LEGAL ENVIRONMENT: 3.9 Three laws regulate the NGO sector in Armenia: the Law on Public Organizations, the Charity Law and the Law on Foundations. The majority of NGOs are registered under the Law on Public Organizations, which requires new organizations to register with the State Registry within the Ministry of Justice. Although the registration process is generally accessible, there are complex bureaucratic procedures that require significant documentation and multiple visits to the State Registry. For NGOs outside of the capital, this might mean several visits to Yerevan. Legal Environment in Armenia
1.0
3.0
4.0
4.0
4.0
3.8
3.8
3.8
3.8
3.8
3.8
3.9
3.9
3.9
5.0 5.0
7.0
The advocacy campaign that began in 2009 against the controversial draft amendments to the Law on Public Organizations continued with mixed results. Various meetings and protests resulted in some positive changes in the draft. The most disputed articles – which would allow for a third party to call for a general assembly of NGO members and to sue the organization – were removed from the draft. NGO efforts to change the proposed reporting requirements were not successful; this reporting provision requires organizations to publish their two to three page organizational reports in specific national newspapers at a cost of roughly $300 per year. The revised draft amendments were submitted to the National Assembly for discussion without NGO consultation and were
included in the agenda of the fall session despite continuing protests by NGOs. However, by the end of 2010, the parliamentary discussion on this draft had not yet taken place. At the same time, the Ministry of Justice used its executive power to retain administrative and oversight control over NGOs. On August 5, 2010, the government approved a decree that requires the administration to monitor all aspects of an organization’s activities, including its fiscal operations and its compliance with the laws. However, the decree was not accompanied by the necessary mechanisms for implementation and was not enforced during 2010. The controversial decree and inclusion of the draft amendments on the parliamentary agenda in the fall spurred another wave of discontent and confirmed NGOs’ fears concerning the state’s intention to limit the space for NGO activities and establish control over them, particularly those involved in advocacy and human rights. The legal framework continued to prevent NGOs from generating income and failed to provide beneficial tax exemptions. Membership organizations that are registered under the Law on Public Organizations are prohibited from engaging in direct income-generating activities, although foundations may do so. NGOs can apply to the Humanitarian Commission to receive a tax exemption for a specific project; however, this incentive is for the most part inaccessible for small and mid-scale projects because of bureaucratic and unclear procedures. In addition, the Commission traditionally exempts only humanitarian endeavors as opposed to development or other types of projects.
ORGANIZATIONAL CAPACITY: 3.9 NGOs continued to improve their organizational capacities even though the funding for capacity
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building has been reduced. Intermediary support organizations and resource centers also
THE 2010 NGO SUSTAINABILITY INDEX