To share experiences with Moldovan civil society organisations (CSOs), ECNL prepared case studies from Hungary, Poland and Slovakia giving a short overview of the most important characteristics of the percentage legislation in these three countries and bring practical examples how the CSOs can make use of the mechanism.
Percentage designation mechanism is one of supplementary sources for financial sustainability of the CSO sector in Central and Eastern Europe (CEE). It is an indirect state support mechanism, which allows CSOs to mobilize domestic resources and diversify their income base. This mechanism of indirect philanthropy was first introduced in the 1990s in Hungary, and since then has been adopted and successfully applied in some other countries of CEE (Slovakia, Poland, Lithuania, Romania).
CSOs have actively promoted the introduction of the 2% law in Moldova – allowing individuals to designate 2% of their income tax to CSOs and religious organizations - and on July 21, 2016 Parliament approved the amendments to the law.
The case studies were developed under the Moldova Partnerships for Sustainable Civil Society Program (MPSCS) program supported by USAID.