect tomorrow are:
1. The convening of the General meeting of an association through the State Gazette is no longer mandatory
The General meetings of the associations can be convened in the manner stipulated in the association statutes and only if such manner is not stipulated – through invitation in the State Gazette. The associations which at the present moment do not have specifically stipulated procedure for convening of General meeting or which have stipulated convening under the requirements of the Law, may amend their statutes and provide for a procedure for convening of General meeting which best serves their needs.
2. Deadline for registration in the Central registry of the newly registered public benefit organizations is introduced
Public benefit NPLE which will register in court after the present amendments in the LNPLE take effect are obliged to deposit their documents for registration in the Central registry by the Ministry of Justice within 2 months from the entry of the public benefit designation of the organization in the court registry.
3. New rules for report and transparency for the NPLE entered in the Central registry by the Ministry of Justice
From 2007 the NPLE entered in the Central Registry by the Ministry of Justice, should include in their report to the Registry information on the kind, the amount and the purposes of the donations received and granted, as well as information about the donors. Two new grounds for independent audit under the conditions of the Accountancy Law are introduced – when the PBOs have received funding from the state budget or other finances from the European Union Funds exceeding 50 000 levs, as well as when they have made donations to a political party exceeding 50 000 levs.
The annual activity report and the accounts of PBOs should be submitted on paper version and electronic carrier. They are open to public inspection and are published in the bulletin on the Website of the Central Registry.
4. A new ground for striking-off the Central Registry of entered there NPLE
The NPLE entered in the Central Registry may be stricken-off the registry if they fail to submit within the legal deadline May 31 the annual information for their activities two consecutive years. Before imposing this penalty, the Minister of Justice is obliged to send written notification to the NPLE in which the Minister should grant additional time frame for submittal of the information. If the information is not submitted within the additional time frame the entry should be stricken-off.
5. New deadline for entry of existing NPLE in the Central Registry
The NPLE which have been registered in court as public benefit organizations before the present amendments in the Law, but are not already entered in the Central registry by the Ministry of Justice, should deposit their documents for registration within one year as from October 3, 2006.