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The draft legislation developed by the Ministry of Economic Development of the Russian Federation will concern about 200 endowment funds. It is aimed at simplifying the process of forming endowments, expanding the terms and opportunities for attracting funds, as well as promoting the mechanism of endowment capital and developing mass philanthropy.
The amendments will simplify the process of endowment formation for the organizations themselves. The period of time for raising the necessary funds to form an endowment will be extended - if an NPO managed to raise 50% of funds within a year, the supreme governing body of the NPO has the right to prolong the fundraising.
In addition, the draft legislation allows to use public fundraising not only for replenishment, but also for the formation of endowment, as well as expands the opportunities to increase the amount of endowment at the expense of unused income.
The draft legislation also provides for the possibility of philanthropy organizations' participation in business companies. This is relevant in case of receiving a donation by securities or if the management company places the endowment funds of a philanthropy organization in shares of public joint stock companies.
The last amendments to the legislation regulating the endowment funds activities were made in 2012.