A recent article in the Cambodia Daily discussed the possibility of law regulating the use of financial trusts by NGOs.  Trusts are a legal entity that can hold assets to be managed by trustees.

Many foundations or NGOs, like the Bill & Melinda Gates Foundation, actually hold their money in trusts.

There’s currently no specific legislation on the matter, and to our knowledge, no trusts presently exist under Cambodian law. Currently the best solution when considering funding projects through a trust, may be to create the trust off-shore, given the lack of a legal framework.

The Daily article is fairly sparse on the specifics of the draft, but quotes Finance Minister Keat Chhon as stating there will be further consultations later this month, before submission to the Council of Ministers.

Advertisements