The Ministry of Justice proposed the Act on Public Beneficial Effects (zákon o veřejné prospěšnosti). The Bill reflects the implementation of the New Civil Code. The intention of the Ministry is to set condition for public beneficial effect with the binding effect. As a consequence, the public beneficial effect is essential for recognition of an association to be granted the status of public beneficial association (private and church foundations, citizens associations, etc). The status should be granted to those associations striving for public welfare, development of civil society, humanitarian and community work, and cultural activites. An association should also fulfill legal condition (i.e. internal inspection authority minimizing the conflict of interests). As a side effect, the association with the granted status should gain the possibility of tax relief and indirect public promotion.
The Bill was passed by the Government at its last session on 17 April. The Bill should come into force in January, 2014.
For further information, click here (explanatory report)