The amount allocated to CSOs through the 2% designation mechanism decreased by 17,2% in 2020. Since 2017, when the designation mechanism became functional, until 2019, the annual allocations had a positive dynamic. The highest amount of allocations was registered in 2019, when CSOs benefited of 390.000 Euros. According to preliminary data of the State Tax Service, in 2020 the total amount allocated decreased to 325.000 Euros .
The 17% decrease in the allocated amount was proportional to the decrease in the number of designators (-16,3%) which dropped from over 34 thousand contributors in 2019 to 28,5 thousand in 2020.
The probable causes of this situation are due to the 2018 tax reform, which introduced a unified tax of 12% and also exempted tax payers from the obligation to submit tax declarations. Therefore, tax payers now have to make an extra effort to submit their percentage designation forms. In addition, it is also very likely that during the COVID-19 pandemic tax payers avoided unnecessary visits to the Tax Office, thus failing to submit their percentage designation forms.