Reforming charitable donations: Uzbekistan sets clear guidelines

Today, February 25, during a meeting of the Legislative Chamber of the Oliy Majlis, deputies adopted a bill in the first reading aimed at improving the procedure for implementing sponsorship activities. Anvarjon Mirkomilov, head of the department at the "Development Strategy" Center, explained the key provisions of the new bill to QALAMPIR.UZ.  

Mirkomilov stated that under current legislation, both individuals and legal entities have the right to engage in sponsorship activities. However, the process for collecting sponsorship donations has not been clearly defined in law.  

“As a result, we often see media and social media reports about unscrupulous individuals who gain public trust and unfairly acquire money and property. This has led to widespread discussions and objections, ultimately undermining public confidence in legally operating charitable organizations,” he said.  

Key changes introduced in the bill:

1. Establishing a clear procedure for collecting sponsorship donations
The bill defines the procedure for collecting donations in cash, non-cash, and in the form of property by sponsorship organizations (non-governmental non-profit organizations) and legal entities involved in sponsorship activities. Specifically:  

- Cash donations must be collected only through donation boxes or bank transfers to the accounts of sponsorship organizations or authorized legal entities.  
- For property donations, an inventory list must be created, and a record must be drawn up specifying the type and quantity of the donated items.  
- To ensure transparency, information about the start and end of donation collection processes must be published in the media, on official websites, or social media pages and must be reflected in tax reports.  

2. Regulation of individual and volunteer-led donations
The bill also establishes clear guidelines for individuals, including volunteers, who collect donations:  

- Individuals may collect charitable donations in cash or property only for themselves or their close relatives. Cash donations must be received exclusively via bank transfer to personal accounts or bank cards.  
- Volunteers assisting with donations for non-relatives may only post announcements. Donations can be collected only through the recipient’s or their close relative’s bank account or transferred directly to them.  

3. Establishing guidelines for donation boxes
The bill defines the concept and proper usage of donation boxes:  

- Only sponsoring organizations and authorized legal entities can install donation boxes.  
- Donation boxes must be transparent, sealed, and labeled with details about the purpose of the donations and the responsible organization.  
- The process of opening donation boxes and counting funds must be conducted in the presence of an authorized charity representative and at least two witnesses. The entire process must be recorded on video, a formal certificate must be issued, and the information must be made public within a day.  
- Collected funds must be deposited into the relevant bank account on the same or the next business day.  

4. Establishing legal liability for violations  
The bill introduces administrative penalties for violating donation collection procedures:  

- The Code of Administrative Responsibility establishes fines ranging from three to five times the base calculation amount for non-compliance with donation collection and donation box regulations.  

“In simple terms, these changes aim to prevent fraudsters and so-called ‘fake donors’ from misusing charitable funds and property. Ultimately, this law will help prevent violations in donation collection, ensure transparency in charitable activities, and increase public trust in charity organizations,” Mirkomilov concluded.