Non-Profit Organization Operation in Bangladesh
At Russel & Partners, we collaborate with various national and international NGOs and charities. We offer our clients the most appropriate guidance for forming, operating and regulating their NGOs and charities.

Charity in Bangladesh:

In Bangladesh, the notion of charity is based on custom, culture, and religion. The spirit and practice of generosity have not changed in the course of time, even though the system for delivering charitable services has. Individuals and organizations in Bangladesh have been providing generous assistance for a long time, bringing professionalism and knowledge into their work through organizational and managerial arrangements to make it more sustainable. As a result, what began as a strictly charitable initiative has evolved into precise systems for providing public services. The flow of cash and how those monies are managed are crucial to these institutions’ long-term viability. These organizations, which operate inside a regulatory framework, rely on the government, foreign donors, domestic donors, or surplus generated from their operations for financial viability.
Apart from focusing on disaster relief the NGOs are now also focusing on rehabilitation to social development, poverty eradication, and human rights. BRAC, ASA, CARE Bangladesh, Buro Bangladesh, Jaago Foundation, and others are well-known NGOs in Bangladesh. The Bangladeshi corporate community has increasingly become involved in social welfare initiatives. Bashundhara Group, ACI, BEXIMCO, SQUARE, Grameenphone, and other well-known corporations have been active in nonprofit welfare operations ranging from job development to education and medical treatment.

Laws Governing Charity:

There are two distinct sets of laws in Bangladesh that concern nonprofit organizations. One set lays down parameters for how the organizations may acquire legal status to the extent that they can sue and be sued. The other set states regulatory measures under which the organizations must operate.
Specific laws are enacted to regulate and control the functions of NGOs and charitable organizations. They include The Voluntary Social Welfare Agencies (Registration and Control) Ordinance 1961, The Foreign Donations (Voluntary Activities) Regulation Rules 1978, Foreign Donations (Voluntary Activities) Regulation Act 2016, The Microcredit Regulatory Act 2006, The Microcredit Regulatory Rules 2010, The Foreign Contributions (Regulation) Ordinance 1982, The Society Registration Act 1860, The Trust Act 1882, The Companies Act 1994, The Wakf Ordinance 1962 and The Mussalman Wakf Validating Act 1913. Other sets of Acts that govern NGOs and Charitable organizations are The Charitable Endowments Act 1890, The Charitable and Religious Trust Act 1920, The Co-operative Societies Ordinance 1984, and The Income Tax Ordinance 1984.

NGOs and Charitable Organisation Registration Process:

In Bangladesh, many local and international NGOs work day and night with their charitable aims in various sectors.

NGO Affairs Bureau:

An international organization outside of Bangladesh must be registered with NGO Affairs Bureau (NGOAB) before operating in Bangladesh. Moreover, registration under NGOAB is mandatory for any NGO or charity to receive foreign organizations’ donations. The required registration process for local and international organizations under NGOAB is stated in the Foreign Donations (Voluntary Activities) Regulation Act 2016. The operational permit for an NGO is for the next ten years, but the documents must be resubmitted within six months before the end of that ten years to renew the time for operation in Bangladesh.

Microcredit Regulatory Authority (MRA):

The Microcredit Regulatory Authority (MRA) is the authorizing central body that encourages and promotes the microfinance sector and is empowered to regulate, monitor, and supervise the microfinance operations of NGOs in Bangladesh. As per Microcredit Regulatory Act 2006, the registered organizations under The Society Registration Act 1860; The Trust Act 1882; The Voluntary Social Welfare Agencies (Registration and Control) Ordinance 1961; Cooperative Societies Act 2001, and The Companies Act 1994 can apply to Microcredit Regulatory Authority for the license to operate micro-credit program under the Microcredit Regulatory Authority Act 2006. The registration process requirements under Microcredit Regulatory Authority are provided in.

Department of Social Services (DSS):

An NGO or charity can be registered at the Department of Social Services (DSS) under the Ministry of Social Welfare. However, registration applies only to those organizations, which will provide welfare services to children, youth, women, family, physically or mentally handicapped, family planning, recreation, civic responsibility, released prisoners, juvenile delinquents, socially handicapped, beggars and the destitute, patients, the aged or infirm, social work, or co-ordination of social welfare agencies. The registration process requirements under Microcredit Regulatory Authority are provided in The Voluntary Social Welfare Agencies (Registration and Control) Ordinance 1961.

Department of Women Affairs (DWA):

The organization willing to work for women and children’s welfare can register under the Department of Women Affairs (DWA), under the Ministry of Women & Children Affairs. The DWA is the same as DSS; similarly, the registration process requirements under this department are provided in The Voluntary Social Welfare Agencies (Registration and Control) Ordinance 1961.

Registrar of Joint Stock Companies and Firms (RJSC):

A nonprofit organization can be registered at the Bangladesh Registrar of Joint Stock Companies and Firms under the Ministry of Commerce. Many non-profit organizations in Bangladesh have been formed and recorded under its wide reach and flexibility to authorize a broad range of activities. The registration process for joint-stock companies and firms is provided under The Society Registration Act 1860 and The Companies Act 1994.

Trust Registration:

A trust may be formed for any legal purpose, including charitable activity, and the registration process is provided in The Trust Act 1882. Presently, there is no governing authority to which philanthropic trusts are required to report. Therefore it takes registration or license from other Non-Profitable organization’s regulatory or registration authorities for their smooth functioning. In such circumstances, beliefs must also say source under the respective law.

Wakf Registration:

The concept of Wakf under Muslim Law is somewhat similar to the English idea of trust. Here, the property owner, by a declaration, can create a wakf for beneficiaries. The wakf is administered by a trustee known as a mutawalli per the conditions of the wakf instrument. The registration process is provided in The Wakf Ordinance 1962.

Various NGOs or charities are creating and operating under the Acts above; yet, these Acts are currently causing complications. It should be emphasized that no universal regulation governs the formation of non-governmental organizations should be noted. As a result, a unified uniform law is critical for the easy establishment and operation of NGOs and charities in Bangladesh