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What is the 2%?
Through the 2% stipulation from the Fiscal Identity, the individual contributors have the possibility to direct the 2% from the income tax to a nonprofit entity, established according to the decree 26/2000 regarding associations and foundations.
This mechanism has a series of advantages for all the parts involved –citizens, organizations and the state:
* It is a democratic mechanism that contributes to the fiscal and budget politics’ transparency
* It helps the NGOs in their efforts to solve different social problems
* It allows the citizens to contribute to the efforts of solving different social problems without generating an extra cost
* It reduces the state budget, having in view that the services offered by NGOs are generally quality and efficient services from the costs’ point of view as NGOs mobilize the financial resources from different sources and many of them involve the work of volunteers
* It creates a bond between state, citizens and organizations contributing to the development of the civil society and the social stock
A mechanism is created, through which a citizen can decide on the way he can spend his 2% from the income tax, directing this sum towards an NGO. So, a new partnership appeared between the citizen, the fiscal authorities and the NGOs’ sector. Concretely, the citizen tells the state the way in which he wants to spend a part of his tax.
But be careful, this sum does not represent a sponsorship or a donation, but a part of the state’s budget, given by every citizen to an NGO. The law is considered by many as an indirect help to the nonprofit departments or a model of “transition philanthropy”, given its application only in the Eastern Europe countries.
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