Romanian journalist: Authorities are trying to dismantle a functional funding system for media and NGOs

Tsvetelina Sokolova, Mediapool, May 8, 2025

Romania has a functional mechanism for financing the civil sector and the media that operates on the principle of non-governmental organizations (NGOs). Under the system, each year, taxpayers can redirect up to 3.5% of their annual personal income tax to an NGO of their choice. Recently, however, the mechanism has limited the types of income that can be included in it. In a special interview with Mediapool, Romanian journalist Iulia Roșu says that this is part of a series of attempts in the country to discredit the civil sector.

Iulia Roșu has worked for the prestigious Romanian publications Adevărul and Libertatea. At the beginning of 2024, she left Libertatea on principle, and since the summer of 2024 she has been co-founder of the NGO-funded media outlet SNOOP.ro. Iulia Roșu has worked mainly on issues related to human rights, police abuse, addiction, and gender-based violence.

Ms. Roșu, how does the mechanism for financing the civil society sector in Romania work in practice?

Each year, individual taxpayers can choose to redirect a small percentage (3.5%) of their income tax to an NGO of their choice by filling out a simple form (form 230) and submitting it to the tax authorities. If they do not choose an NGO, the money remains in the general government budget. The mechanism does not cost the taxpayer anything extra—they simply redirect a portion of what they already owe.

Thus, in the case of the independent press, for example, we always tell people that they do not have to pay anything extra to support/help us, they can simply redirect the 3.5% that would go to the state budget anyway if it were not redirected.

Are there specific eligibility criteria for non-governmental organizations (NGOs) to receive funding through this mechanism? Can any registered NGO be included in the mechanism?

Any officially registered NGO can benefit from this mechanism, provided that it is active and complies with Romanian law. To receive the 3.5%, it must be accredited as a social service provider. There is a public list where taxpayers can check whether an organization is eligible.

According to the Romanian Tax Code, a taxpayer may allocate up to 3.5% of their annual income tax to support: 1. non-profit organizations; 2. religious organizations; or 3. private scholarships.

The condition is that non-profit organizations must operate in accordance with Romanian law, religious organizations must be recognized by the state, and private scholarships must meet the specific requirements of the law. NGOs must also be included in the special register of the tax authorities, which is available on the ANAF website (ANAF is the Romanian fiscal service).

Is the mechanism costly for the state budget?

Not directly. The funds diverted under this mechanism do not represent additional costs—they come from taxes that would have been collected anyway. However, cumulatively, the mechanism slightly reduces the amount of flexible and discretionary funds available to the government, but the impact is relatively small compared to total tax revenues.

Why do only about 30% of taxpayers use this option?

There are several reasons. Many people are unaware of this mechanism or do not fully understand how it works. According to data from the Tax Register, in 2022, nearly 3 million people who were eligible to transfer their taxes did not do so. Some are unaware of this option, while others believe that the state needs the money.

The process still requires certain bureaucratic steps (submitting forms) and not all taxpayers are motivated to go through this paperwork. In many cases, NGOs do not have the resources to run effective awareness campaigns to encourage people to redirect their taxes.

On the other hand, some people do not trust NGOs or believe that their taxes are better managed at the central level (through the state budget). In addition, there is an active political discourse in Romania that portrays NGOs as “politicized,” “non-transparent,” or “interfering in state affairs,” paving the way for restrictive measures against the civil sector. Many extremist politicians label NGOs as “Soros-backed organizations” that “work against the interests of the state”—mainly in relation to independent journalists’ NGOs—which leads many Romanians to view NGOs as enemies rather than allies. Ironically, NGOs often end up doing the work that the authorities fail to do, particularly in support of vulnerable people, patients, people with addictions, or children.

Have there been serious irregularities, abuses, or cases of fraud associated with this mechanism?

Yes, there have been isolated cases of NGOs or intermediaries acting fraudulently—for example, collecting taxpayers’ signatures without properly informing them or misusing funds. Individual entities have submitted outdated or incomplete forms to obtain funds fraudulently. Or funds were diverted to non-existent or fraudulent NGOs that had no real operations. However, major scandals are rare.

Overall, how useful is this mechanism for supporting the civil society and independent journalism sector, based on NGOs, in Romania?

The mechanism is extremely important for civil society in Romania. Many NGOs, especially smaller ones or those working in areas such as social services, human rights, environmental protection, and independent journalism, rely heavily on these redirected funds.

Although these funds are not sufficient to cover all operating costs, they provide a stable and relatively predictable source of income—particularly valuable in a country where other types of funding (public or private donations) are often limited or inconsistent.

It is important to note that, starting with the income received in 2024, there will be changes in the types of income from which the 3.5% can be redirected.

Starting in 2024, only individuals who receive salary income or income equivalent to salary can redirect up to 3.5% of their income tax to non-profit organizations, religious organizations, or private scholarships using Form 230.

People who earn income from self-employment, intellectual property rights, rents, pensions, or other sources are no longer eligible for this tax diversion.

This means that, although the scope of eligible beneficiaries remains broad, the sources of income from which taxpayers can transfer funds have been narrowed.

There is growing concern that the Romanian government may further restrict the income tax redirection mechanism, limiting NGOs’ access to independent funding. Recent legislative changes have already reduced the number of eligible taxpayers, and political rhetoric increasingly portrays NGOs as destructive actors rather than necessary in a democratic society.

Photo: Iulia Roșu (sursă: Iulia Roșu)

Subscribe to the channel of the blog “The Bridge of Friendship” in YouTube, where a number of video and audio interviews are published! The blog can also be followed in Facebook and Twitter. Its Telegram channel is here. And here is its Substack account.

About Author