Instruction on the Implementation of the Decree on Foundations

Article 1

(Title of the Chairperson under Article 20 and Matters Related to Donations) The Chairperson of the Board of Directors or the Chairperson of the Board of Trustees as stipulated in this Article may also be referred to as the Chairperson of the Foundation.
A. Regarding the Acceptance of Donations of Funds and Property and the Establishment of Donation Collection Points for Funds and Property:
1. Acceptance of donations from domestic individuals, legal entities, and organizations: A foundation may accept donations of funds and property without the consent of the organization authorized to approve its establishment; however, for donations valued at ten million Kip or more, the foundation shall, within no later than seven days after the acceptance is completed, report in writing to the Ministry of Finance, the Provincial Finance Department, and the state organization authorized to approve the establishment of the foundation.
2. Acceptance of donations from foreign individuals, legal entities, and organizations: A foundation may accept donations of funds and property valued at less than one hundred million Kip without the consent of any state organization; however, for donations valued at one hundred million Kip or more, prior permission shall be sought as follows:
— For foundations operating nationwide, permission shall be sought from the Ministry of Foreign Affairs, and a certificate confirming the foundation's status issued by the Ministry of Home Affairs must be held. After each donation acceptance is completed, a written report shall be submitted to the Ministry of Finance and the Ministry of Home Affairs within seven days.
— For foundations operating within the scope of a province, capital city, municipality, or city, permission shall be sought from the Provincial or Capital Department of Foreign Affairs, and a certificate confirming the foundation's status issued by the Provincial or Capital Department of Home Affairs must be held. After each donation acceptance is completed, a report shall be submitted to the Provincial or Capital Department of Finance, Department of Foreign Affairs, and Department of Home Affairs within no later than seven days.
3. Establishment of collection boxes (points) for donations of funds and property: A foundation may, in accordance with its charter and with the consent of the owner of the premises, place collection boxes for donations of funds and property at various premises.
B. Regarding Fundraising: A foundation may mobilize and raise funds and property through organizing forums, holding meetings, or conducting various activities to call upon individuals, legal entities, and organizations to donate and contribute funds and property to the foundation, and shall comply with the following procedures:
1. Submit an application to the Governor of the province or the Mayor of the capital city through the Provincial or Capital Department of Home Affairs to request permission for the location intended to be used as the venue for fundraising activities. The application must state the purpose, content, date, time, location, and method of the fundraising, and must also ensure peace and order at the event site.
2. After each fundraising is completed, the foundation shall report to the approving authority within seven days.
Funds and property obtained through fundraising mobilization, after deducting necessary expenses, may only be used for the stated purposes. In the case of fundraising for a specific purpose, all funds and property obtained through fundraising mobilization may only be used for that specific purpose of the foundation, such as: floods, storms, fires, epidemics, droughts, etc.
(Regarding the initial funds and property required for establishing a foundation) The founder or the founding committee of the foundation must possess the necessary and appropriate amount of funds and property at the initial stage to ensure the normal and regular conduct of work and to achieve the purposes set forth in its charter.
C. Personnel Composition of the Foundation: For foundations belonging to Lao individuals, organizations, or legal entities, the members of the Board of Directors, Chairperson, Vice Chairperson, Supervisory Committee, Director, and Secretary-General must be Lao citizens and not persons of unsound mind. Foreigners or foreign nationals working or pursuing occupations in the Lao People's Democratic Republic, who have jointly contributed funds or property with an organization or Lao citizen to establish the foundation, may serve as Honorary Chairperson or Advisor of the foundation.
D. Regarding the Procedure for Establishing a Foundation: [See next article]