Socially oriented non-profit organizations will get support along with business

The Republic of Tatarstan occupies one of the leading positions in the Volga Federal District in the number of registered non-profit organizations (hereinafter - NPOs). So, 5,847 NPOs were registered in the Republic of Tatarstan as of January 1, 2020. Today, socially oriented NPOs, along with the affected sectors, have been granted a deferment in tax and insurance contributions, a deferred lease and a soft loan at 2% per annum.

Since 2002, NPOs have been provided with comprehensive state support. A regulatory framework has been created for them in terms of grant support, targeted funding, and the allocation of subsidies on a competitive basis for implementation of socially significant projects. According to the Order of the President of the Russian Federation of May 15, 2020, the benefits and measures provided for small and medium-sized businesses are extended to NPOs. In particular, by June 1, tax and insurance payments should be written off for socially oriented NPOs.

Regarding the deferral of rental payments, the Government of the Russian Federation adopted and put into effect a package of documents that extends from April 1 to October 1, 2020 for the above-mentioned enterprises, the deferral of payment of rent for premises and real estate, as well as debts for these items. Debt rents for socially-oriented nonprofit associations affected by a pandemic can be repaid until January 1, 2023.

Also, for socially oriented NPOs, a soft loan at 2% per annum is available. The loan amount is calculated using the following formula:

(1 minimum wage + 30% of social contributions) * number of employees as of June 1, 2020 * 6 months.

The loan will be provided not in full immediately, but in monthly installments:

one minimum wage + insurance premiums for each employee monthly for six months.

The final rate for consumers will be 2%, the rest is subsidized by the state. The interest on the loan is capitalized - that is, added to the main debt and paid with it, without the need for a monthly repayment. The loan repayment period is April 1, 2021. For enterprises that retained 90% of employees at the end of each month, during which a loan agreement was in force from the staffing level as of June 1, 2020, the loan and interest on it will be completely written off. If at least 80% of the employees remain in the staff, the entrepreneur will have to repay only half of the loan and interest on it. A loan can be used both for paying salaries and for refinancing or repaying a previously taken interest-free salary loan.

To popularize social entrepreneurship under the Ministry of Economy of the Republic of Tatarstan, a Social Innovation Center has been created. The center provides consulting support to socially oriented businesses, and training seminars for NPOs are held in conjunction with the Kazan Federal University. Particular attention is paid to pressing issues of interaction of non-profit organizations with government bodies, business community, public councils, budgetary institutions and initiative citizens. The center conducts educational programs of entrepreneurs on topics of information openness, increasing income.

As part of infrastructure support, starting from 2017, inter-municipal resource centers of NPOs operate in Tatarstan, which provide training, consulting and support for the activities of NPOs. To date, six such centers are functioning in Kazan, Almetyevsk, Naberezhnye Chelny, Buinsk, Chistopol and Kukmor.