European Parliament Adopts Recommendations Aimed at Harmonizing Legislation for Non-Profit Organizations

On February 17, 2022, the European Parliament adopted a recommendation report with a large majority, which aims to harmonize legislation related to non-profit organizations across European Union (EU) countries and establish a common European Associations Statute.

The report emphasized that the lack of a common legal status for non-profit organizations within the EU, along with inconsistencies between the legislation of member states, creates unjust legal and administrative burdens for institutions operating cross-border within the EU. This situation, the report noted, makes democratic participation more challenging and members of Parliament called on the European Commission to take necessary legislative actions.

Members of Parliament also expressed that the difficulties faced by non-profit organizations due to national laws and administrative practices could further restrict fundamental rights such as freedom of expression and association, which are already under threat in some member states, and may deter organizations from working beyond national borders.

Additionally, the report condemned any attempts to politically restrict civil space in Europe and highlighted the importance of providing sufficient, easily accessible, transparent, and non-discriminatory financial support to non-profit organizations. It also stressed the need for establishing a European public benefit status for non-profit organizations.

With the approval of this report, members of the European Parliament urged the EU Commission to draft a regulation that fills the legal gap and ensures that non-profit organizations can operate without hindrance, while setting standards for civic space. The report was adopted with 530 votes in favor, 146 against, and 15 abstentions. Following this, the European Commission is expected to prepare a legislative proposal. You can access the relevant report here.