The legal framework is defined by the Law on Citizen Associations and Foundations passed in 1998. An association of citizens can be established by 5 adult citizens of the Republic of Macedonia, while a foundation can be established by one or more founders. In March 2007 changes for simplification of the registration procedure were introduced as a consequence of harmonization of the Law with the the Law on One-Stop-Shop System and Law on Misdemeanour. The procedure for registering a CSO was transferred from Courts to the Central Register Office and thus, made simple and quick (up-to 5 days after completion of the required documentation).
Although the Law was originally considered enabling, it has become apparent that it contains some flaws and omissions which have a negative impact on CSO sustainability: it is unclear whether CSOs may carry out economic activities; legal entities, foreigners are minors not allowed to form and be members of associations or foundations; there is no clear division in law between CSO executive and governance structures; no public benefit/interest status has been defined and consequently no advantages or concessions relating to the public benefit are available to CSOs.
The new law, which has been drafted by a working group in the Ministry of Justice with the participation of prominent members of civil society, entered the Parliamentary procedure in March 2010, and was adopted by the Parliament on April 6. The law will address all the above flaws according to best European practices. In particular it should enable CSOs to engage in economic activities if these activities are connected to the CSOs statutory goals and any profit is used to support its work. It is also expected to introduce public benefit status for CSOs, which will be the prerequisite for tax benefits and other types of state support.
CSO were actively involved in the process of drafting of the Law as well as in the process of lobbying for better provisions. In that terms several organizations together but also independently provides their comments and proposals on the Law to the Members of the Parliament but also to the relevant committees in the Parliament that discuses the Law.
Generally, the new law is harmonized with the European Convention for Human Rights and in most part with the Fundamental Principles on the Status of Non-governmental Organizations in Europe adopted within the Council of Europe.
Some of the novelties are following:
– Extension of freedom of association. The possibility given to physical and legal persons, domestic and foreign persons and minors to establish associations under specified conditions in comparison with the existing solution, which was limited only to adult citizens of the Republic of Macedonia is a direct contribution for full exercise of the right to free association in compliance with the European Convention for Protection of Human Rights and Freedoms, jurisprudence of the European Court for Human Rights and the Recommendations for Non-governmental Organizations of the Council of Europe.
– In this respect, although the new law does not explicitly provide the opportunity for informal association, with the separation of organizations from their legal status and the fact that this is not sanctioned, this is considered as allowed.
– Some of the provisions in the new law will contribute to the reduction of the Burden and Obstacles for Exercising the Right to Freedom of Association. In that terms the new law will facilitate the exercise of freedom to association: (a) parts of the content of the statutes of associations and foundations are foreseen as optional, which previously was not the case, and it provides greater freedom in the everyday work of the organizations, (b) clear definition of competences of the highest governing bodies of associations and foundations reduces the obstacles in exercising the freedom of association, (c) lesser administrative obstacles, e.g. during the registration of organizational types of foreign organizations, the opinion of the Ministry of Foreign Affairs will no longer be needed. In addition, unlike the previous law, the new law does not oblige the associations, foundations and unions to enter into registry their membership and linkages in international organizations.
– Contribution to good governance. The new law also intends to contribute for good governance in the organizations, by defining the main bodies of the associations and foundations, providing for other bodies to be foreseen in the statute. The law clearly implies to division of functions in the organization between governing and executive and the non-compatibility of these functions, particularly in the public benefit organizations. In view of the good governance are the provisions referring to use of funds in the organizations, as well as sharing the damage liability.
– Contribution for increased transparency. Majority of provisions are aimed at increasing the transparency of both the organizations and the state administration bodies. Following these lines are the principle for publicity and transparency of the work of organizations and the principle of non-partisan activity.