The Ministry of Justice is currently appraising the draft decree by the Ministry of Home Affairs concerning the organization and operation of social and charitable funds.

According to the draft, social and charitable funds are nongovernmental organizations established by individuals or entities voluntarily contributing assets, or through wills, donations, or grants. They are licensed by competent authorities, operate under recognized charters, and do not pursue profit.

Social funds aim to support and promote development in culture, education, health, sports, science, technology, agriculture, rural areas, resource and environmental protection, social welfare, and community development. Charitable funds operate for humanitarian purposes, assisting with difficulties caused by natural disasters, fires, epidemics, accidents, and supporting vulnerable individuals.

A key new proposal in the draft is that social and charitable funds would be prohibited from receiving deposits, lending money, or making capital contributions. The drafting agency states this regulation aims to enhance state management and ensure funds adhere to their principles and objectives.

Under the Law on Credit Institutions and the Law on the State Bank, receiving deposits and lending are financial activities characteristic of banking or credit operations, which only credit institutions are authorized to perform. Allowing social and charitable funds to engage in these activities is inconsistent with their non-profit nature and risks altering their operational model.

If funds were to accept deposits or provide loans, it could lead to risks such as inability to repay, bad debts, and financial losses for both the funds and contributors, while also eroding donor and community trust. Therefore, the Ministry of Home Affairs deems the prohibition on receiving deposits and lending necessary to ensure the safety, transparency, and sustainability of asset management.

Residents receive relief supplies in My Dien village, Hoa Thinh commune, Dak Lak, on the morning of 23/11. *Photo: Thanh Tung*

The draft also stipulates that social and charitable funds must operate within defined administrative boundaries: national, inter-provincial, provincial, or communal. This addition aims to clarify authority for management, licensing, supervision, and enforcement of violations, while helping funds choose an appropriate scale based on their organizational capacity, preventing overextension.

The draft also proposes increasing the minimum asset requirements for fund establishment. Funds established by Vietnamese individuals or organizations operating nationally or inter-provincially must possess a minimum of 8 billion dong; for provincial scope, 1.6 billion dong; and for communal scope, 100 million dong. Funds with foreign elements must have a minimum of 10.8 billion dong for national operations; 4.6 billion dong for provincial; and 1.2 billion dong for communal.

In addition to state and community oversight, funds are required annually to publicly disclose received contributions, sponsorships, and their utilization results through mass media before 31/3.

Vu Tuan