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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
The following unofficial translation has been prepared by ICNL.
In the Name of the People,
The People’s Assembly has approved the following law, which we now promulgate:
[Preamble] ARTICLE 1

Associations, foundations and federations established under Law 84 of 2002 whose Articles of
Incorporation contradict the provisions of the attached law shall rectify and amend their status pursuant
to this law within one year of its effectiveness.

ARTIC LE 2

Existing Boards of Directors of associations, foundations and federations established pursuant to
provisions of Law 84 of 2002 and their executive and administrative bodies shall continue to operate
until amended according to this law.

ARTICLE 3

I t is prohibited for any private entity to practice any of the activities of associations and foundations
without taking the form of associations or foundations pursuant to the provisions of this law. The
Minister of Social Affairs [translator’s note: Arabi c refers to the Minister/Ministry of Social Affairs even
though this agency has been renamed the Ministry of Social Justice and Solidarity] or his assignee may
issue a resolution suspending any such activity and taking necessary actions against this entity pursuant
to the attached law.

No [government] entity other than the entity permitted by the attached law may, under any form or
title, license the practice of any of the activities of associations and foundations. Such a license shall be
null and void a nd shall have no legal effect.

ARTICLE 4

The Minister of Social Affairs shall issue the Executive Regulation [Implementing Regulation] of the
attached law within six months as of the date of its effectiveness. Until the issuance of such regulation,
the current regulation and resolutions may continue to be effective excluding any contradictions with
the provisions of the attached law.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 5

The Law on Associations and Foundations (Law 84 of 2002) is hereby abolished, as is any provision of
any other law that contradicts the provisions of the attached law.

ARTICLE 6

This law shall be published in the Official Gazette and is applicable as of the day following its publication.
This law shall be stamped with the official Seal of the State and implemented as any ordinary law.

THE LAW ON ASSOCIATIONS AND FOU NDATIONS

CHAPTER ONE
GENERAL PROVISIONS

ARTICLE 1

The following definitions apply to the terms used in this law:
1. Association : A group of a continuous legal personality composed of natural or legal
persons, or both, whose number in all cases is not less than 20, formed to pursue not –
for- profit purposes.
2. Public Benefit Association : an association that aims to realize a public benefit upon or
after its establishment and whose activities serve the public. Public benefit status shall
be granted by a resolution of the Council of Ministers.
3. Central Association : an association whose declaration is endorsed, according to the
provisions of this law, by a decision from the Competent Minister, having a one or more
branches in one more than province. The Executive Regulation [Implementing
Regulation] of this law shall define any other requirements for central associations.
4. Foundation: A legal person established by one or more natural or legal persons, or both,
with an endowment of no less than one hundred thousand pounds, to pursue t for not –
for -profit purposes.
5. Foreign Organ ization: a foreign legal person, whose main office is located within or
outside Egypt, licensed to perform one or more activities of associations and
foundations subject to the provisions of this law and an agreement concluded between
the organization and the Ministry of Foreign Affairs.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
6. Regional Federation: a federation established by at least 10 associations or foundations
or both located in one governorate, regardless of the activity, and having a legal
personality.
7. Specialized Federation: a central federation established by at least 10 associations or
foundations, or both, who perform common activities in specific fields within the
Republic [of Egypt], having a legal personality.
8. General Federation of Associations and Foundations : a general federation established
from elected members of regional and specialized federations’ boards and others
appointed by the President of the Republic in accordance with this law. This federation
shall supervise the activities of associations, foundations, organizations, and Regional
and Specialized Federations pursuant to the provisions of this law. The federation shall
enjoy legal personality and shall be headquartered in the city of Cairo.
9. Founding Member : a natural or a legal person who participates in the formation of an
association or foundation and signs its Articles of Incorporation.
10. Competent Court : The administrative court having jurisdiction in the area where an
association, foundation, organization or federation is established.
11. Competent Minist er: The Minister of Social Affairs.
12. Administrative Body : The Ministry of Social Affairs or any of its departments.

ARTICLE 2

Associations established by a law or pursuant to international conventions concluded by the Arab
Republic of Egypt shall be subj ect to the agreements governing these associations. For any issue not
specifically contained in those agreements, the provisions of this law shall apply.

CHAPTER TWO
ASSOCIATIONS
Section One: Establishment of Associations
ARTICLE 3

It is required for the formation of an association to have written Articles of Incorporation signed by the
founders. An independent and appropriate management center in the Arab Republic of Egypt shall be
secured. It is required for members of associations to enjoy full civil rights and with no judgments
against them concerning a crime or offense of honest, unless acquitted.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
It is permitted for non -Egyptians having permanent or temporary residence in Egypt to join membership
of any association following the rules contained in the Executive Regulation [Implementing Regulation] of this law.

It is permitted for any foreign community to establish an association observing the affairs of its
members pursuant to the provisions of this law and with the conditio n of reciprocal treatment for the
Egyptian community in that relevant country.

ARTICLE 4

Articles of association of any association shall contain the following data:
a. Name of the association, which should be indicating to its purposes, and not creating
any confusion with any other association within the same geographic scope.
b. Type, scope and activities of the association and its geographic scope.
c. Address of the associ ation management center.
d. Name, surname, age, nationality, profession and domicile of each founder.
e. Resources of the association, their utilization and disbursement.
f. Bodies that represent the association, the competencies of each, the method of
members s election, dismissal or invalidation of membership as well as the quorum for
the meetings of these bodies, the validity of their decisions and the means of invitations
for informing members.
g. Membership system, conditions, rights and duties of members; espe cially the right of
every member to review the document of the association, attending and voting in the
General Assembly.
h. Financial control system.
i. Rules for amending the Articles of Incorporation of the association, establishing its
branches, the cases for its termination and entities that shall benefit from its funds in
these cases. It is impermissible to have the Articles of Incorporation of any organization
providing that the funds of the association shall inure to anybody except the National
Associat ions and Foundations Support Fund or any association or foundation working in
the same field of the association or to any of the federations subject to the provisions of
this law.
j. Identification of the competent person for applying to public benefit statu s.
k. Identification of the representative of founders for foundation procedures.

The Executive Regulation [Implementing Regulation] of this law shall contain model Articles of
Incorporation that associations may follow.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 5

The application of the entry of summarized Articles of Incorporation shall be written in the standard
format and presented to the Regional Federation established pursuant to this law by the representative
of the founders enclosed with the following documents:
1. Four copies of th e Articles of Incorporation of the association signed by all founders.
2. Acknowledgment for each founding member undertaking to fulfill conditions stipulated
in Article (3) and data contained in item (d) of Article (4) herein.
3. An official certified documen t confirming the occupancy of the association's premises.
4. A request to join the membership of the Regional Federation.

The Regional Federation, after verifying the completeness of these documents shall evidence the date of
application submission on a copy given to the applicant along with entering the application in a special
register. Then, the Regional Federation shall n otify the Administrative Body within two weeks to obtain
its approval.

The applicant shall pay a fee of one hundred pounds for the entry of the Articles of Incorporation in the
Administrative Body register. These fees shall go to the Fund for the Support of Associations and
Foundations. The Executive Regulation [Implementing Regulation] of this law shall define the
procedures for the application along with providing the application format.

ARTICLE 6

The Administrative Body shall enter the summarized Articles of Incorporation in the special register
within 30 days of being notified by the complete application along with necessary documents
mentioned in the previous article; otherwise, the entry shall be valid by virtue of the law. The legal
personality o f the association is affirmed by making such entry or the elapse of 30 days after the
notification of the Administrative Body by the application, whichever first.

If the Administrative Body finds, within the 30 -days period, that purposes of the associati on contain an
activity prohibited by Article (9) hereunder, it shall reject the application by a justified decision to be
notified to the Regional Federation and the founders’ representative by a registered letter with receipt
confirmation.

The founders’ representative may challenge this decision before the competent court within sixty days
of being notified following prescribed procedures.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
Upon affirmation of the legal personality of the association, the Administrative Body shall notify the
Regional Federation and take necessary actions to publish the summarized Articles of Incorporation in
the official website of the Ministry of Social Affairs within sixty days of the affirmation of the legal
personality of the association. The association, upon affirmation of its legal personality, has the right to
publish its summary Articles of Incorporation in Egyptian newspapers.

ARTICLE 7

Any concerned person may review the summary entry of the Articles of Incorporation of any association
and obtaining certified copies thereof after paying due fees as defined in the Executive Regulation
[Implementing Regulation] of this law (not exceeding one hundred pounds). These fees shall go for the
National Associations and Foundations Support Fund.

ARTICLE 8

Procedures f ollowed for the amendment of Articles of Incorporation shall be the same as for the
establishment of the association as stipulated in articles 4 and 5 hereunder.

Section Two: Purposes, Rights and Obligations of Associations

ARTICLE 9

Associations shall work to achieve the purposes of social welfare, development, and the enlightenment
of society. The Executive Regulation [Implementing Regulation] of this law shall define specific fields of
these activities. No association is allowed to work in more than two fields except after receiving
approval from the Regional Federation and notifying the Administrative Body.

Establishment of clandestine associations is prohibited. It is also prohibited that the purposes of any
association contain t he following:
1. Formation of brigades or formations of a military nature.
2. Threatening the national unity, violating public order or morals or calling for
discrimination between citizens on the bases of sex, race, color, language, religion or
belief.
3. Any p olitical activities limited to political parties pursuant to the Law on Political Parties
or any syndicate [or trade union] activities limited to syndicates pursuant to the Law on
Syndicates .
4. Targeting the realization of any profit for members of the assoc iation or performing any
activities leading to this result. Following commercial practices to realize profits assisting

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
in the purposes of the association shall not be considered a violating activity. The
Executive Regulation [Implementing Regulation] shal l define these terms.

ARTICLE 10

It is permitted to second civil workers in the state to work in associations, foundations or federations
established pursuant to this law to provide necessary assistance to fulfill their missions based on a
request from the relevant association, foundation or federation. Secondment shall be for one year
renewable by a decision from Competent Minister or governor as the case may be.

ARTICLE 11

Without prejudice to any other privileges provided for in other laws, associat ions, foundations and
federations established pursuant to the provision of this law shall enjoy the following benefits:
a. Exemption from registration and entry fees due on the association with regards to all
contracts where the association is party to such as property and mortgage contracts or
any other in -kind rights, as well as exemption from signature endorsement fees.
b. Exemption from current taxes and stamp duties and those imposed in the future on all
contracts, powers of attorney, documents, printed ma terials, registers…etc.
c. Exemption from custom charges and other fees imposed on the imports of equipment,
machines, instruments, tools and production needs as well as on any received gifts,
grants and assistance from abroad. The exemption should be via a resolution from the
Prime Minister based on a proposal from the Competent Minister and the approval of
the Minister of Finance. It is provided that these materials are necessary for the basic
activities of the association. The permanent materials thereof, defined by a decision
from the Competent Minister in agreement with the minister of finance, shall not be
disposed except after five years of their importation unless due taxes and custom
charges thereon are paid.
d. Exemptions for properties owned by the as sociation from real-estate tax. The
association, upon exercising its right in owning properties for fulfillment of its purposes,
shall observe laws governing the ownership of foreigners of properties.
e. Projects implemented by associations shall be exempted from all forms of taxes.
f. Associations are granted 25% reduction from the transportation fees of machines and
equipment on railways.
g. Telephone calls and subscriptions fees applicable to houses shall apply to associations.
h. Associations are granted a 25% reduction from the costs of water, electricity and natural
gas consumption.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
i. Donations granted to associations are offset against the income of the donator of no
more than 10% of the net profits.
j. Procurements of association s of transportation means and all equipment necessary for
their purposes shall be exempted from general sales tax.

ARTICLE 12

An association may perform any activities not contradicting with its purposes in cooperation with any
foreign association, agen cy or organization provided the Administrative Body and the Regional
Federation are notified and the elapse of 30 days of the notification date with no written objection from
the administrative body. The Executive Regulation [Implementing Regulation] shall define controls for
such cooperation and the contents of the notification of data and information.

ARTICLE 13

An association may receive funds from inside the Republic from natural persons, Egyptians or foreigners,
and from Egyptian legal persons and foreign organizations licensed to practice the activities of
associations pursuant to the provisions of this law, regardless of the nature of these funds, to enhance
its financial resources for fulfilling its purposes.

In all cases, no association is perm itted to obtain funds from outside neither from Egyptian or foreign
persons or entities or their representatives inside the country, nor sending funds to persons or
organizations abroad except after obtaining a permission from the Competent Minister or aft er the
elapse of 30 days with no written objection from the Competent Minister. This is with the exception of
purchasing books, scientific and technical bulletins and journals and subscription fees. The Executive
Regulation [Implementing Regulation] shall define the procedures for obtaining such permission and its
requirements in terms of data and information.

ARTICLE 14

An association, for the purpose of meeting its purposes and enhancing its financial resources, may
collect donations, as licensed by th e Administrative Body. The Executive Regulation [Implementing
Regulation] of this law shall define procedures and conditions for such license to collect donations.
These conditions may be defined on case -by -case basis as required for the public interest.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 15

The association shall maintain its documents, libraries and registers in its management center. The
Executive Regulation [Implementing Regulation] of this law shall define these registers, their keeping
and use and data they contain. These registers shall be stamped by the administrative body before being
used.

ARTICLE 16

Every member of the association has the right to review the records of the association, its documents
and instruments. If this right is not granted, the Regional Federation may interfere to enable members
of the association of this right based on a request signed by no less than 10% of the members.

Representatives of the Administrative Body, nominated via a decision from the Competent Minister,
may enter to the association premises or its branches to monitor its activities and review its records to
ensure that they are compliant with the provisions of this law and procedures defined by the Executive
Regulation [Implementing Regulation] of this law.

ARTICLE 17

Every association shall have an annual balance sheet. Accounts should be recorded in books approved
by the chairman and the cashier defining in details its financial position, expenditures and revenues
including donations and their sources.

If the total assets in the association balance sheet exceed twenty thousand pounds, the Board of
Directors shall present its financial position and final accounts to a chartered accountant, licensed to
conduct accounting and auditing profession, supported by documents prepared following standard
accounting system for examination and submission of a report no less than one month before the
convention of the General Assembly.

The Board of Directors report along with the auditor's report, balance sheet and final accounts shall be
displayed in the association's premises no less than two weeks before the convention of the General
Assembly and shall remain displayed until endorsed. The Executive Regulation [Implementing
Regulation] of this law shall determine the way of disp laying these reports.

The Competent Minister shall issue a resolution defining the standard accounting system to be followed
by associations, foundations, organizations and federations established pursuant to the provisions of
this law.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).

ARTICLE 18

The association shall deposit with any bank or saving fund in Egypt its cash monies under its registered
name or under the name of any of its activities or projects. Disbursement from these monies shall be
only done by the chairman, or his assignee, and the c ashier based on a resolution from the Board of
Directors. The association shall notify the Regional Federation and the Administrative Body by the
names of those authorized to sign.

The association shall spend its funds for fulfilling its purposes and may invest the surplus of its revenues
in a way to ensure securing financial resources to support its activities or reusing the funds in productive
or service projects to strengthen its financial position. In all cases, associations are not allowed to
engage in financial speculations. The Executive Regulation [Implementing Regulation] of this law shall
define conditions and controls for the investment of the association funds.

ARTICLE 19

In cases where the association issues a decision considered by the Adm inistrative Body as violating this
law or the Articles of Incorporation, the Administrative Body may request the association, via a
registered letter with receipt confirmation, to withdraw the decision within ten days of being notified
pursuant to paragrap h 3 of article 23 hereunder. If the association does not withdraw the decision in
question within fifteen days as of being notified, the Administrative Body, following notifying the
relevant Regional Federation, may take necessary actions to prevent the im plementation of the
decisions pursuant to provisions of this law and its Executive Regulation [Implementing Regulation].

ARTICLE 20

Every member has the right to withdraw from the association at any time provided that the association
is notified by a receipt -acknowledged letter. This may not prejudice the right of the association to claim
for any due funds on the member of any nature.

The Executive Regulation [Implementing Regulation] of the law shall define the procedures and rules for
withdrawal from membership of an association.
Section Three: Bodies of the Association
The General Assembly

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 21

The General Assembly shall compose of operating members who spent no less than three months in
membership and fulfilled all their obligations pursuant to the Articles of Incorporation of the
association.

ARTICLE 22

The General Assembly shall convene by an invitation to be notified to all its members having the right to
attend according to the Articles of Incorporation, informing them the venue, time and agenda of the
meeting. This invitation shall be sent from:
a. The Chairman, or whom authorized by half number of the members of the Board of
Directors.
b. A person authorized by no less than 20% of the members having the right to attend the
General Assembly meetings.
c. The Administrative Body as deemed necessary.

ARTICLE 23

Meetings of the General Assembly shall be held at the headquar ters of the association and may be
convened anywhere else as identified in the invitation enclosed with the agenda. Copy of the papers to
be presented to the General Assembly shall be sent to the Administrative Body, if the latter is not the
inviting party for the meeting, and to the Regional Federation no less than fifteen days before the
meeting. The Federation may send a representative to attend this meeting and the Administrative Body
may send a representative to the meeting it invited to.

The General Assembly may not consider issues other than those contained in the agenda except issues
presented to the Board of Directors at least two weeks before the convention of the General Assembly.
The Regional Federation and the Administrative Body sh all be provided with copy of the General
Assembly minutes of meeting within thirty days of the date of the meeting.

ARTICLE 24

The General Assembly shall call for an ordinary meeting once a year at least within four months
following the end of the fiscal year of the association. The purpose of the meeting shall be to review the
Board of Directors' report on the activities of the year, the balance sheet, final accounts and auditor's
report, to elect members of the board to replace those whose terms expired, to appoint an auditor and

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set his/her charges and for any other issues as proposed by the Board of Directors for inclusion in the
agenda.

ARTICLE 25

The General Assembly may be invited to extraordinary meetings to decide on amending the Articles of
I ncorporation, resolving or merging the association, dismissal of all or some of its board members or any
other issues as defined in the Articles of Incorporation for extraordinary meetings.

ARTICLE 26

General Assembly meetings are valid if attended by t he absolute majority of its members. If the
necessary number for this majority is not present, the meeting shall be postponed to a further session to
be held in no less than one hour and no more than fifteen days as of the date of the first meeting
according to the Articles of Incorporation. The second meeting shall be valid if attended by no less than
ten percent of the members or twenty members whichever is less, so the number of attendees in the
first case shall not be less than ten members.

ARTICLE 27

Members of the General Assembly may not participate in voting if having personal interest in the
proposed decision except for the election of the association bodies.

ARTICLE 28

Decisions of the ordinary General Assembly shall be passed by the absolute m ajority of present
members.

Decisions of the extraordinary General Assembly shall be passed by the absolute majority of members
unless the Articles of Incorporation provide for larger majority.
The Board of Directors
ARTICLE 29

Each association shall have a Board of Directors composing of an odd number of members not less than
five and not more than fifteen pursuant to the Articles of Incorporation. Members shall be elected by
the General Assembly for a term of three years. The first Board of Directors shall be appointed by the
founders for a term not exceeding three years. The Executive Regulation [Implementing Regulation] of

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
this law shall define other conditions to be met by those nominating themselves for membership of the
Board of Directors.

ARTICLE 30

The Board of Directors shall display the names of candidates for membership of the Board of Directors in
the second day following the closure of the nomination period. The Regional Federation and the
Administrative body shall be notified within the three following days but sixty days at least before the
elections date.

The Regional Federation, the Administrative Body and whoever concerned may notify the General
Assembly within seven days following the display or notification of the list, as the case may be, by any
objections on members not meeting the conditions. If the concerned candidate does not withdraw
nomination within seven days of the notification to the General Assembly, and it is proven to the
Administrative Body th at this candidate is not meeting nomination conditions, the Administrative Body
must issue a decision removing this person. The removed person, or whoever concerned, may submit a
claim before competent court within seven days following the issuance of this decision. The court shall
decide in the case before the date of the elections.

ARTICLE 31

It is prohibited to combine between membership of the Board of Directors of the association and
working in the Administrative Body or other public entities superv ising, guiding or monitoring the
association and its funding. This prohibition does not apply to associations whose membership is limited
to those working in any of the aforementioned entities.

It is also prohibited to combine between membership of any B oard of Directors in an association and
paid work in the association or any of its activities or project except by a resolution from the Prime
Minister or his assignee for the public interest.

ARTICLE 32

The Board of Directors of an association shall manage its affairs. The Executive Regulation
[Implementing Regulation] of this law shall define the competencies of the chairman, the deputy
chairman, the cashier and the secretary general of the association. The chairman is the person
representing it before judiciary and third parties.

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The Board of Directors, for the management of the association's affairs, may conduct any works other
than the activities indicated in this law or the Articles of Incorporation as activities requiring the prior
approval of the General Assembly. The Board of Directors may appoint a general manager for the
association, who may not be a member of the board. The appointment decision shall define
competencies of the manager and his/h er remuneration.

ARTICLE 33

The Board of Directors shall meet at least once every three months. The meeting may not be valid unless
attended by the majority of members. Members of the board shall attend its meetings. In case a
member is absent, without an acceptable excuse, for more than half the meetings convened by the
board in one year's time, the member is considered as has resigned and shall be notified by this via a
registered letter with receipt acknowledged.

Decisions of the Board of Directors shall be passed by the consent of the absolute majority of present
members unless the Articles of Incorporation provide for a larger majority. If votes are equal, the
chairman shall have a casting vote. The Board of Directors shall notify the Regional Fede ration and the
Administrative Body by decisions passed by it or the General Assembly within thirty days of issuance.

Section Four: Dissolution of Associations

ARTICLE 34

An association may be dissolved by decision of the Extraordinary General Assembly following the
approved rules in its Articles of Incorporation. The dissolution shall be approved by a resolution from the
Competent Minister including appointing one or more liquidators from the liquidators' list prepared by
the Administrative Body. The resolution shall define period of liquidation and liquidator's fees.

ARTICLE 35

The Administrative Body may issue a resolution suspending any activity or removing the cause of the
violation after hearing the arguments of the General Assembly and approval of the General Federation
in the following cases:
1. If the association disposes or allocates its funds for purposes other than its original
purposes.
2. If the association rece ives funds from an external entity or sends funds to an external
entity in violation to the provisions of paragraph 2 of article 13 hereunder.

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3. If the association commits a serious violation of the law such as wasting of funds,
embezzlement, wasting of pub lic funds or breaching public order or morals.
4. If the association joins, subscribes or affiliates to a club, association, authority or
organization whose location is outside the Arab Republic of Egypt in violation to
provisions of Article (12) hereunder.
5. If it is proven that the real objectives of the association are to target or to exercise any
prohibited activity in article 10 hereunder.
6. If the association collects donations in violation to provisions of paragraph 1 of article 14
hereunder.
7. If the Gen eral Assembly does not convene for two consecutive years.
8. If the Administrative Body is not enabled of monitoring the works of the association or
in case of moving to a new premises without notifying the Administrative Body.

In case the association cont inues to commit any of the violations indicated in the previous article, the
Administrative Body, after approval of the General Federation, may issue a decision removing the Board
of Directors and appointing a temporary board running the affairs of the ass ociation until its General
Assembly is invited to elect a new Board of Directors pursuant to the provisions of this law within no
more than ninety days of the date of the removal decision. The removed board member, whose
personal liability on violations is proven, may not nominate himself for these elections.

In all cases, if it is proven to the Administrative Body that the association is unable to fulfill its purposes
or continues committing any of the aforementioned violations in the first paragraph, th e Administrative
Body, after approval of the General Federation, must suspend the activities of the association and refer
the matter to administrative courts for dissolving the association and appointing a liquidator for its
funds.

ARTICLE 36

Managers of a dissolved association and its staff shall handover the funds of the association and all its
documents, records and papers to the liquidator as requested. These managers and the entity with
whom monies of the association are deposited, and its debtors may not make any transactions in the
affairs, funds or rights of the association except by a written order from the liquidator.

ARTICLE 37

The liquidator, upon conclusion of the liquidation process, shall distribute its outcomes as stipulated in
the Arti cles of Incorporation. If the Articles of Incorporation do not contain such provisions or if it
becomes impossible to implement these provisions, the outcomes of the liquidation shall be given to

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the National Associations and Foundations Support Fund as pr ovided in Chapter Four hereunder. The
Executive Regulation [Implementing Regulation] shall define controls of the liquidation process, its term
and procedures to be followed in case it is not possible to complete this process.

ARTICLE 38

The first instan ce court, having jurisdiction in the area in which the association premises is located, shall
decide in claims submitted by or against the liquidator.

ARTICLE 39

Subject to provisions of article 36 hereunder, it is impermissible for members of the disso lved
association or any other person running its affairs to continue its activities or dispose its funds. It is also
not allowed for any person to participate in the activities of a dissolved association.

Section Five: Public Benefit Associations

ARTICL E 40

Public benefit associations shall be subject to provisions governing other associations for any matter not
specifically covered in this section.

ARTICLE 41

A central or non -central association willing to achieve a public interest upon or after its establishment
may acquire the public benefit status via a resolution from the Prime Minister based on a request from
the association, the Administrative Body or the General Federation of National Associations and
Foundations and the approval of its Genera l Assembly in both cases.

Cancellation of the public benefit status shall be via a resolution from the Prime Minister. Public benefit
associations may join each other by approval from the Administrative Body and the General Federation
of National Associations and Foundations. Merge r between public benefit associations and other
associations not having public benefit status may be conducted only by a resolution from the Prime
Minister.

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ARTICLE 42

Through a resolution from the Prime Minister, privileges of public benefit associations shall be defined ,
especially the non -seizure of part of or all their funds, the non -acquisition of these monies by
obsolescence and the possibility of expropriation of properties for the public benefit to fulfill purposes
of the association.

ARTIC LE 43

The Administrative Body may assign to a public benefit association the management of an affiliated
foundation or entity or implementing any of its projects or programs following the rules and procedures
to be determined via a decision from the Compe tent Minister.

ARTICLE 44

Public benefit associations shall be subject to the control of the Central Auditing Organization, which
may review the works of the association including projects assigned to it to ensure the compliance with
laws, internal regu lations, the Articles of Incorporation and the standard accounting system attached to
the Executive Regulation [Implementing Regulation] of this law.
Section Six: Shelters

ARTICLE 45

No buildings shall be allocated for the hosting of children, elderly people, patients with chronic diseases
and other needy people for social care and people of special needs, except after obtaining a permit from
the Administrative Body. The Executive Regulation [Implementing Regulation] of this law shall define
rules and p rocedures for granting such permit to an association or other parties.

The Administrative Body may cancel this permit if its conditions are violated. The Executive Regulation
[Implementing Regulation] of this law shall define rules and procedures for the cancellation of such
permit.

CHAPTER THREE
FOUNDATIONS

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 46

Provisions applicable to associations shall apply to foundations for matters not specifically covered by
this chapter.

ARTICLE 47

A foundation is established by allocating a sum of money in line with the purpose of its establishment
and the size of its proposed activities but no less than 100,000 pounds. National foundations may not
target realizing financial gains for the benefit of any of its founders or trustees. In this respect, provisions
of article 9 hereunder shall be observed.

ARTICLE 48

The establishment of a foundation may be made by one or more founders of natural or legal persons or
both. Founders shall develop Articles of Incorporation that contain in particular the following
information:
a. Name of the foundation, its geographical scope and its management location in the
Arab Republic of Egypt.
b. The purpose behind the establishment of the foundation.
c. Detailed statement of funds allocated for the realization of the foundation purposes.
d. Organization of the foundation management including the methods of appointing the
chairman and members of the board of trustees and the method for appointing the
manager.

A foundation m ay be established by an official instrument or a declared bequest, each of which may be
considered as Articles of Incorporation for the foundation provided it contains the information
mentioned in the previous paragraph. The Executive Regulation [Implement ing Regulation] of this law
may be enclosed with model Articles of Incorporation that may be followed by foundations.

ARTICLE 49

Whenever the establishment of a foundation is via an official instrument, it is permissible for the
founder(s) to abolish it by another official instrument before its entry. The entry of the foundation might
also be cancelled if proven through a court orde r that its establishment is meant to damage the rights of
third parties.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 50

Representative of founders shall apply to the Regional Federation requesting entry of the foundation
attaching with the request details shown in the application form att ached to the Executive Regulation
[Implementing Regulation] of this law. After verification of application completeness, the Regional
Federation shall notify the Administrative Body for its approval. The legal personality of the foundation
is affirmed as o f the next day after entry of its Articles of Incorporation or similar documents by the
Administrative Body.

ARTICLE 51

Every foundation shall have a board of trustees composing of no less than five members and not
exceeding fifteen members to be appoin ted by the founder or founders. They chairman and members
may be from those trustees. The Regional Federation and the Administrative Body shall be notified by
such appointment and any changes in the board of trustees.

In case no board of trustees is appo inted or the vacancy of one or more positions in the board and it is
not possible to appoint their substitutes following the method indicated in the Articles of Incorporation,
the Administrative Body shall make such appointment and notifies the Regional Fe deration thereby. The
board of trustees shall manage the foundation according to its Articles of Incorporation and its chairman
shall represent the foundation before judiciary and third parties.

ARTICLE 52

Subject to the provisions of this law, a founda tion may receive funds in the form of grants, endowments
or other forms, or may collect donations from third parties after the approval of the Administrative Body
and observing the conditions that might be set by the donor. Monies received or collected by the
foundation shall be added to monies allocated for its establishment.

ARTICLE 53

The foundation shall have annual balance sheet and final accounts to be prepared following the
standard accounting system issued by a decision from the Competent Minister .

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 54

A foundation may be dissolved by a justified decision from the Competent Minister after consent of the
General Federation and inviting the foundation to hear its arguments if serious evidences exist proving
that the foundation is practicing any of the proh ibited activities in Article (9) hereunder.

The dissolution resolution shall include the appointment of one liquidator or more for defined
remuneration. In any of the aforementioned cases, the Competent Minister may deem it sufficient to
issue an order c ancelling any violating action, removing the cause of violation or dismissing the board of
trustees and appointing a temporary board to run the affairs of the foundation for one year, renewable
if necessary only once, or may suspend activities of the found ation.

Whoever concerned may appeal against the decision of the Competent Minister before the
administrative court following defined procedures and deadlines. The court shall decide on the appeal
as an urgent matter with no expenses.

Members of the boa rd of trustees and founders are considered as concerned persons for the purposes
of this appeal. Monies resulting from the liquidation of the foundation shall inure to the National
Associations and Foundations Support Fund.

CHAPTER FOUR
FOREIGN ORGANIZA TIONS
ARTICLE 55

The Competent Minister may license foreign organizations to perform one or more activities of the
activities of associations and foundations subject to this law and its rules with due consideration to the
agreement concluded between the o rganization and the Ministry of Foreign Affairs.

The Executive Regulation [Implementing Regulation] of this law shall define procedures for license
application, the term of the license, data and information to be contained in the license application,
doc uments to be attached thereto and rules for conducting licensed activities.

The Administrative Body shall define rules for conducting the licensed activities for a foreign
organization. In all cases, such activities shall be consistent with the needs of t he Egyptian environment
and observing public order and morals.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 56

A foreign organization licensed to work inside the Arab Republic of Egypt shall be subject to the control
of the competent administrative body and shall present to this entity an nual progress reports during the
period of conducting its licensed activities. In case the organization violates the rules for conducting
licensed activities, the Competent Minister, in coordination with the Ministry of Foreign Affairs, may
issue a decisio n suspending the violating activity or cancelling the activity license. The Ministry of
Foreign Affairs shall be notified by such decision within fifteen days as of the date of its issuance.

The Executive Regulation [Implementing Regulation] of this law shall define conditions under which
licenses to foreign organizations are cancelled as well as the procedures to be followed and the disposal
of its monies or equipment.

CHAPTER FIVE
FEDERATIONS
Section One: The Regional Federation
ARTICLE 57

Associations and foundations within every province, regardless of their activities, shall establish a
Regional Federation among them. The Federation should have written Articles of Incorporation, entered
with the competent Administrative Body and shall hav e a legal personality. Model Articles of
Incorporation for regional federations shall be attached to the Executive Regulation [Implementing
Regulation] of this law.

Each association or foundation falling under the provisions of this law, within three mon ths of acquiring
legal personality, shall join membership in the Regional Federation in its geographic location. If the
association has more than one branch in more than one province, it shall join membership in the
Regional Federation in the governorate w here its headquarters is located.

The Executive Regulation [Implementing Regulation] of this law shall define the procedures for joining
this federation and the annual fees, which shall not exceed 200 pounds; half of which shall be paid to
account of the Regional Federation and the other half to the account of the General Federation of
Associations and Foundations.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 58

The Regional Federation shall work at the level of the province. No more than one Regional Federation
shall be established in any one province. Every association or foundation falling under provisions of this
law shall submit annual progress reports to its Regional Federation indicating type and size of activities
performed during the year, the services it rendered to the people or to the development programs set
by the state. The General Federation shall be provided with copies of these reports.

ARTICLE 59

Each Regional Federation shall have a Board of Directors composing of fifteen members for a term of
three years. Ten members shall be elected by the General Assembly of the Regional Federation from
among its members and the Competent Minister, in coordinat ion with the Chairman of the General
Federation of Associations and National Foundations, shall appoint the other five members from public
figures.

ARTICLE 60
The Regional Federation shall undertake the following tasks:
a. Receiving complete applications for entry of associations and notifying the
Administrative Body according to article 5 hereunder.
b. Implementing general policies formulated by the General Federation of Associations and
National Foundations and supervising t he implementation of decisions issued in the
annual conference.
c. Conducting necessary social researches inside the province and participate in general
social researches conducted by the General Federation.
d. Studying the needs of the environment, its capaci ties and resources to ensure
complementation of the efforts of different member associations and foundations in
rendering their services.
e. Studying funding problems of member associations and foundations and work to create
appropriate solutions.
f. Developin g training and qualification plans and evaluate training programs related to
activities implemented in the province.
g. Establishing a complete database on member associations and foundations inside the
province and work to update the database continuously.
h. Holding an annual conference to evaluate accomplishments realized by member
associations and foundations, study and discuss issues referred from the conference.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
Section Two: The Specialized Federation

ARTICLE 61

Associations and foundations conducting or funding joint activities in specific fields, either nationwide or
at the level of any province, shall establish, among themselves, a central specialized federation for every
activity separately. Such Federation shall have written Articles of Incorporati on, shall be entered with
the General Federation and the competent administrative body and shall have a legal personality.
Model Articles of Incorporation for a specialized federation shall be enclosed with the Executive
Regulation [Implementing Regulation ] of this law.

Each association or foundation falling under the provisions of this law may, immediately after
affirmation of its legal personality, join membership of the specialized federation in its activity fields.
The Executive Regulation [Implementi ng Regulation] of this law shall define the procedures for joining
membership of this federation.

ARTICLE 62

The Specialized Federation shall work nationwide. It is not allowed to establish more than one
specialized federation for each field of the associations' work. The Regional Federation, in coordination
with the central Specialized Federation may establish s pecialized subcommittees responsible for
conducting the activities of the Specialized Federation within provinces.

ARTICLE 63

Each Specialized Federation shall have a Board of Directors composing of fifteen members for a term of
three years. Ten members shall be elected by the General Assembly of the Regional Federation from
among its members and the Competent Minister, in coordination with the Chairman of the General
Federation of Associations and National Foundations, shall appoint the other five membe rs of public
figures having experiences in fields related to the Federation activities.

ARTICLE 64

The Specialized Federation shall undertake the following tasks:
a. Plan the programs of social care and development in the domains related to the
Federatio n purposes in line with the state policy.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
b. Establish a complete database on member associations and foundations and classify
them according to their field of activity.
c. Conduct researches related to the fields of activity and circulate these researches to
member associations and foundations for making use of and implementing them.
d. Monitor member associations and foundations to assess their application of researches
and studies related to the work field.
e. Organize programs and coordinate efforts between ass ociations, foundations and their
staff. These programs shall be approved by the relevant Regional Federation before
implementation.
f. Develop programs for technical and administrative preparation of board members of
associations and foundations and their st aff. These programs shall be approved by the
competent Regional Federation before implementation.
g. Circulate a guide including lists of enrolled associations in the federation's field of
activity, related researches and studies as well as local and international conferences
related to their activities.
h. Prepare for the holding of elections for the Federation's Board of Directors and notify
the General Federation and the Administrative Body by results of these elections.

Section Three: The General Federati on of Associations and Foundations

ARTICLE 65

A General Federation for Associations and Foundations shall be established having legal personality and
composing of regional and specialized federations. The headquarters of this Federation shall be in Cairo
city.

Management of the General Federation sh all be assumed by a Board of Directors composing of thirty
one members, ten of them shall be appointed by the President of the Republic from those interested in
social issues including the Chairman of the Federation, and the rest shall be elected from amon g
members of Boards of Directors of regional and specialized federations elected by a General Assembly
that convenes upon the expiry of the board term every three years.

The Board of Directors shall develop the internal regulation of the Federation, its management and
organization of its works. The regulation shall be issued by a decision from the Competent Minister.

The General Federation of Associations and Foundations shall undertake the following tasks:

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
a. Establish complete databases on all associations, foundations, organizations, regional
and specialized federations established pursuant to the provisions of this law.
b. Develop a strategy for the role of associations and foundations in supporting and
implementing development programs.
c. Conduct neces sary studies to secure needed funding for associations and foundations to
develop their resources as well as communicating with internal and external entities to
secure donations and support as well as advice on how to leverage financial capacities.
d. Organ ize technical and administrative training and qualification programs for employees
and members of associations and foundations in coordination with regional, specialized
federations, associations and foundations.
e. Document pioneer and successful experiences of associations and foundations along
with promoting small and medium enterprises assisting in poverty alleviation and
creating job opportunities.
f. Cooperate with relevant local and foreign entities, conclude protocols or agreement
with these entities an d other local entities concerned with social and development
works in the fields of associations and foundations work.
g. Inform about the role of associations and foundations in enhancing civil activities and
train volunteers to contribute in the activities of associations and foundations.
h. Hold conferences and workshops to upgrade the capacities of associations, foundations,
regional and specialized federations.
i. Prepare an annual comprehensive report on the achievements of civil society
organizations estab lished under this law. The report shall include evaluation of their
capacities and proposed solutions for encountered obstacles.
j. Propose amendments to legislations regulating civil work and issue necessary
resolutions to achieve flexibility in its managem ent.

ARTICLE 66

The General Federation shall hold an annual general conference gathering chairmen of regional and
specialized federations, associations and foundations fulfilling their obligations towards their relevant
federations. The General Federation may invite to the conference any figures concerned with social
issues to study matters referred to the conference from its technical committees or from regional or
specialized federations.

ARTICLE 67

The General Federation, Regional Federations, and Specialized Federations shall be subject to the
provisions applicable to associations for whatever matters are not covered in this chapter.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).

CHAPTER SIX
FUND FOR THE SUPPORT OF ASSOCIATIONS AND FOUNDATIONS

ARTICLE 68

A fund shall be established at the Ministry of Social Affairs to provide financial support for the
sustainability of activities implemented by associations, foundations and federations established
pursuant to provisions of this law.

ARTICLE 69

The Associations and Foundations Support Fund shall have a Board of Directors chaired by the
Competent Minister and the following members:
• Chairman of the General Federation of Associations and Foundations – Vice -Chairman.
• Chairman of a regional fed eration and a chairman of a specialized federation as
nominated by the Board of Directors of the General Federation.
• Chairmen of two associations; one of them is a public benefit association and the
second is a chairman of a foundation, to be nominated by the Board of Directors of the
General Federation.
It is provided that any federation, association or foundation represented in the Fund should
have remarkable activities with sound financial positions according to the auditor's report for
three years pre ceding nomination. Moreover, there should be no violation committed during
the five years preceding nomination.
• Three members from central departments at the Ministry of Social Affairs, including the
Head of the Central Department for Associations and Fou ndations.
• Three public figures interested in social issues selected by the Competent Minister.

The term of the Fund Board of Directors shall be three years. It is permissible to reappoint a member for
further term(s). A decision from the Competent Minister shall be issued forming the Fund Board of
Directors, its working system and management.

ART ICLE 70

The Board of Directors of Associations and Foundations Support Fund shall undertake the following
tasks:

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
a. Formulate the general policies to support activities and projects implemented by
associations and foundations and set controls for the suppor t of these activities and
projects.
b. Conduct necessary studies on financial positions of associations and foundations, the
priorities for support of existing activities and projects as well as the current support of
these activities and projects.
c. Collect necessary financial data for the work of the Fund related to associations,
foundations and federations established pursuant to provisions of this law and the
expansion of their activities through the information center belonging to the General
Federation a nd in coordination with the Administrative Body.
d. Develop and disseminate an annual guide of associations, foundations, specialized and
regional federations to enable citizens of contributing in them and participating in
voluntary social work.
e. Monitor and evaluate disbursements from the financial support allocated for
associations and federations.
f. Issue bulletins that enable internal and external donors of determining their
contributions and ensuring the appropriate direction of these contributions.
g. Take necessary actions to develop resources of the Fund.

ARTICLE 71

Resources of the Fund shall compose, in particular, of the following:
a. Amounts allocated in the state budget for assisting associations and foundations
established pursuant to the provisions of this law.
b. Fees for entry of associations and foundations, established under this law, in the
Administrative Body register.
c. Donation s, assistance and grants received by the Fund.
d. Monies inuring from the dissolution of associations and foundations.
e. Additional fees imposed for charitable works.
f. Fines imposed pursuant to provisions of this law.
g. Any other resources approved by the Fund 's Board of Directors.

CHAPTER SEVEN
PENALTIES

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
ARTICLE 72

Without prejudice to any severer penalty stipulated in the penal code or any other law, the following
crimes shall be punished as follows:

First : Imprisonment for no more than one year and a fine not exceeding ten thousand pounds or either
of these penalties shall be imposed on whoever established an association, which real purposes are
proven to be to conduct prohibited activities contained in paragraphs 1 and 2 of article 9 hereunder.

S econd : A fine not less than ten thousand pounds and not exceeding twenty thousand pounds shall be
imposed on whoever:
a. Establishes, under any name or form, any entity that performs any of an association or
foundation without following provisions of this law. Any such entity shall be abolished
by law and shall be subject to the provisions of Chapter One, Section Four of thi s law.
b. Conducts an activity of any association or foundation despite the issuance of a verdict or
a decision suspending its activities or dissolving it.
c. Receives as a chairman or a member in an association or a foundation, either in a true
or alleged cap acity, funds from abroad or sends money to abroad or collects donations
without the approval of the Administrative Body.
d. Spends funds of an association or a foundation for personal purposes or for financial
speculation.
e. Disposes monies of an association o r a foundation, against which a verdict or decision of
dissolution and liquidation was issued or issuing a decision in this regard without a
written order from the liquidator.

In cases mentioned in items c, d and e, the court shall also impose on the conv icted person a fine equal
to the amount received, sent, collected, spent, speculated or disposed, as the case may be.

Third : A fine not less than five thousand pounds and not exceeding ten thousand pounds shall be
imposed in any of the following cases:
a. Whoever conducts activities of an association or a foundation before the completion of
its registration with the exception of establishment activities.
b. Any member of any Board of Directors of an association or a foundation or any manager
who participates in having this association or foundation joins, subscribes or affiliates to
a club, association, agency or authority which location is outside the Arab Republic of
Egypt without notifying the Administrative Body or despite its objection.

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Draft law provided by the International Center for Not -for -Profit Law (ICNL).
c. Any liquidator w ho disposes the monies of an association or a foundation in violation to
provisions of this law.
d. Any member of the Boards of Directors of public benefit associations who contributed in
merging the association with another body without approval of the Admi nistrative
Body.

Fourth : A punishment of no less than one thousand pounds and not exceeding five thousand pounds
shall be imposed on any member of a board of director in an association, foundation or federation who,
in his personal capacity or as a membe r of the board, causes violations that result in the removal of the
Board or dissolution of the association pursuant to this law.