Non-Profit Status for NGOs: Acquisition, Requirements, and Maintenance

For a non-governmental organization, non-profit status is, first and foremost, the opportunity to officially work with grants, donor funds, and charitable contributions without paying income tax. It is also a signal to partners and donors that the organization operates within the legally defined model and meets transparency requirements for the use of funds. In many competitions and grant programs, having non-profit status is a mandatory condition for participation.

Can an NGO operate without it? Yes, the law does not prohibit this. However, it is then treated as a regular income tax payer and loses tax advantages, while cooperation with some donors becomes impossible or significantly more difficult. Therefore, for most NGOs, the issue of non-profit status is a practical necessity.

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