Parliament initiates legislation to harmonise rules for non-profit organisations

Article summary

The European Parliament has adopted a series of legislative recommendations aiming to harmonise and strengthen the legal status of European non-profit organisations (NPOs) and bring them on par with their for-profit counterpart, in order to fully enjoy the benefits of the single market. Parliament is asking the Commission to submit a Regulation that provides for a European association, including rules on the establishment, transparency and governance of cross-border entities, as well as a Directive that establishes common minimum standards for NPOs in the EU. The European Commission will need to prepare a legislative proposal in reaction to Parliament’s requests, or inform MEPs of its decision not to do so according to article 225 of the Treaty on the Functioning of the European Union (TFEU).