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NGOs need funds. How else could they achieve their statutory objectives? Pursuant to the applicable laws, they may perform gainful activity and collect funds for provided services. They can conduct both business activity – subject to the entry in the register of entrepreneurs, as well as so-called paid public benefit activities.
Paid public benefit activity is a new form of activity designed only for NGOs and other certain legal entities. It kind of activity shall be considered as the exception to the general rule. For a general rule, the gainful activity takes place in the form of business activity.
In practice, however, there are many doubts concerning this matter. There is a difficulty with proper identification of business activity and paid public benefit activities. Non-governmental organizations, acting in good faith, often without professional background, confuse or mix those two concepts – exposing themselves to legal sanctions. Those topics were discussed during the seminar. It was attended by representatives of NGOs and scientist. The report from this event will be available soon.
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