\n\t\t\t\t\t\t\t \t\t\tOBJECTIVE: overview of the legal and fiscal framework for voluntary organizations and foundations\nand ways of improving their economic and social impact within the Union.\nSUBSTANCE: this sector of the social economy contributes on a daily basis to democracy, active\ncitizenship and the creation of employment. In analyzing the sector in the 15 Member States (there\nare over 5 million organizations/foundations in the Community), the Commission examines the scope\nof organizations and foundations highlighting their economic and social significance. With regard to\nvoluntary organizations, the Commission observes that they are distinguished from informal or ad hoc\ngroupings by some degree of formal or institutional existence. They are non-profit distributing, that\nis to say, they do not set out to secure profits for their management or members. They are\nindependent in principle of government and other public authorities although they are free to\ncollaborate with them. Foundations on the other hand are bodies with their own source of funds\nwhich they spend on activities of public interest. They are entirely independent of government or\nother public authorities and are run by independent administrators or trustees. \nRegarding the legal framework, the freedom to establish, join or leave a voluntary organization is\nnowadays a recognized right in all the Member States. From a general point of view all citizens are\nfree to establish a voluntary organization or foundation anywhere in the Union although some\nMember States stipulate that there should be a minimum number of their own citizens or residents\ninvolved. In legal terms voluntary organizations and foundations are entities of private law.\nUnlike voluntary organizations, foundations are generally subject to prior scrutiny to ensure that their\nstatutes are in strict conformity with legal requirements. In addition to a greater or lesser extent all\nMember States accord tax privileges to voluntary organizations depending on their level of public\ninterest (exemption from tax or social charges, various concessions etc.). Other provisions are made\nfor tax relief for donors or with regard to indirect tax (e.g. zero rate).\nConcerning the development of this sector, the Commission proposes a range of national and\nCommunity measures with a view to achieving further progress. At Member State level the\nCommission proposes:\n- the development of research programmes to require deeper knowledge of the sector,\n- review of policies carried out by the public authorities,\n- establishing a clear and useful legal framework,\n- achieving sounder financing in the sector,\n- encouraging training,\n- better access to programmes receiving European funding.\nAt European level the Commission proposes:\n- improving dialogue with the Community Institutions,\n- developing research,\n- helping the sector to participate more effectively in European training programmes and secure easier\naccess to Community funding,\n- introduction of a 'European Year' relevant to voluntary organizations and European citizenship,\n- establishment of special funds to promote transnational cooperation by voluntary organizations and\nfoundations.�
\n\t\t \t\t\t\t\t\t
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\n\t\t\t\t\t\t\t \t\t\tThe Committee adopted a report by Fiorella GHILARDOTTI (PES, I)on the role of voluntary organizations and foundations in Europe. The Committee wants to recognize NGOs as full partners in the new structural fund regulations. It suggests that 1 % of the European Social Fund budget should be made available for NGOs in addition to the present structural resources. These funds could be used for micro projects managed by NGOs and local partners. However, the Community must acknowledge NGOs weaknesses in finance, administration and planning and provide them with appropriate information and support measures.\nAccording to the Committee, a part of the funds for innovative SMEs in the framework of the employment initiative should be earmarked for voluntary organizations and foundations. In addition, certain labour-intensive services provided by non-profit making organizations should have a reduced VAT rate if they are not subject to trans-border competition. \nThe Committee is willing to give the NGOs a more visible role in European integration. The Commission should revive the idea of a wide-ranging consultation process in connection with the revision of the Treaties. A structured sectoral dialogue should be set in motion between the European institutions and NGOs represented at the European level.�
\n\t\t \t\t\t\t\t\t
\n"],"type":"Vote in committee, 1st reading/single reading"},{"body":"EP","date":"1998-07-02T00:00:00","docs":[{"title":"Debate in Parliament","type":"Debate in Parliament","url":"http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=19980702&type=CRE"},{"text":["
\n\t\t\t\t\t\t\t \t\t\tIn adopting the report by Mrs GHILARDOTTI (PSE, I) on the role of voluntary organisations\nand foundations, the European Parliament called for an in-depth analysis of the non-profit-making\nsector consisting of voluntary organisations and foundations at local, national and European level.\nThis should make it possible to reinvigorate work on Community legislative proposals concerning\na statute for a European association and foundation and the multiannual programme for them. It\nshould also help to prepare for the European Year of Voluntary Organisations and Active\nCitizenship proposed by the Commission.\nIn the context of the proposal for a statute for a European association and foundation, Parliament\nhoped that a clear distinction would be made between the proposed Statute and the proposal for\na Regulation on the European public limited company. In particular, the operating procedures\ntypical of the European plc, a purely economic entity, should not be imposed on the voluntary\nsector. Parliament stressed the relevance of local action for possible synergies between private\nbusiness, public-sector and \"third sector\" initiatives. It welcomed the proposal to make available\n1% of the European Social Fund budget for non-governmental organisations, but stressed that\nthis percentage should come in addition to the structural resources already available to the sector.\nIt considered that the new regulations on the Structural Funds should recognise the NGOs as full\npartners.\nIn the field of employment, it stressed the importance of the non-profit-making sector for job\ncreation and, in the context of the proposal for a multiannual programme of work for this sector,\ncalled for part of the resources available to be concentrated on considering the contribution which\nthe sector as a whole could make to carrying out employment policy measures. Measures relating\nto the sector should also be taken in the context of the efforts being made to implement the\nemployment guidelines adopted at the Luxembourg European Council. It recalled that with the\ninitiative to finance innovative SMEs with high employment levels, part of the financing could be\nearmarked for SMEs in the third system, especially in sectors such as public health and education.\nIt supported the application of a reduced rate of VAT for certain labour-intensive services\nprovided by the third system.\nIt urged the Commission to enhance the role of the non-profit-making sector in building and\nconsolidating democratic structures in the countries of Central and Eastern Europe and the\nMediterranean.\nIt called for a structured sectoral dialogue to be set in motion between the European institutions\nand the NGOs represented at European level, based on common criteria and procedures. It called\non the Commission, finally, to revive the concept of a wide-ranging democratic consultation\nprocess in connection with the revision of the Treaties.�
\n\t\t \t\t\t\t\t\t
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\n\t\t\t\t\t\t\t \t\t\tOBJECTIVE: overview of the legal and fiscal framework for voluntary organizations and foundations\nand ways of improving their economic and social impact within the Union.\nSUBSTANCE: this sector of the social economy contributes on a daily basis to democracy, active\ncitizenship and the creation of employment. In analyzing the sector in the 15 Member States (there\nare over 5 million organizations/foundations in the Community), the Commission examines the scope\nof organizations and foundations highlighting their economic and social significance. With regard to\nvoluntary organizations, the Commission observes that they are distinguished from informal or ad hoc\ngroupings by some degree of formal or institutional existence. They are non-profit distributing, that\nis to say, they do not set out to secure profits for their management or members. They are\nindependent in principle of government and other public authorities although they are free to\ncollaborate with them. Foundations on the other hand are bodies with their own source of funds\nwhich they spend on activities of public interest. They are entirely independent of government or\nother public authorities and are run by independent administrators or trustees. \nRegarding the legal framework, the freedom to establish, join or leave a voluntary organization is\nnowadays a recognized right in all the Member States. From a general point of view all citizens are\nfree to establish a voluntary organization or foundation anywhere in the Union although some\nMember States stipulate that there should be a minimum number of their own citizens or residents\ninvolved. In legal terms voluntary organizations and foundations are entities of private law.\nUnlike voluntary organizations, foundations are generally subject to prior scrutiny to ensure that their\nstatutes are in strict conformity with legal requirements. In addition to a greater or lesser extent all\nMember States accord tax privileges to voluntary organizations depending on their level of public\ninterest (exemption from tax or social charges, various concessions etc.). Other provisions are made\nfor tax relief for donors or with regard to indirect tax (e.g. zero rate).\nConcerning the development of this sector, the Commission proposes a range of national and\nCommunity measures with a view to achieving further progress. At Member State level the\nCommission proposes:\n- the development of research programmes to require deeper knowledge of the sector,\n- review of policies carried out by the public authorities,\n- establishing a clear and useful legal framework,\n- achieving sounder financing in the sector,\n- encouraging training,\n- better access to programmes receiving European funding.\nAt European level the Commission proposes:\n- improving dialogue with the Community Institutions,\n- developing research,\n- helping the sector to participate more effectively in European training programmes and secure easier\naccess to Community funding,\n- introduction of a 'European Year' relevant to voluntary organizations and European citizenship,\n- establishment of special funds to promote transnational cooperation by voluntary organizations and\nfoundations.�
\n\t\t \t\t\t\t\t\t
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\n\t\t\t\t\t\t\t \t\t\tThe Committee adopted a report by Fiorella GHILARDOTTI (PES, I)on the role of voluntary organizations and foundations in Europe. The Committee wants to recognize NGOs as full partners in the new structural fund regulations. It suggests that 1 % of the European Social Fund budget should be made available for NGOs in addition to the present structural resources. These funds could be used for micro projects managed by NGOs and local partners. However, the Community must acknowledge NGOs weaknesses in finance, administration and planning and provide them with appropriate information and support measures.\nAccording to the Committee, a part of the funds for innovative SMEs in the framework of the employment initiative should be earmarked for voluntary organizations and foundations. In addition, certain labour-intensive services provided by non-profit making organizations should have a reduced VAT rate if they are not subject to trans-border competition. \nThe Committee is willing to give the NGOs a more visible role in European integration. The Commission should revive the idea of a wide-ranging consultation process in connection with the revision of the Treaties. A structured sectoral dialogue should be set in motion between the European institutions and NGOs represented at the European level.�
\n\t\t \t\t\t\t\t\t
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\n\t\t\t\t\t\t\t \t\t\tIn adopting the report by Mrs GHILARDOTTI (PSE, I) on the role of voluntary organisations\nand foundations, the European Parliament called for an in-depth analysis of the non-profit-making\nsector consisting of voluntary organisations and foundations at local, national and European level.\nThis should make it possible to reinvigorate work on Community legislative proposals concerning\na statute for a European association and foundation and the multiannual programme for them. It\nshould also help to prepare for the European Year of Voluntary Organisations and Active\nCitizenship proposed by the Commission.\nIn the context of the proposal for a statute for a European association and foundation, Parliament\nhoped that a clear distinction would be made between the proposed Statute and the proposal for\na Regulation on the European public limited company. In particular, the operating procedures\ntypical of the European plc, a purely economic entity, should not be imposed on the voluntary\nsector. Parliament stressed the relevance of local action for possible synergies between private\nbusiness, public-sector and \"third sector\" initiatives. It welcomed the proposal to make available\n1% of the European Social Fund budget for non-governmental organisations, but stressed that\nthis percentage should come in addition to the structural resources already available to the sector.\nIt considered that the new regulations on the Structural Funds should recognise the NGOs as full\npartners.\nIn the field of employment, it stressed the importance of the non-profit-making sector for job\ncreation and, in the context of the proposal for a multiannual programme of work for this sector,\ncalled for part of the resources available to be concentrated on considering the contribution which\nthe sector as a whole could make to carrying out employment policy measures. Measures relating\nto the sector should also be taken in the context of the efforts being made to implement the\nemployment guidelines adopted at the Luxembourg European Council. It recalled that with the\ninitiative to finance innovative SMEs with high employment levels, part of the financing could be\nearmarked for SMEs in the third system, especially in sectors such as public health and education.\nIt supported the application of a reduced rate of VAT for certain labour-intensive services\nprovided by the third system.\nIt urged the Commission to enhance the role of the non-profit-making sector in building and\nconsolidating democratic structures in the countries of Central and Eastern Europe and the\nMediterranean.\nIt called for a structured sectoral dialogue to be set in motion between the European institutions\nand the NGOs represented at European level, based on common criteria and procedures. It called\non the Commission, finally, to revive the concept of a wide-ranging democratic consultation\nprocess in connection with the revision of the Treaties.�
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