Russia has expanded the opportunities for the application of endowment capital for non-profit organizations (NPOs). The corresponding draft law was adopted by the State Duma in the third reading.

The new measures will cover about 200 endowment funds.

The bill was drafted by the Ministry of Economic Development on the instructions of the Government in order to optimize the system of formation of endowment funds.

Thanks to this, donations can be used for formation or replenishment of endowment funds for charitable activities. This is of particular importance for the country's regions and municipalities because at present support to endowment funds will be included in the list of powers of regions and local self-government bodies. Due to this, the development of endowments in Russia will gain additional momentum.

Also, charitable foundations will now have an opportunity to participate in business entities if they have received securities as donations or if a management company places the charitable organization's monetary assets into shares of public joint-stock companies.

Besides, the new law envisages several stimulating measures thanks to which the endowment mechanism and mass charity will become more widespread.

For example, there will be a possibility to extend the time for raising funds for endowment formation if an NPO has attracted 50% of funds for endowment formation within a year. In this case, the highest governing body of the NPO gets the right to increase the collection period. Such a measure is especially in demand in the regions where organizations work with massive donations of citizens.

Earlier, it became known that in Ulyanovsk, more than 2 million rubles, allocated from the city budget, will be directed to support social projects. This money will be received by 9 organizations of different orientation.

Also, about 20 non-profit organizations in the Moscow region will get subsidies for implementation of their own projects in cultural sphere. The regional government will allocate 20 mln roubles for this purpose. Eighteen best projects were selected for the contest.

Made in Russia // Made in Russia

Author: Ksenia Gustova