Non profit
Hungary: development of the local non profit sector
Aron Barabas, of European House, will talk about this topic at Civitas on Sunday May 6th. Here are the main topic of his speech
Talking points for Vita presentation
at Civitas
Padua, 6 May, 2007
Presentation of Áron Barabás, European House, Hungary
1.Development of the Hungarian nonprofit sector
-after 1989 significant increase in numbers of civil society organisations
-today over 50 000 registered civil society organisations,
-from quantity to quality: after a decade the increase in numbers slowed down and organisations started to work increasingly professionally (due to project-based operation)
-financial support to organisations (state etc.) important: lack of capital, investment income;
-compact-type (government-civil society) arrangement under discussion as part of a government strategy on civil society
2.Financial schemes assisting CSOs
a.1 per cent scheme
-established by law in 1996 (Act CXXVI of 1996 On the Use of a Specified Amount of Personal Income Tax)
-taxpayers can allocate 1 per cent of their income tax to a civil society organisation of their choice
-+1 per cent to churches since 1998
-Problem: only 66 percent of possible amount used (allocated by only 33 per cent of taxpayers)
b.National Civil Fund
-basic idea: to use the remaining part of the 1 per cent scheme
-National Civil Fund established after consultations in 2003 by law
-Financial background: equal amount of the actual 1 per cent allocations
-Why innovative? Elected civil society representatives are in majority in the decision-making bodies (colleges and council).
