The Estonian not-for profit associations and foundations do not have automatic tax exemption. The two main laws effecting these NGOs in Estonia are the Income Tax Act and Value-Added Tax Act. Both of the laws have been frequently amended. In order to qualify, an organisation's activities must be connected with support to charity, science, culture, education, sports, health care, social welfare, environment protection, or religious congregations in the public interest. The final decision is made by the Government .
Individuals have to pay taxes on funds they donate to the non-profit sector.
Over 5700 civic groups and organisation have been documented by the Institute of International and Social Studies since the beginning of 1990s. Numerous community- level organisations have not been registered but at the same time many organisations have ceased their activity. All non-profit organisations dealing with culture and recreation, education and research, health, social services, environment, development and housing, law, advocacy and politics, philanthropic, international activities, religion, business and professional associations and unions are represented in Estonia. There were about 30 unions or federations of organisations. This number, though, is not exact as the Office uses a unique classification system and to calculate the total, numerous sub-groups should be taken into account.