Public utility status must include tax concessions

The organizations’ interest in obtaining the status of public utility is diminishing, says a study carried out by the Resource Center for Human Rights (CreDO) that was made public in a roundtable meeting on February 18, Info-Prim Neo reports. The study assessed the amendments to the legislation on public associations adopted last June. CreDO executive director Sergiu Ostaf said the amendments impose new requirements on the organizations that want to get the status of public utility like the compilation of detailed progress reports, creation of a surveillance body and ensuring of the functionality of the internal organizational structure. A certification commission under the Ministry of Justice examines the documents submitted by the organization and decided if it deserves receiving the status of public utility. The authors of the study recommend renewing the composition of the certification commission in a transparent way, said Sergiu Ostaf. Another recommendation is to draw up and adopt specific models of financial reports that the organizations applying for the status of public utility present. Project coordinator Maria Badan said the status of public utility allows the public association to obtain benefits and to prove that it is really socially useful when it provides services. Sergiu Ostaf also said that this status makes the organizations mode credible in society. “I’m sure that the level of trust in the NGOs will rise from 30% to 40%. For comparison, the political parties are trusted by less than 20% of the people,” he stated. The participants in the roundtable meeting reached the conclusion that the status of public utility is very important for the organizations, but it should also include certain tax concessions. The study was conducted within the Strengthening Civil Society by Implementing Policies to Empower the Nongovernmental Organizations in Moldova Project that is implemented by the Resource Center for Human Rights with financial support from the Academy for Educational Development.