Are you sure?

Civil Code to allow private foundations

The draft for the new Civil Code creates a new category of NGOs by legalizing private foundations, a type of organization hitherto nonexistent in the country’s legal framework.

The requirement of “public benefit” will be eliminated from the criteria foundations have to fulfill in their operations, clearing the way for family trusts and other private non-profit organizations, Péter Gárdos, a consultant to the Justice and Law Enforcement Ministry, told business daily Világgazdaság. While legal professionals expect the number of foundations to increase from the current 20,000, the majority will continue to serve the purpose of public benefit. The drafting of the new Civil Code started three years ago, the final version may be passed in 2008 and come into effect in 2010 the soonest. (Világgazdaság)