Charities and Societies Proclamation (proc. no.621/2009)

102. Penalty
1/ Any person who violates the provisions of this proclamation shall be punishable in accordance with the provisions of the criminal code.
2/ Notwithstanding subarticle (1) of this Article:
a/ any Charity or Society whose in violation of Article 77 fails to keep its books of accounts, to record money received, its source and the amount expended, to preserve any accounting records for at least five years from the end of its financial year shall be punishable with fine not less than birr 20,000.00 (Twenty thousand birr) and not exceeding Birr 50,000.00 (fifty thousand Birr) ;
b/ any Charity or Society who in violation of Article 78 fails to submit to the Agency an annual statements of account prepared in accordance with acceptable standards; to prepare the statements of receipts, payments and assests and send the same to the agency; to preserve any statements of accounts and related documents for atleast five years from the end of its financial year shall be punishable with fine not less than Birr 10,000.00 (ten thousand birr) and not exceeding birr 20,000.00 (twenty thousand Birr) ;
c/ any Charity or Society who in violation of Article 83 fails to report annually or upon request about all its bank accounts with the necessary particulars shall be punishable with fine not less than birr 50,000.00 (fifty thousand birr) and not exceeding Birr 100,000.00 (hundred thousand Birr) ;
d/ any Charity or Society who in violation of Article 88 fails to allocate not less than 70 percent of its expences in the budget year for the implementation of its purposes and not exceeding 30 percent for its administrative activites shall be punishable with fine not less than Birr 5,000.00 (five thousand Birr) and not exceeding birr 10,000.00 (ten thousand Birr).
3/ Any officer, or employee of a Charity or Society who participates in the criminal acts stated under sub-article (2) of this Article shall, without prejudice to the applicability of the relevant provisions of the Criminal Code prescribing a penalty of imprisonment, be punishable with fine not less than Birr 10,000 (ten thousand birr) and not exceeding Birr 20,000 (twenty thousand birr)
103. Income Generating Activities
1)Charities or Societies may, upon a written approval of the Agency, engage in income generating activities that are incidental to the achievement of their purposes and the proceeds of which shall not be distributed among the members or beneficiaries of the Charity or Society and are used to further the purposes for which the Charity or Society was established.
2) A Charity or a Society that undertakes income generating activities shall keep separate books of account with respect to such activities.
3) Where a Charity or Society is found to have distributed its profits or should it fail to keep separate books of account, the Agency shall take appropriate measures in accordance with Article 92 of this Proclamation.
4. Nothing in this Proclamation shall affect the requirements and procedures laid down in any other laws concerning the registration and licensing requirements for activities related to
trade, investment or any profit making activities.
104. Claims and Appeals
1/ The Director General of the Agency shall decide over claims that have exhausted administrative stages and made to him in relation to the Agency’s activities within 15 days.
2/ Any person aggrieved by any decision of the Director General may appeal to the Board within fifteen days from the date of the decision. The decision of the Board shall be final.
3/ Notwithstanding Sub-article (2) of this Article, Ethiopian Charity or Society aggrieved by the decision of the Board may appeal to the Federal High Court within 15 days from the date of the decision.
4/ Any Charity or Society in the process appeal, where it is in relation to registration or cancellation shall be deemed not registered or cancelled until final decision is rendered by the concerned authority.
105. Investigation and Prosecution of Offences
1/ Investigations and prosecution in respect of any offence under this Proclamation or any regulations made hereunder shall be conducted by organs authorized in accordance with the Criminal Procedure Code.
2/ Notwithstanding sub-article (1) of this Article, the Agency shall collect and organize any evidence necessary for criminal prosecution and submit the same to the appropriate authority.
106. Merger
1/ Two or more Charities or Societies may merge into one under a new name or under the name of one of the former Charity or Society in accordance with relevant laws and in accordance with their rules. The rights and obligations of the former Charities or Societies shall be transferred to the newly formed organization.
2/ The newly established Charity or Society shall be registered anew in accordance with this Proclamation.
107. Division
1/ A Charity or Society may be divided into two or more organizations where its rules allow and its competent organ so determines.
2/ Unless determined otherwise by the competent organ of the original Charity or Society the Charities or Societies that result from the division shall bear the obligations and utilize the rights jointly.
3/ The existence of the former Charity or Society shall cease at the time when the certificates of license and registration are issued to the new Charities or Societies and division of property is completed.
4/ The Agency may allow one of the new Charities or Societies to retain the name of the previous Charity or Society where the retention of such name is agreed upon by all the new Charities or Societies.
108. Conversion
1/ Without preiudice to Article 95 of this Proclamation any Charity may be converted into any of the types of charities listed under sub articles (2), (3) and (4) of Article 2 of this proclamation and be registered with the Agency where its competent organ so decides in accordance with its rules.
2/ Any Society may be converted into one of the forms of charities under this proclamation and be registered with the Agency where its competent organ so decides in accordance with its rules.
109. Power to Enact Regulations
The Council of Ministers may enact regulations necessary to give effect to this Proclamation
110. Inapplicable Laws
Any law, regulation, directive and customary practice contrary to this Proclamation shall have no effect.
111. Transitional Provisions
1/ Any right or duty arising under any provision of the repealed laws shall continue unless it contravenes this Proclamation.
2/All Charities and Societies previously registered shall re-register within one year of the coming into effect of this Proclamation.
112. Effective Date
This Proclamation shall enter into force up on the date of publication in the Federal Negarit Gazeta.

Done at Addis Ababa, this 13th day of February, 2009

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Categories: Legislation

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3 replies »

  1. I need a lawyer who can assit a foreign NGO registration in Ethiopia. The purpose of the NGO is to assit Amhara freedom fighters and tackling the TPLF criminal leaders in throughout the country. I mean it.

  2. It is nice to hear this good news! I want to thank you so much, this site has been very useful regarding Ethiopian legal issues. Please keep on what you are doing!!! Keep it up!

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