
Latvia is a former Soviet country located in the Eastern part of Europe with a population of 1.8 million people and a GDP per capita of $21,779 in 2022 (according to the World Bank). It gained its independence from the Soviet Union in 1991. After 50 years of Communist rule, the country faced challenges in establishing a democracy and entering the market economy. Today, after more than 30 years of independence, the philanthropic sector is emerging, and the people of Latvia are slowly embracing the new feeling of empowerment to engage in civil society and extending their philanthropic aspirations to people beyond their immediate family.
The nonprofit sector in Latvia has experienced vast changes since the collapse of the Soviet Union. There were only 50 nonprofit organizations in Latvia in 1991. The number grew rapidly in the following years. An important factor was that Latvian tax law that was established in 1995 allowed donors to make tax deductible donations to these organizations.
One of the major contributors to the development of civil society in Latvia was George Soros, a Hungarian-American billionaire investor, philanthropist, and political activist who has been known for his significant contributions to promoting democracy, human rights, and civil society in Eastern Europe through his Open Society Foundations. Other international institutions have also supported development of the nonprofit sector in the country, such as the World Bank, Queen Juliana Foundation, Charles Stewart Mott Foundation, and the European Free Economy Fund. However, since Latvia entered the European Union (EU) in 2004 and gained access to structural and cohesion funds, international donations to Latvia have substantially declined.