For optimal readability, we highly recommend downloading the document PDF, which you can do below.
- Year: 1996
- Country: Georgia
- Language: English
- Document Type: Domestic Law or Regulation
- Topic: Foreign Funding
This document has been provided by the
International Center for Not-for-Profit Law (ICNL).
ICNL is the leading source for information on th e legal environment for civil society and public
participation. Since 1992, ICNL has served as a resource to civil society leaders, government
officials, and the donor community in over 90 countries.
Visit ICNL’s Online Library at
for further resources and research from countries all over the world.
Disclaimers Content. The information provided herein is for general informational and educational purposes only. It is not intended and should not be
construed to constitute legal advice. The information contai ned herein may not be applicable in all situations and may not, after the date of
its presentation, even reflect the most current authority. Noth ing contained herein should be relied or acted upon without the benefit of legal
advice based upon the particular facts and circumstances pres ented, and nothing herein should be construed otherwise.
Translations. Translations by ICNL of any materials into other languages are intended solely as a convenience. Translation accuracy is not
guaranteed nor implied. If any questions arise related to the accuracy of a translation, please refer to the original language official version of
the document. Any discrepancies or differences created in the tr anslation are not binding and have no legal effect for compliance or
Warranty and Limitation of Liability. Although ICNL uses reasonable efforts to include ac curate and up-to-date information herein, ICNL
makes no warranties or representations of any kind as to its a ccuracy, currency or completeness. You agree that access to and u se of this
document and the content thereof is at your own risk. ICNL discl aims all warranties of any kind, express or implied. Neither ICNL nor any
party involved in creating, producing or delivering this document shall be liable for any damages whatsoever arising out of access to, use of
or inability to use this document, or any e rrors or omissions in the content thereof.
Law of Georgia on Grants
Article 1. The Scope
This law shall regulate the general principles of donation, receipt and use of a grant in
Article 2. Grant
1. The targeted funds gratuitously transferred, in cash or in kind, from the grantor (donor)
to the grantee, that are used for specific humanitarian, educational, scientific-research,
health care, cultural, sporting, ecological and social projects, as well as for
implementation of the programs of the state or public importance, shall constitute a grant;
2. The funds transferred in order to achieve en trepreneurial or political goals shall not be
deemed to be a grant.
Article 3. The Grantor
The following may be a grantor (donor):
1. International charitable, humanitarian and other public organization (including
international sports associations, federations and committees), financ ial-credit institution,
the government of a foreign country or its re presentation, and also a non-entrepreneurial
legal person (foundation) of a foreign country;
2. Those non-entrepreneurial legal persons (f oundations, programs) of Georgia the main
charter objective of which is to accumulate th e property in order to support charitable,
social, cultural, educational, scientific-resear ch and other activities beneficial to the
Article 3. The Grantee
The following may be a grantee:
1. The state of Georgia in the person of a body (organization) so authorized by the
President of Georgia;
2. A governmental or a local self-governance body of Georgia;
3. A resident or non-resident non-entrepre neurial legal person of Georgia, its
representation, branch or division;
4. A citizen of Georgia
Principles of Donation of a Grant
Article 5. Legal Grounds for Donation of a Grant
1. A written contract concluded by the grantor (donor) and the grantee, as well as a
written resolution of an international sports organization on the allocation of targeted
material or intangible values (including monetary funds) to a Georgian sports federation
or club, shall constitute the legal grounds fo r a grant. The contract shall include the
purpose of the donation of the grant, its am ount, specific directions of its use, time
periods for its utilization and the principa l conditions set by the grantor (donor) to the
2. The grant shall be used only for the purposes stipulated in the contract. Use of the
grant for other purposes shall be allowed only by permission of the grantor (donor).
3. Realization of the values received through the grant shall be allowed only if so
predetermined in the contract on the donation of the grant.
Article 6. Violation of Contractual Terms and Liability
1. In the case of violation of the contractual terns the parties shall be liable in accordance
with the effective legislation.
2. An unsettled dispute arisen between the resi dent legal persons or citizens of different
countries shall be resolved by judicial settlement of that country which the parties
predetermine. If there be no such agreement in the contract, the dispute shall be resolved
in accordance of the legislation of Georgia.
Taxation of a Grant
Article 7. General Procedure for Taxation of a Grant
The procedure for taxation of a grant shall be determined by the effective legislation of
Article 8. Effective Date of the law
This Law shall take effect upon promulgation.
President of Georgia Eduard Shevardnadze
June 28, 1996