Public Benefit Organisations in Latvia: Key Developments
Public benefit policy in Latvia aims to establish a stable legal and fiscal framework that supports the sustainable development of public benefit organisations and promotes public engagement in activities serving the public interest.
The sector continues to demonstrate steady growth. According to the public report “On Public Benefit Organisations’ Activities and Trends” prepared by the Ministry of Finance, donation volumes in recent years have reached their highest level. Data for 2024 indicates a strengthening of the sector and a gradual increase in public engagement. Public benefit organisations are enhancing their operational capacity and contributing significantly across several areas of public interest.
In 2024, the total revenue of public benefit organisations reached EUR 354.7 million, representing an 11% increase compared to 2023 and nearly a 50% increase compared to 2021. Donations play a significant role in this growth, amounting to EUR 80.6 million in 2024. Notably, the volume of general donations totalled EUR 44.9 million, representing a substantial 46% year‑on‑year increase.
Donations are primarily directed towards healthcare, charity, social welfare, education, and human rights, reflecting key societal priorities. The donor base continues to expand, with 1,855 enterprises making donations during the year. Individual involvement is also on the rise — 12,975 individuals claimed personal income tax relief for their contributions.
The legal framework provides enterprises with the opportunity to reduce their taxable base or corporate income tax liability when donating to public benefit organisations. Individuals are likewise entitled to personal income tax relief for donations made in accordance with the law. This mechanism promotes participation by both businesses and individuals, ensuring a transparent and legally defined support system.
Furthermore, public benefit organisations contribute to the national economy through employment and tax payments. In 2024, the sector's tax payments amounted to EUR 50.2 million, while more than 13,000 people were employed within these organisations. Overall, the available data confirms the robustness of the sector and sustained public trust in its activities.
Further information is available in the public report prepared by the Ministry of Finance: “On Public Benefit Organisations’ Activities and Trends”
Regulation in the Field of Public Benefit Organisations:
- Law on Public Benefit Organisation;
- Cabinet Order No. 266 of 13 May 2026 "On the Public Benefit Commission"*(available only in Latvian);
- Cabinet Regulation No. 976 of 30 November 2004 "Regulations of the Public Benefit Commission";
- Cabinet Regulation No. 977 of 30 November 2004 "Regulations Regarding the Nomination and Inclusion of Representatives of Associations and Foundations in the Public Benefit Commission"*;
- Cabinet Regulation No. 407 of 5 May 2010 "Regulations Regarding the Sample Form of the Previous Year's Activity Report and the Future Activity Plan of an Association, Foundation, Religious Organisation or its Institution"*
- Cabinet Regulation No. 11 of 4 January 2005 "Regulations on the Administrative Expenses of Public Benefit Organisations"*;
- Cabinet Regulation No. 566 of 21 June 2010 "Regulations Regarding the Procedure for Transferring the Property of Public Benefit Organisations and the Criteria for Determining the Public Benefit Organisation to Which the Property of a Dissolved Public Benefit Organisation is Transferred"*;
- Cabinet Regulation No. 32 of 11 January 2005 "Regulations on Socially Disadvantaged Groups"*;
- Cabinet Regulation No. 439 of 14 July 2022 "Regulations Regarding the Annual Reports of Associations, Foundations, and Trade Unions and the Organisation of Accounting Using a Single-Entry System"*.
* Unofficial translation. In case of discrepancies, the original Latvian text shall prevail.