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Bishkek city
November 6, 1999 # 119
THE LAW OF THE KYRGYZ R
EPUBLIC
“On Philanthropy and Charitable activity”

Chapter I. General provisions
Chapter II. Conditions and procedure for carrying o ut the activity of philanthropists and charitable
organizations
Chapter III. State guarantees for philanthropy and charitable activity
Chapter IV. Concluding provisions
CHAPTER I.
GENERAL PROVISIONS

Article 1. Purposes of philanthropy and charitable activity

Philanthropy – unselfish, free of charge assistance carried out by citizens or legal entities
in the sphere of art, science, culture and educatio n, awareness-raising, expressed in transfer to
citizens or legal entities of property, including c ash means.
Philanthropy shall be carried out for the preservat ion, creation and dissemination of
spiritual values in the society and thus promotes t he development of creativity and spirituality of
an individual.
Charitable activity – a voluntary activity of citiz ens or legal entities carried out on
unselfish (free of charge or on easy terms) basis t ransfer of property, including cash means, to
citizens or legal entities, on unselfish fulfillmen t of work, rendering services and other types of
support. Charitable activity shall be carried out for the fo llowing purposes:
– social support and protection of citizens, includ ing improvement of material conditions
of indigents, social rehabilitation of unemployed, disabled persons and other persons who due to
their physical and (or) intellectual peculiarities, other circumstances are not able to independently
enjoy their rights and lawful interests; – providing assistance to victims of natural disast ers, ecological, industrial or other
disasters, social, national and religious conflicts , as well as to forced displaced persons;
– promoting the consolidation of peace, friendship and understanding among nations, and
preventing social, national and religious conflicts ;
– promoting activity in the sphere of education, sc ience, culture, art, awareness-raising and
spiritual development of an individual; – promoting protection of maternity and childhood;
– promoting the activity in the sphere of preventio n and protection of health of citizens, as
well as advocacy of healthy life-style, improvement of the moral and psychological condition of
citizens; – promoting the activity in the sphere of physical culture and sports;
– protecting the environment and animals;
– protecting and preserving buildings, establishmen ts and territories of historical, religious,
cultural or environmental significance, as well as burial places.

Transfer of cash means and other material means, providing assistance in other forms to
commercial organizations, as well as support of pol itical parties, movements, groups and
companies shall not be considered as charitable act ivity.
Article 2. Legislation on philanthropy and charitab le activity

Legislation on philanthropy and charitable activity shall consist of the corresponding
provisions of the Constitution of the Kyrgyz Republ ic, Civil Code of the Kyrgyz Republic, the
present Law, laws and other normative legal acts of the Kyrgyz Republic, adopted in compliance
with the present Law.
The norms of other laws that regulate philanthropy and charitable activity shall not
contradict the present Law.
If an international treaty of the Kyrgyz Republic e stablishes other rules than those
stipulated in the present Law, the rules of the int ernational treaty shall apply.
Article 3. The right to carry out philanthropy and charitable activity

Citizens and legal entities shall have the right fr eely to carry out philanthropy and
charitable activity directly and through charitable organizations on voluntary basis and freedom of
choice of goals.
Citizens and legal entities shall have the right fr eely to carry out philanthropy and
charitable activity individually or jointly with or without formation of philanthropy or charitable
organizations.
No one has the right to restrict freedom of choice of goals of philanthropy and charitable
activity, provided by the present Law and forms of their fulfillment.
Article 4. Philanthropists and participants of char itable activity

Philanthropists for the purposes of the present Law shall be citizens carrying out
philanthropy activity. Participants of charitable activity for the purpose s of the present Law shall be citizens and
legal entities carrying out charitable activity inc luding through the support of existing or creation
of new charitable organization, as well as citizens and legal entities in the interests of whom such
charitable activity is carried out. Article 5. Charitable organization

Charitable organization shall be a non-governmental (non-commercial) organization
created for implementation of purposes stipulated i n the present Law by means of executing
charitable activity in the interests of society in general and certain categories of persons.
Article 6. Forms of charitable organizations

Charitable organizations can be created in the form of public organizations (associations),
foundations, institutions and in other forms. Charitable organization can be created in the form of an institution if its founder is a
charitable organization.
Charitable organization shall be international if i t carries out its activity on the territory of
two or more states through its branches, representa tive offices or institutions.

Procedure for creation and liquidation of charitable organizations shall be determined by
the legislation of the Kyrgyz Republic.

CHAPTER II.
CONDITIONS AND PROCEDURE FOR CARRYING OUT THE ACTI VITY OF
PHILANTHOPISTS AND CHARITABLE ORGANIZATIONS

Article 7. Activity of philanthropists and charitab le organization

Philanthropists shall have the right to carry out t heir philanthropy activity directed for the
achievement of goals provided by the present Law.
Charitable organization shall have the right to car ry out charitable activity directed for the
achievement of purposes for which it was created, a s well as charitable activity directed for the
achievement of the purposes provided by the present Law.
Charitable organization shall have the right to car ry out activity on attraction of resources
and non-operational activities.
Charitable organization shall have the right to car ry out economic activity only for the
achievement of the goals for which it was created a nd corresponding these goals.
Charitable organization shall have the right to est ablish economic companies for the
creation of material conditions for the realization of charitable purposes. Participation of
charitable organizations jointly with other persons in economic companies shall not be admitted.
Charitable organization shall not have the right to spend its cash means and use its
property for the support of political parties, move ments, groups and campaigns.
Article 8. Sources for formation of property of cha ritable organization

The sources of formation of property of charitable organization shall be:
fees of the founders of charitable organization;
membership fees (for charitable organizations based on membership);
charitable endowments, including those with target purpose (charitable grants), given to
citizens and legal entities in monetary or natural form;
incomes from the non-operational activities, includ ing incomes from securities;
inflows from the activity on attraction of resource s (conducting campaigns on engaging
philanthropists and volunteers, including the organ ization of entertaining, cultural, sport and other
mass events, conducting campaigns on collection of charitable endowments, conducting lotteries
and auctions in accordance with the legislation of the Kyrgyz Republic, sale of the property and
endowments received from philanthropists according to their wishes);
incomes from the economic activity allowed by the l aw;
incomes from the activity of economic companies est ablished by charitable organization;
labor of volunteers.
The allocation of funds from the republican and loc al budgets, out-of-budget funds of state
bodies for charitable organizations shall be prohib ited.

Article 9. Property of charitable organization

Buildings, constructions, equipment, cash means, se curities, information resources and
other property, if the otherwise is not stipulated by the laws of the Kyrgyz Republic, the results of

intellectual activity can be owned or upon other proprietary interest belong to charitable
organization. Charitable organization can make any deals, in rela tion to its property or other proprietary
interest of the property, not contradicting the leg islation of the Kyrgyz Republic, the Charter of
the given organization, and wishes of philanthropis t.
Charitable organization shall not have the right to use more then 2% of financial means
spent by the organization within the fiscal year fo r labor remuneration of the administrative and
managerial personnel. This restriction shall not ap ply to labor remuneration of persons,
participating in the implementation of charitable p rograms.
If the otherwise is not stipulated by philanthropis t or charitable program, not less then 98%
of charitable endowment in monetary form shall be u sed for charitable purposes within the year
from the moment of obtaining the endowment by chari table organization. Charitable endowments
in natural forms shall be directed for charitable p urposes within a year from the moment of
obtaining them if the otherwise is not stipulated b y philanthropist or charitable program.
The property of charitable organization can not be transferred (by means of sales, payment
of goods, works, and services or in other forms) to founders (members) of the given organization
on conditions of more favorable terms, than to othe r persons.
Article 10. Charitable program

Charitable program shall be a package of measures a pproved by the supreme governing
body of charitable organization that is directed fo r the achievement of specific objectives that
correspond the charter goals of the given organizat ion.
Charitable program shall include calculations of ex pected inflows and planned
expenditures (including payment of persons particip ating in the implementing of charitable
program), and shall set stages and terms of its imp lementation.
Not less than 98% of received income within the fis cal year from the non- operational
activities, inflows from economic companies establi shed by charitable organization and income
from economic activity allowed by the law shall be used for the financing of charitable program
(including expenses on its material and technical, organizational and other maintenance, labor
remuneration of persons participating in implementa tion of the charitable program and other
expenditures related to the realization of charitab le program). During the implementation of long
term charitable program the received cash means sha ll be used within the terms set by these
programs.

CHAPTER III.
STATE GUARANTEES FOR PHILANTHROPY AND CHARITABLE A CTIVITY

Article 11. Support of philanthropy and charitable activity by state bodies and bodies
of local self-administration Protection of rights and lawful interests of citize ns and legal entities- philanthropists and
participants of charitable activity, provided for b y the legislation of the Kyrgyz Republic shall be
guaranteed and secured. Governmental officials, hindering the enjoyment of rights of citizens and legal entities to
carry out philanthropy and charitable activity, sha ll bear responsibility in accordance with legislation
of the Kyrgyz Republic.

State bodies and bodies of local self-administration, recognizing the social importance of
philanthropy, may provide philanthropists the follo wing privileges:
– representing to a title of “an honorable citizen of the city”;
– to give the right for nominal name of activities of philanthropists and for reward by
honorable distinctions and awards. State bodies and bodies of self-administration, rec ognizing the social importance of
charitable activity, can provide the participants o f charitable activity with support on the following
forms: providing in compliance with the laws of the Kyrgyz Republic benefits in payment of taxes,
customs and other duties and payments as well as ot her benefits;
material and technical support and subsidizing char itable organizations (including full or
partial exemption from payment of services rendered by state organizations, as well as from
payment for the use of state property);
financing on a competitive basis of charitable prog rams developed by charitable
organizations; transfer of state property to charitable organizati ons free of charge or on easy terms in the
process of its denationalization and privatization implemented in the procedure provided by the
legislation. For the support of charitable activity and for inte raction of state bodies and bodies of local
self-administration with charitable organizations, can be created councils (committees) for the
support of charitable activity, which shall be cons isted of representatives of legislative and executive
branches of power, charitable organizations, public organizations, as well as public figures. The
given councils (committees) shall not have power in relation to participants of charitable activity,
their decisions shall be of recommendation characte r.
It shall be prohibited to provide with benefits sel ected charitable organizations, their
founders (members) and other participants of charit able activity.
Charitable organization shall obtain the right for tax and other benefits, established by the
legislation, from the moment of its state registrat ion.
Article 12. Control over charitable activity
Charitable organization shall provide an open acces s to its annual reports to the mass media.
Information on the amounts and structure of incomes of charitable organization, as well as
information on the amounts of its property, its exp enditures, number of employees, labor
remuneration and on engagement of volunteers shall not be deemed as commercial secret.
Control over the financial and economic activity sh all be executed in accordance with the
legislation of the Kyrgyz Republic.
CHAPTER IV.
CONCLUSIVE PROVISIONS
Article 13. Responsibility of charitable organizati on

In case of violation of the present Law charitable organization shall be responsible in
accordance with the legislation of the Kyrgyz Repub lic.
In case of committing actions by charitable organiz ation that contradict its goals and the
present Law, the body that registered the given cha ritable organization can send a warning in written
form.

In case of committing actions by charitable organization that contradict its goals and the
present Law, the authorized bodies shall send a war ning in written form.
In case of conducting public campaigns on collectio n of endowments, charitable organization
shall be obliged to publish annually a report on th e amounts of collected endowments and their use
in the official press. In case of repeated warnings of charitable organiza tion in written form, it can be liquidated
in the procedure provided by the legislation of the Kyrgyz Republic.
Article 14. International charitable activity
Participants of charitable activity shall have the right to carry out international charitable
activity in the procedure established by the legisl ation of the Kyrgyz Republic and international
treaties of the Kyrgyz Republic. International charitable activity shall be implemen ted through participation in the
international charitable projects, in the work of i nternational charitable organizations, mutual
cooperation with foreign partners in the correspond ing sphere of charitable activity, as well as in any
other form accepted in the international practice t hat does not contradict legislation of the Kyrgyz
Republic and norms and principles of the internatio nal law.
Charitable organization shall have the right to ope n bank accounts in other countries in
accordance with the legislation of the Kyrgyz Repub lic.
Charitable organization shall have the right to obt ain charitable endowments from foreign
citizens, stateless persons as well as from foreign and international organizations. Such endowments
shall be used in the procedure set by the present L aw.

Article 15. Charitable activity of foreign citizens , stateless persons, foreign and international
organizations on the territory of the Kyrgyz Republ ic

Foreign citizens, stateless persons, foreign and in ternational organizations shall have the right to
act as participants of charitable activity on the t erritory of the Kyrgyz Republic in accordance with the
present Law.
Article 16. Entering into force of the present Law

The present Law shall enter into force from the mom ent of its publication.

Published in the newspaper “Erkin-Too” on November 17 of 1999 # 90

The President of the Kyrgyz Republic A. Akaev
Adopted by the Legislative Assembly
of the Jogorku Kenesh of the Kyrgyz Republic on Oc tober 11 of 1999.