On Thursday, 21 May, the Saeima adopted urgent amendments to the Public Benefit Organisation Law, which will allow public benefit organisations to receive donations not only in the form of financial resources or property, but also in the form of services. The amendments also expand opportunities for organisations to accumulate financial resources and make investments in the regulated securities market.

“These amendments create a clear and up-to-date regulatory framework that broadens opportunities for donor engagement and strengthens the financial sustainability of public benefit organisations. The possibility to receive donations in the form of services—for example, legal, financial, or IT support—will significantly facilitate the work of organisations and enable them to implement projects of public benefit more consistently,” previously noted Anda Čakša, Chair of the Budget and Finance (Tax) Committee, which is responsible for advancing the draft law at the Saeima.

In order for corporate income tax relief to be applied to companies donating services, the amendments provide for a mandatory written donation agreement specifying the monetary value of the donated service.

The amendments also clearly reinforce the right of public benefit organisations to accumulate financial resources in credit institutions and to invest them in securities issued on the regulated securities market. Such a framework is essential for organisations implementing long-term public benefit projects and allows organisations to preserve the value of donated funds while complying with the obligation to use them for the specified purpose of donation.

Saeima Press Service