On June 27, 2005 Hungary adopted a new law on volunteering. The Law governs public interest volunteering only, which is defined as work without compensation in certain areas of activity of the so-called host organizations. Host organizations are essentially public benefit organizations, governmental institutions, and public or private service providers in the social, health, educational, cultural and minority fields.
The Law confers certain benefits to the host organizations and their volunteers, e.g. tax-free reimbursement of related expenses and health care payment for accident-related injuries. The Law also lays out the requirements to obtain these benefits, e.g. a volunteer contract, registration of the organization with the competent Ministry, keeping records on the volunteer activities and compliance with the provisions of the Law, especially regarding the protection of the volunteers and restrictions on using minors as volunteers.
The Law is an important step toward greater recognition for volunteer work in Hungary and ensuring a safe working environment for volunteers. At the same time, however, NGOs that have worked with the government in the preparation of the Law point out that the scope of the Law does not cover the majority of Hungarian NGOs, as over half of the registered NGOs do not have public benefit status; and that it places unduly high administrative burden on NGOs that wish to register as host organizations. For that reason there is concern about the impact of the Law on "grass-roots" volunteering. The law will be effective October 1, 2005.
ECNL assisted the Hungarian Volunteer Center and the law-drafting working group in developing the Law over the last two years.