Legislation concerning the funding of political parties is of crucial importance for transitional democracies. The pace and scope of democratic reform is influenced by legislation that deals with issues of political party financing such as donations, thresholds and bans, transparency of financial accounts, as well as public grants to political parties. In many transitional democratic countries of Eastern Europe, the financing of political parties has fallen victim to allegations of corruption and fraud. In transitional democratic countries such as Kosovo, the financing of political parties and organizations has become a major concern and continuous reform and legislation is needed in this regard in order to ensure the legitimacy and stability of the political system.In Kosovo, perceptions of corruption and fraudulent practices relating to the financing of political parties are very high. The misuse of public offices and resources to push forward the agendas of political parties have contributed to this perception. Violations and fraudulent practices range from missing lists of donations to illegal acceptance of foreign donations and incomes. Moreover, gaps in the legal framework for the financing of political parties have allowed for the perpetuation of corruption and fraud relating to the acquisition and use of political party funds. Regular control and monitoring mechanisms must be established to provide a legislative and regulatory framework that allows political parties to legitimately benefit from donations while preventing them from engaging in corruption and illegal bargaining.