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The Review of the Ngo Sector in Latvia 2013

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The Review of the Ngo Sector in Latvia 2013 THE REVIEW OF THE NGO SECTOR IN LATVIA 2013 Civic Alliance – Latvia 1 Authors Inta Šimanska Jadviga Neilande Kitija Bite Rasma Pīpiķe Editor of Latvian edition Inga Skuja Design Elfa Raude The electronic version of the research is available on www.nvo.lv © Civic Alliance – Latvia In the event of republishing or citation, reference to the research The Review of the NGO Sector in Latvia. 2013 is mandatory. The research The Review of the NGO Sector in Latvia. 2013 is the activity of the project Improvement of Support and Monitoring System for Sustainable Development of Civic Society in Latvia. The project is implemented in cooperation with the EEA and the Society Integration Foundation. The project is financially supported by Iceland, Liechtenstein and Norway. Civil Alliance – Latvia is responsible for the content of the research The Review of the NGO Sector in Latvia. 2013. 2014 2 Contents Glossary ........................................................................................................................ 5 Introduction ................................................................................................................... 7 The Scope of the Research ........................................................................................... 9 1. General Characteristics of the Operation of Associations and Foundations. ............ 14 1.1. The objective of non-governmental organisations ............................................. 14 1.2. Quantitative changes in the NGO sector ........................................................... 20 1.3. The operation of public benefit organisations .................................................... 27 1.4. Internal efficiency of organisations .................................................................... 29 1.4.1. Operation frequency of organisations ......................................................... 29 1.4.2. Human resources involved in the operation of organisations ...................... 32 1.4.3. Involvement of population in the operation of organisations ........................ 34 1.5. Organisation cooperation with partners ............................................................. 45 1.6. Operation of organisations to lessen social inequality ....................................... 49 1.7. Freedom of association, the legal environment ................................................. 51 1.8. Public recognition of organisations .................................................................... 53 2. Financial Review of Non-Governmental Organisations ............................................ 57 2.1. Revenues from the operation and activities of associations and foundations .... 58 2.1.1. Donations for the operation and activities of associations and foundations . 60 2.1.2. NGOs as value added tax payers ............................................................... 62 2.2. Expenditures of the NGO sector ....................................................................... 63 2.2.1. Debtors and creditors ................................................................................. 64 2.2.2. Employment in the NGO sector .................................................................. 66 2.3. Structure of NGO revenues and expenditures. Case studies. ........................... 68 2.3.1. Analysis of revenue position data ............................................................... 69 2.3.2. Received donations and contributions ........................................................ 70 2.3.3. Received inheritances ................................................................................ 70 2.3.4. Received grants ......................................................................................... 70 2.3.5. Revenue from economic activity ................................................................. 71 2.3.6. Other revenues ........................................................................................... 72 2.3.7. Data analysis of expenditure positions ....................................................... 72 2.3.8. Remuneration and social security contributions .......................................... 73 2.3.9. Expenditures of materials ........................................................................... 75 2.3.10. Depreciation and write-offs of fixed and intangible assets......................... 76 2.3.11. Other expenditures ................................................................................... 76 2.3.12. Taxes ....................................................................................................... 77 2.3.13. Difference of revenues and expenditures ................................................. 77 2.3.14. Balance sheet ........................................................................................... 78 3 3. State’s Policy to Support the Operation of Associations and Foundations ............... 89 3.1. State’s policy for the development of the NGO sector ....................................... 89 3.2. Direct support of the state for the development and operation of organisations 96 3.2.1. Division models of state funding ................................................................. 97 3.2.2. Deputy quota as an intransparent kind of state support ............................ 102 3.2.3. Donations by state capital companies ...................................................... 104 3.2.4. Municipal support instruments for NGO operation .................................... 110 3.3. Indirect national support for the operation of associations and foundations ..... 116 3.3.1. Tax relief to donors ................................................................................... 116 3.3.2. Tax rebates to the NGO sector ................................................................. 118 4. Latvian Civil Dialogue and Advocacy ..................................................................... 120 4.1. Involvement of population in the decision-making process .............................. 121 4.2. Cooperation of organisations with public administration .................................. 129 4.3. Associations as the participants of decision-making process .......................... 131 4.4. Interest defence activities and lobbying ........................................................... 137 Bibliography .............................................................................................................. 142 Annex 1. .................................................................................................................... 147 Number of Organisations in the Municipalities of Latvia until July 3, 2013 ................. 147 Annex 2. .................................................................................................................... 149 Density of Organisations per 1 000 Inhabitants in the Municipalities of Latvia. .......... 149 Annex 3. .................................................................................................................... 151 Sources of Non-governmental Organisation Publicity ................................................ 151 4 Glossary Advocacy - legitimate and legal activities implemented by organizations or individuals by contacting the decision-making process participants with a view to implement legislative changes and development documentation by explaining the necessity of the changes and the procedures of their implementation to a wider society. Agenda (political) – questions about changes in regulatory enactments suggested by public authority. Association – an organization founded by at least two people, which carries out activity to reach the goal stated in the article of association. Civic Participation - party involvement in the decision-making process with the aim of achieving a change in the current situation through a variety of participatory tools: active or passive participation in the elections, the voice of the public administration, participation in advisory boards. Civil society - Population, which is free from the state power, but cooperates with it in order to prevent the disparities in the population caused by market, so being national intermediaries in the relations of the state and the market. Residents voluntarily unite to protect the needs of certain groups in society in the decision-making process. Decision-making process – a formalized set of activities of public administration institutions, which have introduced measures allowing officials to take a decision and to implement it. Deinstitutionalization – transition from institutional social and health care to independent life in society or care (for children – a family environment) as a result of political process. Donation – 1) on the basis of agreement, a voluntarily transfer of the property or funds to achieve public benefit organization's statutory objectives; 2) voluntarily transfer of the property or funds to provide assistance to those who need it. Foundation – an organization that was founded to redistribute property or financing of the founders to reach the defined objective. Human security – freedom from fear and poverty. Lobbying – conscious communication with the public authorities representative carried out in the interests of an individual to influence the actions of a representative of the public authority to initiate a project, its development, coordination, approval or promulgation process in order to gain personal or indirect benefit. Non-governmental organization – voluntarily formed organization
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