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production/dissemination of party symbols, organizing lectures and exhibitions, publications, publicevents and other activities 3 .Under the amendments 4 to the organic Law of Georgia on Political Unions of Citizens adopted on 28December 2011, the following changes were entered: an annual upper limit of GEL 1,200 wasimposed for membership fees, donations by legal entities were banned, the ceiling for donations byindividuals was raised to GEL 60,000, an upper limit of annual GEL 60,000 was imposed for incomesreceived through other activities. Under the 8 May 2012 amendments 5 to the same Law, targetedfunding was added to the state financing for covering TV advertising costs during election year.1. State FinancingUnder the Organic Law of Georgia on the Political Unions of Citizens, political unions receive threetypes of financing from the state: 1) through direct transfer of funds to parties 6 ; 2) via the Center ofElectoral Systems Development, Reforms and Trainings 7 distribution of funds to parties 8 ; and 3)through targeted financing received for TV advertisements only during election year 9 .3Chapter 3 of the Organic Law of Georgia on Political Unions of Citizens (31 October, 1997, #1028-I, publishedin Herald of the Parliament of Georgia, #45, 21.11.1997. Hereinafter referred to as the Organic Law of Georgia“On Political Union of Citizens“) effective until 28 December, 2011.4Organic Law of Georgia on the amendments to the Organic Law of Georgia “On Political Union of Citizens“№5661 of December 28, 2011,https://matsne.gov.ge/index.php?option=com_ldmssearch&view=docView&id=15426095Organic Law of Georgia on the amendments to the Organic Law of Georgia “On Political Union of Citizens“№6116, of May 8, 2012, https://matsne.gov.ge/index.php?option=com_ldmssearch&view=docView&id=16614296The amount of the state financing to be received by a party is calculated by a formula according to whichadditional financing is added to the basic financing in proportion to the obtained mandates in the Parliamentand votes received during elections. This formula as defined in paragraph 4 of the article 30 of the Organic Lawof Georgia on Political Unions of Citizens is as follows: Z=B+(M*600*12)+(L*100*12)+(V*1,5)+(W*1) Where, Z isthe amount of state financing to be received by a party, B is the amount of basic funding; M – is the number ofthe MPs up to 30 elected from a proportional list, L is the number of the MPs above 30 elected through theproportional system, V is the number of the received votes under 200 000; W - number of votes above 200 000.Funds from the state budget which are to be directly distributed among political parties go to the politicalparties which during the last parliamentary elections overcame the 4% threshold or parties which during thelast local self-government elections overcame the 3% threshold. The amount of the basic funding is GEL150,000 annually. If an election subject (party/electoral bloc) overcomes 8% threshold in the last parliamentaryelections, or 6% threshold in the last local self-government elections, the basic funding shall equal annual GEL300,000.7Under paragraph 1 of the article 30 1 of the Organic Law of Georgia on Political Unions of Citizens the aim ofthe fund is to contribute to the development of parties and the NGO sector and creation of a healthy andcompetitive political system.5

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