Position of the NGO Members of the Memorandum Council

In light of the public discussion regarding the NGO funding model and the effective use of public funding, the NGO members* of the Council for the Implementation of the Memorandum of Cooperation between Non-Governmental Organizations and the Cabinet of Ministers (hereinafter – the Memorandum Council) present their position and vision regarding the improvements needed.

Public funding is already, in most cases, allocated through transparent and professional procedures, based on clear and pre-defined criteria. At the same time, it is important to ensure that these principles are consistently applied across all funding instruments, and to continue strengthening funding planning, regular evaluation, and open oversight, so that public resources are used efficiently and in line with policy objectives.

I. OPINION ON STRENGTHENING CIVIC DIALOGUE

Civic Dialogue

Civic dialogue is an essential component of democratic governance alongside social dialogue. It provides a structured framework for cooperation between the state and civil society, enabling public interests, expertise, and practical experience to contribute to policymaking. The Memorandum Council is a state-established platform for civic dialogue whose role is to coordinate this cooperation and promote higher-quality decision-making.

We Call for the Preservation and Strengthening of the Memorandum Council

The Memorandum Council should remain the single platform for civic dialogue. It ensures coordinated cooperation between the state and civil society, facilitates the involvement of experts, coordinates working groups, and develops proposals on issues of national importance. Fragmenting its functions or weakening its role would reduce the quality and effectiveness of civic dialogue.

Strengthen, Rather Than Undermine, the Newly Introduced Model

The new operating model of the Memorandum Council was introduced only at the end of 2024, following several years of joint work between the state and civil society. Before deciding on significant structural changes, its results should first be assessed. An evaluation of the Council’s work and the development of proposals for its improvement are also included as obligations in the delegation agreement concluded with the Latvian Civic Alliance, which performs part of the Secretariat functions of the Memorandum Council.

Strong Civic Dialogue Is the Foundation of Good Governance

Just as the National Tripartite Cooperation Council plays an important role in social dialogue, civic dialogue also requires a stable institutional platform. Strong civic dialogue contributes to better, more transparent, and evidence-based policymaking.

II. THE NGO FUNDING SYSTEM IN LATVIA SHOULD BE BASED ON THREE MAIN PRINCIPLES

1. Open and Transparent Funding

Clear Funding Principles

Public funding is allocated in accordance with policy planning documents, using pre-defined criteria, open calls for proposals, and clearly defined performance indicators.

Dialogue with the Sector

Before introducing new funding programmes or significant changes, public consultations should be organised with sectoral organisations and other stakeholders to ensure that funding instruments contribute to achieving policy objectives while taking into account practical implementation and cross-sectoral impacts.

Ensuring Predictability

Public institutions should publish planned funding programmes, priorities, calls for proposals, timelines, and indicative funding amounts in order to ensure predictability and transparency.

2. Evidence-Based Policy Built on High-Quality Data

Unified and Transparent Funding Data

A unified public funding information system should be established to ensure complete, comparable, and coherent information on all public funding allocations.

Annual Public Funding Report

An annual public report should be prepared on state and municipal funding, covering not only associations and foundations but also other legal entities, including businesses, to provide a comprehensive overview of public funding distribution and support evidence-based policymaking.

Improvements to Annual Reports of Associations and Foundations

The structure of annual reports should be reviewed and improved to provide more precise and standardised information on funding sources, including distinguishing European Union funding from Latvian state funding, as well as on the use of public funding.

Unified Data Standards

Common standards for data collection and publication should be introduced for all institutions administering public funding.

3. Governance and Evaluation of Funding

Regular Evaluation of Programmes

Each line ministry and other public funding administrator should evaluate its funding programmes annually, analysing their alignment with policy objectives, achieved results, impact, and necessary improvements. Evaluation results should be used in planning future funding, while avoiding subjective assessments.

Maintaining a Centralised System

We do not support solutions that increase fragmentation in funding administration, including the division or liquidation of the Society Integration Foundation. Centralised administration promotes consistent practices, more effective oversight, and a clearer overview of public funding use.

Unified Funding Governance

The administration of public funding should promote a centralised approach that ensures common standards, greater transparency, comparable data, and more effective oversight. Fragmentation in funding administration hinders transparency and the assessment of effectiveness.

Monitoring and Results

Funding allocation should be followed by regular monitoring of project implementation and evaluation of results to ensure effective use of public resources and continuous improvement of the funding system.

III. INFORMATION ON CURRENT MEASURES TO IMPROVE THE NGO FUNDING MODEL

Involvement of Sector Experts in Public Expenditure Reviews

We have encouraged the Minister of Finance to ensure the participation of sectoral organisations and relevant experts in state expenditure reviews so that decisions are informed by practical experience and contribute to more effective use of public resources. Sector organisations can provide additional insights into opportunities for improving efficiency and identifying potential savings.

Development of an NGO Funding Model Concept

One of the tasks of the Memorandum Council’s Finance Working Group is to prepare proposals for a long-term funding system, including mechanisms to promote private funding and philanthropy. Work on this concept is currently underway, including an assessment of its fiscal impact. The concept proposal is expected to be completed by November this year.

Improvements to Annual Reports

One of the tasks of the Memorandum Council’s Finance (Budget and Tax) Working Group is to prepare proposals for improving annual reports in order to strengthen transparency and data quality. The proposals are currently being refined, with completion expected by October this year. The State Revenue Service has indicated that these changes could be incorporated in 2027, when improvements to the Electronic Declaration System (EDS) are planned for 2028–2029.

Evidence-Based Policy Proposals

In 2025, the Memorandum Council, together with public administration institutions, decided to commission an in-depth study of the associations and foundations sector through a public procurement procedure. The study aims to assess the sector’s compliance with the existing legal framework, identify systemic challenges, and identify organisations whose activities may not correspond to the nature of associations and foundations.

Based on the study results, proposals will be developed to improve the operation and oversight of associations and foundations, as well as the legal framework and system governing public benefit organisations. Significant amendments to the laws governing associations, foundations, and public benefit organisations have not been introduced for a long time due to the lack of sufficient evidence on key issues affecting the sector.

The study findings will therefore serve as a basis for future policy planning and decision-making by the Ministry of Justice and the Ministry of Finance, ensuring an evidence-based approach to the development and oversight of the sector. An interim report is expected in early September, while the final report is planned for December 2026.

Dalies: