Circular 1 on the Conditions of Recognizing Public Benefit for Associations

For optimal readability, we highly recommend downloading the document PDF, which you can do below.

Document Information:

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
enforcement purposes.
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.

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  
for  Associations   
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  
concerned  association.  
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,  
especially  through:   
‐ 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.