Venezuela Publishes New NGO Regulation Law

The Law on Supervision, Regularization, Action, and Financing of Non-Governmental Organizations (NGOs) and Non-Profit Social Organizations was published in the Venezuelan Extraordinary Official Gazette number 6,855, dated November 15.

The law prohibits promoting fascism, receiving funds for terrorist acts, and carrying out political party activities, among other provisions.

The law contains 39 articles, two transitional provisions, and two repealing provisions. After its publication, the Venezuelan Banca y Negocios news outlet reported that the objective is to establish a framework of establishment, registration, operation, and financing of non-governmental organizations and non-profit social organizations without profit motives oriented towards the co-responsible participation of society. These aims are in accordance with the provisions of the Constitution and international treaties ratified by Venezuela.

It should be noted that non-governmental organizations and non-profit organizations whose establishment and operation are governed by special laws due to the nature of their purpose are excluded from the new law’s scope. These organizations are usually attached to governmental institutions.

The new legislation is governed by the principles of pre-eminence of human rights, equality, participation, co-responsibility, solidarity, honesty, transparency, accountability, sovereignty, and national self-determination.

Article 10 of the law states that non-governmental organizations and non-profit social organizations may be established under any legal form or name.

“However, in order to obtain legal personality, they must be established as associations, corporations, civil societies, or legal private foundations as outlined in the Civil Code,” the text adds.

Articles of Incorporation
Likewise, the new rule establishes that the statutory constitutive act of the non-governmental organization or non-profit social organization must indicate the following organization’s information:

1. Name, nature, and address.
2. Goals and purposes.
3. Duration of the organization.
4. Territorial scope of the organization.
5. Identification of the founding and/or associate members.
6. Membership and exclusion system of members and/or their rights and obligations.
7. Its organization, internal structure, and responsibilities.
8. Assets and resource management regime.
9. Inventory of assets at the time of incorporation.
10. Disciplinary regime.
11. Framework of modification of the statutory constitutive document.
12. System of extinction, dissolution and liquidation of the organization.
13. Details of the allocation of assets in the case of foundations.
14. If its financing is or will be carried out, totally or partially, through foreign natural or legal persons.

“Non-governmental organizations and non-profit social organizations must establish democratic methods of organization, operation and management,” the law adds.

Prohibitions
The regulation specifies that non-governmental organizations and non-profit social organizations established in accordance with the law have the following prohibitions:

1. Receiving financial contributions intended for organizations with political purposes or making financial contributions to said organizations, as well as receiving contributions for financing terrorism or committing terrorist acts.
2. Carry out activities specific to political parties or organizations with political purposes.
3. Promote fascism, intolerance or hatred for racial, ethnic, religious, political, social, ideological, gender, sexual orientation, gender identity, gender diversity or any other reason that constitutes incitement to discrimination and violence.
4. Any other act prohibited or sanctioned by law.

Transitional provision
The regulations published in the Extraordinary Official Gazette highlight that within 90 days following the entry into effect of this law, non-governmental organizations and non-profit social organizations already established and with legal personality must present updated information on the acts provided for in Article 26 to the Public Registry Office corresponding to their domicile.

“The registration of the meeting minutes referred to in this provision is exempt from the payment of fees and tariffs provided for in the law and order that regulates the competent body in matters of public registration,” it adds.

Venezuela: National Assembly Passes Bill on NGO Supervision and Regulation

It is important to note that Article 26 establishes that once legal personality has been obtained, non-governmental organizations and non-profit social organizations must declare the following acts for registration purposes before the competent body in matters of public registration through minutes of ordinary or extraordinary meetings:

1. Annual update of the organization’s inventory of assets, with express determination of their sources.
2. Accounting balances, financial statements and books that must be maintained in accordance with legislation.
3. List of donations received with full identification of the donors, indicating whether they are national or foreign, accidental or permanent.
4. Modifications to the statutes.
5. Appointments and/or dismissals of members, associates, administrators, liquidators, auditors, and secretaries.
6. General powers and delegations of powers.
7. Opening and closing of offices.
8. Modification, expansion or reduction of the corporate purpose.
9. Modification, extension or termination of the term of validity of the social organization.

(Últimas Noticias) by Ana Perdigón with Orinoco Tribune content

Translation: Orinoco Tribune

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