Partners Albania for Change and Development, through its work for the monitoring of the enabling environment for the development of civil society in Albania, was informed of the adoption of Decision No. 445, dated 24.07.2023 “On the approval of standard templates of the electronic registry of non-profit organizations”. This decision is a pivotal step in establishing the electronic registry for non-profit organizations (NPOs) in the country in accordance with the provisions of Law No. 80/2021, “On the registration of non-profit organisations.”

Upon conducting a thorough assessment of the published templates, we express our regret over the identification of some problematic issues that reflect the prevalent ambiguities and confusion surrounding NPOs, which we hoped would be addressed by the new Registration Law and its bylaws. These issues could have been avoided through a comprehensive and effective consultation process with NPOs during the drafting of the templates.

During the High Judicial Council meeting convened on July 24, 2023, it was affirmed that the standard templates were disseminated to all non-profit organizations for consultation. However, we observe that many of the active organizations in the country, including Partners Albania for Change and Development, which, through the National Resource Centre for Civil Society, organized and led the collective efforts of the NPO sector in addressing issues related to the draft law “On registration of nonprofit organizations” during the consultation process with the Ministry of Justice and the Albanian Parliament, have not been included in the consultation process.

Recognizing the importance of the content of the standard templates of the electronic registry for NPOs, despite the decision having already entered into power, we deem it pertinent to offer our opinions and comments on this matter, as follows:

1.  In the content of the templates, in some cases, there is confusion regarding the entities that are required to register in the Electronic Registry of Non-Profit Organizations.
In the template “Request for Initial Registration of the Association, Foundation, Center,” and similarly in other templates part of the Decision, the legal forms of the organizations that must be registered are defined in the title of the document, in accordance with Law No. 8788, dated May 7, 2001, “For Non-Profit Organizations.” Meanwhile, in point 2 of Section A, “Mandatory data” of the request template for the initial registration, an alternative option labeled “Other” is present. The inclusion of this alternative contradicts not only the very title of the document but also the provisions of the Law on Non-Profit Organizations.  Article 2 defines “non-profit organization’ as associations, foundations, and centers whose activity is conducted independently and without being influenced by the state”, and leaves no room for other forms.

Furthermore, in the Application Template for NPO Extract, an inconsistency arises as the Union/Federation is included in addition to the three aforementioned forms, which are regulated by a separate law.

2. The content of the templates should reflect both primary and secondary data registered in the electronic registry of NPOs, as defined in DCM No. 94, dated 09.02.2022, “for the approval of detailed rules for primary and secondary data, which are registered in the electronic registry of nonprofit organizations, for information providers, interaction with other databases, as well as for the level of access for interested entities.” In certain instances, these essential data are not adequately represented in the template for the Request for the Initial Registration of the Association, Foundation, and Center.

3. An issue of concern within the Request for Initial Registration of the Association, Foundation, and Center pertains to a fundamental principle outlined in the Law of NPOs: the principle of independence from the state. Specifically, in point 6 of Section A, “Mandatory Data,” the inclusion of the alternative “Albanian State” for ownership contradicts this principle.

4. The entirety of point 6 in Section A is problematic, particularly in mandating the determination of ownership for NPOs expressed in percentage terms. This requirement becomes problematic as NPOs do not have “owners”; rather, they often rely on diverse sources of funding (if it is about incomes generated from various foreign and Albanian sources of funding) or governing bodies that may be Albanian or foreign (if it is about decision-makers), thus this request is not considered relevant to the nature of the organization and operation of an NPO. In case of interest in the nationality of the board members or the executive director (decision-making body and legal representative), it is addressed in the template.

5. In certain instances, the language employed in the templates appears more aligned with the terminology of the private (business) sector than with the non-profit sector, further contributing to the wrong perceptions and understandings that exist within state institutions regarding the nature and non-profit activity of NPOs. Thus, in points 1 and 2 of Section D, “Mandatory Declarations for Tax, Social Security, Health, and Labor Purposes,” the expected turnover until the end of the year and the expected profit until the end of the year (in ALL) are required. These terms are inappropriate for NPOs, considering that NPOs are not permitted by law to generate “profit.”. These two points again reflect confusion for a sector that is non-profitable.

6. In Section AII, “Data on the Legal Entity Founders,” point 13 states, “Is the business registered in NBC?” and point 14 states, “If yes, provide the NUIS”. This means that the legal person must be only a business, while an NPO can be created by other legal entities, like NPOs that are registered in court.

7. In the template titled “Documents accompanying the request for the initial registration of the association, foundation, and center,” there is an inconsistency concerning the documents required for the center. Specifically, the inclusion of the “Initial Fund” as part of the requisite documentation contradicts the legal stipulation, as the law on NPOs mandates this obligation solely for foundations.

8. Annex no. 3, “Template for the suspension of the registration request,” included a provision according to which the judge or cancelor decides on the suspension of the initial registration. However, as per Article 29, point 1 of Law No. 80/2021 “On the registration of non-profit organisations,” amended through the Decision of the Constitutional Court No. 62, dated November 20, 2023, it is explicitly specified that only the judge has the authority to suspend consideration of the request and notifies the applicant in writing about the grounds for the suspension.

9. The templates do not reflect the changes made by the country’s major reforms, such as the Administrative-Territorial Reform, because of which there are no longer administrative divisions called “communes,” a term widely used in the templates.

In light of the concerns raised above, coupled with potential other issues that may arise from a more extensive dialogue with the NPO sector, we appreciate a comprehensive review of the decision to address these issues. Partners Albania for Change and Development is fully committed to offering its collaboration on this matter, as well as any other matter that contributes to the establishment of a conducive environment for the development of civil society in our country.