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Visitors:
BALANCE SHEET AS DECEMBER 31, 2006

  ECNL Program Activities
 
ECNL Program Activities

In 2006, ECNL continued to address its five strategic aims to ensure a supportive legal infrastructure for civil society throughout the region: (1) Legal Framework for CSOs; (2) Financial Sustainability for CSOs; (3) Public Participation; (4) Good Governance; and (5) EU Enlargement. In addition, ECNL engaged in broader regional sharing and networking beyond the sphere of EU Enlargement. By the end of the year, ECNL became the lead in running the projects in all the Balkan countries formerly run by ICNL, with the exception of Bosnia, where ICNL's program ends in September 2007. Moreover, in 2006 ECNL managed to raise its first significant grants from the European Commission and thus, secure staff salaries for the next two years.


I. Legal Framework for CSOs

ECNL worked to support local initiatives aimed at improving the basic framework in the following countries:

  • Croatia - Legal Framework for Foundations - securing governmental support for the draft and convening local stakeholders from government, NGOs and academia to ensure that the draft Law on Foundations is the product of an inclusive, participatory drafting process.
  • Croatia - Publications on the Legal Framework Impacting NGOs
  • Serbia - Legislative Assistance: Draft Law on Associations - Since 2001, drafting initiatives have produced draft laws, but none have yet been enacted. In 2006, however, significant progress was made through cross-sectoral efforts to finalize a draft Law, which, as of October 1, had been submitted for consideration to the Parliament.
  • Hungary - Improving Court Registration Practices
  • Macedonia - amendments to the Law on Citizens' Associations and Foundations. In October 2006 the Government introduced to Parliament a set of amendments, which were not discussed with NGOs or experts. ECNL worked with local partners to prepare comments and develop advocacy strategy for the Government to amend the text.

  • II. Financial Sustainability for CSOs

    ECNL focused significant attention on initiatives addressing tax reform and philanthropy. We worked to support NGO initiatives in the following countries:

  • Serbia - Taxation on Gifts to NGOs
  • Bosnia - Roundtable Event on the Impact of the Bosnian VAT Law on NGOs (coming into force as of January 1, 2006)
  • Giving in Europe - website created by the King Baudouin Foundation to allow donors, intermediaries and beneficiaries to inform themselves about the procedures for cross-border philanthropy (gifts, donations, legacies), taking into account civil, tax and philanthropic considerations. ECNL is facilitating the process of developing analysis and providing information for the 10 new member states.
  • Macedonia - upon initiative of Members of Parliament, businesses and some NGOs, a draft Law on Donations and Sponsorships in Public Activities was drafted in short time and adopted in April 2006. ECNL worked with local partners to help address concerns in the text, propose revisions and develop strategy to ensure NGO participation in the process.

  • III. Public Participation

    During 2006, ECNL focused efforts to promote public participation primarily by supporting local initiatives to improve the legal framework for volunteerism. ECNL helped local partners tackle these and other issues in Croatia, Serbia, Macedonia as well as in Hungary. In addition, ECNL worked in Bosnia and in Hungary on cooperation between local governments and local NGOs:

  • Bosnia - Seminar for Municipal Officials on Local Compacts
  • Croatia - Legal Framework for Volunteerism - technical assistance to the Ministry of Family, Veterans Affairs and Intergenerational Solidarity in working toward a final draft.
  • Serbia - Legislative Assistance: Legal Framework for Volunteerism - ECNL/ICNL has been an active participant in a legislative drafting group commissioned by the Secretariat of Vojvodina for Labor, Employment and Gender Equality to prepare a draft Law on Volunteerism.
  • Hungary - Implementation Guide for the Law on Public Interest Volunteering - a handbook for NGOs on how to apply the provisions of the Law on Public Interest Volunteering.
  • Hungary - Local Values, Local Interest - Cooperation Mechanisms for Local CSOs - a handbook for municipalities on how to effectively work with local NGOs.
  • Macedonia - Law on Volunteering: the Ministry of Labor and Social Affairs is drafting the law. ECNL is providing comments, and working with the Ministry and NGOs to organize public discussions.

  • IV. Good Governance

    Throughout the year, ECNL made efforts to advance the accountability and governance practices of NGOs in CEE and in Europe.

  • Croatia - Good Governance Meeting.
  • Slovenia - Conference on Quality Standards for NGOs.
  • Serbia - Belgrade Fund for Humanitarian Law - institutional reform process.
  • Hungary - Accountability and Quality Development, Self-Power Project.
  • EU Code of Conduct for NGOs.

  • V. EU Enlargement

    ECNL worked in 2005 to strengthen connections between the EU and Bulgaria, Romania, Macedonia, Turkey and Ukraine.

  • Romania - CSO Participation in the EU Structural Funds Process - to enhance CSO participation in EU related national processes and supporting the preparation of CSOs for the use and monitoring of Structural Funds.
  • Bulgaria - Comparative Analysis for Improving the Legal Framework for CSOs.
  • Macedonia - Government Strategy for Cooperation with the Civil Sector.
  • Turkey - 'SKIP' Project: Improving Cooperation Between CSO-Public Sector
  • Ukraine - Strengthening Regional Social Services

  • VI. Regional Sharing and Networking

  • Study tours - This fall ECNL organized four successive study visits for CSO and government officials from Macedonia, Croatia and Kosovo on philanthropy development, CSO/Government cooperation and public financing strategies.
  • Participation in International Events - Throughout 2006, ECNL representatives participated in international conferences, meetings, and events. Such events can provide for the exchange of cross-border expertise and experience, and have allowed ECNL to establish its reputation as the leading resource for civil society law expertise in Europe.


  • ECNL Institutional Development

    I. Governance and Strategy Development

    There were some changes in the Supervisory Board of ECNL during 2006 due to the staggered rotation policy. Namely, Pavol Demes stepped down, while Prof. Tymen van der Ploeg joined ECNL's board. Following up on board discussions, ECNL worked to define its strategy for the coming years. Due to a number of factors, mainly the lack of capacity and prioritizing current project commitments over planning, the process was not finalized before the end of the year. Nevertheless, it has been clarified that ECNL is generally keeping the same strategic priorities it has been working along in the past two years, while expanding its geographic scope beyond the immediate EU neighborhood.


    II. Fundraising and Financial Resources

    By in large, ECNL met its financial targets, generating a revenue of $538,000 and expenses of $488,000, with a surplus of $50,000 for the year 2006, which includes a net unrestricted income of $16,300. As for the coming year, ECNL doubled its income and is projecting a total revenue of $875,000. The major sources of income include:

  • USAID financed projects in partnership with local implementers ($459,000);
  • Newly obtained projects from the EU ($316,000)
  • Consultancy and other income ($48,000)
  • Mott Foundation institutional support ($50,000)
  • As can be seen from the above, ECNL has been very successful in fundraising over the past period. On the one hand, in 2005 and 2006 it was a partner in winning bids for USAID financed Civil Society Strengthening projects in five Balkan countries; on the other hand, in 2006 it finally managed to receive its first ever grants from the European Commission. These include a major grant of Euro 467,000 ($600,000) for two years to work on NGO legal reform issues in Southern Caucasus (Armenia, Azerbaijan, Georgia) and Moldova. This means a strategic move for ECNL to expand beyond the Balkans and the immediate EU accession countries. ECNL was also a partner of the Civil Society Development Foundation Hungary in a successful bid to the DG Justice, Freedom and Security to build advocacy capacity of human rights NGOs in Hungary. ECNL will contribute to the development of participatory policy advocacy mechanisms between these NGOs and the governmental counterparts.


     
      PUBLIC BENEFIT REPORT
     

    Public Benefit Report
    Statement Of Operations As December 31, 2006

    Nr. Category Previous year HUF* Current year HUF*
    1 A. Total Income from Public Benefit Activity 54 838 98 274
    2 1. donations 28 388 15 674
    3 a) from founder 28 388 15 674
    7 2. from project tenders 24 530 73 805
    8 3. from public benefit activity   7 991
    10 5. other income 1 920 804
    11 B. Income from Financial Activity 984 503
    12 C. Total Income (A+B) 55 822 98 777
    13 D. Expenditures of Public Benefit Activity 54 493 97 997
    14 1. material expenses 24 440 60 612
    15 2. personnel expenses 27 670 30 802
    16 3. depreciation 343 672
    17 4. other expenses 1 444 3 689
    18 5. expenditures of financial transactions 596 2 222
    20 E. Expenditures of Financial Activity 417 540
    21 1. material expenses 32 239
    22 2. personnel expenses 365 301
    25 5. expenditures of financial transactions 20  
    27 F. Expenditures of all Activities (D+E) 54 910 98 537
    28 G. Results Before Taxation (B-E) 567 37
    29 H. Taxation Liability 3  
    30 I. Current Year Financial Activity Result (G-H) 564 37
    31 J. Current Year Public Benefit Result (A-D) 354 277


    SUPPLEMENTARY DATA

    32 A. Personnel Costs 31 103
    33 1. Salaries 2 271
    35     From salaries: commisional fees 437
    36 2. Other personnel type costs 934
    37 3. Overhead on personnel costs 7 453
    38 Subsidies by the organization 596

    * Note: amounts shown are in thousands



    PUBLIC BENEFIT REPORT
    BALANCE SHEET AS DECEMBER 31, 2006

    Nr. Category Previous year HUF* Current year HUF*
    1 A. Fixed Assets (2-5) 968 666
    2 I. Intangible Assests 59 47
    3 II. Tangible Assets 909 619
    4 III. Long-Term Investments    
    5 IV. Long-Term Investments Value Correction    
    8 B. Current Assets (9-12) 8 480 18 379
    9 I. Inventory    
    10 II. Accounts Receivable 56 258
    11 III. Short-Term Investments    
    12 IV. Cash & Cash Equivalents 8 424 18 121
    13 C. Prepaid Expenses 2 515 190
    14 Total Assets (A+B+C) 11 963 19 235
    15 D. Net Worth (16-23) 5 866 6 106
    16 I. Start-Up Fund Balance 3 000 3 000
    19 III. Reserves    
    20 IV. Valuation Reserves 1 957 2 866
    23 VII. Current Year Public Benefit Result 909 240
    24 E. Provisions    
    25 F. Liabilities (27-28) 1 865 1 778
    27 I. Long-Term Liabilities    
    28 II. Short-Term Liabilities 1 865 1 778
    29 G. Acrued Expenses 4 232 11 351
    30 Total Net Worth and Liabilities (D+E+F+G) 11 963 19 235

    * Note: amounts shown are in thousands
     
      HIGHLIGHTS

     
       LATEST NEWS

    Just Released! UNV Report: Laws and Policies Affecting Volunteerism Since 2001
    UN Volunteers just published a global research study on trends and lessons in the development of supportive volunteerism policies and legislation developed by ICNL and ECNL. An overall review was conducted in 7 regions, complemented by country-specific case studies. The study analyzes considerations in drafting and implementing volunteerism laws and policies, and highlights the need to tailor them to specific local, national, and regional contexts. Since the International Year of Volunteers (IYV) in 2001, governments, the UN system, civil society partners, and other stakeholders have increasingly recognized that volunteerism makes significant contributions to peace and development.

     
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