On January 25, 2012, the Government of Serbia approved the regulations which details the rules and procedures for public financing of associations deemed for public benefit.
Among others, the Regulation provides for a more transparent mechanism of public financing of associations by mandating that public funds be distributed to associations only on the basis of public calls, which must contain clearly spelled criteria. However, the Regulation is silent on the issue as to whether it also pertains to foundations and endowments which are deemed for public interest.
The Law on Foundations and Endowments specifically calls for the provisions on the Law on Associations governing public financing of associations to be applied on foundations and endowments, accordingly. If not properly resolved, this issue may have potentially adverse impact on the financial sustainability of foundations and endowments. In addition, some of the criteria set out in the Regulation, which an association must meet in order to be eligible to apply for public funds, seem disproportionate.
ECNL provided comments to the prior versions of the Regulation, which contributed to the successful efforts to remove some of the most contentious provisions from the final draft, such as the requirement for an association applying for public finds to secure at least 51% contribution to the project from other sources.