An intense lobbying effort has begun to try to amend provisions of the new Russian Tax Code, which came into effect this year. These provisions:
exclude many foundations that provide grants to Russian NPOs from the list of grantmakers whose grants are tax-exempt;
exclude social services and human rights from the list of activities for which tax-exempt grants may be made.
Since more than 50 per cent of all grants to Russian NPOs are made in these two fields, the changes are especially troubling. The People’s Assembly, an association of NPOs, has therefore launched a media and letter-writing campaign to urge amendment of the two provisions. A working group of tax experts, including representatives of the Charities Aid Foundation and deputies in the Duma, has begun to meet to discuss these issues.
Reported in E-SEAL in April 2003 and IJCSL in January 2003.