Bulgarian Center for Not-For-Profit Law
Encyclopedia
The Bulgarian Center for Not-For-Profit Law (BCNL), founded in 2001, is a legal entity based in Sofia
, Bulgaria
with public benefit purposes to provide legal support for the development of civil society in Bulgaria. BCNL is under the guidance of the International Center for Not-for-Profit Law (ICNL) under an Affiliation Agreement. It is registered in the Central Registry at the Ministry of Justice of Bulgaria. It is also a partner of the European Center for Not-for-Profit Law (ECNL) with its headquarters in Budapest
.
The BCNL aims at developing a legal framework for non-profit organizations which they believe is vitally important towards the creation of an independent and more prosperous civil society. It operates across Bulgaria, providing expertise and legal assistance to NGOs. The BCNL revolves around three interlinked priority areas of work. These include creating an enabling environment and improvement of the legal and financial framework for increased financial sustainability of NGOs in Bulgaria, assistance to NGOs to provide the knowledge for legal provisions and regulations and the promotion of an inter-government/NGO partnership. The Bulgaria Center also deals a diversity of legal and tax issues, including the private-sector provision of social and healthcare services.
In 2002 the BCNL participated with the Ministry of Finance for drafting amendments to pre existing tax laws related
to NGOs. The BCNL initiated a major e-mail campaign for support of the draft amendments on the NGO taxation. This initiative and lobbying elsewhere resulted in the adoption of new tax concessions for NGOs in Bulgaria in December 2002.
During 2002, BCNL operatatives consulted over 140 organizations to undertake the implementation of the basic NGO Law, labor legislation and taxation and signed a partnership agreement with the American Red Cross
which provided the obligation to provide legal assistance to the Bulgarian Red Cross
. The BCNL worked with the Bulgaria Pilot Community Fund and Social Enterprise Program also, supporting the foundation of three Community Funds in Chepelare
, Gabrovo
and Blagoevgrad
.
for public benefit NGOs, the right to withhold 50 % of the corporate tax
on related economic activity by public benefit NGOs, and th inclusion of public benefit NGOs among the recipients of donations exempted from value added tax. However, although the proposals were supported by the Parliamentary Civil Society Committee, the Ministry of Finance did not approve of the proposals and did not include them in drafting amendments to the tax laws. In 2003 together with the Open Society Foundation and the Program and Analytical Center for European Law, the BCNL started a joint initiative for creating a central guideline for financial sustainability of the NGO sector in Bulgaria. Their objective was to systematize different tools that would aid the financial independence of NGOs in the country and to provide knowledge on legislation to increase their power. The BCNL also initiated the preparation of a NGO Law Textbook, which presented an in-depth analysis on the NGO legal framework in Bulgaria. In 2003, the BCNL completed a project on the “Legal Arrangements on Hospices in the Republic of Bulgaria” and published three books related to the subject. In December, 2003 they initiated a project called ”Social Services in
Bulgaria – new opportunities for development“ which was funded by the PHARE Civil Society Development Program of the European Union
. It was conducted for 8 months ending in July 2004 which the objective to develop the system of social services in Bulgaria and facilitating a partnership between NGOs and municipalities in the social sector.
, Drianovo and Byala Slatina
to organize 7 of the first competitions in Bulgaria for contracting out of social services. The initiation was followed by several other municipalities and social services reform at a local level and established public councils. In 2004 the BCNL signed a partnership with the Ministry of Labor and Social Policy (MLSP) to facilitate this social reform and provided a cooperation with various other state institutions in this area, aiming at achieving the decentralization of social services in Bulgaria and providing new and modern alternatives to social policy in the country.
non-profit organizations in Bulgaria. They drew up a concept paper for changes to NGO legislation based on the analysis of the results of this survey. The BCNL organized a campaign for discussing this new Concept Paper which was sent to over 3000 organizations and well publicized in public events and seminars. In the end over 400 Bulgarian organizations supported the documentation and provided the background to new NPO legislation in 2006. In 2005 the BCNL aimed to strengthen informal NPO alliances under the project Strategy for Strengthening the Sustainability of the Non-Profit Sector in Bulgaria, playing a key role in the organisation of meetings and in legislative priorities of the political parties who cooperated. In the social sphere, they formed a partnership with the Bulgarian Association for Persons with Intellectual Disabilities (BAPID) to provide mutual support on social projects, training and initiatives, with the BCNL providing legal aid to the BAPID and to further their objectives of social services decentralization. This involved the entity in international conferences held in Lisbon
and Brussels
. In November 2005 they established the Association of Social Enterprises in Bulgaria in Varna
in which 26 organizations formed a social enterprise alliance.
The BCNL also attempted to address problems with VAT
law registration in European program financing
Including the PHARE Civil Society Development Program, a meeting was held with the Delegation of the European Commission in Bulgaria with the new Deputy Minister of Finance Georgi Kadiev to discuss reforms but it was eventually upheld. In 2005 they also worked in partnership with the Bulgarian Charities Aid Foundation and the Bulgarian Donors’ Forum and in the October participated in an experts’ group that made further proposals to the Maecenas Law prior to its second parliamentary reading. The BCNL published the book on Social Entrepreneurship and Control on the Social Services in Bulgaria and in the European Union analysing the legal framework of social enterprise in Bulgarian legislation, and controls on social services in Bulgarian and the European Union and to examine the current trend in social reform. They also published the books What is a Social Enterprise?, a question and answer publication published with financial aid from the European Union
and Philanthropy for Cultural Organizations in Bulgaria with the intent to analyse the existing legal regime of cultural organizations and stipulated legal possibilities for philanthropy and sponsorship of cultural and tax initiatives.
However the BCNL has worked with the government and received support on many of its initiatives. On May 16, 2007 the BCNL organized a charity event in the Central Military Club in Sofia to raise funds for the establishment of a crisis centre for homeless people in Veliko Tarnovo
. The event which was coordinated under the banner “Let’s help homeless people change their destiny” received support from the Bulgarian Ministry of Labour and Social
Policy and the Municipality of Veliko Tarnovo.
In October 2007 the BCNL attended a conference held by the European Citizen Action Service (ECAS) in Brussels
within “The Next Mile of the European Civil Society Infrastructure” Programme. The mission was to provide help to NGOs in the EU with advice on how to lobby, fund raise and protect the rights of European citizens.
Sofia
Sofia is the capital and largest city of Bulgaria and the 12th largest city in the European Union with a population of 1.27 million people. It is located in western Bulgaria, at the foot of Mount Vitosha and approximately at the centre of the Balkan Peninsula.Prehistoric settlements were excavated...
, Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
with public benefit purposes to provide legal support for the development of civil society in Bulgaria. BCNL is under the guidance of the International Center for Not-for-Profit Law (ICNL) under an Affiliation Agreement. It is registered in the Central Registry at the Ministry of Justice of Bulgaria. It is also a partner of the European Center for Not-for-Profit Law (ECNL) with its headquarters in Budapest
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...
.
The BCNL aims at developing a legal framework for non-profit organizations which they believe is vitally important towards the creation of an independent and more prosperous civil society. It operates across Bulgaria, providing expertise and legal assistance to NGOs. The BCNL revolves around three interlinked priority areas of work. These include creating an enabling environment and improvement of the legal and financial framework for increased financial sustainability of NGOs in Bulgaria, assistance to NGOs to provide the knowledge for legal provisions and regulations and the promotion of an inter-government/NGO partnership. The Bulgaria Center also deals a diversity of legal and tax issues, including the private-sector provision of social and healthcare services.
2002
The BCNL is supported by USAID and the International Center for Not-for-Profit Law in both Bulgarian and international legal expertise. The program has been of notable importance in drawing together multi-party support of a modern legal framework. A new law was drafted in Bulgaria which permitted not-for-profit organizations to engage in economic and legal activity, curbing the state control over the activities of not-for-profit organizations.In 2002 the BCNL participated with the Ministry of Finance for drafting amendments to pre existing tax laws related
to NGOs. The BCNL initiated a major e-mail campaign for support of the draft amendments on the NGO taxation. This initiative and lobbying elsewhere resulted in the adoption of new tax concessions for NGOs in Bulgaria in December 2002.
American Red Cross
The American Red Cross , also known as the American National Red Cross, is a volunteer-led, humanitarian organization that provides emergency assistance, disaster relief and education inside the United States. It is the designated U.S...
which provided the obligation to provide legal assistance to the Bulgarian Red Cross
Bulgarian Red Cross
The Bulgarian Red Cross was established in 1878 after the liberation of the Principality of Bulgaria and the region of Eastern Rumelia from control of the Turkish Ottoman Empire. The first BRC organization was established in May 1878 in the Principality of Bulgaria and Eastern Rulmelia, in the...
. The BCNL worked with the Bulgaria Pilot Community Fund and Social Enterprise Program also, supporting the foundation of three Community Funds in Chepelare
Chepelare
Chepelare is a town and ski resort in Smolyan Province in Southern Bulgaria. It is situated in the central part of the Rhodopes, on the banks of Chepelare River. Chepelare is a popular winter resort with one of the longest ski runs in Southeastern Europe. It is located near Pamporovo, one of the...
, Gabrovo
Gabrovo
Gabrovo is a city in central northern Bulgaria, the administrative centre of Gabrovo Province. It is situated at the foot of the central Balkan Mountains, in the valley of the Yantra River, and is known as an international capital of humour and satire , as well as noted for its Bulgarian National...
and Blagoevgrad
Blagoevgrad
Blagoevgrad is а city in southwestern Bulgaria, the administrative centre of Blagoevgrad Province, with a population of about 74,302 . It lies on the banks of the Blagoevgradska Bistritsa River....
.
2003
In 2003, the BCNL and the Open Society Foundation of Sofia continued their campaign for draft amendments of the Not-for-Profit Legal Entities Act. These proposals included the abolition of the dividend taxDividend tax
A dividend tax is an income tax on dividend payments to the stockholders of a company.-Collection:In many jurisdictions, the government requires the company to withhold at least the standard tax, paying this to the national revenue authorities and paying out only the balance to the...
for public benefit NGOs, the right to withhold 50 % of the corporate tax
Corporate tax
Many countries impose corporate tax or company tax on the income or capital of some types of legal entities. A similar tax may be imposed at state or lower levels. The taxes may also be referred to as income tax or capital tax. Entities treated as partnerships are generally not taxed at the...
on related economic activity by public benefit NGOs, and th inclusion of public benefit NGOs among the recipients of donations exempted from value added tax. However, although the proposals were supported by the Parliamentary Civil Society Committee, the Ministry of Finance did not approve of the proposals and did not include them in drafting amendments to the tax laws. In 2003 together with the Open Society Foundation and the Program and Analytical Center for European Law, the BCNL started a joint initiative for creating a central guideline for financial sustainability of the NGO sector in Bulgaria. Their objective was to systematize different tools that would aid the financial independence of NGOs in the country and to provide knowledge on legislation to increase their power. The BCNL also initiated the preparation of a NGO Law Textbook, which presented an in-depth analysis on the NGO legal framework in Bulgaria. In 2003, the BCNL completed a project on the “Legal Arrangements on Hospices in the Republic of Bulgaria” and published three books related to the subject. In December, 2003 they initiated a project called ”Social Services in
Bulgaria – new opportunities for development“ which was funded by the PHARE Civil Society Development Program of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. It was conducted for 8 months ending in July 2004 which the objective to develop the system of social services in Bulgaria and facilitating a partnership between NGOs and municipalities in the social sector.
2004
At the end of 2004, the BCNL helped the municipalities of PazardzhikPazardzhik
Pazardzhik is a city situated along the banks of the Maritsa river, Southern Bulgaria. It is the capital of Pazardzhik Province and centre for the homonymous Pazardzhik Municipality...
, Drianovo and Byala Slatina
Byala Slatina
Byala Slatina is a town in Northwestern Bulgaria. It is located in Vratsa Province. As of December 2009, the town has a population of 12,433 inhabitants.-External links:*...
to organize 7 of the first competitions in Bulgaria for contracting out of social services. The initiation was followed by several other municipalities and social services reform at a local level and established public councils. In 2004 the BCNL signed a partnership with the Ministry of Labor and Social Policy (MLSP) to facilitate this social reform and provided a cooperation with various other state institutions in this area, aiming at achieving the decentralization of social services in Bulgaria and providing new and modern alternatives to social policy in the country.
2005
In February 2005, the Bulgarian Center for Not-For-Profit Law conducted a nationwide Survey on the legal problems ofnon-profit organizations in Bulgaria. They drew up a concept paper for changes to NGO legislation based on the analysis of the results of this survey. The BCNL organized a campaign for discussing this new Concept Paper which was sent to over 3000 organizations and well publicized in public events and seminars. In the end over 400 Bulgarian organizations supported the documentation and provided the background to new NPO legislation in 2006. In 2005 the BCNL aimed to strengthen informal NPO alliances under the project Strategy for Strengthening the Sustainability of the Non-Profit Sector in Bulgaria, playing a key role in the organisation of meetings and in legislative priorities of the political parties who cooperated. In the social sphere, they formed a partnership with the Bulgarian Association for Persons with Intellectual Disabilities (BAPID) to provide mutual support on social projects, training and initiatives, with the BCNL providing legal aid to the BAPID and to further their objectives of social services decentralization. This involved the entity in international conferences held in Lisbon
Lisbon
Lisbon is the capital city and largest city of Portugal with a population of 545,245 within its administrative limits on a land area of . The urban area of Lisbon extends beyond the administrative city limits with a population of 3 million on an area of , making it the 9th most populous urban...
and Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
. In November 2005 they established the Association of Social Enterprises in Bulgaria in Varna
Varna
Varna is the largest city and seaside resort on the Bulgarian Black Sea Coast and third-largest in Bulgaria after Sofia and Plovdiv, with a population of 334,870 inhabitants according to Census 2011...
in which 26 organizations formed a social enterprise alliance.
The BCNL also attempted to address problems with VAT
Vat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
law registration in European program financing
Including the PHARE Civil Society Development Program, a meeting was held with the Delegation of the European Commission in Bulgaria with the new Deputy Minister of Finance Georgi Kadiev to discuss reforms but it was eventually upheld. In 2005 they also worked in partnership with the Bulgarian Charities Aid Foundation and the Bulgarian Donors’ Forum and in the October participated in an experts’ group that made further proposals to the Maecenas Law prior to its second parliamentary reading. The BCNL published the book on Social Entrepreneurship and Control on the Social Services in Bulgaria and in the European Union analysing the legal framework of social enterprise in Bulgarian legislation, and controls on social services in Bulgarian and the European Union and to examine the current trend in social reform. They also published the books What is a Social Enterprise?, a question and answer publication published with financial aid from the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
and Philanthropy for Cultural Organizations in Bulgaria with the intent to analyse the existing legal regime of cultural organizations and stipulated legal possibilities for philanthropy and sponsorship of cultural and tax initiatives.
2007
In 2007, the Bulgarian Center for Not-For-Profit Law opposed a new bill for the modification and amendment of the Law on Taxes introduced in Parliament, which attempted to cancel of all types of tax deduction for donors. The BCNL saw the bill as a way in which the Bulgarian government were attempting to counteract the large number of non-profit organizations now running in the country.Veliko Tarnovo
Veliko Tarnovo is a city in north central Bulgaria and the administrative centre of Veliko Tarnovo Province. Often referred to as the "City of the Tsars", Veliko Tarnovo is located on the Yantra River and is famous as the historical capital of the Second Bulgarian Empire, attracting many tourists...
. The event which was coordinated under the banner “Let’s help homeless people change their destiny” received support from the Bulgarian Ministry of Labour and Social
Policy and the Municipality of Veliko Tarnovo.
In October 2007 the BCNL attended a conference held by the European Citizen Action Service (ECAS) in Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
within “The Next Mile of the European Civil Society Infrastructure” Programme. The mission was to provide help to NGOs in the EU with advice on how to lobby, fund raise and protect the rights of European citizens.