7-year project in Serbia: Inspiring list of ECNL’s contributions to enabling environment

15-03-2013
Creating a supportive environment for citizen engagement through CSOs.

The close-out event of ECNL's seven-year work in Serbia, held on January 29, 2013 in Belgrade together with Civic Initiatives (CI), marked the closure of the "Civil Society Advocacy Initiatives (CSAI)" project, implemented by the Institute for Sustainable Communities with ECNL and CI among the implementing partners, and funded by USAID.

ECNL’s efforts throughout the program, in collaboration with local partners, addressed "a supportive environment for citizen engagement through CSOs". Thanks to ECNL’s expertise in the CSAI program, project initiatives significantly contributed to creating a more enabling legal environment for CSOs.

The program has accomplished several important benchmarks in this respect, please see below the most significant highlights:

The Law on Associations.

On July 8, 2009, the Parliament enacted a new Law on Associations, to bring the legal framework for associations in compliance with the international standards and regional best practices. The new Law has impacted positively on societal activities in Serbia, as it has facilitated citizen participation in advocacy and public life. Since the enactment of the Law, almost 7,000 new associations have been entered into the registry, which attest to the level of societal activities in Serbia.

The Law on Volunteers.

On May 26, 2010, the Parliament enacted the regressive Law on Volunteers. However, thanks to the CSAI partners' concerted efforts and collaboration with Parliament, some of the most regressive provisions in the draft Law were removed from the final version thereof, nevertheless. These included a provision providing the sweeping application of the Law to any kind of volunteer activities, including the ad hoc ones; a provision prescribing administrative fines in case of the breach of the volunteer agreement; and a provision allowing only persons aged 15 or older to engage in volunteer activities. If enacted in its original form, that provision would have prevented children in primary education to engage in any kind of volunteer activities, and thus would have had an adverse impact on nurturing the culture of volunteerism.

The Law on Endowments and Foundations.

On November 23, 2010, the Parliament of Serbia enacted the new Law on Endowments and Foundations, to create a more enabling legal environment for endowments and foundations. Since the enactment of the Law more than 50 new foundations have been entered into the registry, which is a quarter of the overall number of foundations operating in Serbia. Significantly, many of new foundations were set up by big corporations, which now feel confident to engage in social investment, guided by the clear set of rules and procedures, which the Law brought about. In addition, the first corporate endowment (Delta endowment) in Serbia in the last 50 years has also been established following the enactment of the Law.

Amendments to the Property Income Tax Law.

n December 2010 the Parliament enacted amendments to the Property Income Tax Law, which exempted associatons pursuing charitable goals from taxes on gifts they receive. Prior to the enactment of the amendments, the Law exampted foundations, but not associations, from taxes on gifts they receive. As a result, donors were reluctant to bear the costs of taxes levied on their gifts, while very few associations could afford to build institutional reserves to match those costs. The amendments therefore contributed to the financial sustainability of associations, by removing a significant institutional barrier to private giving to charitable purposes.

The establishment of the Office for Collaboration with Civil Society.

In 2011 the Government established the Office for Collaboration with Civil Society. The establishment of the Office marked the culmination of efforts to create a unit with the Government which will be solely responsible for dealing with the civil society issues. Significantly, the Government appointed as Head of the Office a person who had strong backing from civil society The Office is envisaged to be a focal point of communication between the government and CSOs, spearheading legislative, capacity-building and other efforts supporting strong and vibrant civil society. The Office is now fully staffed and up and running, and has already embarked on extensive consultations with CSOs in efforts to articulate the pressing policy needs of civil society.

The Law on Youth and Youth Organizations.

On July 5, 2011, the Parliament enacted the Law on Youth and Youth Organizations. The enactment of the Law marked the culmination of efforts to create an institutional framework which recognizes the role of young people in society and encourages their active participation in public affairs.

Regulation on Public Funding of Youth Organizations.

In December 2011 the Ministry of Youth and Sport enacted the regulation which elaborates on the principles of public funding of youth organizations as set out in the Law on Youth and Youth Organizations (Law). The Law and the Regulation create comprehensive and transparent mechanism of public funding of youth organizations, which will enable better utilization of otherwise stretched public funds designated for youth organizations and their projects, thus contributing to their financial sustainability.

Regulation on Public Funding of Associations.

In January 2012 the Ministry of State Administration and Local Self-Government enacted the Regulation which provides for a transparent framework for public financing of charitable associations, endowments and foundations. The Regulation creates conditions necessary to ensure the fair and transparent mechanism of public funding of all charitable (public benefit) organizations and thereby will significantly contribute to the financial sustainability of those organizations.