By September this year, Civil Society Organisations in the country must produce an endowment fund of at least Nu 3 M. However, as the deadline nears, newly formed CSOs and those struggling to maintain operations are concerned. They say the financial burden could strain their limited resources and hinder their ability to fulfil their objectives.
The Civil Society Organisations Authority endorsed the requirement for a minimum endowment fund last year, as mandated by the CSO Act 2022.
Public benefit organisations must raise Nu 3 M as an endowment, while mutual benefit organisations need to raise one and a half million.
In addition, CSOs must also submit an operational fund reserve to meet recurrent expenses: Nu 1 M for public benefit organisations and half a million for mutual benefit organisations.
The availability of these funds will be one of the criteria for renewing the CSO registration certificate.
Meanwhile, the Bhutan Stroke Foundation said that the endowment fund should be categorised based on how long a CSO has been operating.
“For Bhutan Stroke Foundation, stroke in itself is a new subject for many people. For this, we have to campaign and when we go around looking for funds, many do not know about stroke and the number of patients keeps on increasing each day. The little money that we have, we have to spend on that. And we have to open up an office, which incurs expenditures,” said Dawa Tshering, executive director at Bhutan Stroke Foundation.
“CSOs were given a grace period of one year to mobilise and secure the funds. But in one year, it is difficult to get three million. Bhutan Kidney Foundation can show the endowment fund but we are very much concerned for those who cannot,” said Tashi Namgay, CSO Representative to the CSOA Board.
He added that they are awaiting a response to a proposal submitted to the CSO Authority to assist financially struggling CSOs.
Home Minister Tshering, the chairperson of the CSO Authority’s Board of Directors, said that the situation is not as severe as it is perceived.
The minister added that while the authority has mandated the endowment fund, punitive actions for non-compliance have not been specified. BBS learned that so far, about 70 per cent of CSOs have mobilised the required amounts.
According to the CSO Authority, to facilitate CSOs in raising money for the endowment fund, the office has allowed numerous commercial ventures in addition to traditional fundraising events.
The authority also said it is committed to discussing and potentially easing the requirements to support the CSOs.
The authority said its mission is to not only register new competent and innovative CSOs but also enhance the capacity of existing CSOs.
Samten Dolkar
Edited by Sherub Dorji
