Nghị định 30/2012/ND-CP

DECREE

ON THE ORGANIZATION AND OPERATION OF SOCIAL FUNDS AND CHARITY FUNDS

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 14, 2005 Civil Code;

At the proposal of the Minister of Home Affairs;

The Government promulgates the Decree on organization and operation of social funds and charity funds.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree provides the organization and operation of social funds and charity funds (below collectively referred to as funds) established in Vietnam.

2. This Decree applies to:

a/ Vietnamese citizens and organizations involved in the establishment of funds;

b/ Foreign citizens and organizations contributing assets with Vietnamese citizens and organizations to establish funds.

3. This Decree does not apply to funds for which separate regulations have been promulgated.

Article 2. Organization and operation purposes of funds

Funds are organized and operate on a not-for-profit basis for the purpose of supporting and promoting the development of culture, education, healthcare, physical training, sports, science, and charitable and humanitarian activities as well as community development.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Fund means a non-governmental organization established from certain assets voluntarily donated by individuals or organizations or established under a contract or testament or through a donation, which has the organization and operation purpose as specified in Article 2 of this Decree, and is granted an establishment license and has its charter recognized by a competent state agency.

2. Social fund means a fund which is organized and operates on a not-for- profit basis for the principal purpose of supporting and promoting the development of culture, education, healthcare, physical training, sports and science as well as for community development purposes.

3. Charity fund means a fund which is organized and operates on a not-for- profit basis for the principal purpose of supporting the remedy of difficulties caused by natural disasters, fires or serious incidents and supporting fatal patients and other disadvantaged persons in need of social assistance.

4. Not-for-profit means the non-pursuit of profits for sharing; any profits earned in the operation process are used for operations of the fund according to its recognized charter.

5. Asset contribution means the transfer of the lawful ownership of an asset from an individual or organization to a fund in the form of contract, donation or testament of the asset bequeather or in other forms under law. Such asset will become the fund’s assets and be used for the purposes specified in Article 2 of this Decree.

6. Assets include objects, money, valuable papers and property rights.

7. Vietnamese organization means a state non-business unit, socio-political organization, socio-political-professional organization, social organization, socio-professional organization, Vietnamese enterprise or another organization qualified as a legal person under the Civil Code.

Article 4. Principles of operation and financial management of funds

1. Being established and operating for not-for-profit purposes.

2. Voluntariness, self-financing and taking responsibility before law with their assets.

3. Operating under their charters recognized by competent state agencies, this Decree and other relevant laws.

4. Making public all their revenues, expenditures, finances and assets.

5. Not dividing their assets during their operation.

Article 5. State policies toward funds

1. The State creates favorable conditions for funds to operate under law.

2. The State provides funding for their operations associated with tasks assigned by the State.

3. Organizations’ and individuals’ asset contribution to funds is entitled to preferential policies under law.

Article 6. Funds’ legal person status, seals, accounts, names, logos and head offices

1. A fund has the legal person status and its own seal and account.

2. A fund may select its name and logo which must satisfy the following conditions:

a/ Neither being identical nor confusing with previously registered names and logos of other funds;

b/ Not contravening historical and cultural traditions as well as ethics and national fine customs;

c/ The fund’s name must be in or transcribed into Vietnamese.

3. A fund’s transaction office must be located at a specific address in the Vietnamese territory.

Article 7. Prohibited acts

1. Abusing the establishment of a fund to:

a/ Commit self-seeking activities or infringe upon rights and legitimate interests of individuals, organizations or communities; harm national interests, security, defense and national unity;

b/ Contravene social morality, fine customs, practices, traditions and national identity;

c/ Launder money, finance terrorism and commit other illegal acts.

2. Falsifying, erasing, transferring, leasing, lending, mortgaging or pledging fund establishment licenses in any forms.

Chapter II

CONDITIONS AND PROCEDURES FOR ESTABLISHMENT OF FUNDS

Article 8. Conditions for establishment of funds

A fund may be established when fully meeting the following conditions:

1. Its operation purposes conform with Article 2 of this Decree.

2. It has founding members under Article 9 of this Decree.

3. The fund founding board has sufficient assets to contribute for the fund establishment under Article 12 of this Decree.

4. It has a fund establishment dossier under Article 13 of this Decree.

Article 9. Founding members of funds

1. Founding members of a fund must be Vietnamese citizens or organizations that contribute assets to establish the fund; participate in drafting the fund’s charter and papers in the dossier of application for a fund establishment license.

2. Founding members shall set up a fund founding board, composed of at least 3 (three) members, including the head, deputy head and founding member(s). The fund founding board shall compile a dossier of application for a fund establishment license under Article 13 of this Decree and send it to a competent state agency specified in Article 16 of this Decree.

3. Conditions on founding members:

a/ For a Vietnamese citizen: Having full civil act capacity and no previous criminal convictions;

b/ For a Vietnamese organization: Its involvement in the fund establishment and the appointment of a representative to act as a fund founding member are specified in its charter, the document defining its functions and tasks or a resolution of its leadership;

c/ Having contributed assets to establish the fund under Article 12 of this Decree.

Article 10. Foreign citizens and organizations contributing assets with Vietnamese citizens and organizations to establish funds

1. Foreign citizens and organizations may contribute their assets with Vietnamese citizens and organizations to establish a fund in Vietnam.

2. Conditions on foreign citizens and organizations:

a/ To take responsibility for the lawfulness of contributed assets;

b/ To commit to strictly complying with Vietnam’s law and the fund’s operation purposes;

c/ To contribute assets to establish the fund under Article 12 of this Decree.

Article 11. Establishment of funds under testaments or at the request of asset donors under authorization contracts

1. A Vietnamese citizen or organization that receives an inheritance under a testament accompanied with an obligation to fulfill the asset bequeather’s will to establish a fund or that is requested by the asset donor to establish a fund under an authorization contract shall comply with Clause 3, Article 9 of this Decree and make a dossier of application for a fund establishment license under Article 13 of this Decree and send it to a competent state agency specified in Article 16 of this Decree.

2. For a fund established under a testament, a lawfully certified copy of such testament is required.

3. For a fund established under the authorization of an organization or individual, a lawfully notarized authorization contract is required.

Article 12. Assets contributed for establishment of funds

1. Assets contributed to establish a fund include:

a/ Amounts of money in Vietnam dong;

b/ Assets converted into Vietnam dong (objects, foreign currencies, valuable papers, property rights and other kinds of asset) of Vietnamese citizens and organizations being the fund’s founding members and those contributed by foreign citizens and organizations with Vietnamese citizens and organizations to establish the fund. Assets which are head offices, devices, equipment or technologies must be valuated by a lawfully established price appraisal organization within the last 6 (six) months before the time of submitting the application dossier.

2. For a fund established by Vietnamese citizens or organizations, the fund founding board shall assure an amount of contributed assets converted into Vietnam dong (of which at least 50% will be transferred to the fund’s account) as follows:

a/ 5,000,000,000 (five billion), for funds operating nationwide or in more than one province;

b/ 1,000,000,000 (one billion), for funds operating within a province;

c/ 100,000,000 (one hundred million), for funds operating within a district;

d/ 20,000,000 (twenty million), for funds operating within a commune.

3. For a fund established with assets contributed by foreign citizens or organizations with Vietnamese citizens or organizations, the fund founding board shall assure an amount of contributed assets converted into Vietnam dong (of which at least 50% will be transferred to the fund’s account) as follows:

a/ 7,000,000,000 (seven billion), for funds operating nationwide or in more than one province;

b/ 3,000,000,000 (three billion), for funds operating within a province;

c/ 1,000,000,000 (one billion), for funds operating within a district;

d/ 500,000,000 (five hundred million), for funds operating within a commune.

4. The ownership of assets contributed to establish a fund must be transferred to that fund within 45 (forty-five) working days after the fund is granted an establishment license and charter recognition paper.

Article 13. Fund establishment dossiers

1. A fund establishment dossier shall be made in 1 (one) set and sent to a competent state agency specified in Article 16 of this Decree.

2. A fund establishment dossier comprises:

a/ An application for the fund establishment;

b/ Draft charter of the fund;

c/ Documents proving assets contributed to establish the fund under Article 12 of this Decree;

d/ CVs and judicial records of members of the fund founding board and the documents specified in Article 9, 10 or 11 of this Decree.

Article 14. Principal contents of the charter of a fund

1. The fund’s name, address, telephone number, fax number, email and website (if any).

2. The fund’s operation guidelines, objectives, field and scope.

3. Information on the fund’s founding members.

4. The fund’s functions, tasks and powers.

5. The fund’s organization and operation principles and the organizational structure, tasks and powers of its Management Council, Control Board, chairman, director and other leading posts.

6. Principles of fundraising and receipt and use of donations.

7. Management and use of the fund’s assets and finances.

8. Responsibility to report on the fund’s organization, operation and financial issues to competent agencies.

9. Commendation and reward, discipline and settlement of internal complaints and handling of violations in the fund’s operations.

10. Consolidation, merger, division, split-up and dissolution of the fund.

11. Procedures for revising the fund’s charter.

12. Other contents in compliance with law.

Article 15. Fund establishment licenses and charter recognition papers

1. For a newly established fund, the fund establishment license is also the charter recognition paper.

2. Fund establishment licenses and charter recognition papers may be modified or re-granted at the request of their Management Councils.

3. Within 40 (forty) working days after receiving a complete and valid dossier, a competent state agency specified in Article 16 of this Decree shall grant a fund establishment license and charter recognition paper. In case of refusal, it shall issue a written reply clearly stating the reason.

Article 16. Competence to settle fund-related procedures

1. The Minister of Home Affairs is competent to grant establishment licenses and charter recognition papers; permit the consolidation, merger, division, split-up or renaming of funds; terminate or suspend the operation of funds; permit the resumption of operation of funds; recognize funds’ eligibility for operation; recognize members of Fund Management Councils; permit modification of or re-grant establishment licenses; revoke establishment licenses; and settle complaints and denunciations with regard to:

a/ Funds operating nationwide or in more than one province;

b/ Funds with assets contributed by foreign organizations or individuals and operating within a province.

2. Chairpersons of provincial-level People’s Committees are competent to:

a/ Grant establishment licenses and charter recognition papers; permit the consolidation, merger, division, split-up or renaming of funds; terminate or suspend the operation of funds; permit the resumption of operation of funds; recognize funds’ eligibility for operation; recognize members of Fund Management Councils; permit modification of or re-grant establishment licenses; revoke establishment licenses; and settle complaints and denunciations with regard to funds operating within a province;

b/ Funds with assets contributed by foreign organizations or individuals and operating within a district or commune;

c/ Based on specific conditions, provincial-level People’s Committee chairpersons may authorize district-level People’s Committee chairpersons to grant establishment licenses and charter recognition papers; permit the consolidation, merger, division, split-up or renaming of funds; terminate or suspend the operation of funds; permit the resumption of operation of funds; recognize funds’ eligibility for operation; recognize members of Fund Management Councils; permit modification of or re-grant establishment licenses; revoke establishment licenses; and settle complaints and denunciations with regard to funds operating within a district or commune, except the case specified at Point b, Clause 2 of this Article.

3. When receiving a fund-related dossier, the competent state agency shall make a dossier receipt as a basis to determine the time limit for settlement. This receipt contains such details as date and method of dossier receipt; information on the dossier; and information sender and recipient.

In case a dossier is incomplete or invalid, within 5 (five) working days after receiving it, the competent state agency shall issue a written reply clearly stating the reason.

Article 17. Revocation of funds’ establishment licenses and seals

1. A fund shall have its establishment license revoked in the following cases:

a/ The decision on its division, consolidation, merger or dissolution comes into force;

b/ It fails to comply with Clause 4, Article 12 of this Decree after obtaining an establishment license and charter recognition paper and, as a result, its establishment license and charter recognition paper are invalidated. If the fund has not yet complied with Clause 4, Article 12 of this Decree for objective reasons, at least 10 (ten) working days before the prescribed deadline, the fund founding board shall send an extension request to the state agency which has granted its establishment license and charter recognition paper. Only one extension shall be allowed for at most 20 (twenty) days. Upon the expiration of the extension period, if the fund still fails to comply with Clause 4, Article 12 of this Decree, its establishment decision and charter recognition paper shall cease to be effective.

2. Within 15 (fifteen) working days after the effective date of the decision referred to at Point a, Clause 1 of this Article or past the time limit specified at Point b, Clause 1 of this Article, the competent state agency specified in Article 16 of this Article shall issue a decision to revoke the fund’s establishment license.

3. The revocation of a fund’s seal complies with the law on management and use of seals and other relevant laws.

Article 18. Procedures for modification or re-grant of fund establishment licenses and charter recognition papers

1. The establishment license and charter recognition paper of a fund shall be modified when the fund revises its charter. When wishing to modify the establishment license and charter recognition paper, the Fund Management Council shall send to a competent state agency specified in Article 16 of this Decree 1 (one) dossier set comprising:

a/ An application for modification of the establishment license and charter recognition paper;

b/ The Fund Management Council’s resolution stating the reason for modification of the establishment license and charter recognition paper;

c/ Draft revised charter.

2. Within 30 (thirty) working days after receiving a complete and valid dossier of application for modification of the establishment license and charter recognition paper, the competent state agency specified in Article 16 of this Decree shall consider and permit the modification. In case of refusal, it shall issue a written reply clearly stating the reason.

3. When its establishment license and charter recognition paper is lost, torn, rumpled or otherwise destroyed, a fund shall send an application for re-grant of the establishment license and charter recognition paper to the state agency competent to license its establishment, clearly stating the reason for re-grant.

4. Within 15 (fifteen) working days after receiving a valid application, the agency having licensed the establishment of the fund shall re-grant the establishment license and charter recognition paper, clearly indicating the number of the re-grant and the serial number of the previously granted establishment license.

Article 19. Announcement of the establishment of funds

1. Within 30 (thirty) working days after obtaining an establishment license and charter recognition paper, a fund shall announce its establishment on 3 (three) consecutive issues of a central print or online newspaper, for funds licensed by the Minister of Home Affairs, or of a local print or online newspaper, for funds licensed by chairpersons of provincial- or district- level People’s Committees. The announcement contains the following principal details:

a/ The fund’s name;

b/ The fund’s head-office address, telephone number, email and website (if any);

c/ The fund’s guidelines and objectives;

d/ The fund’s operation scope;

e/ The fund’s major operation areas;

f/ The fund’s account number and name and address of the bank at which the fund opens its account;

g/ Full name, permanent residence address, nationality, ID card or passport number of the fund’s at-law representative;

h/ Serial number, code and date of the fund’s establishment license and charter recognition paper and licensing agency;

i/ Assets contributed by founding members to establish the fund.

2. In case of modification of its establishment license and charter recognition paper, a fund shall announce these modifications within the time limit and according to the procedures specified in Clause 1 of this Article.

Article 20. Transfer of ownership of assets contributed by founding members to establish funds

Members of a fund founding board shall transfer the ownership of assets they contribute to establish the fund as follows:

1. For Vietnam dong, they shall transfer these money amounts directly into the fund’s account.

2. For registered assets or the value of land-use rights, asset contributors shall carry out procedures to transfer the ownership of such assets or land use rights to the fund at a competent state agency. The transfer of ownership of assets contributed to establish funds is not liable to registration fee.

3. The contribution of non-registered assets shall be effected through asset delivery and hand-over which is certified in a minutes. An asset delivery and hand-over minutes must clearly state the fund’s name and head-office address; full name, permanent residence address and ID card or passport number, for individuals, or serial number of the establishment decision, for organizations, of the asset contributor; type and number of units of contributed assets; total value of contributed asset; date of delivery and hand-over; signatures of the asset contributor or its/his/her authorized representative and the fund’s at-law representative.

Article 21. Conditions for operation of funds

A fund may operate when fully meeting the following conditions:

1. Having an establishment license and charter recognition paper granted by a competent state agency specified in Article 16 of this Decree.

2. Having announced its establishment under Article 19 of this Decree.

3. Having obtained from the bank at which it opens its account a written certification of the availability of money amounts contributed by its founding members for its establishment in its account, and having transferred the ownership of other assets under Clauses 2 and 3, Article 20 of this Decree.

4. Having obtained a decision recognizing the fund’s eligibility for operation and members of its Management Council from a competent state agency specified in Article 16 of this Decree.

Article 22. Certification of funds’ eligibility for operation and recognition of members of Fund Management Councils

1. After completing all the procedures specified in Clauses 2 and 3, Article 21 of this Decree, the Fund Management Council shall make and send 1 (one) dossier to the state agency competent to license the establishment of the fund specified in Article 16 of this Decree, requesting the recognition of the fund’s eligibility for operation and members of the Fund Management Council.

2. A dossier comprises:

a/ Documents proving the compliance with Clauses 2 and 3, Article 21 of this Decree;

b/ A list indicating the names, addresses and telephone numbers of members of the Fund Management Council, enclosed with their CVs and judicial records. The CV of a foreign member must be certified by a competent authority of the country of his/her citizenship;

c/ Documents on the election of members of and other posts in the Fund Management Council.

3. Within 30 (thirty) working days after receiving a complete and valid dossier, the competent state agency specified in Article 16 of this Decree shall issue a decision recognizing the fund’s eligibility for operation and members of the Fund Management Council. In case of refusal, it shall issue a written reply clearly stating the reason.

4. In case of changing members of or adding new members to the Fund Management Council during its operation, a fund shall send to a competent state agency specified in Article 16 of this Decree a request for recognition of new members of the Fund Management Council, clearly stating the reason for such change or addition of members (enclosed with a list of the names, addresses and telephone numbers of to-be-added members, their CVs and judicial records). Within 15 (fifteen) working days after receiving a complete and valid dossier, the competent state agency specified in Article 16 of this Decree shall issue a decision recognizing new members of the Fund Management Council. In case of refusal, it shall issue a written reply clearly stating the reason.

Chapter III

ORGANIZATION AND OPERATION OF FUNDS

Article 23. Fund Management Councils

1. The Fund Management Council is the fund management body which, in the name of the fund, decides on and exercises the fund’s rights and performs the fund’s obligations. A Fund Management Council has at least 3 (three) members nominated by founding members. In case founding members propose no nominations, the Fund Management Council of the previous term shall elect members to the Fund Management Council of the subsequent term, who shall be recognized by a competent state agency specified in Article 16 of this Decree. The maximum term of office of the Fund Management Council is 5 (five) years. The Fund Management Council is composed of the chairman, vice chairmen and members.

2. For a fund established on the basis of donated or inherited assets, the number of members representing such assets must not exceed one-third of the total members of the Fund Management Council.

3. The Fund Management Council has the following tasks and powers:

a/ To decide on the fund’s development strategy and annual operation plans;

b/ To decide on the fund development solutions; to approve contracts on borrowing or selling/purchasing valuable assets of the fund;

c/ To elect, remove from office and dismiss its chairman, vice chairmen and members; to set up the Control Board; to appoint, remove from office or dismiss the fund director or sign and terminate the contract signed with the fund director, in case of hiring a director; to decide on the accounting manager and other managers specified in the fund’s charter;

d/ To decide on salaries, bonuses and other benefits of its chairman and vice chairmen and the fund director, accounting manager and other managers according to the fund’s charter and law;

e/ To approve annual financial statements and plans on use of the fund’s assets and finances;

f/ To decide on the fund’s organizational structure;

g/ To decide on the setting up of legal entities under the fund according to law; to establish the fund’s branches or representative offices under Article 29 of this Decree;

h/ To revise the fund’s charter;

i/ To dissolve the fund or propose modifications to the fund’s establishment license and charter to competent state agencies;

j/ To discharge other tasks and powers under this Decree and the fund’s charter.

4. The Fund Management Council works on a collegial basis and votes on the principle of majority.

Article 24. Chairman and vice chairmen of a Fund Management Council

1. The chairman of the Fund Management Council must be a Vietnamese citizen elected by the Fund Management Council, who also acts as the fund’s at-law representative. The chairman of the Fund Management Council may concurrently act as the fund director.

2. The chairman of the Fund Management Council has the following tasks and powers:

a/ To prepare or organize the preparation of operation programs and plans of the Fund Management Council;

b/ To prepare or organize the preparation of agendas, contents and documents for the Fund Management Council’s meetings or for consulting members of the Fund Management Council;

c/ To convene and preside over the Fund Management Council’s meetings or hold consultations with members of the Fund Management Council;

d/ To supervise or organize the supervision of the implementation of the Fund Management Council’s decisions;

e/ To sign the Fund Management Council’s decisions on the latter’s behalf;

f/ To discharge other powers and tasks under this Decree and the fund’s charter.

3. The maximum term of office of the Fund Management Council’s chairman is 5 (five) years but he/she may be re-elected without limitation on the number of terms.

4. In case the Fund Management Council’s chairman concurrently acts as the fund director, such must be clearly stated in the fund’s transaction documents.

5. In case of absence, the Fund Management Council’s chairman shall authorize in writing a vice chairman of the Fund Management Council to exercise his/her rights and perform his/her tasks on the principles specified in the fund’s charter.

6. The Fund Management Council’s chairman is assisted by vice chairmen whose tasks and powers are specified in the fund’s charter.

7. A foreigner or the representative of a foreign organization that has contributed assets to establish the fund or made great contributions to the fund may be elected as vice chairman or member of the Fund Management Council or awarded the title of honorary chairman of the fund.

Article 25. Fund directors

1. The Fund Management Council may appoint a council member or hire another person to act as the fund director.

2. The fund director administers the fund’s routine work, is subject to the supervision by the Fund Management Council and takes responsibility before the Fund Management Council and law for the performance of his/her assigned powers and tasks. The maximum term of office of the fund director is 5 (five) years but he/she may be re-elected without limitation of the number of terms of office.

3. The fund director has the following tasks and powers:

a/ To administer and manage the fund’s operations and observe the spending limits of the fund in accordance with the Fund Management Council’s resolutions, the fund’s charter and law;

b/ To issue documents falling under his/her administration responsibility and be responsible for his/her decisions;

c/ To make periodical reports on the fund’s operations to the Fund Management Council and competent agencies;

d/ To manage the fund’s assets according to the fund’s charter and the law on financial and asset management;

e/ To propose the Fund Management Council’s chairman to appoint the fund’s deputy director(s) and leaders of affiliated units;

f/ To discharge other tasks and powers according to the fund’s charter and the Fund Management Council’s decisions.

Article 26. Accounting managers

1. The accounting manager of a fund shall be appointed by the Fund Management Council, with or without the proposal of the fund director, in accordance with current laws on criteria and conditions for appointment, dismissal and replacement of accounting managers of accounting units in the state accounting sector.

2. The fund’s accounting manager shall assist the fund’s director in organizing and implementing the fund’s accounting and statistical work.

3. It is prohibited to appoint as the fund’s accounting manager a person who has previous criminal convictions or offenses and has been disciplined for embezzlement, infringement upon state assets or violations of policies and regimes on economic and financial management but his/her criminal records have not yet been remitted.

4. In case of the fund consolidation, merger, division, split-up or dissolution or when being transferred to another job, the accounting manager shall complete the settlement before the fund is consolidated, merged, divided, split-up or dissolved or before he/she takes another job and shall still bear responsibility for accounting data and reports made under his/her management until his/her work is completely handed over to another person.

Article 27. Fund Control Board

1. The Fund Control Board shall be set up by the chairman of the Fund Management Council under a resolution of the Fund Management Council. For a fund operating nationwide, in more than one province or within a province or fund established with assets contributed by foreign citizens or organizations with Vietnamese citizens and organizations, the Control Board must have at least 3 (three) members, including the head, deputy head and member(s). For a fund operating within a district or commune, the Fund Management Council shall also perform the fund control function.

2. The Fund Control Board operates independently and has the following tasks:

a/ To inspect and supervise the operation of the fund in accordance with its charter and law;

b/ To report and propose to the Fund Management Council on the inspection and supervision results and financial status of the fund.

Article 28. Organization and performance of accounting, audit and statistical work

1. A fund must organize accounting work in accordance with the Accounting Law, the Statistics Law and their guiding documents, specifically:

a/ Abiding by regulations on accounting documents, cost-accounting and relevant economic and financial operations;

b/ Opening accounting books to reflect and record relevant economic and financial operations (reflecting and monitoring contributions and donations in cash and in kind received from organizations and individuals, and organizations and individuals receiving donations in cash or in kind);

c/ Making and fully and timely submitting financial statements and annual settlements to the state agency competent to license its establishment and the finance agency of the same level with or under the state agency competent to license its establishment.

2. The fund shall submit to the inspection, examination and audit of its revenues and expenditures as well as its management and use by the finance agency of the same level with or under the state agency competent to license its establishment and competent audit agency. It shall provide necessary information to state management agencies when so requested according to law.

Article 29. Establishment and operation of branches and representative offices of funds

1. A fund operating nationwide or in more than one province may set up branches or representative offices in provinces or centrally run cities other than the locality where it is headquartered and shall send 1 (one) dossier set to the agency competent to license its establishment specified in Clause 1, Article 16 of this Decree and the provincial-level People’s Committee of each of the localities in which its branches or representative offices will be located.

2. Branches and representative offices are affiliated units of the fund and shall operate under law and the fund’s charter. The fund shall take responsibility for all operations of its branches and representative offices.

3. Branches and representative offices are subject to the state management by provincial-level People’s Committees of the localities in which they are located.

4. A dossier of announcement of the establishment of a branch or representative office comprises:

a/ A written announcement of the establishment of a branch or representative of the fund, containing the signature and full name of the fund’s at-law representative and the fund’s seal and clearly stating the fund’s name and head-office address as well as its guidelines, objectives, main operation fields and scope; name, address and contents and scope of operation of the branch or representative office; full name, permanent residence place and number of the ID card or passport of the head of the branch or representative office;

b/ A certified copy of the Fund Management Council’s decision on the establishment of a branch or representative office;

c/ A certified copy of the decision appointing the head of the branch or representative office;

d/ A certified copy of the fund establishment license and charter recognition paper and a certified copy of the recognized charter of the fund (for the dossier submitted to the agency competent to grant establishment licenses and charter recognition papers, these papers are not required).

Article 30. Powers and obligations of funds

1. To be organized and operate according to their recognized charters and relevant laws.

2. To be subject to the state management by agencies managing their operation fields.

3. To mobilize donations for themselves and receive assets donated or otherwise presented by domestic and overseas individuals and organizations in accordance with their guidelines and objectives and laws.

4. To provide funding under donor’s authorization as well as their guidelines and objectives.

5. To set up affiliated legal entities under law; to organize activities under law to preserve and develop its assets.

6. To annually earmark at least 5% (five per cent) of their total assets to finance programs and projects relevant to their operation objectives, for funds established from donated assets or under authorization contracts or testaments and neither conducting fundraising nor receiving donations.

7. To preserve sufficient dossiers and documents on their assets and finances as well as resolutions and records on their operations and provide them to competent state agencies according to law.

8. To economically and efficiently use their assets and finances according to their guidelines and objectives; to pay taxes, charges and fees and comply with accounting, audit and statistical regulations.

9. To lodge complaints and denunciations according to law and submit to the inspection, examination and supervision of state agencies, donors and the community according to law. To settle their internal complaints and denunciations and report settlement results to competent state agencies.

10. Annually, to report on their organization, operation and finances to the agencies having granted their establishment licenses and charter recognition papers and finance agencies of the same level with or under these agencies and make public all received contributions before March 31 of the subsequent year.

11. To develop relations with individuals and organizations to raise funds and donations for themselves or for their specific projects according to law.

12. To develop relations with local administrations, organizations and persons in need of support to elaborate funding programs according to their objectives.

13. To report in writing on changes in their head offices or directors to agencies competent to license their establishment and finance agencies of the same level.

14. To perform other powers and obligations according to law.

Chapter IV

ASSETS AND FINANCES OF FUNDS

Article 31. Assets and finances of funds

1. A fund’s assets and finances include:

a/ Vietnam dong and assets converted into Vietnam dong (including objects, foreign currencies, valuable papers, property rights and assets of other types) contributed by individuals and organizations to the fund in the form of authorization contract, donation or testament or other forms. Individuals and organizations that have contributed their assets to the fund will own and take civil liability for such assets. Assets being working offices, equipment, technologies or property rights must be valuated by a lawfully established price appraisal institution;

b/ Revenues from its assets and finances;

c/ Other lawful assets and finances.

2. A fund’s assets and finances shall be used to assure its initial operations and spent on tasks in accordance with its charter and law.

3. The contribution of sums of VND 50,000,000 (fifty million) or more or foreign currencies or gold of a value equivalent to VND 50,000,000 (fifty million) or more to a fund must be made via the fund’s bank account, unless otherwise provided for by law.

Article 32. Revenues of funds

1. Voluntary contributions and lawful donations of domestic and overseas organizations and individuals under law.

2. Revenues from provision of services or other activities according to law.

3. State budget funds (if any) for:

a/ Performance of tasks assigned by state agencies;

b/ Provision of public services and implementation of scientific research programs, target programs and projects ordered by the State.

4. Interests on deposits and government bonds.

5. Other lawful revenues (if any).

Article 33. Use of funds

1. To finance programs and projects of humanitarian and charity purposes, for promoting the development of culture, education, healthcare, physical training and sports and science or for other social purposes for community development in accordance with funds’ charters. To provide funding under the authorization of organizations and individuals and implement targeted funding projects under law. To provide funding to organizations and individuals in conformity with their objectives.

2. The mobilization, receipt, distribution and use of voluntary contributions to support people in remedying difficulties caused by natural disasters, fires or serious incidents and fatal patients comply with the Government’s Decree No. 64/2008/ND-CP of May 14, 2008, on mobilization, receipt, distribution and use of voluntary contributions to support people in remedying difficulties caused by natural disasters, fires or serious incidents and fatal patients.

3. The receipt and use of donations from foreign non-governmental organizations comply with the Government’s Decree No. 93/2009/ND-CP of October 22, 2009, promulgating the Regulation on management and use of foreign non-governmental assistance and relevant documents.

4. To pay expenses for the provision of public services, implementation of scientific research schemes and target programs and projects ordered by the State or performance of other tasks assigned by state agencies.

5. To cover fund management expenses.

6. To use idle money (excluding state budget funds, if any) to purchase government bonds or make savings deposit.

Article 34. Fund management expenses

1. Fund management expenses include:

a/ Payment of salaries and allowances for fund managerial staffs;

b/ Payment of social insurance, unemployment insurance, health insurance or other dues according to regulations;

c/ Lease of working offices (if any);

d/ Procurement and repair of working supplies and assets for the fund’s operations;

e/ Payment for public services for the fund’s operations;

f/ Payment of working-trip allowances for those engaged in the mobilization, receipt, transportation and distribution of relief money and goods;

g/ Payment for operations related to the performance of general tasks in the process of mobilization, receipt, transportation or distribution of relief money and goods (money for hiring warehouses and storing yards; goods cartons and transportation expenses; money transfer expenses; expenses related to the distribution of relief money and goods);

h/ Other expenses related to the fund’s operations.

2. Levels of fund management expenses:

a/ The Fund Management Council shall specify a rate of fund management expenses which, however, must not exceed 5% (five per cent) of the fund’s total annual revenues (excluding financial assistance in kind, the State’s financial assistance for the provision of public services and implementation of scientific research projects and target programs and projects ordered by the State);

b/ In case the total demands for fund management expenses exceed 5% (five per cent) of the fund’s total annual revenues, the Fund Management Council shall specify a spending level after obtaining opinions of the finance agency of the same level with or the finance division of the agency competent to license its establishment;

c/ By the year-end, fund management expenses which are not spent up may be carried forward to the subsequent year for further use.

Article 35. Management of assets and finances of a fund

1. The Fund Management Council shall issue regulations on the management and use of the fund’s assets and finances and its spending levels; approve the rate of fund management expenses and financial plans and consider and approve the fund’s annual financial finalizations.

2. The Fund Control Board shall inspect and supervise the fund’s operations and report and make recommendations on the fund’s assets and finances to the Fund Management Board.

3. The fund director shall comply with regulations on management and use of the fund’s assets, finances, revenues and spending levels according to the Fund Management Board’s resolutions on the basis of tasks and operations already approved by the Fund Management Board; and may not use the fund’s assets and finances for operations different from the fund’s guidelines and objectives.

4. The Fund Management Council and director shall quarterly and annually make public the fund’s assets and finances, specifically:

a/ List of contributors and donors and their amounts of contributions and donations in cash and in kind to the fund;

b/ List of beneficiaries and their received money and objects;

c/ Report on the fund’s assets and finances and the fund’s quarterly and annual finalizations specifying every revenue and expenditure item under the Accounting Law and its guiding documents.

5. Reports on expenditure items for each fundraising campaign shall be made according to current regulations on mobilization, receipt, distribution and use of voluntary contributions to support people in remedying difficulties caused by natural disasters or fires and fatal patients.

6. Funds shall publicize their annual financial statements, finalization reports and auditor’s conclusions (if any) according to current regulations.

Chapter V

CONSOLIDATION, MERGER, DIVISION, SPLIT-UP, RENAMING; SUSPENSION AND DISSOLUTION OF FUNDS

Article 36. Consolidation, merger, division and split-up of funds

1. The consolidation, merger, division and split-up of funds comply with Articles 94, 95, 96 and 97 of the Civil Code, this Decree and other relevant laws.

2. Procedures for consolidation, merger, division and split-up of funds:

a/ The fund(s) involved in the consolidation, merger, division or split-up shall send 1 (one) dossier set prescribed in Clause 3 of this Article to a competent state agency specified in Article 16 of this Decree;

b/ Within 30 (thirty) working days after receiving a complete and valid dossier, the competent state agency specified in Article 16 of this Decree shall consider and permit the consolidation, merger, division or split-up of the fund(s); in case of refusal, it shall issue a written reply clearly stating the reason;

c/ The consolidating funds, merged fund or split-up fund shall terminate their/its existence and operation after obtaining a decision permitting the consolidation, merger or split-up from the competent state agency specified in Article 16 of this Decree. The rights and obligations of the consolidating funds, merged fund or split-up fund shall be transferred to the newly founded fund or merging fund. In case of splitting up a fund, the split-up fund and newly founded fund shall exercise the rights and perform the obligations in conformity with their respective operation purposes and take joint responsibility for the obligations of the original fund.

3. A dossier of fund consolidation, merger, division or split-up comprises:

a/ An application for consolidation, merger, division or split-up of the fund(s), clearly stating the reason and new name of the fund(s).

b/ Draft charter of the fund(s);

c/ Resolution(s) of the Fund Management Council(s) on the consolidation, merger, division or split-up of the fund(s); written consents of founders of the fund(s) or their lawful representatives (if any);

d/ Tentative personnel of the Fund Management Council(s);

e/ Plan on handling of assets, finances and laborers upon consolidation, merger, division or split-up of the fund(s).

4. Renaming of a fund

a/ The renaming of a fund must be decided in a resolution of the Fund Management Council and agreed in writing by the fund’s founders or their lawful representatives (if any);

b/ The fund shall send to a competent state agency specified in Article 16 of this Decree 1 (one) dossier of application for renaming, comprising: an application; the Fund Management Council’s resolution on renaming the fund; draft revised charter; written consents of the fund’s founders or their lawful representatives (if any);

c/ Within 15 (fifteen) working days after receiving a valid and complete dossier, the competent state agency specified in Article 16 of this Decree shall consider and re-grant a license with the fund’s new name and recognize its revised charter. In case of refusal, it shall issue a written reply clearly stating the reason.

Article 37. Suspension of operation of funds

1. A fund shall be suspended from operation for between 3 (three) and 6 (six) months if committing one of the following violations:

a/ Operating for improper purposes or at variance with its charter recognized by a competent state agency;

b/ Violating state regulations on management of assets and finances;

c/ Using targeted donations of organizations and individuals for improper purposes;

d/ Mobilizing donations for purposes other than those specified in its charter;

e/ Failing to operate for 6 (six) consecutive months;

f/ Failing to make sufficient reports on its organization and operation or annual financial statements and to remedy its violation within 30 (thirty) working days after receiving a written reprimand from a competent state agency specified in Article 16 of this Decree;

g/ Failing to report on the change of its head office address, members of the Fund Management Board or the fund director.

2. Within 15 (fifteen) working days after obtaining conclusions on the fund’s violations under Clause 1 of this Article, a competent state agency specified in Article 16 of this Decree shall issue a decision to suspend the fund’s operation. Apart from being suspended from operation, the fund shall, depending on the nature and severity of its violations, be administratively sanctioned. If causing damage, the fund shall pay compensation therefor and its managers shall be handled according to law.

3. If the fund remedies its violations during the suspension period, it may make (one) dossier of application for resumption of operation and send it to a competent state agency specified in Article 16 of this Decree for consideration and decision. A dossier comprises:

a/ An application for resumption of operation;

b/ The Fund Management Council’s report on and documents proving the remedy of violations.

4. Within 15 (fifteen) working days after receiving a complete and valid dossier under Clause 3 of this Article, the competent state agency specified in Article 16 of this Decree shall permit the fund to resume its operation. In case of refusal, it shall issue a written reply clearly stating the reason.

5. At the end of the suspension period, if the fund cannot remedy its violations, this period shall be prolonged for one (1) month. Past this time limit, if the fund still fails to remedy its violations, the competent agency specified in Article 16 of this Decree shall issue a decision to dissolve the fund.

6. The agency competent to license the fund’s establishment shall issue an administrative sanctioning decision and transfer the dossier of the case to a competent agency for handling.

Article 38. Dissolution of funds

1. A fund may dissolve at its own will or be dissolved.

2. A fund dissolves at its own will in the following cases:

a/ It terminates its operation under its charter; b/ Its operation objectives have been fulfilled; c/ It has no assets or finances for operation.

3. The order, procedures and dossier of self-dissolution of a fund: The Fund Management Council shall issue a resolution on dissolution of the fund and send one (1) dossier of application for dissolution to a competent state agency specified in Article 16 of this Decree. A dossier comprises:

a/ An application for dissolution;

b/ The Fund Management Council’s resolution on dissolution, clearly stating the reason;

c/ An inventory of the fund’s assets and finances, containing the signatures of the chairman of the Fund Management Council, head of the Control Board, fund director and accounting manager;

d/ Projected methods of handling assets, finances and staff and time limit for debt payment;

e/ A notice of the time limit for payment of debts (if any) to related organizations or individuals under law on 3 (three) consecutive issues of a central print or online newspaper, for funds licensed by the Minister of Home Affairs, or a local print or online newspaper, for funds licensed by chairpersons of provincial- or district-level People’s Committees;

f/ Documents proving the fulfillment of the fund’s asset and financial liabilities.

4. A fund is dissolved in the following cases:

a/ It fails to report on its organization, operation and finances in 2 (two) consecutive years;

b/ It falsifies its accounting information or registered account number or fails to obtain the disbursement rate specified in this Decree;

c/ It fails to dissolve at its own will under Clause 2 of this Decree;

d/ It commits one of the acts specified in Article 7 of this Decree;

e/ Past the operation suspension period, it fails to remedy its violations under Clause 5, Article 37 of this Decree.

5. Responsibilities of the agency having licensed the establishment of a fund which dissolves at its own will or is dissolved:

a/ In case the fund dissolves at its own will: Within 15 (fifteen) working days after the expiration of the time limit stated in the notice of payment of debts and liquidation of assets and finances of the fund upon its dissolution, if receiving no complaints, the competent state agency specified in Article 16 of this Decree shall consider and issue a decision to dissolve the fund and revoke its establishment license and charter recognition paper;

b/ In case the fund is dissolved in one of the cases specified in Clause 4 of this Article: Within 15 (fifteen) working days after obtaining the written conclusions on the fund’s violations, the competent state agency specified in Article 16 of this Decree shall publish an announcement on the dissolution and time limit for payment of debts and liquidation of assets and finances of the fund on 3 (three) issues of a central print or online newspaper, for funds licensed by the Minister of Home Affairs, or a local print or online newspaper, for funds licensed by chairpersons of provincial- or district-level People’s Committees. Within 15 (fifteen) working days after the deadline for debt payment and asset and finances liquidation stated in the announcement, if receiving no complaints, the competent state agency specified in Article 16 of this Decree shall issue a decision to dissolve the fund and revoke its establishment license and charter recognition paper;

c/ In case the to-be-dissolved fund does not agree with the dissolution decision, it may lodge a complaint according to law. Pending the settlement of its complaint, the fund may not operate.

6. The fund shall terminate its operation on the effective date of the dissolution decision issued by a competent state agency.

Article 39. Handling of assets upon consolidation, merger, division, split- up, suspension or dissolution of funds

1. When the consolidation, merger, division, split-up, suspension or dissolution of a fund(s) is permitted by a competent state agency, the whole money and assets of the fund(s) must be fully and timely inventoried before the consolidation, merger, division or split-up; and assets of such fund(s) must not be divided.

Money and assets of the consolidating or merging fund must equal the total money and assets of the involved funds before the consolidation or merger.

The total money and assets of funds newly founded after the division or split-up of a fund must equal money and asset of the original fund.

2. In case a fund is suspended from operation, all its money and assets shall be inventoried and its assets shall be kept intact. During the operation suspension period, pending the issuance of a decision by a competent authority, the fund may pay regular expenses for its apparatus.

3. When a fund is dissolved, its assets may not be divided. The sale and liquidation of its assets comply with the Government’s Decree No.137/2006/ND-CP of November 14, 2006, on decentralization of the state management of state assets at administrative agencies, public non-business units and assets under State ownership (referred to as Decree No.137/2006/ND-CP) and the Ministry of Finance’s Circular No. 35/2007/TT-BTC of April 10, 2007, guiding Decree No. 137/2006/ND-CP.

4. The whole existing money amount of the fund and the proceeds from the sale or liquidation of its assets shall be used to pay its debts in the following order of priority:

a/ Salaries, unemployment insurance, social insurance, health insurance and other benefits of its staff according to signed labor contracts;

b/ Tax debts and other payables.

5. After paying debts and dissolution expenses, the remaining money and assets of the fund shall be remitted into the budget of the agency which has licensed its establishment.

Article 40. Responsibilities of Fund Management Councils for consolidation, merger, division, split-up or renaming of funds

1. Fund Management Councils shall organize the implementation of decisions on consolidation, merger, division, split-up or renaming of funds.

2. The handling of assets and finances upon consolidation, merger, division, split-up or renaming of funds comply with the funds’ charters and laws.

Article 41. Complaints and denunciations

Complaints and denunciations shall be settled under the law on complaints and denunciations.

Chapter VI

RESPONSIBILITIES OF STATE AGENCIES TO FUNDS

Article 42. Responsibilities of the Ministry of Home Affairs

1. To formulate and propose competent authorities for promulgation or promulgate according to its competence legal documents on funds.

2. To guide ministries, ministerial-level agencies, government-attached agencies and provincial-level People’s Committees in implementing the law on funds.

3. To exercise its powers and consult in writing ministries and ministerial- level agencies in charge of funds’ main operation areas when settling fund- related procedures under the competence of the Minister of Home Affairs as specified in Clause 1, Article 16 of this Decree.

4. To assume the prime responsibility for, and coordinate with other ministries and ministerial-level agencies in, performing the state management of the organization and operation of funds.

5. To commend and reward or propose competent authorities to commend and reward funds under law.

6. To inspect, examine and supervise the organization and operation of funds.

7. To assume the prime responsibility for, and coordinate with agencies in, settling complaints and denunciations and handling violations.

8. To review the organization and operation of funds for reporting to the Prime Minister.

9. To promulgate forms of decisions, model charter and forms and dossiers related to funds.

Article 43. Responsibilities of the Ministry of Finance

1. To guide the elaboration of financial statements and forms related to the management of funds’ assets and finances.

2. To assume the prime responsibility for, and coordinate with the Ministry of Home Affairs in, inspecting, examining and supervising funds’ financial operations; settling finance-related complaints and denunciations about, and handling finance-related violations of, funds licensed by the Ministry of Home Affairs.

Article 44. Responsibilities of ministries and ministerial-level agencies for funds operating in the sectors under their management

1. To give to the Ministry of Home Affairs written opinions on consulted matters concerning funds operating in the sectors under their management under Clause 3, Article 42 of this Decree within 15 (fifteen) days after receiving the consultation documents.

2. To guide and create conditions for funds to participate in activities in the sectors under their management according to law.

3. To inspect funds in their observance of relevant state management regulations, handle or propose competent state agencies to handle their violations according to law.

4. To commend and reward or propose competent authorities to commend and reward funds operating in the sectors under their management.

5. To notify in writing to the Ministry of Home Affairs of their decisions to assign funds to participate in activities in domains under their management and provide funding support to funds, for funds licensed by the Ministry of Home Affairs.

Article 45. Responsibilities of provincial-level People’s Committees, district-level People’s Committees, provincial-level Home Affairs Departments and district-level Home Affairs Divisions

1. Responsibilities of provincial-level People’s Committees toward funds they issue their establishment licenses:

a/ To perform the state management of the organization and operation of funds under Clause 2, Article 16 of this Decree;

b/ To manage, inspect, examine and supervise the observance of law and charters by funds operating in their localities;

c/ To settle complaints and denunciations and handle violations related to funds; to commend and reward or propose competent authorities to commend and reward funds operating in their localities;

d/ To consider providing support to funds operating in their localities;

e/ To consider and permit funds operating in their localities to receive donations from domestic and overseas organizations and individuals under law;

f/ To direct and guide provincial-level departments and district- and commune-level People’s Committees in managing funds;

g/ To annually review and report to the Ministry of Home Affairs and the Ministry of Finance on the organization, operation and management of funds in their localities.

2. Responsibilities of provincial-level People’s Committees toward funds which are licensed by the Ministry of Home Affairs and operate in their localities: To perform the state management in inspecting, examining and handling violations, and annually reviewing and reporting on the operation of these funds to the Ministry of Home Affairs according to law.

3. Provincial-level Home Affairs Departments shall:

a/ Advise provincial-level People’s Committees in performing the state management of funds operating in their localities;

b/ Appraise and consult in writing provincial-level departments in charge of operation fields of funds; propose provincial-level People’s Committees to settle procedures under the competence of provincial-level People’s Committee chairpersons as specified Clause 2, Article 16 of this Decree;

c/ Advise provincial-level People’s Committees in settling matters arising in the process of operation of funds; settle complaints and denunciations about funds operating in their localities under the law on complaints and denunciations; coordinate with related sectors in providing guidance on policies and law related to funds;

d/ Advise provincial-level People’s Committees in inspecting and supervising the operation of funds under law and funds’ charters;

e/ Provide district-level Home Affairs Divisions with professional guidance on fund management;

f/ Review the organization, operation and management of funds in their localities (including branches or representative offices of funds operating nationwide or in more than one province) and make annual reports to and advise provincial-level People’s Committees in making reports to the Ministry of Home Affairs and the Ministry of Finance.

4. District-level People’s Committees shall:

a/ Implement provincial-level People’s Committee chairpersons’ decisions on authorization of the state management of funds;

b/ Perform the state management of funds operating in their districts or communes according to law;

c/ Annually review and report to provincial-level Home Affairs Departments and Finance Departments on the organization and operation of funds in their localities.

5. District-level Home Affairs Divisions shall advise and assist district- level People’s Committee chairpersons in performing the state management of funds if the latter is so authorized by provincial-level People’s Committee chairpersons; following the professional guidance of provincial- level Home Affairs Departments; and annually review and report on the organization and operation of funds in their localities to and advise district- level People’s Committees in reporting to provincial-level Home Affairs Departments and Finance Departments.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 46. Effect

1. This Decree takes effect on June 1, 2012.

2. This Decree replaces the Government’s Decree No. 148/2007/ND-CP of September 25, 2007, on the organization and operation of social funds and charity funds.

Article 47. Implementation responsibility

1. The Minister of Home Affairs and the Minister of Finance shall, within the ambit of their functions and tasks, detail contents as assigned to them in this Decree; and guide, organize and inspect the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government- attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-