The European Commission on Tuesday proposed the creation of a legal form to facilitate cross-border activities of non-profit associations in the EU.
The proposal aims to improve the functioning of the EU Internal Market by removing legal and administrative barriers for non-profit organisations operating in multiple countries.
"We are now making it easier for those entities to operate cross-border, enabling them to mobilise members and volunteers across the EU. The administrative cost saving of up to €770 million per year will benefit the economy and civil society alike," stated Thierry Breton, the EU Commissioner for Internal Market.
Currently, more than 300,000 not-for-profit organisations operate in more than one EU Member State.
Often, they come up against different rules, particularly when it comes to its creation, affiliation and governance, forcing them to create a new entity in each Member State where they are established.
Cross-border form
To remedy this, the Commission wishes to introduce the legal form of the European cross-border NGO. National legal forms can continue to exist, but each Member State should, in parallel, introduce this legal form of European cross-border association for non-profit organisations that wish to extend their activities.
These organisations would then be automatically recognised in the other Member States, where they could also carry out economic activities. In terms of taxation, they should be treated in the same way as their national counterparts. The text also includes harmonised rules on the transfer of registered offices and guarantees of access to public funding.
This proposal for a directive still has to be approved by the Member States and the European Parliament, which last year advocated a statute for cross-border associations and non-profit-making organisations.
"Non-profit associations play a pivotal role in our social economy by advancing collective interests in key areas such as employment, health, social services, education, research or sports," Breton said.
