Latvia’s State Revenue Service (VID) is reviewing whether the “Sofi” charitable foundation can maintain its public benefit status following reports of significant investments in securities. The case underscores increasing scrutiny of how charitable organizations manage their funds.
The review was prompted by more than 2 million euros invested in bonds linked to “Sun Finance Group,” a consumer credit company and the foundation’s founder, according to reports from March 15, 2026. The Public Benefit Commission has recommended the VID revoke the foundation’s special status, but a final decision has not yet been made.
“Sofi” has donated approximately 1 million euros to various causes over the past five years, including animal welfare, medical supplies, and aid to Ukraine. Yet, the foundation’s annual reports indicate that the amount of donations received significantly exceeded the funds spent on charitable activities.
According to the VID, the law does not permit public benefit organizations to make such investments. The agency is also considering returning to a policy of allowing these organizations to invest funds only in government bonds.
The foundation’s investments came to light in a report by Latvian Television’s “De facto” program, which detailed the financial arrangements. The report also noted that “Extra Credit” donated roughly 1.5 million euros to the fund, with 960,000 euros coming in 2021 and 485,000 euros in 2023. “Lendiscore,” which has a cooperation agreement with “Sun Finance Scandinavia,” transferred more than 1 million euros over two years.
In 2023, long-term financial investments reached 1 million euros, increasing to almost 2.5 million euros in 2024, according to the foundation’s reports. Apollo.lv reported on the details of the investments.
The VID reported an increase in the number of organizations that have had their public benefit status revoked last year. Liepajniekiem.lv also covered the story.
