Decree No. 93/2019/ND-CP the organization and operation of social funds and charity funds
Charity fund founding assets shall not contain more than 50% foreign contribution
To be specific: for fund established by Vietnam citizen or organization must ensure assets contributed for establishment of funds converted into Vietnam dong as follow: For nation funds operating nationwide or in more than one province: VND 6.5 billion (previous regulation require VND 05 billion only); For funds operating within a province: VND 1.3 billion; For funds operating within a district: VND 130 million; For funds operating within a commune: VND 25 million.
In addition, this Decree supplement regulation on prohibited in establishment and operation of a fund such as: using the state budget, using or supporting the use of properties assigned by the state budget or originating from the state budget to contribute assets to establish funds.
Especially, foreign citizens and organizations may contribute their assets with Vietnamese citizens and organizations to establish a fund in Vietnam. However, assets contributed for establishment of funds by foreign individuals and organization must not exceed 50% contributed for establishment of funds as prescribed in this Decree. Besides, in case assets contributed for establishment of funds include other assets exclude Vietnam dong then the amount of Vietnam dong must ensure at least 50% general value of assets.
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translation of the Official Gazette of the Vietnam News Agency
THE SOCIALIST REPUBLIC OF VIETNAM
Hanoi, November 25, 2019
On the organization and operation of social funds and charity funds
Pursuant to the June 19, 2015 Law on Organization of the Government;
Pursuant to the November 24, 2015 Civil Code;
At the proposal of the Minister of Home Affairs;
The Government promulgates the Decree on the organization and operation of social funds and charity funds.
Article 1. Scope of regulation
This Decree prescribes the organization and operation of social funds and charity funds, and the state management of social funds and charity funds (below collectively referred to as funds) established and operating in Vietnam.
Article 2. Subjects of application
This Decree applies to related Vietnamese citizens and organizations and foreign individuals and organizations.
Article 3. Purposes of organization and operation of funds
Funds shall be organized and operate for not-for-profit purposes of supporting and promoting the development of culture, education, health, physical training and sports, science, technology, community, and charity and humanitarian activities.
Article 4. Interpretation of terms
In this Decree, the terms below are construed as follows:
1. Fund means a non-governmental organization established from assets voluntarily contributed by individuals and organizations or under a testament or through a donation of assets, having organization and operation purposes specified in Article 3 of this Decree, and granted an establishment license and a charter recognition paper by a competent state agency.
2. Social fund means a fund organized and operating for not-for-profit purposes of supporting and promoting the development of culture, education, health, physical training and sports, science, and agricultural and rural development activities.
3. Charity fund means a fund organized and operating for not-for-profit purposes of supporting the remediation of incidents caused by natural disasters, fires, epidemics or accidents, and helping persons falling in difficult or disadvantaged circumstances in need of social assistance.