What are the powers and obligations of social and charity funds in Vietnam from January 15, 2020?

Currently, “social and charity fund” (hereinafter referred to as “fund") means a non-governmental organization that is established from certain assets voluntarily donated by individuals or organizations or established under a testament or through a donation. A fund is organized and operates on a not-for-profit basis with the aims of supporting and promoting the development of culture, education, healthcare, sports, science, technology, and charitable and humanitarian activities as well as for community development purposes and is granted an establishment license and has its charter acknowledged by a competent authority.

A fund must comply with regulations on its powers and obligations in Article 8 of Decree No. 93/2019/ND-CP of Vietnam’s Government, specifically as follows:

Firstly, funds’ powers:

A fund is allowed to:

- be organized and operate according to its charter acknowledged by a competent authority and relevant laws;

- mobilize donations for its operations and receive assets donated or otherwise presented by domestic and overseas individuals and organizations according to its objectives and law regulations; organize activities under law to preserve and develop its assets;

- set up affiliated legal entities in accordance with law regulations;

- file complaints in accordance with law regulations;

- cooperate with individuals and organizations to mobilize donations or raise funds for its operations or for its specific projects as prescribed by law;

- cooperate with local governments, organizations and individuals in need of support so as to elaborate and implement funding programs according to its objectives.

Secondly, funds’ obligations:

A fund is obliged to:

- bear the state management by competent authorities managing its operation fields/sectors, and only mobilize and receive donations within its scope of operation defined in its charter;

- provide funding under donor’s authorization as well as its objectives;

- annually set aside at least 5% of its total assets to finance programs or projects relevant to its operation objectives, if a fund is established from donated assets or under an authorization contract or a testament, and neither conducts fundraising nor receives donations;

- keep sufficient documents/papers concerning its assets and finances as well as resolutions and records on its operations and provide them to competent authorities in accordance with law regulations;

- economically and efficiently use its assets and finances according to its objectives; pay taxes, fees and charges and comply with accounting, audit and statistical regulations; carry out registration of taxpayer identification number and tax declaration in accordance with the law on taxation;

- bear the inspection, examination and supervision of competent authorities, donors and the community in accordance with law regulations; resolve internal complaints and denunciations and submit reports thereof to competent authorities;

- annually make public all received contributions through means of mass media by March 31;

- report in writing on changes in its head office or director to the competent authority that has licensed its establishment;

- submit annual reports on its organization, operation and finances to the competent authority that has granted its establishment license and acknowledged its charter, the finance authority of the same level with this licensing authority, competent authorities managing its operation fields/sectors and the People’s Committee of province where its head office is located by December 31;

- make announcement of its establishment as prescribed in Article 22 hereof;

- abide by competent authorities’ decisions on its organization and operation, and fulfill other obligations according to its charter and relevant laws.

Other regulations can be found in Decree No. 93/2019/ND-CP of Vietnam’s Government, which takes effect from January 15, 2020.

Thu Ba

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