Putin signed a law on the use of NGOs target capital
The President of Russia Vladimir Putin has approved amendments to the laws "On charity activities and volunteering (volunteering)" and "On procedure of formation and utilization of target capital of nonprofit organizations" that allows NGOs to use the mechanism of the endowment, the corresponding document published on the portal of legal information.
The endowment Fund (from English endowment - supply, contribution) is a trust Fund established for non-commercial purposes, for example to financing organizations of education, culture, medicine. The endowment Fund is filled mainly by charitable donations. It may invest its funds with the aim to generate income, but obliged to send all the income received in favor of those organizations, to support which it was created.
Earlier, Deputy speaker of the Federation Council Galina Karelova said that Federal law establishes the features of formation and utilization of target capital of non-profit organizations. According to her, the efficacy of the endowment was discussed at the meeting of the Council for social innovation actors. Endowment gives you the opportunity to build long-term mechanisms for NGOs, so it is particularly relevant for those who are thinking about the sustainability of his organization and plans for the long term, said the Senator. Karelova added that this "safety cushion" allows NGOs to continue uninterrupted even in the face of new challenges.
According to her, the law provides a number of incentives, aimed at a wider application of the endowment and development of philanthropy, among them – increase of the period to raise funds to create capital from one year to eighteen months. As stressed by Vice speaker of the Federation Council, another important innovation was the permission to use the public collection is not only for replenishment but also for the formation of the endowment.
This law promotes long-term financial sustainability of a nonprofit organization that allows for a more stable social effect, concluded Karelova.