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Regular annual funding of political parties

20.04.2021.

The basic obligations of political parties regarding regular annual funding are:

  • keeping business books in accordance to the regulations on accounting of non-profit organizations;
  • adoption of the annual work program and financial plan for the next calendar year no later than at the end of the current year;
  • publishing reports on donations received in support of their political activities in the first six months of the current year (semi-annual report), or notifying them that they have not received donations during that period, on their websites no later than July 15 of the current year;
  • preparation, submission and publication of the financial report for the reporting period from 1 January to 31 December (Annual financial report); and
  • delivery by e-mail to the State Election Commission of the web address on which they published the semi-annual report / notice and the Annual Financial Report.

 

Political parties may, in order to achieve their political goals, generate income from:

  • property in its ownership, membership fees i.e. membership contributions, publishing activities, voluntary contributions (donations), sale of propaganda material, organization of party events and from other legally permitted sources; and
  • from the state budget (political parties that have representatives in the Croatian Parliament) or from the budget of local and regional self-government units (political parties that have members in the representative bodies of local and regional self-government units), under the conditions and in accordance to the Law on Financing.

 

Who CAN donate to political parties?

  • natural and legal persons who, once or several times during a calendar year, voluntarily give money, i.e. provide services or provide products free of charge, to a political party for its political work.

 

Who CANNOT donate to political parties?

  • foreign states, foreign political parties, foreign legal entities;
  • state bodies, public enterprises, legal entities with public authorities, companies and other legal entities in which the Republic of Croatia i.e. local and regional self-government units have shares or stocks, and public and other institutions owned by the Republic of Croatia i.e. local and regional units regional self-governments;
  • workers and employers associations or unions;
  • associations and foundations represented or represented by state officials or officials of local and regional self-government;
  • religious communities, humanitarian and other non-profit associations and organizations;
  • natural and legal persons against whom the procedure of collection of due outstanding liabilities towards the budget or employees is conducted;
  • units of local and regional self-government, except in cases and in the manner prescribed by the Law on Financing;
  • unnamed (anonymous) sources; and
  • third parties (intermediaries), either in cash or in the form of products.

 

Any political donations from unauthorized sources must be immediately reported by the political party to the State Election Commission and to the State Audit Office, and the amount of the value of such donations must be paid into the state budget no later than 8 days from the date of receipt of such a payment.

 

The total value of a donation from a natural person to a political party may not exceed the amount of HRK 30,000.00 (thirty thousand Croatian kunas) in a calendar year.

The total value of a donation from a legal entity to one political party may not exceed the amount of HRK 200,000.00 (two hundred thousand Croatian kunas) in a calendar year.

The semi-annual report is a report on donations received by political parties in the first six months of the current year to support their political activities, which they are obliged to publish on their websites.

The semi-annual report should contain specific data on the donor, the date of payment of the donation, i.e. the provision of products or services free of charge, the amount of the donation or the market value of the donated product or service indicated on the non-collection invoice, and the type of each donation.

The prescribed form for the semi-annual report (form IZ-D) is available on the website of the State Election Commission.

The semi-annual report / notice of not having received any donations must be published by political parties no later than 15 July of the current year, and the publication must be publicly visible for at least 30 days.

As an annex to the Annual Financial Report, political parties are obliged to enclose:

  • annual work program,
  • financial plan, and
  • report on donations (form IZ-D) received during the year with specified data on natural and legal persons who made donations, the date of payment of the donation or provision of products or services free of charge, the amount of donation received or the market value of the donated product or services indicated on the invoice that is not subject to collection, and the type of each individual donation.

The report on received donations should also contain specified data on donations paid by the political party to party candidates to their special account during the election campaign, and data on donations to the accounts of entities directly or indirectly related to or under the control of the political party.

Political parties are required to submit the Annual Financial Report with all the components listed to the State Election Commission and the State Audit Office within 60 days from the end of the reporting period.

Delivery is made to the following addresses:

  • The State Election Commission of the Republic of Croatia (Visoka 15, Zagreb), with the note “Annual Financial Report,” and
  • State Audit Office (Tkalčićeva 19, Zagreb).

Annual financial statements are public documents.

Political parties are obliged to publish the Annual Financial Statements for the previous year no later than March 1 of the current year, with all the components listed.

The publication of the Annual Financial Report must be publicly visible for at least 90 days.

Irrespective of the misdemeanor liability, the payment of funds for regular annual financing from the state budget, i.e. from the budget of a unit of local and regional governmental bodies, shall be suspended to a political party that:

  • fails to submit to the State Election Commission and the State Audit Office the Annual Financial Report with the prescribed attachments and within the prescribed deadline; and
  • does not publish a semi-annual report on donations received nor a notice that it has not received donations.

 

For violations of the Financing Act, political parties may be fined in the amount of HRK 50,000.00 to HRK 500,000.00.

The State Audit Office and the State Election Commission are obliged, within their scope, to notify the State Attorney's Office of the Republic of Croatia of established violations of the Financing Act.

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