The Government has just issued Decree No. 03/2026/ND-CP regulating the organization and operation of social funds and charity funds, effective from March 1.
According to the Decree, social funds are non-governmental organizations that individuals and organizations voluntarily contribute a part of their assets to establish or establish through wills, donations, and donations of assets; are licensed by competent state agencies to establish and recognize charters; organize and operate for non-profit purposes with the aim of supporting and encouraging the development of culture, education, health, sports, science, technology, innovation, digital transformation, agriculture, rural areas, protection of natural resources and environment, social security and community.
Charity funds are non-governmental organizations established by individuals and organizations who voluntarily contribute part of their assets for establishment or establishment through wills, donations to assets; licensed by competent state agencies to establish and recognize charters; organized and operated for non-profit purposes for charity and humanitarian purposes; supporting the overcoming of difficulties caused by natural disasters, fires, epidemics, accidents and other subjects in difficult and vulnerable circumstances who need social assistance.
The Decree stipulates that foreign individuals and organizations are allowed to contribute assets with Vietnamese citizens and organizations to establish funds in Vietnam.
Conditions for foreign individuals and organizations: Must have a tax payment commitment and be responsible for the legality of contributed assets; commit to strictly implementing Vietnamese law and the purpose of fund operations; have contributed assets to establish funds according to regulations.
Assets contributed to establish funds by foreign individuals and organizations must not exceed 50% of the total assets contributed to establish funds as prescribed.
The Decree strictly prohibits taking advantage of the establishment and organization of the fund to carry out the following acts:
Activities contrary to the principles and purposes of the fund, affecting the prestige of the State, agencies, organizations, individuals, and communities; causing harm to national interests, security, national defense, the great national unity bloc, and the legitimate rights and interests of organizations and individuals.
Infringing upon social ethics, fine customs, traditions, national identity, beliefs, and religions.
Self-interest, fraud, implementation and use of illegal invoices, making documents that are not true to reality or colluding with organizations and individuals to evade taxes, tax fraud or violate other provisions of law on finance, tax, accounting in the process of establishing and operating funds.
Money laundering, terrorist financing and illegal activities.
Forging, erasing, transferring, leasing, lending, mortgaging fund establishment licenses in any form.
Receiving deposits, lending, and contributing investment capital.
Using the state budget, using or supporting assets assigned by the state budget or originating from the state budget to participate in contributing assets to establish funds.
