During the well researched period of 2004-2007, 13.5% of the annual grant distributed by the National Civic Fund went to organisations working in the field of culture, although their average amount was below the average.
Fundamental changes took place in the administration of non-profit organisations by the so-called Act on Civil Society (CLXXV/2011) on the rights of association, on non-profit status as well as the operation and support of civil society organisations replacing the Non-Profit Act (CLVI/1997), the National Civil Fund Act (L/2003) and the Act on the Rights of Association (II/1989) among others.
The new law introduces the notion of civil organisation (association, federation and foundation) and reduced the former two-tier classification of outstanding and simple public benefit organisations into one, the Public Benefit Organisation. The new administrative rules prescribe double entry book keeping, introduces bankruptcy, liquidation and winding-up processes, and established the National Cooperation Fund (NEA) which replaces the National Civil Fund in its role of distributing financial support to civic organisations. As it was pointed out in chapter 4.1.4, about 20% of the subsidy received from the 1% of citizens’ income tax benefits cultural organisations.
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