Do you know the abbreviation OPP? It stands for public benefit organizations. The definition clearly indicates their main purpose. Let's take a closer look at how public benefit organizations operate, how they are financed, and finally, what privileges they enjoy. We also provide tips on how to recognize whether an organization has public benefit status.
What is a public benefit organization?
A public benefit organization (OPP) is a non-governmental organization working for the benefit of the whole or part of society. Public benefit activities can be carried out by foundations, associations, sports clubs, and other entities.
Institutions with public benefit status have existed in Poland since 2004. That was when the Act on Public Benefit Activity and Volunteer Work came into force. According to its provisions, non-governmental organizations can apply for public benefit status and the privileges that come with it. This status is granted at the request of the organization and involves obtaining a KRS number in the National Court Register. And here we come to an important issue, namely checking the activities of a given organization. Unfortunately, in the era of fictitious collections and the existence of ghost foundations, such control is a necessity.
How can you check whether an organization has public benefit organization status?
A list of organizations with public benefit status can be found on the website of the National Court Register. Simply enter the organization's KRS number or name in the appropriate search engine fields to obtain information about it.
Obtaining OPP status is not permanent. An organization may lose it, for example, as a result of failing to submit reports on its activities within the specified time limit.
Public benefit organizations – definition of PBO privileges and obligations
The status of a public benefit organization comes with privileges and responsibilities. The former include, among others, the possibility of exempting public benefit organizations from court fees, corporate income tax, property tax, and the possibility of providing information about their activities in the public media (radio and television) free of charge.
One of the most important privileges of public benefit organizations is the ability to collect 1.5% of tax. The funds collected in this way are often an important source of income for the organization. Public benefit organizations also receive funding from private donations and donations from public administration.
Check out how to donate 1.5% of your tax to cancer patients.
What are public benefit organizations required to do? The definition and regulations indicate numerous obligations for PBOs, including the need to prepare substantive and financial reports. These must be submitted within a specified time frame and made available to the public, thus providing a form of social control over the activities of PBOs. Speaking of control, the proper use of public benefit organization powers is supervised by the Chair of the Public Benefit Committee. Public benefit organizations are subject to periodic inspections.
You can find reports from public benefit organizations on their websites and on the website of the National Institute of Freedom. Every year, this portal also publishes an updated list of public benefit organizations that are eligible to receive 1.5% of your tax. Before you decide who to give your 1.5% to, check whether the organization is eligible to receive it.
What activities can public benefit organizations engage in?
Every public benefit organization must specify the scope of its activities in its statutes or other internal documents. The funds collected by the PBO for its activities, whether through donations or, among other things, the collection of 1.5%, must be spent on the purposes specified in the statutes.
What activities do public benefit organizations perform? The activities of public benefit organizations include educational activities, supporting culture, sports, health care, psychological support, environmental protection, and social assistance.
Public benefit organizations operate locally or nationwide, conducting both paid and unpaid activities. As part of their paid activities, public benefit organizations may sell services or products, such as tickets to performances prepared by their charges. The funds collected in this way are transferred to the statutory purposes of the public benefit organization.
Why do public benefit organizations operate in Poland?
By conducting socially useful activities, public benefit organizations influence the functioning of society as a whole or of a selected group within it that finds itself in a difficult situation, for example due to illness, homelessness, or poverty. The social benefits resulting from the activities of a public benefit organization depend on its profile and statutory objectives. These may include financial support for cancer patients, support and promotion of local culture, or assistance to homeless animals. The activities of public benefit organizations improve the well-being of society and allow them to help those most in need, who very often cannot count on state assistance or have already exhausted all possible forms of it.
At the Cancer Fighters Foundation, we have been supporting children and adults with cancer for years. We provide financial, substantive, psychological, and educational assistance. If you would like to become one of our beneficiaries, please contact us.
Check out: how to choose a cancer foundation.
How can you support public benefit organizations?
Public benefit activities are possible thanks to the daily support of donors and volunteers. Every form of help, even the smallest, matters. Supporting fundraisers, donating 1.5% of your tax, collecting money at work, or simply publicizing and promoting the activities of a given organization. If you are unable to support the foundation financially, you can give something equally valuable and needed—your time and presence. A moment to talk to those in our care, help organize workshops or games. Together, we can do more!
Check it out: good deeds come back around – how does helping others affect us?
