Report by Outi Ojala

The NGO Legislation in the Countries inthe Baltic Sea RegionA survey with recommendationsBy Mrs Outi Ojala,Baltic Sea Parliamentary Conference RapporteurAugust 2004INDEXIntroduction p.3Chapter 1: Diversity of the NGO community p.5Chapter 2: Legislation on NGOs p.7I. Right to Freedom of Association p.9II. Registration Procedures p.14III. Financial Opportunities and taxation p.21IV. Access to information p.30V. Participation in the decision-making process p.36Chapter 3: The Council of Europe and the European Union p.43Chapter 4: Conclusion and recommendations p.472INTRODUCTIONThis project was set up on the initiative of the III NGO Forum held in Turku inMay 2003. Discussions held during this forum highlighted the diversity in the outlookof the NGO community in the Baltic Sea Region. Moreover its thematic group:“Open Sesame! promoting transparency in cooperation between NGOs and theauthorities”, asked the CBSS study group of experts to examine conditions forstrengthening NGOs’ activities. This was to include reviewing the CBSS memberstates’ existing legislation on taxes and other relevant legal provisions. The group alsodrew attention to the need for improvement in the cooperation between NGOs in theregion as a whole.Responding to expectations of the Turku NGO Forum, the permanentinternational Secretariat of the Council of the Baltic Sea States produced, inSeptember 2003, a preliminary survey of the NGO legislation in the Baltic SeaRegion. The outcomes of this study were considered by the Baltic Sea ParliamentaryConference, together with the Survey on the Right to Freedom of Associationpublished by the Office of the CBSS Commissioner on Democratic Development in1998.The Parliamentarians found the nomination of a Rapporteur on NGOlegislation, to be necessary in order to identify similarities and differences in theworking conditions for NGOs and to formulate recommendations based on thesefindings. I was appointed by the Baltic Sea Parliamentary Conference to serve as aRapporteur on NGO legislation in the 11 countries of the Council of the Baltic SeaStates in December 2003. Progress reports were given to the 2nd PreparatoryCommittee in Pärnu on 30-31 January 2004 and during the IV NGO Forum on 16-17April 2004 in Pärnu.The project started in January 2004 with the first visit held in Riga, Latvia. Ihave sought to obtain comments from a cross-section of NGOs in each country onhow they experience the legal framework and the possibilities for cooperation withthe authorities, for instance on law making. I visited many of the countries in theregion with a view to seeking information from governments on legislation relating toNGOs and to hold round-table discussions with NGOs. The material for the surveywas collected from official sources and from NGO representatives met in Latvia,Estonia, Poland, Lithuania and Russia. Further, a questionnaire was sent out to avariety of NGOs and state officials in every CBSS Member States, i.e. Denmark,Estonia, Finland, Germany, Island, Latvia, Lithuania, Norway, Poland, Sweden andRussia. The content of the study is based directly on the responses received fromauthorities and NGOs in each country (approximately 200 answers).I would like to take the opportunity to thank the Nordic Council, the city ofTurku within the Turku Forum Process, the Finnish Parliament as well as the Councilof the Baltic Sea States for their contributions and support of the project. Also I wantto thank the officials, NGOs and experts around the Baltic Sea who has given theirtime to answer our questions and to take part in the discussions on the issue.3Special and big thanks are to be given to Sophie Levasseur, who has donemuch of the preparations, collecting of information and writing work. Without herhelp the report would not have been possible to make.4CHAPTER 1: DIVERSITY OF THE NGOCOMMUNITYNon-Governmental Organisations -NGOs are defined by NGOs themselves bytraditions and historical reasons which appear to be different in the countries of theBaltic Sea.In some countries there is not a tradition of partly state funded, but stillpolitically independent, citizens organisations. In our globalise world, some countrieshave been raising discussions regarding the influences of foreign funding on theindependence of granted NGOs. Some NGOs, are not taking granted funding fromgovernments in any countries. But in the same time, some organisations still receivestate funding for their work while preserving their independence and critical positionstowards governments.It appears that a new trend can be identified: as a matter of fact it seems thatNGOs nowadays, especially in the social field, are taken responsibilities thattraditionally use to be supported by the states. Those organisations are often in quiteclose interrelation with State bodies. In this case their functions, which are morestrictly regulated, differ to some extend from other NGOs.In this survey NGOs are defined broadly, including all kinds of citizens’independent organisations and networks regardless of their size, activities, means offunding or structures.Basically two different kinds of relations between authorities and NGOs canbe identified in the Baltic Sea region:• In the Nordic countries there is an active and crucial participation in the civilsociety activities. There is also a big diversity of citizens’ organisation in allfields of life and for all purposes. These countries clearly show that civilsociety and the state have interrelated concepts that may, but do notnecessarily, stand in opposition to each other,• In the rest of the region can be identified countries that have gone throughmajor a political and economical transition during the last decade. The postsecond world war period still seems to have an impact on how the idea andfunction of an independent civil society is seen and been restored.Organisations working in the fields of social welfare, youth and environmentalissues have gained some ground. In the meanwhile some organisationsrequiring more from authorities or criticizing governments have had moredifficulties to get large public involvement or any kind of support for theiractivities or existence from the authorities.The NGO community in the Baltic Sea Region is highly diversified in itsoutlook. NGOs are active in many different fields of activity. They also differ widelyin their size, resources, orientation and goals.5• NGOs acting in the youth, sport, culture, education, social fields• Peace, development, international co-operation (friendships societies,voluntary work, exchange etc) and environmental field• Political and religious organisations.• Trade Unions.Trade Unions organisations play an important role in the region. In the countriesthere are different forms and structures for co-operation between trade unions,employers and authorities. For instance in the European Union, the Trade Unions arepartners in the social dialog. In the region they influence the way societies developwelfare systems. The social partners are also constituents in the national tripartitebodies discussing the ratification and application of International Labour Standards.This is also the case for political parties, churches and religious organisations, whichplay a vital role for a vigorous civil society. Unfortunately it was not possible tostudy their problems within the confines of this survey, partly because of their well-established and semi-official role, which would need to be analysed on their own.This report rather focuses on NGOs acting in various fields in the civil sector.It is clear however that NGOs make an essential contribution to thedevelopment, realisation and continued survival of democratic societies, in particularthrough the promotion of public awareness and the participatory involvement of thecitizens in the res publica.NGOs’ contributions are made through an extremely diverse span of activities.These activities can range from acting as a vehicle for communication betweendifferent segments of society and the public authorities, through the advocacy ofchange in law and public policy, to the provision of assistance to those in need.The analysis on which this report is based shows that legislation regardingNGOs in our region is being developed and that much has already been done. Manycountries concerned have experienced substantial change in recent times.Nevertheless much remains to be done in order to give NGOs decent opportunities toplan, work and cooperate in the region.In the following chapters the study will focus, in successive sections, on howthe right to freedom of association, registration procedures, financial opportunitiesand taxation aspects, access to information and participation in the decision-makingprocess are regulated in each country of the region. An overview of the Europeanposition with regard to NGOs will then be given. The final chapter will presentconclusions and recommendations regarding the issues that NGOs have to face on aday-to-day basis.6CHAPTER 2: LEGISLATION ON NGOsThe non-governmental sector includes a vast array of organizations:• Those that rely on a broad membership, referred to as “associations”in civil law.• Those that hold income-producing property and use the funds soearned principally to finance activities carried out by others for thepublic good, referred to as “foundations” or “public benefitparticipations” in civil law.Laws create only a basic framework conditions that promote and further thedevelopment of a civil society. Civil society cannot be developed without a social andpolitical environment that encourages it. Thus, although laws are important they do nomore than establish a fertile soil in which the seeds of civil society can be planted.Laws can also regulate and restrict activities of NGOs.Even today some countries in the region face a number of regulatory problemsin implementing new laws governing civil organisations:• Lack of regulation:This can give rise to a situation in which the organisations have very little stateprotection. In some countries, laws that permitted organisations and foundations,which existed before the 2nd World War,have been revoked. Where there is not a complete lack of regulation, the legalframework may be too vague, which in turn could leave the way open for fraud orother abuses.• Too much regulation:Overlapping of local, regional and national laws can cause problems for civilorganisations in the proper course of their activities. In addition, the state may chooseto enforce legislation in a way that is selective or arbitrary.• Laws giving governments excessive control:The excessive state control of NGOs may constitute a breach of internationallaw and the right to freedoms of expression and association – The InternationalCovenant on Civil and Political Rights (1966) and the United Nations UniversalDeclaration of Human Rights (1948).• Lack of financial support:The civil sector organisations provide valuable services to society and manygovernments support them through state grants or tax exemptions for their donors. Inother countries, the financial situation is often such that governmental support is quite7limited. Financial sustainability is often a major source of concern to NGOs, many ofwhich have to rely on foreign donors.In some countries, NGOs are mainly dependent on foreign donations. But thissource of support appears to be in serious decline. In the countries, newly members ofthe European Union, NGOs are presumed as EU members to get support from theirown governments, or having possibilities to collect from other own sources funding.It is apparent that the implementation of laws governing civil society canentail problems. Non-governmental organisations are, in some countries, a real part ofthe process of creating the foundations for democracy. Therefore there is a need toestablish a sound legal framework for the role of these organisations.8I. RIGHT TO FREEDOM OF ASSOCIATIONThe right to freedom of association finds protection in the constitution of allthe Baltic Sea States with the exception of Norway, where the right is protected as anunwritten constitutional principle. Moreover most countries guarantee the negativeright to associate (No one may be compelled to belong to an association).Although the right to freedom of association is recognised in all CBSScountries, its implementation varies considerably from country to country. Somecountries adopted the minimalist approach whereas some others have adopted asubstantial number of legislative acts.It should be mentioned that the rules protecting the right to freedom ofassociation should secure the NGOs rather than restrict them or set up obstacles totheir activities. For instance, rules requiring an excessive number of founders areunlikely to encourage a wish to associate.Moreover, freedom of association is effective only where it goes hand-in-handwith legislative measures facilitating its exercise and respecting the value of NGOs’contribution to society. Although passing favourable legislation can foster them,awareness of and respect for NGOs’ contributions can prosper only where NGOsthemselves undertake to behave in a responsible, efficient and ethical manner.1. DENMARKThere is no specific law covering the general regulation of the legal aspects ofassociation in Denmark. Nevertheless, Article 78 of the Danish Constitutionguarantees freedom of association.2. ESTONIAA basis for the establishment of NGOs in Estonia is provided in the EstonianConstitution of 1992. Paragraph 48 guarantees the right to form such associations“Everyone has the right to form non-profit undertakings and unions.”According to the Law on non-profit organizations, which entered into force on1 October 1996, an NPO is “a voluntary association of persons whose main activitiescannot be the pursuit of profit through economic activity.”An NPO can be established by at least two persons who can be both legal andnatural persons. The founders have to conclude a founding agreement in the form of astatute that indicates:9• The name, location and address of the NPO• The names of the founders and their addresses• The obligations of the founders with respect to the NPOThe founders should adopt the statute and designate members of non-profitorganisations’ governing bodies.3. FINLANDThe right to the freedom of association is guaranteed by Article 10 of theConstitution Act of 1919, supplemented by Act No. 1 on Associations.“Everyone shall have the right to the freedom of association. The right tofreedom of association shall include the right to found an association withoutpermission, to belong or not to belong to an association and to participate in theactivities of an association. Similarly secured shall be the right to form and join tradeunions and the right to associate in order to attend to other interests”.A negative freedom to association, the right not to associate, is thusconstitutionally protected in Finland.Article 10 of the Constitution does not concern associations created for thepurpose of making profit or religious organisations.4. GERMANYArticle 9 of the German Constitution states:“All Germans have the right to form associations, partnerships andcorporations. Associations whose aim or activities contravene criminal law or aredirected against the constitutional order or the notion of international understandingshall be banned”.Although the right to freedom of association is granted only to Germancitizens, non-citizens also benefit from the entitlement (The Association Act of 5August 1964).105. ICELANDThe right to establish associations is protected under Article 74 of theConstitution:“People are entitled to form associations for any lawful purpose withouthaving to seek authorisation. No association can be dissolved by an executivemeasure. It may, however, be banned temporarily, in which case, an action mustimmediately be brought for dissolution of the association”An amendment was made in 1995, adding a new provision that no person maybe compelled to be a member of an association.6. LATVIAThe Constitutional Law on the Rights and Obligations of a Citizen and aPerson adopted on 10 December 1991 contains the following provision in Article 31:“All people have the right to form public organisations and to participate intheir activities, if the goals and practical actions of such organisations are not contraryto law”.The main legislation regulating NGOs is the Law on Social Organisations andtheir Associations of 15 December 1992:• Composition: (Section 1) A public organisation can be founded by tenor more persons who have reached the age of 18 and who unitethemselves so that through joint action and on the basis of equalitythey can reach a goal which has neither the purpose nor character ofprofit generation.Institutions (agencies) or state and local administration and other legalentities can join in public organisations only in the cases which have beenstipulated by law or regulations adopted on the basis of law. In these cases both aphysical person and a legal entity can be members of the same public organisation.• Foundation: (Section 4) A general meeting, congress or conferenceshall be convened, at which the persons who unite themselves in apublic organisation or an association of public organisations have toadopt a decision on the foundation of the public organisation orassociation of public organisations and its by-laws, elect a permanentlyfunctioning governing body or administration, as well as a body ofaudit of the administrative and financial activities.117. LITHUANIAThe Lithuanian Constitution in Article 35 contains the following:“Citizens shall be guaranteed the right to freely form societies, politicalparties, and associations, provided that the aims and activities therefore do notcontradict the Constitution and laws. No person can be forced to belong to anysociety, political party, or association.”The new Law on Associations (22 January 2004) replaced two previous laws –the Law on Public Organisations and the Law on Associations.8. NORWAYNorway is the only member state without constitutional regulations relating tothe right to freedom of association. As Norway is a party to a number of internationalagreements and conventions on human rights, including the right to freedom ofassociation, it may be argued that this right is also protected under Norwegian Law.Even though there are no laws specifically regulating associations in Norway,such associations are in practice bound by more generally applicable provisions.9. POLANDIn Poland the freedom of association and the establishment of foundations isexercised in practice and is constitutionally guaranteed:Article 58 of the Constitution of the Republic of Poland:• 1. The freedom of association shall be guaranteed to everyone.• 2. Associations whose purposes or activities are contrary to theConstitution or statutes shall be prohibited. The courts shall adjudicatewhether to permit an association to register or to prohibit anassociation from such activities.• 3. Statutes shall specify types of associations requiring courtregistration, a procedure for such registration and the forms ofsupervision of such associations.The Polish legal framework offers NGOs two legal structures:• Association: defined as a membership organisation that must have atleast 15 founding members to be registered.12• Foundation: requires founding capital and can be established by oneperson, a group of individuals, one or more legal entities, or anycombination of these.10. RUSSIAArticle 30 of the Constitution guarantees everyone the right to freedom ofassociation, including the right to establish trade unions for the protection of one’sinterests, as well as the right not to be compelled to join any association or to continueone’s membership.The Law on Associations of 1995 stipulates that citizens of foreign countriesas well as stateless persons can, on an equal basis with Russian citizens, be founders,members and participants in public associations.The law defines a public association as a voluntary, self-governing, non-profitorganisation, created at the initiative of persons associating on the basis of commoninterests for the realisation of common goals, which are indicated in the association’sstatute. Both natural and legal persons can be among founders of associations. Organsof state power and local government cannot be founders, members or participants ofassociations.11. SWEDENThe right for every person to create and participate in any form of association,the freedom of association, is a constitutional right in accordance with Chapter 2,Article 1 of the Swedish Instrument of Government. Similarly, in accordance withChapter 2, Article 2 of the Swedish Instrument of Government, a person also has theright not to belong to any association. Article 20 of the same chapter states that,unless otherwise provided by special rules of law, foreigners are equated withSwedish citizens in respect of freedom of association.In Sweden, there are no written rules relating to associations.13II. REGISTRATION PROCEDURESIn the Baltic Sea States, rules relating to NGO registration can be groupedunder three main options:• Registration required, followed by permission for the NGO to startfunctioning,• Establishment of the NGO to be declared to the authorities,• No requirement for registration.In practice, if the registration procedure is straightforward, NGOs save a lot oftime and money in terms of administrative procedures. On the other hand, rulesrequiring “pre-control” of the NGOs’ activities prevent those organisations fromfunctioning before registration.Finally, the registration fee should be reasonable in order not to prevent thewish to associate.1. DENMARKUnder Danish law, associations are not required to register with the authoritiesin order to be established. This rule does not concern associations that pursue aneconomic aim. Such associations are obliged to register with the Commerce andCompanies Agency (Erhvervs-og Selskabsstyrelsen).Associations pursuing a public, humanitarian, environmental or research-related aim may choose to register voluntarily, according to the Act on the Registry ofAssociations No. 851 of 1987.2. ESTONIAAccording to the Act on Non-Profit Organisations (1996), an NPO acquires alegal capacity only when it has been entered into a register of NPOs. According toArticle 53 of the Commercial Code, the judge shall review an application forregistration within fifteen days of its receipt.In order for a non-profit association to be included in the local register, themanagement board of the association must submit a petition, which sets out theinformation specified in § 10 of this Act:• The name of the non-profit association; the location and address of thenon-profit association;14• The date of approval of the articles of association;• The names, personal identification codes and residences of themembers of the management board;• The specifications for the right of representation of the managementboard pursuant to § 27 of this Act;• The term of the association if the non-profit association has a specifiedterm; other information provided by law.Upon any change in the information entered in the register, the managementboard shall submit a petition for the changes to be entered in the register. Minutes ofthe general meeting, or other body, which decided on the change, shall be appended tothe petition; such minutes shall contain information on the time and place of themeeting, voting results and adopted resolutions. The chair and the secretary of themeeting shall sign the minutes. The list of participants in the meeting, together withthe signature of each participant, shall be an integral part of the minutes.In order to enter a new member of the management board in the register, thenotarised specimen signature of the new member shall be appended to the petition. Allmembers of the management board shall sign it.The following shall be appended to the petition:• The memorandum of association and the articles of associationapproved thereby;• Notarised specimen signatures of the members of the managementboard;• Contact numbers (telephone, fax, etc.);• Other documents provided by law.A member of the management board shall sign any other petition submitted tothe register. If the members of the management board are only entitled to representthe non-profit association jointly, all members of the management board entitled torepresent the non-profit association jointly shall sign the petition.A registrar shall not enter a non-profit association in the register if its articlesof association or other documents do not comply with the requirements of law.Upon rejection of a petition, the registrar shall indicate the reason for rejection.Registration costs 300 EEK (approximately 19 EUR).Legal acts are accessible (in Estonian) via the Internet at www.riigiteataja.ee.The electronic State Gazette is equivalent to the State Gazette paper version.153. FINLANDNGOs in Finland are legally associations and they are registered in theRegister of Associations maintained by the Association Affairs Unit of the NationalBoard of Patents and Registration of Finland (NBPR). The National Board of Patentsand Registration of Finland is thus the office, which oversees the registration ofNGOs.Registration is not free of charge. At present the registration fee is 15 or 60euros, depending on the existence of a preliminary examination of the notice ofregistration. Consultation on the Associations Act (503/1989) and the procedures tobe followed in the registration process are, however, free of charge. Also forms andmodels of associations’ rules are obtainable free of charge.The registration of associations is not obligatory. Registration has certain legaleffects on the capacity of an association to engage in contracts and other legalarrangements and on the position of the members of the association. An unregisteredassociation is, however, also functional and the provisions of the Associations Actalso apply to it.The normal procedures for NGO registration can be found from the NBPR’swebsite, http://www.prh.fi, while the legislative provisions concerning NGOs can befound at http://www.finlex.fi, the website of the Legislation Data Bank FINLEX.The establishment of an association involves approval of the foundingdocument and adoption of the statute. The founding documents must be dated andsigned by at least three persons who are at least 15 years of age.The by-laws of an association must include:• The name of the association,• The municipality in which the association is based,• The goals and activities of the association,• The obligations on members to pay membership fees and other fees tothe association,• The contact details of the members of the board,• The contact details of auditors together with the dates of their period ofmandate and the accounting period.On registration, an association becomes an independent legal entity, havinglegal capacity. The Associations Unit of the National Board of Patents andRegistration of Finland maintains the Register of Associations.An application for registration must be made on standard notice forms andmust be accompanied by the by-laws and charter of foundation of the association. Thenotice must also state:• The full name, address and domicile of the association,16• The social security numbers of the chairman and other personsauthorised to sign for the association.4. GERMANYThe legislation contains no requirements for registration of associations whichare not commercially active or which do not seek economic goals. Nevertheless thereis a time-consuming procedure entailed in being accorded the status of non-profitNGO (gemeinnuetzig).5. ICELANDNo registration is required for the establishment of non-profit organisations.6. LATVIANGOs are registered in the Register of Enterprises maintained by the Ministryof Justice. The registration fee until April 1st 2004 was 25 LVL (approximately 38EUR). Since the new NGO legislation – the Law on Associations and Foundations –came into force, the registration fee is 8 LVL (approximately 12 EUR). Fororganisations working on behalf of orphans and disabled persons, and fororganisations working in the field of sport for young persons, registration is free ofcharge. The new law stipulates that an organisation must re-register every 2 years.The procedures for NGO registration are available in regional and local NGOsupport centres, also on website www.ur.gov.lv. The Latvian authorities are planningbroadly based information campaigns to publicise the new registration procedure.7. LITHUANIAThe new Law on Associations (22 January 2004) replaced two previous laws –the Law on Public Organisations and the Law on Associations – according to whichthe Ministry of Justice was responsible for the registration of NGOs.According to the Law on Associations of 22 January 2004 (No. IX-1969):NGOs are registered in the Register of Legal Persons, which is operated by the stateenterprise Centre of Registers. The registration fees are established by GovernmentRegulation No. 1649 of 24 December 2003. The Registration fee for associations,public organisations or charity funds is 25 LTL (approximately 7 Euro); the fee foralteration of data in the register is 5 LTL (approximately 1.45 EUR) per entry.17According to Article 18 of the current Law on Associations, all associationsand public organisations established before the entry into force of the new law are notobliged to re-register according to the new procedures. Their data will have beenautomatically transferred from the Ministry of Justice to the Register of LegalPersons.Article 6 of the Law on Associations sets out the requirements for registrationof NGOs. An association can be registered if the founders sign a founding agreement,organise a constitutive meeting, appoint at least one governing body, and meet otherrequirements provided in the founding agreement. The following documents shouldbe presented to the Register of Legal Persons: founding agreement, statute of theorganisation and other documents prescribed by Article 2.64 of the Civil Code(application form, founding document, authentication by notary and confirmation ofcompliance with legal acts, etc.). Registration takes effect 30 days after submittingdocuments for registration. An organisation is considered to be established from themoment of registration in the Register of Legal Persons.All registration procedures and relevant legal acts are accessible in theWebsite of the Centre of Registers www.kada.lt8. NORWAYAn association is not required to register with the authorities unless its goalsare economic. There is no special registration office for NGOs. NGOs, which receivefunding, have to be registered in the Register of Business Enterprises(Brønnøysundregisteret). A registration fee is charged.9. POLANDThe registration procedure has been replaced by the National Court RegisterAct of August 20th 1997, which entered into force in 2001. According to the newrules, the regional unit of the National Court Register registers each non-governmental organisation. Prior to this the procedure for registration was centralisedin The National Court Register in Warsaw.The National Court Register has been overseeing most registrations since2001. Registration is free of charge (associations, foundations).Since 2001, new registration procedures have been introduced, requiring allNGOs to re-register. The new registration procedures require NGOs to have an office,which poses problems for NGOs starting up. The Centre of Registers is in charge ofthe registration of NGOs. A registration fee is charged, 500 PLN (approximately 113EUR) for an NGO without profit-generated activities and 1000 PLN (approximately226 EUR) for an NGO intending to conduct profit-making activities (which arenaturally required to be spent on statutory activities).18The registration procedures had been significantly modified as from 1 January2004. The full implications of these changes are difficult to assess.From the point of view of NGO representatives in Poland:• The registration procedures do not in themselves pose a problem forNGOs.• Nevertheless the new procedures for obtaining the status of publicutility organisation are particularly long and time consuming.10. RUSSIAThe Registration of Public Associations is still basically regulated by theDecision of the Supreme Council of the Russian Soviet Federated Socialist Republic(RSFSR) No. 2057-1 “On Registration of Public Associations in the RSFSR andRegistration Fee” of 1991. The charters of NGO need to be registered with:• The Ministry of Justice of the Federation or• The Ministries of Justice of the constituent republics of the Federationor• The departments of Justice of other legal subjects of the Federation.The Ministry of Justice and its local entities are responsible for the registrationof NGOs. In St. Petersburg, regional and local organisations are registered with theTerritorial Board. Even if an NGO is not registered, it still can work but without legalperson status. It is not possible for NGOs to apply for projects or be involved in theBaltic Sea Region cooperation. The law on registration sets out the procedure. Theregistration fee is approximately 2000 RUB (approximately 56 EUR).In Moscow, registration of foreign non-profit representative offices requiressubmission of the following documents:• An application for accreditation;• An official decision from the governing body of the foreign non-profitorganisation (hereafter called the "Organisation"), such as a resolutionof the Board of Directors, authorising the opening of such an officeand naming the director of the office;• A copy of the Organisation's charter or by-laws, notarised inaccordance with applicable procedures;• A notarised copy of the Organisation's certificate of incorporation;• Proof of the location of the representative or branch office in Moscow(such as a lease).These documents must be in Russian and notarised in accordance withapplicable procedures. The relevant Moscow City administrative office handling such19registrations, the Moscow Social and Political Relations Department, provides acertificate confirming registration.International non-profit organisations seeking to conduct activities throughoutthe Russian Federation, and not simply in Moscow, are advised to register at either theState Registration Chamber or the Chamber of Commerce and Industry. If the foreignnon-profit organisation seeks representation in several Russian cities, the easieststructure is to register a representative office in Moscow and then to register branchoffices of the Moscow representation in the other Russian cities. For this, the non-profit organisation will need to provide evidence of permission from the citygovernments where the branch offices will be located.11. SWEDENA general principal in Sweden is that associations are not required to register.An association is perceived as an independent legal entity from the time it isestablished. The Act on Economic Associations (1987:667) does, however, requireregistration for economic associations, i.e. organisations with the purpose ofpromoting the economic interests of their members. This ensures transparency sincemost of the records resulting from the registration are publicly available. Specifically,this Act requires all such associations in which the members participate as consumersor purveyors, or contribute with their own personal resources or make use of theservices of the association in any other way, to register with the Swedish Patent andRegistration office.)If, however, a non-profit association is conducting business, it must beregistered in the official Trade Register (Handelsregistret) at the Swedish Patent andRegistration office in accordance with the Trade Register Act (1974:157). Theregistration fee is 1000 SEK (approximately 109 EUR).20III. FINANCIAL OPPORTUNITIES ANDTAXATIONThis is one of the challenging issues in the world of NGOs. The issue hasseveral perspectives:• Funding:Unfortunately no figures are available regarding funding in the differentcountries of this region. Even if there is a general willingness to fund NGOs in theregion, it appears that in some countries, NGOs can only count on foreign donations.Without proper and stable funding, most of NGOs face severe problems to theextent that long-term planning becomes impossible. It becomes therefore verycomplex to work on the national, regional and international levelsWith regard to the structure of resources, NGOs’ finances depend on incomefrom many different sources:(cid:57) Membership fees,(cid:57) Grants from public institutions,(cid:57) Fees for services,(cid:57) Profits from the sales of goods or merchandise,(cid:57) International and European funding,(cid:57) Funding and donations from private foundations, corporate bodies orindividualsThe composition of NGOs’ funding may influence their level ofindependence. There is a real need for legislation in order to confer security andstability. There is also a need for more democratic control and transparency.Providing NGOs with funding should not affect their independence.• Taxation:Many differences exist between the taxation systems in the countries in theregion. Taxation requirements are in some countries the same for NGOs as they arefor businesses and corporations. Unfortunately, however, those two types oforganisation do not have the same means in terms of staff and financial resources.1. DENMARKThe relations between the tax authorities and the NGO can be seen from twopoints of view.• Taxation of income derived in the NGO.21NGOs are generally only taxable on income derived from business activitiesinvolving non-members. Income derived from business activities with members is nottaxable under Section 6, paragraph 1 of the Company Tax Act. This benefits the greatmajority of NGOs since they are not involved in income-yielding business with non-members.With regard to the labour market, social partners are taxed as privatefoundations.• VATNon-profit organisations are generally exempt from VAT when supplyinggoods to its members. The VAT regulations do, however, make it possible for a non-profit organisation to choose to pay VAT. In some cases this can be an advantage, e.g.in the case of certain humanitarian NGOs.2. ESTONIAEstonian NGOs are not automatically exempt from paying taxes. The IncomeTax Act enacted in 1994, enables organisations carrying out public benefit activitiesto apply for tax exemption. The exact requirements for applying for tax-exempt statusand deadlines are indicated in the Government Order of 11 June 1996. Therequirements for the granting of tax-exempt status are set out in the GovernmentOrder. In order to qualify, a NGO must be involved in supporting:• Charity,• Science,• Culture,• Education,• Sports,• Health care,• Social welfare,• Environmental protection• A religious congregation in the public domain.This law states that non-refundable funds received from foreign donors, inaddition to membership and entrance fees for non-profit organisations, are tax-exemptand enables NGOs to apply for tax exemption in respect of donations and incomefrom economic activities.A list of NGO applicants is compiled annually. The economic activities ofNGOs are taxed in the same way as other private enterprises in Estonia. Corporatedonors are exempt from income tax up to 10% of their net income, and individuals areexempt from income tax up to 5%, if they donate to an organisation that is on thegovernment confirmed tax-exempt list.22There are opportunities to apply for support from a parliamentary commissionthat distributes state budget funds collected from gambling, alcohol and tobaccoexcise taxes.NGOs may receive government funding in different ways:• By public contracts (contracts with authorities to performadministrative duties);• By public donations (to support NGO activities in the social, economicand similar fields).NGOs will be selected mostly through public announcements and publicprocurement. This requirement is based on the Public Procurement Act and publicprocurement procedures will apply if the estimated value of goods or servicesconcerned exceeds 200,000 EEK (~13,000 EUR). Best tenders will be selectedaccording to the criteria’s that are specified in the tender offer.From the point of view of NGO representatives, the following can be saidregarding NGOs’ financial possibilities in Estonia:• Financial declarations and requirements in Estonia are seen as verycomplicated by NGOs representatives;• Financial regulations relating to NGOs are similar to the rulesapplicable to business corporations;• Corporations can support NGOs in Estonia but the procedure is toobureaucratic. In order for corporations to receive tax deductions, theymust donate to NGOs, which are on a list maintained by the Tax Boardorganisation and approved by the Ministry of Finance.3. FINLANDIf an association is considered to be a non-profit corporation as defined in thetax legislation, the association is exempt from paying most taxes. Most NGOs inFinland are considered to be non-profit corporations so most NGOs are in fact exemptfrom most taxes. Furthermore, non-profit corporations that engage in activities, whichare considered to be especially significant to the public good, can be exempted frompaying all taxes. The conditions for exemption, and the procedure relating to it, arelaid down in the Act on the Tax Relief of Certain Non-profit Corporations (680/1976).NGOs can and do receive government funding. The grounds on which fundingmay be granted are mainly laid down in the Act on State Aid (668/2001). There arealso a number of other Acts that include provisions concerning state aid but the Acton State Aid is the Act most generally applicable in these cases.23According to the Act, state aid may be granted if:• The purpose to which the aid is being applied for is sociallyacceptable,• Granting the aid is called for in the view of the objectives set out forthe use of the aid,• Granting the aid can be seen to be necessary when taking into accountother public funding the applicant may have received and the natureand extent of the activity in question,• Granting the aid is not considered likely to have more than minimaleffect on competitiveness or market functioning in any state belongingto the European Economic Area.Under the Act, consideration of whether to grant state aid is a matter for theauthority whose area of operations is likely to be affected by the granting of the aid inquestion. The procedure for the granting of state aid therefore varies depending on theactivity in question.4. GERMANYNGOs in Germany are usually exempted from paying taxes. In order to beexempted, however, NGOs have to fulfil strict requirements and this involves muchadministrative work.5. LATVIANGOs can apply for a permit for their donors to have exemption from incometax. Tax exemption, without the need to apply for a permit, is granted to enterprisesdonating to the Olympic Committee of Latvia, the Culture Foundation of Latvia, andChildren Foundation of Latvia. This opportunity was taken up by 31% of all NGOs in2000, 18% in 2001 and 16% in 2002. It is possible for private donors to reclaim 85%of their donations to NGOs (granted by the Ministry receiving the donation). Thereare, however, a great many formalities involved with the result that private donors arenot encouraged, or are even reluctant, to take this course. If donations are made to oneof the 3 foundations (Latvian Fund of Culture Capital - Ministry of Culture, Fund forEnvironmental Protection - Ministry of Environment, Integration Fund - Minister forSpecial Affairs on Integration), no formalities are requested and 90% of the sumdonated is refunded.NGOs can apply for tax exemptions for their fixed assets. New criteria andapplication procedures will be published this summer.24The government can fund NGOs in the following ways:• Service contracts – rent of premises, information activities and the like;• Agreements on implementation of certain tasks and activities;• Subsidies. According to data provided by the State Revenue Service in2002, state and local government subsidies amounted in total to 9.45billion LVL;• Grant schemes.Competition procedures for the granting of service contracts are governed bylegislation. Grants and subsidies, except in the specific cases mentioned, are awardedon a competitive basis.After discussing the issue with NGO representatives from Latvia, it appears that:• Earlier many contributions came from abroad. Nowadays they aremade to other eastern deserving countries. As Latvia is a new EUmember-state, its NGOs wishing to receive funding, have to meetstricter criteria than before. The application forms do require moreknowledge and expertise, since requests have to be more specific anddetailed in setting out aims, objectives and priorities.• According to some of the NGO representatives, the list of NGOsgranted favourable fiscal treatment depends on its contacts withauthorities.• With regard to the annual report, the documentation required is verycomplicated. 40% of NGOs do not issue an annual financial report butthey still can apply for state funding. NGOs see a need for regulation inthis area.• Regarding co-funding possibilities, the EU procedures need to bedefined. NGOs need to be informed about the way to apply. It is,moreover, really difficult for NGOs to meet the requirements for self-financing as required in European Union projects.6. LITHUANIAFrom 1 July 2004, in order to benefit from tax exemptions, NGOs aresupposed to have special status at the Centre of Registers. This, however, will begranted largely automatically at the request of the NGO concerned. The status can becancelled for certain types of misbehaviour (such as money laundering or tax fraud)or at the request of NGO.Such status for newly established NGOs will be granted on registration if theNGO requires it, and in the case of existing NGOs the status will be granted virtuallyon request. The Centre of Registers cannot refuse the request provided that the25application is properly submitted and the organisation applying is an NGO. Accordingto the regulations, this status should be granted within 5 days.NGOs have special treatment with regard to taxation. They are exempt fromthe corporate profits tax, even if the profit derives from their activities. It has beenproposed, however, that if their annual income exceeds 1 million Lt, they will betreated as a business entity and so will have to pay this tax.Associations and charity/support funds are exempted from the real estate tax,provided that the property in question is used for their activities in the public interestand not for business.NGOs can also benefit from exemptions in VAT tax since cultural,educational, social, health care, and other similar activities, in which NGOs aremainly engaged, are exempt from VAT. These exemptions have been given the forceof law following the EU Council Directive 77/388/EC.If NGOs manage, use or dispose of state or municipal property, their activitieswill be audited in accordance with the Act on Internal Control and Internal Audit (10-12-2002 No IX-1253).From the point of view of NGO representatives the following can be saidregarding financial possibilities in Lithuania:• Individuals paying income tax can designate up to 2% of their taxes togive to public interest organisations of their choice. Available statisticsshow that the average amount per person is 100 Lt and that theminimum amount is 12 Lt. Even though relatively small sums areinvolved, the idea of this scheme is really positive. About one third oftaxpayers are willing to use this opportunity to donate to public benefitorganisations. Unfortunately, however, NGOs are not active inpromoting this potential source of finance.• NGOs working in the disability and youth fields appear to have betteropportunities to obtain funding from the authorities than the other civilorganisations.• Financial reporting constitutes a considerable burden and therequirements are not adapted to the structure of NGOs due to their lackof staff and resources.7. NORWAYThe Norwegian Government gives extensive financial support to NGOs. Non-profit associations are also subject to certain tax exemptions. Most importantly,capital gain is exempted from taxation.268. POLANDAll NGOs can apply for the status of public benefit organisation afterregistration. If all requirements are met, NGOs are granted tax exemptions regardingcorporate income tax, real estate tax, several legal action taxes, stamp fees and courtfees. The NGOs are exempt from corporate income tax. NGOs and other entitiesdefined under Article 3 clause 2, which have been granted public benefit status, areeligible for a waiver of the following: property tax, Civil Code procedural fees, stampduties and court duties. Moreover, personal income taxpayers may donate 1% of theirtax to support individually selected public benefit organisations.Organisations that do not have the status of public benefit organisations areentitled to tax deduction if they allocate funds to activities laid out in the tax law.They are thus able to receive donations from individuals and companies.NGOs have been entitled to receive a governmental funding, following openbid competition, since 2004 when the Act of Law of April 24th 2003 on Public Benefitand Volunteer Work entered into force. The competition can be won either by one orseveral organisations.There are no exemptions with regard to VAT.The Act includes several regulations concerning mutual relationships betweenNGOs and the public administration. Local government is thus obliged to create localgovernmental-NGO co-operation programmes supervised by Boards of Public BenefitActivity. The Act enables organisations to apply for public benefit organisation status.Organisations, which have been granted such status, enjoy certain advantages, e.g.taxpayers will be allowed to transfer 1% of their taxes to the organisations (in practicefrom 2005 onwards). However, this status entails several additional responsibilities(transparent and self-controllable management structure, obligatory presentation ofannual reports, and many others). The Act also regulates the situation of volunteersworking for NGOs. It is too early for a definitive assessment of the results ofimplementation of the Act. Such an assessment largely depends on the way the Actwill be implemented in practice. The cabinet to the Parliament is due to submit aformal report in 2005.In the second half of the year, as a result of budgetary difficulties, the Ministryof Finance presented several proposals aimed at eliminating most of the taxallowances. These include allowances important to NGOs. An extensive campaign onthe part of the NGOs (the Open Letter against governmental plans was signed bysome 1000 organisations) resulted in the retention of the existing income taxexemption for grants and subsidies, thus benefiting the Third Sector. Unfortunately,however, the total amount of donations deductible from a person’s taxable incomewas reduced, the former percentage arrangement (10-15% of income) being replacedby a fixed amount (350 Zl, approximately 79 EUR).27Nevertheless, after discussing the issue with NGO representatives fromPoland, it appears that:• Due to the new legislation, no concrete results can yet be measured.• NGOs face a real problem in long-term planning due to lack ofstability in their funding9. RUSSIAThere is no general tax exemption for NGOs. NGOs dealing with disabilityissues or charity can seek exemptions. Like all Russian legal entities, non-profitorganisations are subject to tax and must register with the State Tax Service. Whilemany nations' tax laws distinguish between the commercial and non-profit sectors,Russian tax policies towards non-profit organisations remain ad hoc or, at best, givepreferential treatment to government-supported and municipal organisations, ratherthan to non-profit organisations generally. If NGOs do make a profit through theiractivities, they have to pay taxes. Non-profit organisations are exempt from federalprofit tax unless they are engaged in business activities. Non-profit organisations payprofit tax at the same rate as commercial organisations, i.e. 35%. The Law on ProfitTax provides certain exemptions, however, for specific cultural, educational andpublic welfare organisations.The state can provide funding through the allocation of projects. There is nospecial line in the state budget regarding NGO funding. Depending on the activities,there might be some targeted support. Local legislation is often more developedwhere NGOs are concerned.From the point of view of NGO representatives from Russia, the following canbe said regarding the financial opportunities open to NGOs:• Most of the NGOs based in Russia receive funding throughinternational and European donors. Nevertheless Russian NGOs haveto face a really serious financial problem as even international donorscut back their donations.• There is a lack of supportive legislation on financial matters relating toNGOs.• The financial situation for Russian NGOs is critical. NGOs in Russiaare generally at one or other of the following levels with regard to theirfinancial situation:- Survival level- Project level, where funding depends on holding seminars.NGOs do receive money but this money barely helps survival.2810. SWEDENThe Swedish Government gives extensive financial support to NGOs.Depending on the type of NGO, such as organisations for young people, for disabledpeople or for sports, a certain amount of funding is available. Organisations can applyfor support and this will be granted if they fulfil the criteria set by the government.The criteria can include such things as the number of members, geographicalcoverage, a democratic structure, certain goals and a policy of equality between menand women. Government authorities process the applications and the distribution ofthe support. In some cases, however, the distribution of funds has been delegated toan umbrella organisation such as the Swedish Sports Confederation.NGOs may also receive funding from the government inn return for assistancein fulfilling governmental goals in particular policy areas.Non-profit associations are subject to the same tax rules as other legal persons.This means that all income is taxed as income from economic activity. Associationsare liable to pay taxes on all forms of income. Non-profit associations that are definedas being of public utility are, however, entitled to certain tax exemptions. Mostimportantly, capital gains are exempt from taxation. In addition, most non-profitassociations defined as being of public utility are zero-rated for VAT.29IV. ACCESS TO INFORMATIONThere are many differences between countries in the region regarding lawsand regulations on:• What information is available for the public• What is defined as secret, or not public information (due to security ortrade competition reasons)Transparency, availability and easy access to information are of mostimportance for:• The functioning and development of NGOs• The existence of a vital civil society• The preservation of the democracy.The issues of access to information do not only concern information regardingpublic funding or the rights and obligations of NGOs, so that they can functionproperly. It is also an issue regarding information on the whole decision-makingprocess. Even if almost every country in the Region has regulations on the decision-making process, it appears from the different consultations with NGOs that authoritiesshould be more active in the dissemination of information.Access to information is very important for NGOs: it allows them to play theirrole. Even though almost every country has regulations governing access toinformation, it appears from the different meetings that authorities could be moreactive in the dissemination of information.Thanks to the use of new technologies such as the Internet, easy access toinformation and the ability to store, manage and disseminate data with unprecedentedspeed, NGOs have gained power in mobilising public opinion. Unfortunately as theinformation is nowadays mostly published on the Internet, smaller NGOs, which donot have access to this technology, cannot access the necessary information. Thelocation of the information on the Internet is also problematic for many NGOs.1. DENMARKThe right to Access Information held by administrative authorities is providedfor by the Act on Access to Public Information Administration Files of 1985 and theAdministration Act of 1985.302. ESTONIAThe purpose of The Public Information Act is to ensure that the public andevery individual has the opportunity to access information intended for public use,based on the principles of a democratic and social rule of law and an open society,and to create opportunities for the public to monitor the performance of public duties.The following are regarded as holders of information:• State and local government agencies;• Legal persons in public law;• Legal persons in private law and natural persons.The following are deemed to equate to holders of information: Non-profitassociations, foundations and companies of which the state, a local government or alegal person in private law is a member or the founder, or in which the state, localgovernment or a legal person in private law is a participant with regard to informationconcerning the use of funds allocated from the state or a local government budget.The system is user friendly, in terms of help that has to be provided by theholders of information, for those seeking access to that information. When access isrequested, holders of information are required to explain clearly the procedure foraccess and the associated conditions. Officials and employees of holders ofinformation are required to assist persons making requests for information in everyway during the making of requests for information, in the identification of theinformation being sought, and in advising on the most suitable manner of access. Anofficial or employee of a holder of information who is not competent to comply with arequest for information is required promptly to send the person making the request forinformation to an official or employee who has the corresponding competence, orpromptly to communicate the request for information in writing to the specifiedofficial or employee.A request for information shall be complied with promptly, not later thanwithin five working days. However, if a holder of information needs to specify arequest for information, or if identification of the information is time-consuming, theholder of information may extend the term for compliance with the request forinformation for up to fifteen working days. The holder of information shall notify theperson making the request for information of extension of the term together with thereasons for the extension within five working days.Various Internet forums (TOM administrated by the State Chancellery or theThemes administrated by the Estonian Legal Centre) also offer ways in which NGOscan express their views on day-to-day politics or draft legislation31From the point of view of NGO representatives the following can be saidregarding access to information in Estonia:• A positive aspect is the wide use of the Internet, where most of therelevant information is available, as a tool for the dissemination ofinformation;• Information held on websites may, however, in some cases be difficultto locate;• Moreover, the provision of information to specific target groups isunfortunately insufficient in some cases;• A particular issue concerns the availability of the information inminority languages. For instance, some Russian NGOs criticised theirdisadvantage not being able to access the available information inRussian.3. FINLANDThe Act on the Openness of Government Activities (621/1999), which enteredinto force in December 1999, has increased the authorities’ duties in relation toopenness. According to the Act, official documents are public, unless specificallyotherwise provided by an Act. The principle rule therefore is the openness ofdocuments. According to the Act, the authorities shall, unless otherwise follows fromthe secrecy provisions, keep available the documents which contain information on 1)the initiation of a legislative reform project, a commission relating to the same, adeadline set and the person in charge of the drafting and 2) plans, accounts anddecisions on pending matters of general importance. According to the Act theauthorities shall also promote the openness of their activities and, when necessary forthis purpose, produce guides, statistics and other publications, as well as informationmaterials on their services and practices, as well as on the social conditions anddevelopments in their field of competence. The authorities shall also publicise theiractivities and services, as well as the rights and obligations of private individuals andcorporations in matters falling within their field of competence. The authorities shallalso see to it that the documents or the pertinent indexes, which are essential to thegeneral public’s access to information, are available where necessary in libraries orpublic data networks, or otherwise easily accessible to the public.According to the Decree on the Openness of Government Activities and onGood Practice in Information Management (1030/1999), the purpose of information,publishing and other communication by State administrative authorities, other Stateoffices and institutions as well as courts and other judicial authorities is to promoteopenness and produce and distribute information that provides individuals andcorporations with opportunities to formulate as true a picture as possible of theactivity of the authorities, to influence matters of general importance that are pendingbefore the administrative authorities, and to protect their interests and rights. Inplanning and implementing communication by State authorities, consideration shall32be given to the significance of communication in the effective performance of thestatutory functions of the authority and in co-operation between the authority andNGOs as well as interest groups.Also other Acts contain provisions concerning the communication of theauthorities but the main principles are expressed in the above-mentioned provisions.In practice the authorities fulfil these duties and disseminate information mainlythrough the Internet, media, information bulletins, public hearings and customerservice. The Internet has broadened the authorities’ possibilities to get informationeasily accessible to the public and the significance of the Internet in the disseminatingof information is nowadays great. The information concerning legislation reformprojects and other projects of general importance, as well as the persons in charge ofthe preparation of these projects and their contact information can nowadays be foundon the websites of the authorities in question.4. GERMANYBesides a generally stipulated right in Article 5 of the Basic Law to “obtaininformation from generally accessible sources”, the public’s right of access toinformation held by the authorities is exclusively set forth in the Press Laws of theBundes Länder.From the point of view of NGO representatives it appears that:• State authorities could be more active in the dissemination of theinformation• Contacts with local authorities is often much easier.5. ICELANDIn December 1996 a new Information Act was passed in Iceland. It regulatesthe right of the public to access official information.6. LATVIAThe Freedom of Information Act requires that any person is entitled to receiveany information held by a Ministry. In law, this applies to documented information.Information shall be accessible to the public in all cases unless otherwise specified inthe Act.Fees charged for the information should not exceed the cost of photocopyingand postage. Although regulations require Ministries to publish their work plans etc,Ministries sometimes put the information on the internet in a way that makes it33difficult to locate the relevant information – like work plans, responsible persons,meeting times for a consultative body etc. Remote organisations without on-lineInternet access cannot easily obtain this information and follow the changes. In veryfew instances (Ministry of Justice) there is an opportunity to identify new informationon its website.From the point of view of NGO representatives in Latvia:• Around 50% of NGOs in Latvia do not have an Internet connectionand 90% of those having a connection do not have an ADSLbroadband connection. It is a paradox that 90% of the informationpublished can only be obtained from the Internet.• In the context of contacts with authorities, there is a need to recognisee-mail as a written document in order to make recording and replyobligatory.• A particular issue concerns the availability of the information inminority languages.7. LITHUANIAThe Law on the Right to Obtain Information from State and MunicipalInstitutions lays down provisions on responsibility of state and municipal institutionsto provide information concerning their activities. This Law also sets out theconditions under which these institutions can refuse to provide information. TheGovernment institutions as a rule have their own terms and conditions relating to theprovision of information to the public. All adopted legal Acts, and many drafts, arepublicly accessible on the Internet free of charge.The Law on Provision of Information to the Public (No.I-1418, 1996) laysdown the provisions concerning the freedom of expression, the self-regulation ofmedia system, the safeguarding of the interests of individuals, society and the state inthe field of public information. It also establishes the procedure of obtaining,processing, and disseminating public information and the rights, obligation andliability of public information producers, disseminators, owners thereof, journalistsand institutions regulating their activities.The Regulation of the Work of the Government of the Republic of Lithuania(adopted by the Government ruling No 728 of 11-08-1994) stipulates that importantlegal drafts as well as all adopted legal documents shall be available on the Internetfree of charge.34After discussing the issue with NGO representatives from Lithuania, thefollowing can be pointed out:• The opening of websites by many Ministries facilitates the access toinformation.• Nevertheless it appears that authorities should be more active in thedissemination of information.8. NORWAYThe Freedom of Information Act provides, as a general rule, that casedocuments in the public sector are open to the public, insofar as no exception is madeby statute. The right of access covers all documents, which are drawn up or receivedby an administrative agency.9. POLANDUnlike the Constitution of 1952, Article 51 of the recently adopted PolishConstitution of May 1997 sets out the right of access to official documents.According to the point of view of Polish NGO representatives, it seems that:• The dissemination of information depends of the willingness of theMinistries concerned.10. RUSSIAArticle 29 of the Russian Constitution states that “Each person has the right tofreely seek, obtain, pass on, produce and disseminate information by any legalmethod”. The list of information constituting a state secret is determined by theFederal law.”From the point of view of NGO representatives the following can be saidregarding access to information in Russia:• A general comment from NGO representatives is that decisions alreadypassed are available in the official press. Information regarding draftsand propositions is often unavailable.• The law on access to governmental information has still not beenpassed. This makes it more difficult to obtain information.3511. SWEDENAll information in public records is open to access by members of the public,and naturally by NGOs, in accordance with the Swedish principle of free access topublic records set out in the Freedom of the Press Act in the Constitution of Sweden.The authorities disseminate information in different forms according to thesubject, for example through seminars, websites or by post.36V. PARTICIPATION IN THE DECISION-MAKING PROCESSNGOs are mostly based on membership of citizens and residents. Since NGOsare driven by issues which the public considers to be worthy causes, they generallyenjoy a good reputation and trust among the public. NGOs are needed, not onlybecause they represent large groups of people but also because through them citizenscan participate and influence. NGOs and their networks are legitimised by the validityof their ideas, by the values they promote, and by the issues they care about.Civil society is complementary, not a rival, to representative democracy, andparticipatory democracy goes hand in hand with representative democracy.Competent and responsible NGOs’ input to the process of public policyformulation enhances the applicability of legislation.It appears from the discussions with NGO representatives that even if they aregiven the opportunity to participate in the decision-making process by sendingcomments, attending meetings with state officials, etc. it is difficult for most of them.As a matter of fact, they are mainly volunteers, lacking financial resources and time.Therefore it is hard to prepare projects, studies and draft law: Drafting legislationneeds time, preparation and means.Moreover depending on which level the decision-making process is initiated(local, regional, national, European or international), it appears that NGOs are notequally invited to take part in the process. After discussing the issue with NGOrepresentatives and authorities, it seems that NGOs are much more involved in thedecision-making process on a local level.1. DENMARKNGOs in Denmark have various possibilities for influencing the decision-making process. There is a general practice of sending Bills out to so-called“hearings” for comment when new legislation is being prepared.2. ESTONIAIt is possible for NGOs to participate in the decision-making process. TheGovernment Regulation No. 160 provides that, whenever necessary, the draft lawshall be sent to the institutions concerned. This obligation, however, is not guaranteedby any specific sanction.37Nevertheless, after discussing the issue with NGO representatives fromEstonia, it appears that:• The relationships between NGO and authorities depend too much onpersonal contacts.• NGOs, which are more active, do lobby and have greater influence,and so have a greater chance of being heard. Several meetings or roundtables are organised with the representatives of NGOs to discuss thesubstance of draft legislation. At this stage important changesregarding some substantial modifications are still possible.• In some cases NGO are seen as “trouble-makers” and not as expertsand partners.• Even if the situation has become better, NGOs would like to be invitedspontaneously to the discussion table without constantly asking toparticipate.• If NGOs are involved in the process, this involvement is often only atthe last stage of the process. They are informed when the draft is readyfor submission to Parliament. There is a real need for a democraticdecision making process.• The Civil Society Development Concept (EKAK) was initiated byNGOs in 19991: this sets out the basis of partnership between non-profit associations and the public sector, and a framework for thepromotion of civil initiatives and the strengthening of democracy inEstonia. In order to achieve the above-mentioned goals, EKAK sets outthe main obligations and rights in the co-operation between the publicsector and non-profit sector which are related to the acknowledgementand representation of both sides, their partnership, development ofpolicies, use of resources and reporting. The results of theimplementation have not been measured yet.3. FINLANDWhen preparing legislation and other projects, the preparing governmentalbody seeks to sound out the opinions of the public, NGOs and other actors in civilsociety who are affected by the project under preparation influences. This is done byrequesting a written statement from the citizens, NGOs etc. in question, or byarranging an oral hearing to which the NGOs and others are invited. The practicesused vary depending on the Ministry concerned but the clear point of departure in allMinistries is that the NGOs relevant to the issue are charted and their opinion will beasked for. The range of NGOs that come into question depend on the issue. TheNGOs to be heard are therefore selected on the basis of the project under preparation.The practices in different Ministries differ but on a general level it can be said that the1 http://www.emy.ee/alusdokumendid/concept.html38range of NGOs heard in the preparation of, for example, legislation reforms have – atleast during recent years – been quite broad. For example in the Ministry of Justicethe Ministry has requested a written statement from about 100-150 authorities, NGOsand other interest parties when the matter in question has been of particular socialsignificance. Of those consulted, NGOs amounted to about 10-15 %. Citizens andNGOs can also present their view to the authorities on their own initiative in the eventthat their view has not specifically been asked for. These views are equally taken intoaccount in the preparation of the matter.Also at the local level, the NGOs can influence and participate in the decision-making process. The provisions on the local decision-making process are laid down inthe Municipality Act (365/1995), which in many respects emphasises the importanceof hearing the opinion of the general public.4. GERMANYThe strong traditions of NGOs in Germany undoubtedly give them influencein the development of policy. Many people in Germany recognise and accept theexperience and expertise of NGOs.Nevertheless, from the point of view of NGO representatives, it appears that:• Even if members of the NGO community are recognised as partners,personal contacts do help a lot.• NGOs working in certain fields (social, education etc) enjoy easiercontacts with the authorities.5. LATVIAThe NGO Centre in Riga has a representative attending the State Secretarymeeting on a weekly basis. Information regarding draft legislation, projects etc isdisseminated to NGOs via the NGO Centre.NGOs participate in decision-making processes by:• Taking part in consultative boards (e.g. National Council on DisabledAffairs at the Ministry of Welfare, local council on social integration);• Signing agreements on co-operation (e.g. Ministry of Environment andFoundation of Environmental Education);• Taking part in work groups (e.g. work group for elaboration of Law onVoluntary Activities at Secretariat of Special Assignments Minister ofSocial Integration Affairs);• Participating in weekly meetings of State Secretaries of ministries (e.g.Union of Local and Regional Governments in Latvia, Non-governmental Centre);39• Elaborating own initiatives (e.g. Law on Youth Work by the NationalYouth Council);• Writing letters and organising meetings with decision makers (e.g.meeting of Minister of Health with representatives of LatvianPensioners’ Federation);• Taking part in public discussions organised by state institutions (e.g.on problems on health care)Nevertheless, after discussing the issue with NGO representatives from Latvia,it appears that:• Local authorities are more open to NGOs’ initiatives;• A close political connection may serve the cause of the NGO inquestion when participating in the decision-making process;• Attending meetings or discussions with the authorities is not easy forNGO representatives. They are mainly volunteers and the NGOs’ lackof financial resources and time makes it hard to prepare projects,studies or to draft laws. Drafting legislation needs time, preparationand expertise. One positive aspect is that the NGO Centre in Riga has arepresentative attending the State Secretary meeting on a weekly basis.6. LITHUANIAThe possibility of NGOs to participating and influencing the decision-makingprocess is envisaged in the general legal provisions regulating access of civil societyto information and decision-making. The Statute of the Seimas of the Republic ofLithuania (Act No. I-399 of 17-02-1994) provides for the possibility for parliamentarycommittees to include in the preparation of draft legislation representatives of publicorganisations, experts and scientists by inviting them to join relevant working groupsor committee meetings. The Seimas can present draft legislation for public debate onthe basis of a decision by the relevant committee. In this case the draft legislation ispublished in the press.The parliamentary committee responsible for the preparation of the draft lawcollates all proposals and opinions. According to Article 147 of the Seimas’ Statute,the main committee to which preparation of the draft law is assigned must publish thedeadline for submission of proposals and comments from interested parties. It mustdistribute the draft to the competent state institutions and, if necessary, to the publicorganisations, local municipalities, political parties and other organisations forevaluation. The Ministries include provisions on co-operation with civil society intheir internal regulations.All complaints, communications and petitions from the civil sector areconsidered by the state institutions as prescribed by law. All institutions shallestablish internal procedures for considering such communications.40From the point of view of NGO representatives the following can be saidregarding the participation in the decision-making process by NGOs in Lithuania:• The level of co-operation between central or local authorities andNGOs varies substantially from sector to sector depending on thedevelopment of civil organisations in a particular field or geographicalregion on the one hand and on political willingness and the experienceof the relevant institution on the other;• Even if there are encouraging examples of good co-operation (forexample, in such fields as children rights protection, education etc)there is a lack of clear rules on participation by NGOs, and this allowsthe authorities to be selective;• There is a lack of means by which NGOs can engage in lobbying.7. NORWAYBasically, NGOs in Norway are seen as partners. From the point of view ofNGO representatives, officials recognise their level of expertise and often requiretheir participation in the decision-making process.8. POLANDThe new Act of Law on Public Benefit and Volunteer Work is to introduce alist of rules governing cooperation between NGOs and government authorities. Theseaddress the following: subsidies, sovereignty of parties, partnership, effectiveness, faircompetition and transparency.According to the Act of Law on Public Benefit and Volunteer Work, localauthorities are obliged to cooperate with all NGOs. In addition the local authorities’executive bodies are to adopt annual programmes for co-operation with NGOs.The central and local authorities have been developing cooperation with NGOs.Apart from the privilege mentioned above, the government authorities may, inparticular, entrust NGOs with the performance of public tasks, setting up jointadvisory or initiatives teams, consult NGOs on draft legislation and the provision ofreciprocal feedback concerning all planned activities.Regarding the decision-making process, proposed drafts should be circulatedto NGOs in order to obtain their views. Even though there is a duty to cooperate,consultation is not seen as a duty in itself.Local government authorities must draw up annual cooperation plan. The Actdoes not specify the form of such a plan. The Ministry of Justice has proposed a41model, which proposes guidelines, but this form is not compulsory. The programshould indicate which agencies are covered, the types of activities and the forms ofcooperation. Municipalities must indicate the areas on which they wish to focus, aswell as which department or unit is to be responsible for NGOs.From the point of view of NGO representatives the following can be saidregarding participation to decision-making process in Poland:• NGOs are considered more as implementers of programs and decisionsrather than being treated as partners to consult.• The relations with authorities mainly depend of the size of the NGOand the networking opportunities. For smaller NGOs, participation inthe decision-making process is very complicated.9. RUSSIAThe first step towards collaboration was achieved in 1996-7 with a wish fordialogue. Later in 1997 the consultative council within the MFA was established.Cooperation became more efficient with the organisation of seminars, meetings etc. InApril 2001 consultative council attached to the chairman of the state Duma wasestablished. (More than 150 NGOs are involved in this council).In 2001 the “interdepartmental working group on cooperation with NGO” wasestablished, in which 12 service departments of the MFA are represented. Suchworking groups are also organised within the Ministry of Labour and Social Affairs aswell as in the Ministry of Education.In 2003 the initiative “Civil Forum” was also organised together withvoluntary public organisations. Civil Forum 2 was organised in 2003 as a forum fordialogue between NGOs, government departments and the business sector. This kindof cooperation is now available on a regional level, where similar forums areorganised.After discussing the issue with NGO representatives from Russia, it appearsthat:• Among the authorities in Russia there is some suspicion regarding therole of the NGO community;• NGOs in Russia have varying opportunities to exert influence becauseof the separation of legislation into that in which NGOs can take partin the decision making process and that in which NGOs have no say;• In order to participate in the decision-making process, personalcontacts with authorities are required. But even if the NGOs doparticipate in the drafting process, their expertise is not often taken intoaccount.4210. SWEDENThere is a wide range of formalised forums for dialogue between the SwedishGovernment and representatives of NGOs. These dialogues may take the form ofworking or reference groups, committees or delegations, conferences, seminars etc.Generally, each one of these forums specialises in handling specific issues and willinclude the relevant NGOs. The government Ministry responsible for the issue,whether it is the Ministry of Industry, Agriculture, Environment etc, is alsoresponsible for the dialogue. Since 2002 there has also been formalised dialogue ongeneral questions concerning conditions and problems for the NGO sector as a whole,Folkrörelseforum, in areas such as legislation and financing. The responsibility forthis dialogue lies with the Ministry of Justice.In parallel with these formalised forums, there is also a continuous dialogueand consultation between the government offices and NGOs on a more informal level.Furthermore, extensive contacts with the NGOs are maintained by the publicauthorities, which act on behalf of the Government Offices.A crucial part of the Swedish political system is the tradition of submittingproposals of legislation for consideration by the parties concerned. Such parties couldbe authorities, associations, universities and other types of organisation. NGOs inSweden, depending on their area of interest, are widely used as bodies to whichgovernment proposed measures are submitted for consideration.43CHAPTER 3: THE COUNCIL OF EUROPEAND THE EUROPEAN UNIONAs all of the CBSS member-states are also members in the Council of Europeand most of them are members of the European Union (Norway and Iceland beingpart of the European Economic Area and Russia being part of the EU partnershipagreement), it is important to analyse the position of the civil society and the role ofits organisations, within the Council of Europe and the European Union.1. NGOs and the Council of Europe(cid:57) The Fundamental Principles relating to the Status of NGOsWithin the activities of the Directorate General of Legal Affairs of the Councilof Europe, a group of Council of Europe experts approved the Fundamental Principleson the Status of NGOs in Europe in July 2002. They address topics such as the legalpersonality of NGOs, their statutes, management, fund raising, transparency andaccountability etc. These principles complement Convention 124 (EuropeanConvention on the Recognition of the Legal Personality of International Non-Governmental Organisations)2 and provide guidance to states that are currentlyreforming their legislation on NGOs, thereby contributing to the harmonisation ofEuropean legal systems in this area3.The principles lay down 4 basic principles:• Voluntary establishment• Right to freedom of expression• NGOs with legal personality should have the same general rights andobligations as other legal entities• Judicial protection(cid:57) The participatory statusRecognising their influence, the Council of Europe provides internationalNGOs with the opportunity to acquire participatory status. The rules for co-operationwere governed by Committee of Ministers Resolution (93) 38 until November 2003.This Resolution has been replaced by Resolution (2003) 84 on participatory status,which was adopted by the Committee of Ministers on 19 November 2003. All NGOs2 http://www.coe.int/T/E/NGO/public/Convention%5F124/_intro_convention_124.asp#TopOfPage3 http://www.coe.int/T/E/NGO/public/PrincFondam%20en%20engl.pdf4 http://www.coe.int/T/E/NGO/public/Participatory_status/Resolution_(2003)8/TopOfPage44enjoying consultative status were automatically granted the opportunity to acquireparticipatory status.The Council has a permanent structure for co-operation with international NGOs:(cid:190) The annual Plenary Conference of NGOs decides on the general lines of actionfor the year to come and sets objectives for its Liaison Committee. All NGOswith participatory status may attend;(cid:190) The Liaison Committee, established in 1976, has 25 members. It meets at leastthree times a year and has the following main functions:(cid:190) Liaison with the Council of Europe Secretariat;(cid:190) Monitoring sectoral NGO meetings in the various specialist areas;(cid:190) Preparing the Plenary Conference and the annual work programme;(cid:190) Encouraging NGOs to co-operate with the Council of Europe and publicisingits work. (This has included several initiatives to promote the transition todemocracy in Central and Eastern Europe.)2. NGOs and the European Union2.1: Financial possibilities offered to NGOsThe European Union offers NGOs the possibility of obtaining funding throughprojects.Discussions with NGO representatives from each country show, however, thatthere are certain problem areas:• There is a lot of interest from the NGO community regarding theEuropean Union funding possibilities. Unfortunately, however,difficulties are experienced in meeting the requirements entailed.Moreover it appears that a certain period of time is needed beforeNGOs can receive funding, which in turn means that NGOs have tostart projects with their own money. This in many cases appears to beproblematic;• The co-funding requirements in some countries are genuinely difficultto meet;• There is a real need of information regarding the procedures involved.452.2: The White Paper of the European CommissionThe White Paper on European Governance, as mandated by the LisbonEuropean Council, was publicly announced by the European Commission on 25July20015.It proposes the opening up of the policy-making process to get more peopleand organisations involved in shaping and delivering EU policy. It promotes greateropenness, accountability and responsibility for all those involved.In its proposals for changes it is noted that there is a need for a strongerinteraction between regional and local government and civil society at large.2.3: Discussion Paper "The Commission andNGOs: building a stronger partnership"On 18 January 2000 the Commission approved a Discussion Paper entitled:"The Commission and non-governmental organisations: building a strongerpartnership".The purpose of this paper is two-fold:• First of all, it aims to give an overview of the existing relationshipsbetween the Commission and NGOs including some current problems.• Secondly, it aims to suggest possible ways of developing theserelationships by considering the measures needed to improve and strengthen theexisting relationship between the Commission and the NGOs.Thus, the Discussion Paper suggests ways of providing a more coherentCommission-wide framework for co-operation that has hitherto been organised on asector-by-sector basis. The introduction attempts to define the common characteristicsof a non-governmental organisation and goes on to describe in some detail therationale of cooperation between the Commission and NGOs. The proposals forimprovement are dealt with in the next four chapters of the Discussion Paper. Theseare measures to improve dialogue and consultation with NGOs, budgetary issues (inparticular core funding), management issues and improving information.The Commission regards the Discussion Paper as an important step in aprocess involving an extensive exchange of view with the NGO community.5 http://europa.eu.int/eur-lex/en/com/cnc/2001/com2001_0428en01.pdf462.4: Communication "General principles andminimum standards for consultation ofinterested parties"On December 11 2002, the European Union Commission adopted theconsultation standards, which lay down a set of minimum standards for theCommission's consultation of external interested parties.Further, the CONECCS database6 is a voluntary Directory of non-profit makingcivil society organisations operating at European level, and it also provides a list ofthe Commission's permanent and regular consultative bodies in which civil societyorganisations participate.In the White Paper “Reforming the Commission” (COM (2000) 200 of1.3.2000) the Commission committed itself to establish a list of committees andexpert groups which are involved in formal or structured consultation procedures andin which civil society organisations participate. The overall objective is to make thedialogue with civil society organisations more transparent.2.5: Constitutional Treaty for Europe 7References to the civil society are made in the following articles of theConstitutional Treaty for Europe (Agreement have been reached agreement on a newConstitutional Treaty for Europe at the European Council in Brussels on 17 and 18June 2004. The Treaty establishing a Constitution for Europe will be signed on29 October 2004 in Rome).Article 46: The principle of participatory democracy “2. The UnionInstitutions shall maintain an open, transparent and regular dialogue withrepresentative associations and civil societyArticle 49: Transparency of the proceedings of Union Institutions “1. In order topromote good governance and ensure the participation of civil society, the Unioninstitutions, bodies and agencies shall conduct their work as openly as possible”.6 http://europa.eu.int/comm/civil_society/coneccs/index_en.htm7 http://europa.eu.int/futurum/constitution/part1/title6/index_en.htm47CHAPTER 4: CONCLUSION ANDRECOMMENDATIONSWhat types of legal provisions create an enabling environment?Essentially these are of three types:• Laws that permit NGOs to come into existence in a manner that is easyand inexpensive, without undue bureaucratic influence or theinappropriate exercise of administrative discretion;• Laws that allow NGOs to exist free of undue interference by the stateas they carry out their day-to-day activities;• Laws that allow NGOs direct and indirect (through tax benefits) accessto funds, whether these come from private sources, the state, orthrough economic activities of the organisations themselves.What types of legal provisions are involved in NGO capacity building?Essentially these are of two types:• Laws that create standards of internal governance and externalaccountability help NGOs to develop into mature, self-governedinstitutions that are able to respond appropriately to the needs of theirconstituencies;• Laws that allow NGOs direct and indirect (through tax benefits) accessto adequate funding, whether this comes from private sources, thestate, or through economic activities of the organisations themselves,create greater financial capacity for NGOs and thus allow them toperform their roles.The role of NGOs is not only a local question. Their contributions are madethrough an extremely diversity of activities:• Acting as a vehicle for communication between different segments ofsociety and public authorities,• Advocating change in law and public policy,• Providing assistance to those in need,• Elaborating technical and professionals standards,• Monitoring of compliance with existing obligations under national andinternational law,• Pursuing, promoting and defending the interests shared with others.Conclusion of the study is that legislation regarding NGOs in our region hasbeen developing and progress has already been done. Many changes have been takingplace quite recently in many of the countries, but still there is lot to do in order to giveNGOs good and decent opportunities to work and co-operate in the region. Thus thelaw under which NGOs operate and make their work possible is of course national.48Referring to the conclusions of the III and IV Baltic Sea NGO Forum, theparticipants emphasised that overall strengthening of the civil society organisations,as well as creating of favourable conditions for their functioning. This includes simpleregistration procedures, stable funding, a taxation system supporting the non-profitcharacter of their work and philanthropic giving, non-interference of publicauthorities in their work, transparency of public decision-making and access to publicinformation. Those are all goals, which unite them. These conditions are prerequisitesof democratic society and should be guaranteed by our governments by law and inpractice. NGOs see a strong civil society as a vital dimension of, and a guarantor for,democracy. They are not, and should not be seen as, competitors of the electeddemocratic structures.49RECOMMENDATIONSThe NGOs have a valuable contribution to give to the society. Active,independent NGOs are an essential part of a vital civil society and democracy. Thefreedom of association is effective only when it goes hand-in-hand with legislativeand other measures to ensure them. They can be fostered by passing favourablelegislation, helped with funding or any kind of support and enjoying active interactionwith the State. Nevertheless awareness of, and respect for, NGO’s contributiondevelop better among authorities and the broad public in situations where also theNGO community undertakes to act in a responsible, efficient and ethnical manner.It is the responsibility of each state to develop the possibilities for NGOs toact. Many countries have come to recognize that the existence of a vigorous,independent NGO community is important for several reasons, including:• By permitting individuals to pursue their various notions of thecommon good, the not-for-profit sector helps build the pluralismessential to a civil society;• By giving legal implementation to the rights of freedom of expressionand freedom of association, laws permitting NGOs create strongsupport for the institutions of democracy;• By enforcing appropriate principles of transparency and accountability,laws regulating NGOs promote social stability and the rule of law;• By helping to promote civil society, democracy, equality and stability,NGOs strengthen the development of economic prosperity, welfare anda market economy; and• By frequently providing social goods and services, NGOs contribute tosocial well-being.Given these compelling reasons for countries to encourage the growth of theNGO sector, most have also begun to recognize the need for sensible laws,regulations, and administrative systems that will permit, encourage, and regulate theexistence and status of NGOs.NGOs have to be able to play their role in the society. It is necessary to have aglobal recognition of the role and importance of NGOs activities within the wholeregion. Their economical, political and social concerns have to be discussed.1. CooperationIt is of most importance for NGOs to have the possibilities to co-operateinternationally and regionally. They also have to be recognized as partners with theregional governmental co-operation bodies (within the Baltic Sea area and theEuropean area).50The Baltic Sea NGO-network and forum should be recognized as a partner tothe CBSS. The IV Baltic Sea NGO Forum authorised, in its resolutions, itsConsultative Committee, to apply for the Status of Special Participant, within theCouncil of the Baltic Sea States.It would also be important that the governments and inter-governmentalbodies would seek for solutions to extend funding, not only for national NGOs actingon the national level but also in order to support organisations and their networksworking with regular over-borders cooperation in the region.Common objectives have to be taken into account in order to look forward.Therefore it feels very important to create stability and continuity by having a specificstructure fulfilling the following functions regarding NGOs in the region:• Coordination• Information• Representation• Following-upThe civil participation is a complementary, important and healthy dynamic.Citizen’s participation carries its own self-originated legitimacy. This is thereforeimportant that NGOs are invited to the BSPC’s conferences activities.2. Financial situation:Civil society participation often requires a significant commitment of time aswell as substantial financial resources from governments and intergovernmentalbodies.The financial situation of most of the NGOs in the region is unstable and long-term planning is problematic. It is necessary to provide NGOs with stabile fundingand precise regulations at the national, regional, European and international levels.NGOs have to be able to rely on the continuity of the funding system. The NGOcommunity need guarantees in order to plan their day-to-day activities and to fulfiltheir role in the society.As seen previously, NGOs’ representatives consider the bureaucraticrequirements (especially financial declaration requirements) in most of the countriesexcessively burdensome. It also seems that in some countries NGOs are treated asbusiness corporations for financial purposes. It is important, therefore, to simplifyovercomplicated tax declaration procedures.513. Conditions for application proceduresThe following was stated during the 2001 BSPC meeting, dedicated to BalticSea civil society cooperation and expressed the need and the will to co-operate withNGOs: “One of the critical issues facing NGOs is the sustainability of serviceprovision. Whereas the state is able to generate basic levels of funding from taxationNGOs are usually dependent on grants and contracts.“After discussions with NGO representatives from some countries in theregion, it appears that the situation has not evaluated in a positive way. Therefore insome of the countries of the region, the applications procedures and competitionprocess between NGOs requires much more transparency and defined rules:• NGOs have to be informed on time on their possibilities to be part ofprojects with authorities• NGOs must be able to get the required information (regarding theprocess, the services, the project etc) in order for them to send suitableapplication before deadlines• NGOs have to be able to access the list of retained organisations4. Access to information:Access to information is essential for NGOs. It is information that enablesNGOs to play their role in society. “Good practises” already exist in some countriesand their use should be extended in the region.Therefore it must be obligatory to systematically make available as much aspossible information for the public and the NGO community and this at all stages ofthe decision-making process.A better governing practise is actually to declare that all information is public,if not differently defined, than the other way around.The available information on the decision-making process must:• Integrate the planning and preparatory stage• Include debate during the final decision making• Indicate the results and follows-up of the decisionsAuthorities have to make the access to information easier. NGOs should alsoactively be informed on how to access information.Moreover the information should be available also in minorities’ languagesand regardless of people’s disabilities.525. Decision-making process:During the BSPC Conference held in 2001 the following statement was made:“The presence of civic society is still very thin and it seems that its powers are limitedto persuasion and its presence is hardly contested. The lack of agreed standards forcivic society participation is a further complication.”The possibilities offered to NGOs to take part in the decision-making varyextremely much within the countries of the region, as well as between sectors andNGOs. In many of the countries in the region existing structures do not enable NGOsto fulfil their role in the society effectively. There is a real need for reform measuresto facilitate the active participation of the civil society sector in governance in allstages: local, national as internationally. This especially concerns the planning andpreparation stage where officials tend to leave out many NGOs from the process. It’snot satisfying to give citizens’ organisations the possibilities to be heard only in thelast stage when everything is already negotiated and almost decided. They must havethe possibility to express their valuable input as soon as an issue is raised and this inthe very beginning of the process.NGOs should be included in the decision-making process through:• Establishing clear rules including rights and commitments toconsultation with civil society• Establishing clear criteria for NGO participation in consultation andadvisory groups, focusing on diversity• Establishing guidelines for the process of NGO contributions• Establishing rules guarantying a respectful treatment of NGOdocuments• Establishing systematic following-up and response to NGOsubmissionsLeaving this report to the Baltic Sea NGO Consultative Committee, the BalticSea Parliamentary Conference and the Council of the Baltic Sea States, it is importantto stress the necessity of continuing discussions on the proposals. It would be usefulto receive reports from the Member-States before the holding of the V NGO Forum inPoland. Comments from the NGO community are also expected.53