Public Benefit Organisations and Mutual Benefit Organisations now have up to four years to raise their endowment funds progressively. Following requests from the Civil Society Organisations, the CSO Authority board meeting extended the deadline to raise the endowment funds. Previously, CSOA mandated Public Benefit Organisations and Mutual Benefit Organisations to raise endowment funds of Nu 3 M and Nu 1.5 M respectively by next month.
The Civil Society Organisations Authority has given Public Benefit Organisations four years to meet their Nu 3 M funding goal. Likewise, Mutual Benefit Organisations have been given three years to meet the Nu 1.5 M endowment fund target.
However, they are required to gather Nu 500,000 in the first year.
“Public Benefit Organisations have four years to raise the Endowment Fund with the following annual targets; Nu 500,000 in the first year, Nu 600,000 in the second year, Nu 700,000 in the third year and rest in the fourth year. Likewise, MBOs have three years to raise Nu 1.5 M with 500,000 in the first year, 600,000 in the second year and the remaining 400,000 in the third year,” said Tshering, Home Minister who is also the chairperson of the Board of Directors, CSOA.
The CSO will begin contributing to the endowment fund starting next year.
The Civil Society Organisations Authority endorsed the requirement for a minimum endowment fund last year as mandated by the CSO Act 2022.
“Everyone in the meeting agreed that they could meet the new targets although the initial plan was difficult for a few of them. If they fail to meet the first year’s goal, there will be penalties. Instead of immediate de-registration, their ratings will be affected by their failure to contribute to the endowment fund,” added the minister.
Meanwhile, Tashi Namgay, the CSO representative on the CSOA Board said that this new decision is better than what was initially planned.
He added that after the decision, the two CSO representatives shared the information in a social media group chat and they have not received any complaints from CSO members so far.
Samten Dolkar
Edited by Sonam Pem
