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- Year: 2005
- Country: Morocco
- Language: English
- Document Type: Domestic Law or Regulation
- Topic: CSO Framework Legislation,Public Benefit and Charitable Status
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Kingdom of Morocco
General Secretary of Government
Administration of Association and Organized Profession
Rebat, on 26 Jumad The Second 1426 (2 August 2005)
Circular No. 1/2005
To: Governors of Provinces
Subject: Conditions of Recognizing Public Benefit
In application of the provisions of the Article 9 of the Decree No. 1.58.376 issued in 3
Jumad Al Awal 1378 (15 Nov. 1958) to regulate the right of association, and as
amended by the law No. 75.00 to be implemented by the decree No. 1.02.206 dated
12 Jumad Alawal 1423 (23 July 2002), I am pleased to advise you that it has been
published in the official Gazette, issue No. 5339 dated 25 Jumad The second 1426
(August 2005) the decree No. 2.04.969 dated 28 Thu Al Qeda 1425 (10 Jan. 2005) to
apply the provisions of the above mentioned decree that defines the conditions of
granting public benefit for the associations.
First: The content of amendments to the decree regulating the right of association
relevant to the public benefit.
I would like in this respect to bring to the attention of the Governors to the
substantial amendments which had been adopted according to the new legislatures
related to the right of association in respect of recognizing the public benefit.
Therefore, it is so important to remind that this recognition remains a privilege
granted by the government to associations which seek to achieve public ‐benefit
goals both at the national and local levels. This is attributed to the fact that the
recognition of the public benefit is considered as recommendation by the State to
such association toward supporting agencies at the national and international levels.
In addition to what moral advantage such associations achieve, the government’s
recognition of the public benefit enable donors to benefit from deducting such
donated amounts from their net product they achieve or from their taxable income,
either for tax fee on corporations or general tax on income according to each case.
The associations also can benefit from tax exemption on values added for services
provided by these associations, and commodities and works and services provided to
it as gifts within the international cooperation program, and those which had been
provided by legal or natural persons, Moroccan or foreigners, which take care of
social and health situations for handicapped or persons who are in hard living
No wonder that the recognition of public ‐benefit has substantial material impacts
on an association and its supporting agencies.
Within the same context, we should remind that the associations recognized for
public ‐benefit are only allowed to receive donations and wills according to the
conditions and terms stated in the provisions of the two articles 10 & 11 of the
decree issued on the 5
th Nov. 1958.
It is worthy to note that according to the new provisions, the association recognized
for public benefit, can apply for the public support once every year, provided
presenting a prior request to the Secretary General of Government, and it should be
provided for in the decree which gives the association the capacity of public benefit.
For these reasons, it is so necessary to draw the attention that the capacity of the
public benefit is granted only to associations which aim in actual at achieving a public
benefit either at the national and local level. For the privileges given to associations,
they are subject to monitoring in order to check they are in consistent with their
objectives stated in their statutes, and they are in compliance with their obligations
set by the law.
Therefore, the new amendments which were brought by the law, state clearly that
the recognition of the public benefit should:
‐ On one hand, take into consideration financial and human resources
received by the association or which intend to receive in order to do its tasks
and duties so properly. Within this framework, it should be avoided to grant
this capacity to associations with too poor financial and human resources and
cannot work out its duties so properly.
Furthermore, it is not necessary that the association has presented for long to
benefit from the public ‐benefit capacity, but they can apply for benefit of this
capacity at any time. In this case, its founders or applicants for public ‐benefit should
demonstrate to the administration what their financial resources they intend to
provide in order to achieve the objectives of the association.
And it is apparent that the associations recognized for public benefit will be subject
to regular monitoring which enables us recognize how well they are committed to
provide the above mentioned resources. If this commitment appears not so
sufficient, the administration, in this case, may withdraw the recognition of public ‐
‐ On the other hand, moral and legal obligations are to be imposed on the
association, including its commitment to achieve its objectives, and its
limitation to implement the obligations which result in monitoring and thus
to hold the people in charge of the association accountable. Therefore, it is
related to legal situation which has some impacts on the rest of the
association members. So, it is important for the association to be managed
within conditions that allow its members to exercise authorities given by the
law and statutes in the administration.
Second: Conditions of recognition of public ‐benefit for Association
Every association that seeks the recognition of the state authorities for the capacity
of the public benefit should have the following conditions:
2 ‐1 ‐1 To be established according to the provisions of decree No. 1.58.376 issued on
3 Jumad 1378 (15 Nov. 1958) indicated above, as amended and completed, and
should exercise its activities according to its statute.
It is so necessary that the association should be in consistent with the provisions of
its statute and other official regulations, especially the ones related to the decision ‐
making, and the competencies of bodies, periodic sessions of meeting, and
compliance with the rules of the administrative and financial management.
The associations should have clear regulating rules, which ensure participation for all
its members in management through adopting fair rules, and also that ensure
participation in decision ‐taking and define clear roles for its members.
2 ‐1 ‐2 To have financial resources which enable it achieve its defined tasks in the
statute, which has the characteristics of public benefit. Therefore, the associations
should have financial and material resources which ensure that they can achieve its
definite objectives, especially those which aim at accomplishing public benefit or
contribute to achieve them.
2 ‐1 ‐3 The association should seek to achieve objectives that have public ‐benefit
characteristic either at local or national level.
2 ‐1 ‐4 The association should hold accounting books which allow preparing
statements that reflect a true profile of its accounts and its financial position
and its results, according to the conditions defined by decision of the
government authority assigned to finance.
2 ‐1 ‐5 To be committed to provision of required information and be subject to
administrative monitor stated in the legislative and regulating provisions.
Moreover, each concerned association should be committed to providing all
information and data required by the administration, particularly these related to
the activities, programs, projects and agreements of the association. It should also
be committed to be subject to monitoring which the administration and monitoring
agencies, including financial court, intend to undertake in order to check on the
nature of the association’s activity and objectives and the way it manages its
administrative and financial issues within the respect of the legislative and regulating
2‐2 Required documents
Each association with fulfilled indicated requirements, can apply for having the
capacity of public benefit, after deliberations to be made by its competent body
according to its internal statute, either it is related to the office of the association or
general assembly or any other body qualified for deciding upon the issue of
presenting this application.
For this purpose, it should deposit its application against a receipt, with the
competent official by its president or any authorized person. The application form
should be attached with the following documents:
1. Final receipt for depositing the file of association;
2. Statute and internal system,
3. The list of personnel and those responsible for administrating the association
with indication of their nationalities, professions, residence and addresses,
and when necessary, a copy of the receipt of the last renewal of the
association office, and statement of their addresses.
4. A report on the activities of the association which shows their achievements
since its inception and its estimated action plans for the upcoming three
5. The statements of the association’s accounts and its financial position and its
results, and also the value of movable and immovable properties of the
association and the ones which it intends to own;
6. A copy of the minutes of the deliberations of the competent body in the
association which gives permission of the application for the recognition of
the capacity of the public benefit for the concerned association’s benefit,
along with the list of the present members.
Documents indicated above should be certified as duplicate
2 ‐3 ‐ The requirements for recognition of public ‐benefit
After depositing the application for recognition of public benefit by a certain
association, the official orders undertaking a prior investigation by his units, about
the objectives of the association and its activities, and to be sent to the General
Secretary of Government (Administration of associations and regulating professions)
attached with documents indicated above, as well as a report containing the results
of administrative investigation achieved by these units. In addition to his comments
on the characteristic of the public interest which the association seeks to achieve by
its activities, within three months, starting from the date of deposit of the
application, in order to maintain the limit period of six month defined by the
This investigation includes the aspects of the association’s activities and
achievements and how well it is committed to the rules stated in its statute,
especially the regular meeting of its general assembly and the resources of the
associations, the material, financial and human.
It is worth noting that the Services of the General Secretary of Government, after
considering the results of administrative investigation, ensuring it has fulfilled all
above mentioned requirements, and studying the documents attached to the
application of the association, and consulting the Minister of Finance and the
government authorities concerned with the objectives of the association, should
present the results of studies to the Prime Minister in order to take the decision
which is appropriate.
Also, it is worth noting in this regard that the capacity of public ‐benefit is granted,
when necessary, by a decree that defines the total value of properties and movables
which the association cannot possess.
A copy of this decree which is to be published in the official gazette to be sent the
Third: Legal and Financial obligations of the associations recognized for the
capacity of public ‐benefit
The associations which are recognized for the capacity of public benefit should be
compliant to its legal obligations stated in the Royal Decree (
فيرشلا ريھضلا ) No.
1.58.376 issued in 3 Jumad Al Awal 1378 (15 Nov. 1958) as amended and completed,
‐ Holding accounts according to the conditions stated in the para. 2 ‐1 of this
‐ To raise an annual report to the Secretary General of Government, containing
the aspects of utilization of the resources which it has received within a year,
and this report should be certified by a chartered accountant.
Furthermore, the associations, including the ones recognized for the public benefit
which receive periodic public support, is obligated to present its budget and
accounts to the donating agency.
According to the provisions of the chapters 32 of the Royal Decree ( فيرشلا ريھظلا ) No.
1.58.376 issued in 3 Jumad Al Awal 1378 (15 Nov. 1958) indicated above, every
association receives the above mentioned support, is subject automatically to the
General Inspection of Finance. It is also subject to the provisions of the law No. 62.99
related to the code of financial counts, especially the two articles 86 and 154 to the
monitor of Higher Council of Accounts and the Agencies Councils of Accounts.
The monitoring aims, according to the mentioned provisions, to ensure that the
public funds received by the associations are in consistent with its objectives.
We should remind also that the associations which receive foreign assistances
should declare that to the General Secretary of Government within full thirty days,
starting from the date of receiving the above mentioned assistances, in application
of the provisions of the article 32 of the decree indicated above.
Therefore, the Governors who inspect should, either initiatively or at the request of
the Secretary General of Government, not respect an association recognized for the
public ‐benefit for one of the above obligations, so he should send a warning to the
concerned association demanding it to fix its position and implement above
obligations with given grace of three months.
If the association is not responding to the warning of the governor, the latter should
raise a report to the Secretary General of Government who in turn presents the issue
to the Prime Minister to take the right decision in the subject, including the
possibility of withdrawing the recognition of the public benefit.
I would like to seize this opportunity of these amendments which have been
introduced in order to assess the situation of the association which have been
previously recognized for the public benefit capacity. For this end, I would like to
advise that I will send letters to these associations to bring them deposit the
following documents with the official in charger,
1. A copy of the statute of the association;
2. A list of the members of the association office and the body assigned to run it
according to the provisions of its statute;
3. A list of the association members who paid their contributions;
4. Result of the activities of the association over the last three years;
5. The structural statements of the properties of the association, its financial
position, its results, according to what has been indicated in this circular
within the third topic of the legal and financial obligations of the associations
recognized for the public benefit capacity.
6. The expected program of the association and the resources of its finance
These documents are to be deposited to the concerned Governors, within a period
of 30 Nov. 2005 as maximum, and to be reported to me by them, including their
comments, in order that I can make sure that these associations are in compliance
with the applicable legislative provisions, and according to its statute.
Therefore, all governors have to work to spread this circular at large scale among the
concerned services and work to apply it in order that my services can study the
requirements of recognition for the public benefit within the definite terms stated in
the present legislation.