Dear colleagues,

The Proposal for amendments and supplements to the Law on Non-Profit Legal Entities (LNPLE) is accepted at its second reading by the Parliament

In year 2005 the Bulgarian Center for Not-for-Profit Law (BCNL) carried out a major survey among Bulgarian non-profit legal entities (NPLE), based all over the country. The survey was focused on the problems arising from the legal framework the organizations face in their practice. The results were analyzed by BCNL experts and served as a basis for the following propositions for amendments in the LNPLE.

The basic amendments in the Law concern the provisions regarding the convening of the General meeting of the associations, the control over public benefit organizations (PBOs) and their registration in the Central registry by the Ministry of Justice. According to the amendments it is now possible that each association can stipulate in its statutes another procedure for announcement of the invitation for convening of the General meeting, other than promulgation in the State Gazette. If such provisions are not included in the statutes, the General meeting should be convened through invitation promulgated in the State Gazette.

One of the significant amendments in the Law is the introduction of a deadline for registration in the Central Registry – 2 months from the entry of the public benefit designation of the organization in the court registry. With the new amendments another ground for striking off the entry in the registry of an organization which has failed to submit the annual information for its activities two consecutive years is introduced. Up to now as similar ground for striking–off the registry was considered to be failure to submit the annual information three consecutive years.  

Among the major amendments regarding the control over PBOs entered in the Central Registry is the introduction of two new grounds for independent audit under the conditions of the Accountancy Law– 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 Transitional provisions of the Law for amendments and supplements to the LNPLE stipulate that all the PBOs which are not entered in the Central registry should deposit their documents for registration within one year after the Law for amendments and supplements to the LNPLE takes effect. The provision applies to all the PBOs which have failed to register in the Central Registry up to now.

The next steps before the Bill becomes an acting legal act are its promulgation in the State Gazette and expiration of the time period for its coming into force.  

BCNL expresses its gratitude to all organizations which shared their experience regarding the application of LNPLE and made proposals for amendments.