The International Journal
of Not-for-Profit Law

Volume 1, Issue 3, March 1999

Brazil

The draft law on Civil Society Organizations of Public Character was passed into law n° 9790 on March 23rd.  It had been initiated by the government. This new law gives an official recognition to social services organizations and establishes partnerships between the government and civil society organizations.

In a comment to the draft, Anna Cynthia Oliveira points out the innovative aspects of the law:

• Article 4 establishes rules for self-regulation.
• Article 4 puts an end to the prohibition for directors of an organization to receive remuneration for services rendered.
• A unique register is created at the Ministry of Justice.

She also points out that some decrees will have to be adopted in order to implement this law:

• Article 7-a requires the observance of basic principles of accounting when in fact, there are no provisions in the existing income tax regulation, which provide for accounting procedure for the nonprofit sector. She suggests that large organizations adopt the system established for commercial entities whereas smaller organizations adopt a simplified system.
• Article 7-c suggests that the requirement of audit can be effectuated by other forms of audit -maybe internal audit- in accordance to the regulation. She recommends that this be done in using the existing decree on the certification of philanthropic entities or in establishing a “semi-audit” for organizations that would have an income below a certain amount.

Colombia

Law 488 introduces major changes to the tax system with effect from 24 December 1998. The amendments include a new relief for donations to nonprofit organisations dedicated to the defence, promotion and protection of human rights and justice. Donors to such organisations can deduct for income tax purposes up to 125% of the value of the donation. (Law 488 article 37, amending article 126-2 of the Colombia Tax Code)

Falkland Islands/ Malvinas

The income tax law has been amended to provide income tax relief for charitable donations. The amended law provides that, with effect from 1 January 1998, a person will be entitled to an allowable deduction for a cash donation of £50 or more to a charity registered under the UK Charities Act 1960 as it applies to the Falkland Islands or to a charity that is not required to be so registered and is included in a list of charities prepared by the Attorney General, approved by the Governor of the Falkland Islands and published in the Gazette. (Taxes Ordinance 1997, Sections 57A & 57B, as amended by the Taxes (Amendment) Ordinance 1998)

Peru

An artcle entitled ESTABLISHING NEW INTERACTIVE FORMS OF COLLABORATION BETWEEN NON-PROFIT ORGANIZATIONS AND ENTERPRISES.- COMPETITIVE VS. COLLABORATIVE RELATIONSHIPS by Maria Beatriz Parodi Luna can be found here!

Venezuela

Also Available in this issue:

Redes y Redes de Redes by Miguel Angel Itriago Machado Antonio L. Itriago Machado

Reflexionando sobre Consolidación de Organizaciones Cúpula de la Sociedad Civil en Venezuela by Charo Méndez