Freedom of association is ensured as a basic constitutional right in Article 44 of the Bulgarian Constitution from 1991. Freedom of association is also ensured as a basic principle of the constitutional order in Article 12 of the Constitution. Restrictions to the right to freedom of association can be found in Article 44 paragraph 2, which prohibits activities aiming to violate the country’s sovereignty and national integrity or the unity of the nation, activities aiming to incite racial, national, ethnic, or religious enmity or activities violating the rights and freedoms of citizens. Moreover, Article 44 also prohibits organizations with a clandestine or paramilitary structure and organizations seeking to attain its aims through violence.

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In 2000 a new law regulating not-for-profit organizations in Bulgaria was adopted. This new law is called the Law on Non Profit Legal Entities and it governs the establishment, organization, activities and dissolution of non-profit legal entities in Bulgaria. The new law is an improvement in many areas for the civil society in Bulgaria and it is replacing the previous provisions for not-for-profit organizations that could be found in the 1949 Persons and Family Act.

The Law on Non Profit Legal Entities from 2000 recognizes two main kinds of not-for-profit organizations in Bulgaria, associations and foundations. Article 19 of the law defines an association as being a membership based organization established by three or more persons with the objective to pursue not-for-profit activities. Foundations are defined as institutions with specified assets that are intended to achieve a not-for-profit purpose. Article 3 of the law is giving not-for-profit organizations in Bulgaria freedom to determine their activities. This article also states that the determination of activities shall be set forth in the statute, the articles of association or in the amendments thereto. Only the law can limit the allowed activities for non-profit legal entities.

Not-for-profit organizations may qualify for tax exempt status in Bulgaria if they are registered at the Court and in the Central Registry and are pursuing public benefit purposes. To qualify for such benefits the organizations need to conduct activities in the field of education, charity, health, development or establishment of spiritual values, civil society, engineering, technology, physical culture, the support of the socially vulnerable or handicapped, support of social integration and personal advancement or the protection of human rights and the environment.

Not-for-profit organizations in Bulgaria are held accountable through reporting and governmental controls. Public benefit organizations have to submit an application for registration at the Central Registry with the Ministry of Justice and submit an annual report on their activities to the Central Registry by 31^st May each year. The Ministry of Justice shall also be entitled to conduct ongoing control of the organizations and request current information about the circumstances subject to entry in the Registry.

A not-for-profit legal entity in Bulgaria shall be dissolved if the term for which it has been established has expired or by decision of its supreme body. It shall also be dissolved by decision of the District Court by domicile of the non-profit legal entity, if the organization has not been established in compliance with the legal procedure, it pursues activities contrary to the law, public order or good morals or it has been declared bankrupt. After the decision to dissolve an organization is taken, it shall be liquidated. The property that remains after the creditors have received what they are entitled to should be distributed in compliance with the statute of the organization, the articles of association or the supreme body of the not-for-profit legal entity.

Analysis provided by: Maria Bideke, International lawyer and Director of Law Association Justice International.

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