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

95. Conditions for Applying Property Cy-près
1/ The circumstances in which the original purposes of a Charity can be altered to allow the property given or part of it to be applied cy-près shall be as follows:
a/ where the original purposes in whole or in part have been fulfilled or cannot be fulfilled or impossible to fulfill;
b/ where the original purposes provide a use for part only of the property available to the Charity;
c/ where the property available by virtue of the gift and other property applicable for similar purposes can be more effectively used in conjunction and to that end can suitably, regard being had to the spirit of the gift, be made applicable to common purposes.
2/ An act of endowment or trust for charitable purposes places the concerned officers under a duty, where the circumstances require the property or some part of it to be applied cyprès, to secure its effective use for Charity by taking steps to enable it to be so applied.
3/ The competent officers of a Charity may take the actions provided for in sub-article (1) of this Article only by a two thirds majority decision.
4/ This Article shall apply to property given for charitable purposes, notwithstanding that it was so given before the effective date of this Proclamation.
5/ The provisions of this Article shall apply only upon the prior approval of the Agency.
96. Directions of the Constitutive Instrument or Act
1/ The trustee or board shall conform to the express instructions of the instrument or act constituting the Charitable Trust or Endowment.
2/ Irrespective of the provision of Sub-article (1) of this article where the interests of the beneficiaries of a Charitable Trust or an Endowment so require, the trustee or the board may obtain an authorization from the Agency to depart from such instructions.
97. Special Provisions to Charities
1/ Where the gross income of a Charity in its last financial year does not exceed Birr 50,000.00 (fifty thousand) and it does not own any immovable property, the competent organs of the Charity may decide that:
a/ all the property of the Charity should be transferred or divided to such other charities ;
b/ the rules of Charity should be modified by replacing all or any of the purposes of Charity with such other purposes, being in law charitable;
c/ to amend the rules of charity regarding the procedures that has to be followed by officers to administer the charity.
2/ Any action taken under Sub-article (1) of this Article must be passed by two-thirds of its trustees or board members.
3/ The provisions of this Article shall apply only upon the prior approval of the Agency.

4/ Notwithstanding Sub-article 1 of this Article
the Agency may determine that the provisions of Sub-article 1 (a)-(c) be employed.

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3 replies »

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