On December 22-23, 2005, in Podgorica, the Center for the Development of Non-Governmental Organizations (Center) and ECNL hosted a two-day seminar on the tax and accounting framework for NGOs in Montenegro. The seminar primarily sought to clarify outstanding issues, which have arisen in the implementation of tax and financial laws as they impact on NGOs, and to harmonize the practice of supervising authorities relating to those issues.
ECNL utilized the trip to Podgorica to work with the Ministry of Finance and the Center on the final version of the amendments to the NGO Law, which seek to clarify conditions under which NGOs may engage in economic activities. The Law on Non-Governmental Organizations (NGO Law) in Montenegro does not provide clear guidelines on the extent and scope of legitimate economic activities NGOs can pursue. As a result, hundreds of businesses and cafes are registered and operating illegitimately as NGOs , thus detracting from the good work of the smaller number of genuine NGOs. The final version of the amendments, which was a compromise between original proposals prepared by the Center (with ECNL's assistance) and the Ministry of Finance, requires an NGO whose income from economic activities in the prior financial year exceeds 4,000 euro or 20% of the organization's overall income, whichever amount is higher, to establish a separate corporation in order to engage in economic activities.
The trip to Podgorica concluded ECNL's engagement in the Montenegro Advocacy Project, which was funded by USAID/American ORT.