Rights and obligations of charitable funds, social funds in Vietnam from December 10, 2024

Rights and obligations of charitable funds, social funds in Vietnam from December 10, 2024 (Image from the Internet)

On October 23, 2024, the Government of Vietnam issued Decree 136/2024/ND-CP amending Decree 93/2019/ND-CP on the organization and operation of social funds and charitable funds, including revisions and additions to the regulations concerning the rights and obligations of charitable funds and social funds in Vietnam.

Rights and obligations of charitable funds, social funds in Vietnam from December 10, 2024

Under Article 8 of Decree 93/2019/ND-CP (amended by Decree 136/2024/ND-CP), which comes into force in Vietnam from December 10, 2024, charitable funds and social funds in Vietnam will have the following rights and obligations:

(1) Rights

- Organize and operate according to the law and the charter recognized by a competent state authority;

- Solicit contributions and sponsorships for the fund; receive assets donated by domestic and foreign individuals and organizations or other forms according to the fund’s purpose and legal regulations. Organize activities as prescribed by law to preserve and augment the fund’s assets;

- Establish and manage entities with legal person status under the fund according to the law and the fund's charter to perform tasks in line with the fund's objectives and field of operation;

- Have the right to file complaints in accordance with the law;

- The fund is allowed to cooperate with individuals and organizations to raise contributions or seek sponsorships for the fund, or to implement specific projects or schemes of the fund as per legal regulations;

- Coordinate with localities, organizations, and individuals needing assistance to plan and execute sponsorship projects following the fund's operational purposes.

(2) Obligations

- The fund operating in any field must be subject to the management of the state authority overseeing that sector. The fund provides support within the scope of its charter, except when participating in relief efforts for populations affected by natural disasters, pandemics, fires, serious incidents, or emergencies as per legal provisions;

- Deliver sponsorships according to the requirements of individuals or organizations that have authorized contributions in compliance with the fund's purpose;

- A fund established from donated assets or under a bequest without soliciting contributions and receiving funding must allocate a minimum of 5% of its total assets annually to fund programs and projects aligned with the fund's operational purposes;

- Maintain and be responsible for providing complete records, vouchers, and documentation about the fund’s assets, finances, resolutions, and minutes on its activities to competent state authorities as prescribed by law;

- Utilize assets and finances economically and effectively according to the fund's purpose; comply with tax, fee, and charge payments as well as implement accounting, auditing, and statistical policies as per legal stipulations; register a tax code and file tax declarations according to tax-related legal regulations;

- Subject to inspection, audit, and supervision by state authorities, donor organizations, individuals, and the community as prescribed by law. Responsible for resolving internal complaints and reporting resolutions to competent state authorities;

- Annually, the fund must publicly disclose contributions on mass media by March 31;

- When there is a change of the headquarters or the fund director, the fund must report in writing to the authority that granted the fund’s establishment license;

- Annually, report organizational, operational, and financial status; submit audit reports (if any) on managing and using the fund’s assets and finances to the competent state authority specified in Article 18 of Decree 93/2019/ND-CP, the financial administration authority at the same level, the sector management agency, and the provincial People’s Committee where the fund’s headquarters is located by March 31;

- Announce the fund’s establishment as stipulated in Article 22 of Decree 93/2019/ND-CP;

- Comply with decisions of state authorities relating to the organization and operation of the fund and other obligations as per legal stipulations and the fund's charter.

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