Q&A

What do we understand by pubic interest organizations?

Several questions have arrived at the “Civic World” address, which can be summed up into one: what is the precise meaning of the term “public interest organization”? This time we asked the PhD. Natasha Gaber – Damjanovska to answer this question.

The general term public interest is used to refer to those organizations the goals of which serve the public, as opposed to others who have private goals (where the dominating interests are those of the organization members).

It is generally accepted that the public interest organizations deserve a direct or an indirect support from the government; however, the governments throughout the world are facing the problem of converting this principle into law, as well as its successful realization.

It is important to emphasize that these subject is variously interpreted in different countries of the world, most of all owing it to the specific legal tradition and the social circumstances, which have determined the present legal frames. This question is not equally regulated nor harmonized in the EU member countries despite the fact that the efforts to accomplish something in this field have been evident lately. The international agreements that are important for the basic principles of NGO organizing are not deeply concerned in the issue.

Since the public interest organizations aim to fulfill the educational, cultural, social, physical and spiritual needs of citizens and the society, often adding up to the state functions, in return, the governments award these organizations support, including a tax release. This lost tax income serves as indirect subvention, which helps the public interest organizations to realize their goals.

There are many privileges that can be spread over public interest organizations, but the mot important reason for becoming a public interest organization lies in the tax treatment, which that organization receives.

The organizations the job of which is to promote the public interest and have a privileged tax treatment are asked to prove their suitability. The authorities have a right to ensure that the non-profitable organizations that claim to serve the public interest are indeed doing it. Since they receive finances that would otherwise go to the country’s budget, they are responsible to use the tax privileges in the right way. They should be aware that their status of public interest organization is a privilege, not a right. That status should be asked for (initiated) by the organization itself and has to be justified, since it carries certain responsibilities.

D-r. Natasha Gaber – Damjanovska
Institute for Social, Political and Legal Researches