Law 1115: General Law for the Regulation and Control of Non Profit Organizations

August 29, 2022

Between August 2022 and January  2021 the Nicaraguan government has cancelled the legal status of nearly 2,000 non profit organizations, including the Sisters of Charity of Calcutta, Operation Smile, and the Fabreto Foundation, organizations with no political agenda.

In April 2022 the National Assembly dominated by a Sandinista supermajority passed a new law to regulate non profits, Law 1115 which replaces the previous Law 147 which was approved in March 1992. This new law has already been reformed in early August. Under this latest reform the  Ministry of the Interior now has the power to close down any NGO. Legal analysts point to a contradiction in the sense that if the National Assembly has the power to grant legality to an organization, the power to revoke that legalization would also have to reside in that same body. We will make the translation of that reform available in the future.

Given the importance of certain laws, especially those used to restrict essential citizen rights, we provide here the translation of Law 1115  

General Law for the Regulation and Control of Non Profit Organizations

April 6, 2022

THE PRESIDENT OF THE REPUBLIC OF NICARAGUA

makes known to the population that

THE NATIONAL ASSEMBLY OF THE REPUBLIC OF NICARAGUA

Has ordered the following:

THE NATIONAL ASSEMBLY OF THE REPUBLIC OF NICARAGUA

In the use of its faculties,

HAS DICTATED

the following:

LAW NO. 1115

GENERAL LAW FOR THE REGULATION AND CONTROL OF NON-PROFIT ORGANIZATIONS

CHAPTER I: GENERAL DISPOSITIONS

Article 1 Object

 The current law has the purpose of establishing the legal framework applicable to national Non Profit Organizations (NPOs) and those from other countries that carry out activities in the national territory. What follows refers to these legal entities as NPOs.

Article 2 Sphere of application

The current law is applicable to national NPOs and those from other nationalities that operate in the national territory, in accordance with the requirements and procedures established in the law

Article 3 Authority for its application

The Ministry of the Interior through the General Office for the Registration and Control of Non Profit Organizations, is the competent authority for the application of the current law and its Regulations, being responsible for the regulation, control, supervision and sanctions of national NPOs and those from other nationalities what operate within the national territory.

Article 4 Definitions

For the effects of the current law, the following definitions are set, and without prejudice to the definitions contained in the legal system:

  1. Charter: it is a public instrument, granted by a notary of the public, through which legal entities or persons voluntarily and in common agreement form an association, foundation, federation, or confederation.
  1. Association: legal entities composed of individuals or legal entities for the purpose of carrying out non-profit activities of common interest.
  1. Beneficiaries: Individuals or legal entities benefitted by the execution of actions on the part of the NPO in the fulfillment of their objectives.
  1. Confederation: Legal entity composed of a union of two or more federations with similar objectives with their own legal status, duly registered before the authority for the application of this law.
  1. Donation: they are direct or indirect non reimbursable contributions in kind or cash which are freely transmitted to the grantee.
  1. Donor: Individual or legal entity, foreign agency, governments, businesses, agencies, foundations, organizations, societies or national or foreign associations of any type, who in a voluntary way and through any means donate funds or assets, economic means of material goods of any nature, directly or indirectly to benefit the grantee, freely.
  1. Grantee: Any individual or legal entity to whom is given and voluntarily accepts the donation.
  1. Risk Based Approach (RBA): is the establishment and adoption of measures proportional to the risks associated with asset laundering, financing for terrorism and financing for the proliferation of weapons of mass destruction, as a result of their identification, evaluation and understanding.
  1. Statutes: are the norms that govern the internal functioning of the NPO, approved by the majority of its members, its content focuses on the object and administration of the organization.
  1. Federation: Legal entity composed of the union of three or more associations or foundations with duly registered legal status in the corresponding registry and that have similar objectives and purposes.
  1. Foundation: Legal entities not linked to the existence of members, whose essential elements consist in a fund for a cause with social interest.
  1. FATF: Financial Action Task Force.
  1. AML/CFT/CPF: Anti-Money Laundering/Combatting Financing of Terrorism/Counter Proliferation Financing
  1. Non-Profit Organizations (NPOs): Non profit legal entity whose purpose is of a humanitarian, religious, cultural, educational, social or fraternal nature, or for carrying out other types of altruistic actions that generally are financed with aid and donations.
  1. Prescription: Action or effect of expiring or extinguishing a right or obligation.
  1. Re-incidence: it is the repetition of the same infraction committed by a NPO and which has been the subject of sanctions.

Article 5 Right of Association

All citizens have the right to constitute in a voluntary way non-profit organizations (NPOs), with the common interest of the members, without any discrimination, with religious and/or charity, social, cultural and educational functions which must operate in accordance with its objectives.

In order to obtain legal status, organizations must constitute themselves in accordance with the dispositions established in the current Law.

CHAPTER II

ORGANIZATION AND STRUCTURE OF THE REGULATING ENTITY

Article 6 Ministry of the Interior

The Ministry of the Interior is the highest authority for the General Office for the Registry and Control of Non-Profit Organizations, which in the sphere of its competency and for the fulfillment of its functions will be able to create the necessary support dependencies or entities.

Article 7 Faculties of the Ministry of the Interior

Without prejudice to the other dispositions in effect, the Ministry of the Interior for the effects of the current Law will have the following faculties:

  1. Ensure compliance with the current Law and its Regulations.
  2. Coordinate the General Office for the Registration and Control of the NPOs;
  3. Coordinate with State institutions for compliance with the attributions of their competency on NPO matters;
  4. Propose to the President of the Republic, proposed bills, regulations or signing of international instruments related to the regulation of NPOs;
  5. Make known to the competent authorities when there is a presumption of acts or deeds done by NPOs that can be constitutive of crimes;
  6. Establish mechanisms of coordination with corresponding public authorities for the implementation of policies and activities against AML/CFT/CPF
  7. Remit to the National Assembly the request from an NPO for legal status;
  8. Request that the National Assembly cancel the legal status of the NPOs, in accordance with that is established in this Law and its Regulations;
  9. Hear and resolve the appeals of resolutions issued by the General Office for the Registration and Control of NPOs.

 Article 8 General Office for the Registration and Control of Non Profit Organizations

Let the General Office for the Registration and Control of Non Profit Organizations be created as the body for the application of the current Law and its Regulations, for the effects of this Law called the General Office for the Registration and Control of the NPOs.

Article 9 Organization and structure of the General Office for the Registration and Control of NPOs

The General Office for the Registration and Control of NPOs will have a Director or General Director and an Assistant Director or Assistant General Director, who will respond to the different specialties and its administration.

To comply with the objectives of this Law, the General Office for the Registration and Control of NPOs will have at least the following specific offices:

  1. Office for the Registration of NPOs
  2. Office for the Financial Analysis of NPOs
  3. Office for the Supervision, Followup and Sanction of NPOs,
  4. Office for Legal Advice

 Article 10 Faculties of the General Office for the Registration and Control of Non Profit Organizations

The General Office for the Registration and Control of Non profit organizations will have the following faculties:

  1. Receive, review and analyze the documentation for new requests for legal status
  2. Issue certificate of non-registration and no objection to new requests for legal status that fulfill the requirements established in this Law.
  3. Through the Ministry of the Interior send to the National Assembly the administrative record of new requests for legal status for their consideration
  4. Authorize the registration of national NPOs once granted their legal status
  5. Authorize the registration of NPOs from other nationalities that fulfill the requirements established in this Law
  6. Authorize reforms to the Charter and Statutes, after compliance with the requirements of the Law
  7. Require information of a legal, financial information of board members or administrators of the NPOs, or information of another nature.
  8. Supervise the functioning of the NPOs, so that their acts are in conformity with the Political Constitution of Nicaragua, its laws, their Charter and Statutes.
  9. Authorize for reasons of public interest, administrative sanctions, or at the request of the NPO, the temporary or definitive closing of the organizations, as indicated in the current Law, its regulations and norms.
  10. Sanction the NPO for committing infractions of the current law, its regulations and norms.
  11. Prepare guides for good and best practices to prevent financing for terrorism, organized crime and money laundering by NPOs.
  12. Coordinate actions to periodically evaluate the vulnerabilities of the NPOs, in the face of financing for terrorism, asset washing or other forms of support for terrorism and organized crime, and identify the characteristics and types of NPOs which are specially at risk for being used for those purposes
  13. Supervise on site and off-site functioning of NPOs
  14. Identify jointly with related sectors effective actions for mitigating the risks of AML/CFT/CPF of the NPOs;
  15. Establish measures that promote transparency, integrity and public confidence in the administration and management of NPOs
  16. Verify compliance with the Nicaraguan Obligatory Technical Norms established by the authority
  17. Administratively intervene NPOs when necessary in accordance with the dispositions established in the current Law
  18. Authorize new projects of NPOs
  19. Consider and resolve recourses for review of resolutions issued by the General Office for the Registration and Control of NPOs
  20. Other attributions inherent to the current Law, its Regulations and Norms.

CHAPTER III

CLASSIFICATION, CONSTITUTION AND STATUTES OF NPOS

Article 11 Classification of Non profit organizations

NPOs under the supervision of the Ministry of the Interior are classified as:

  1. Religious and/or charity: have the purpose of exercising the right to religious freedom being able to hold activities of a beneficial nature
  2. Civil and/or social, cultural and educational: have as a purpose carrying out activities of common interest and of a social nature.

Article 12 Constitution of Associations

Associations are constituted through public document duly authorized by a public notary, with the appearance and the agreement of five or more people and/or legal entities with the capacity to contract rights and obligations, who commit to contributing knowledge, resources, means and activities to obtain common purposes and objectives, not for profit, within the framework of the Law, of a religious and/or beneficent, civil and/or social, cultural and educational nature.

Associations will be able to have up to 25% of its members from other nationalities with legal residency in Nicaragua.

Article 13 Constitution of foundations

Foundations are constituted through public documents duly authorized by public notary with the appearance of at least three people or legal entities, who express their will to assign part of their patrimony to the foundation´s capital, establishing the social objective and purpose for which it will be used.

The contribution of assets is indispensable for the constitution of the foundation, the founders will be able to increase the foundation´s patrimony when they so desire.

Foundations will be able to receive donations from third parties to increase their patrimony, as long as the founders do not expressly forbid it, which should be used for the objectives and purposes of the foundation.

Article 14 Constitution of Federations

Federations are constituted through public document duly authorized by a public notary, with the appearance of two or more associations or foundations that have similar objectives and purposes, with duly registered legal status in the corresponding registry and up to date with their obligations.

Article 15 Constitution of Confederations

Confederations are constituted through public document duly authorized by a public notary with the appearance of two or more federations with similar objectives and purposes with legal status duly registered in the corresponding registry.

 Article 16 Content of Founding Charter

The Founding Charter of national NPOs should contain at least the following elements:

  1. Identifying information as required by law and nationality of the members, in the case of legal entities their name or business name in accordance with the Founding Charter, registration data from the corresponding registry and power of attorney: Broad Power of Attorney or Administrative Power of Attorney;
  2. Name
  3. Nature
  4. Objectives
  5. Purposes
  6. Duration
  7. Address
  8. Patrimony: establishing the initial patrimony with precise indication of the amount that is contributed, the assets or real estate in its case, which will have to be transferred to the NPO once its legal status is recognized.

The patrimony of the NPOs will be destined exclusively to the pursuit of its objectives and purposes; it does not partially nor entirely belong to individuals nor legal entities that are its members, any disposition that would establish the rights of its members to the patrimony of the NPOs will be null and void.

  1. Economic regime
  2. Oversight
  3. Membership, which is not transferable under any modality.
  4. Governing bodies: General Assembly and Board of Directors, which must define their membership, attributions and terms of the posts, in the case of the Board of Directors.
  5. Legal representation
  6. Dissolution and liquidation: the document must point out to the NPO to what NPO will be transferred the remaining assets, which should have similar objectives and purposes. Any disposition or resolution will be null that establishes that the patrimony of the organization will be distributed among its administrators or members.

In the case that the destination of the funds is not established in a specific way in the Founding Charter or Statutes, they will be put in the name of the State of Nicaragua.

Article 17 Name change and reform of objectives and purposes

The change in the name of the NPOs and the reform of their objectives and purposes will be done by agreement of the General Assembly, which should be in harmony with its objectives and purposes approved by the National Assembly of the Republic of Nicaragua and the referred changes must be submitted to the consideration of the corresponding judicial authority who will decide through a ruling.

Article 18 Statutes

Statutes are the norms for control, administration, functioning, dissolution and extinction of the NPOs. The content of the Statutes must not be different from nor contrary to what is established in the Founding Charter, with what is established in the latter prevailing.

Compliance with the Statutes will be obligatory for the members of the NPOs, even when they join after their approval.

Article 19 Content of the Statutes

The content of the Statutes of the NPOs should have at least the following elements:

  1. Name of NPO
  2. Nature
  3. Objectives
  4. Purposes
  5. Duration
  6. Address
  7. Patrimony
  8. Economic regime
  9. Accounting system: The NPOs must have an accounting system in accordance with generally accepted accounting norms and principles.
  10. Oversight: NPOs must have an oversight entity over the administration of the patrimony, having established the procedures for its functioning.
  11. Members, category, affiliation requirements for new members, obligations, rights and loss of membership.
  12. General Assembly: the highest authority of the NPO, composed by the totality of its members and should establish the conditions and procedures for its functioning, calling meetings, attributions, establishment of quorum and form of voting for decision making and the establishment of criteria that would ensure the democratic functioning of the NPO
  13. Board of Directors: the organ for the administration of the NPO, for which its composition and requirements should be established for holding posts, election procedures, term, attributions or functions, quorum for meeting, form of voting for decision making, re-election, destitution, replacements and retributions based on the past when applicable:
  14. Legal representation: it will be established who holds the legal representation of the NPO and their attributions
  15. Disciplinary regime: causes, sanctions and procedure for its application and recourses
  16. Resolution of conflicts: bodies and procedures must be established for the solution of internal conflicts
  17. Reform of Statutes: requirements and procedures for modification or reform of Statutes must be established, which must be made evident in a public document
  18. Dissolution and liquidation: the reasons for dissolution, procedure, naming liquidators, faculties, and responsibilities.
  19. Other dispositions and licit conditions that the members or founders consider helpful, as long as they are not in conflict with the law nor contradict the objectives and purposes of the NPO.

CHAPTER IV

LEGAL STATUS AND REGISTRATION OF THE NPO

Article 20 Legal status of NPO

It is the responsibility of the National Assembly, in accordance with its constitutional faculties and procedures and requirements established in Law No 606, the Organic Law of the Legislative Branch, to grant legal status to national NPOs, through legislative decree which should be published in La Gaceta, the Official Newspaper.

The legal representative of the NPO must request from the Ministry of the Interior a certificate of Non Registration and Certificate of Non Objection for the request for legal status.

Article 21 Prior requirements for associations and foundations to acquire legal status

The Legal Representative of the NPO must present to the Ministry of the Interior the request for obtaining legal status addressed to the First Secretary of the National Assembly accompanied by the following documents:

  1. Certificate of Non Registration granted by the Ministry of the Interior
  2. Certificate of Non Objection from the Ministry of the Interior that indicates that the Founding Charter and Statutes fulfill the legal requirements established in the current Law
  3. Founding Charter and Statutes:
  4. List of board members and members
  5. Photocopy of citizen identity cards of board members and members
  6. Police record of the members of the NPO, in the case of a legal entity, the police record of the person that represents that entity
  7. If there are members of other nationalities, they must present a certificate of the criminal record issued by the competent authority of their country of origin or residence, duly authenticated or apostilled, in Spanish or translated into Spanish with the formalities established in national legislation, or alternatively, a certificate of INTERPOL-Nicaragua and copy of the passport with at least 6 months before its expiration date.
  8. The granting of legal status to entities that the Law of Autonomy of Higher Education Institutions covers, as long as they are not for profit, must present in addition:
    • Copy of request presented to the National University Council (CNU) which requests authorization for the functioning of the University
    • Certificate of the National University Council which authorizes the functioning of the University

If the request for legal status fulfills the requirements established in the current Law, the Ministry of the Interior will send it to the National Assembly so that in accordance with its constitutional faculties and the procedures and requirements established in Law No 606 , The Organic Law of the Legislative Branch, it might consider the request.

Article 22 Legal status of federations and confederations

Federations and confederations will present to the General Office for the Registration and Control of Non Profit Organizations, the request for their legal status, addressed to the First Secretary of the National Assembly which will be different and independent from the NPOs that compose it, having to comply with the requirements and procedures established for granting legal status to associations and foundations.

Article 23 Registration of NPOs

NPOs to begin their functioning and operation, must be registered in the General Office for the Registration and Control of Non Profit Organizations of the Ministry of the Interior, within the maximum term of 15 working days after its publication in La Gaceta, the Official Newspaper, of the Legislative Decree granting the legal status, once registered its statutes must be published by this same media in a maximum terms of 30 working days.

Article 24 Acts and documents to register

For the effects of the current law the acts and documents to register are:

  1. Legislative decree granting legal status
  2. Founding charter and Statutes
  3. Board of directors or administrators
  4. Members of the NPOs, those leaving and those joining
  5. Modifications or reform of the Founding Charter and Statutes
  6. Change of address
  7. Name change in accordance with judicial ruling
  8. Opening and closing of delegations, branches or establishments
  9. Powers of representation, modifications or revocation of them
  10. Dissolution and liquidation of NPOs
  11. Partial or total closing of NPOs

Article 25 Denial of registration

The Registry of the NPOs can deny the registration of documents, when:

  1. The requesting NPO is not found to be included within the sphere of the application of this Law
  2. When formal defects are identified in the request or in the documentation which accompanies it.
  3. If the document is contrary to what is established in the Founding Charter or Statutes of the NPO
  4. There is a presumption of illicitness in the act or documents that are attempted to be registered
  5. The requirements established in the current Law are not met

 Article 26 Process before other institutions

Ministries, Governmental Entities, Public Registries and Financial Institutions, that must process documents requested by the NPOs contemplated in the current Law, must request in advance the certificates of the registration and compliance with their obligations issued by the Ministry of the Interior.

CHAPTER V

NON PROFIT ORGANIZATIONS FROM OTHER NATIONALITIES

Article 27 Operation and functioning of NPOs of other nationalities

NPOs of other nationalities whose objectives and purposes are not opposed to the Political Constitution of the Republic of Nicaragua and the Law, which decide to begin operations in Nicaragua, must present the registration documents established in the current Law before the Ministry of the Interior in order to be authorized in the country.

Article 28 Registration requirements of the NPOs from other nationalities

NPOs of other nationalities for their registration and authorization of their functioning in the national territory must comply with the following requirements:

  1. Request for registration, indicating its name, address of its principal office in the national territory, address outside the country and the indication of its willingness to subject itself to the laws, courts and authorities of the Republic in terms of the acts and contracts that are in effect in Nicaragua;
  2. Documents that demonstrate the legal existence, in accordance with the legislation of its country of origin
  3. Certification of the Statutes that regulate the internal operation of the NPO
  4. Power of attorney in Nicaragua, named by the members of the Board of Directors of the country of origin
  5. Certification of the act of naming the Board of Directors in its country of origin, length of term in the exercise of their post; legal identification data and original signatures of each one of the board members
  6. Names and identifying information required by law of the board members of the NPO, their country of origin, and photocopy of the identification documents
  7. List of staff of another nationality that will remain in the country in virtue of the operations of the NPO
  8. Agreement of the highest authority of the NPO which authorizes the establishment and functioning in Nicaragua.
  9. Projects to be carried out in Nicaragua
  10. Initial opening capital in Nicaragua
  11. Financial statement of the current year and the patrimony
  12. Initial balance statements, certified by Authorized Public Accountant
  13. Four books: two books of official minutes, a daily ledger and a general ledger.

All the documents must be presented in Spanish or translated into Spanish, duly apostilled or authenticated and with the formalities required in the national legislation.

NPOs from other nationalities are subject to complying with the laws of the Republic of Nicaragua.

Article 29 Naming the legal representative

NPOs of other nationalities must name through agreement or resolution of the Board of Directors of the country of origin a legal representative in Nicaragua.

Article 30 Updating data

NPOs from other nationalities must report to the General Office for the Registration and Control of NPOs internal changes of the organization in its country of origin: board of directors, addresses, entry and departure of members, telephones, emails and reform of Statutes.

Article 31 Registration and cancelation

The Ministry of the Interior through the General Office for the Registration and Control of NPOs through Administrative Resolution will authorize the registration of the NPO of another nationality when it fulfills the requirements established in this Law.

The registration and number assigned to the NPO of another nationality must be cancelled when they so request, or when they fall into non compliance with the current Law and other laws of the Republic of Nicaragua through Administrative Resolution of the General Office for the Registration and Control of NPOs.

Article 32: Liquidation of assets and goods

The liquidation of goods and assets of the NPO of another nationality that were acquired during the time that they operated in Nicaragua will not be able to be distributed among its members or workers, it will be done in accordance with what is established in articles 46 and 47 of the current law.

CHAPTER VI

RIGHTS, OBLIGATION AND PROHIBITIONS OF NATIONAL NPOS AND THOSE FROM OTHER NATIONALITIES

Article 33 Rights of NPOs

NPOs have the following rights:

  1. Have legal status from the date of the publication in La Gaceta, the Official Newspaper, of the Legislative Decree Granting Legal Status
  2. Use of the name which once registered will not be able to be used by any other NPO
  3. Have its own patrimony, for which they can acquire any title and administer all type of real estate and assets, within the terms of national law.
  4. Enjoy autonomy in the management of their activities and resources without any more limitations than those established in the current Law, its regulations, norms, its Founding charter and Statutes
  5. Provide public goods and services within the exercise of their activities and to fulfill the objectives and purposes for which they were founded
  6. Receive and make donations and contributions, in accordance with what the laws in this matter establish
  7. Make publications about their objectives and purposes
  8. Make decisions about their internal affairs in accordance with their Founding Charter and Statutes
  9. Do every type of necessary and licit act and contract for the fulfillment of their objectives and purposes

 Article 34 Obligations of NPOs

  1. Respect and comply with the Constitution of the Republic of Nicaragua, the current Law, its regulations, norms as well as the rest of the laws of Nicaragua
  2. Register in the General Office for the Registration and Control of NPOs of the Ministry of the Interior within a term of no more than 15 workdays after its legal status is published in La Gaceta, the official newspaper
  3. Comply with what is established in their Founding Charter and Statutes
  4. Publicly identify with the name that its legal status was granted or modified through judicial ruling; in its address, headquarters, branches, offices and letterhead.
  5. Use the perpetual identification number and unique registration tax number in all its legal, financial, and administrative documents
  6. Present to the General Office for the Registration and Control of NPOs of the Ministry of the Interior the publication of their statutes in La Gaceta, the Official Newspaper, within a term of 30 working days starting from its registration in the Ministry of the Interior
  7. Present their financial statements for the existing fiscal period with detailed breakdowns of income and expense statement, income, expenses, general balance statement, trial balance, detail of donations with origins of income, final use and origin of funds
  8. Request authorization to establish headquarters, branches and offices from the General Office for the Registration and Control of NPOs, in the case of Universities and Educational Centers, they must also request authorization from their corresponding entity
  9. Fulfill the legal requirements established for the reception of donations coming from outside the country and inform with at least 15 days in advance the General Office for the Registration and Control of NPOs of the Ministry of the Interior about negotiations prior to its reception, as well as its final destination.
  10. Hold activities within the frame of the objectives and purposes established in the Founding Charter and Statutes
  11. Comply with dispositions issued by the authority for the application of the current law, its regulations and norms
  12. Ensure that goods and resources which compose its patrimony do not come from illicit activities
  13. Provide the information that may be required by competent authorities about their objectives and purposes, statutes, activities, beneficiaries, source of national or foreign financing, donors, donations, patrimony, administrative and financial operations, and the use of public funds that they may receive, among others
  14. Comply with the work plans in accordance with their objectives and purposes
  15. Respond to their obligations with the patrimony of the NPO
  16. Be civilly responsible for actions carried out in its name by its board members or administrators, when they do not exceed the faculties conferred. In case those faculties are exceeded, the board members will be personally responsible.
  17. Subject themselves to the tax obligations which the law establishes
  18. Maintain a Book of the Registration of members which will include: status of member, legal identifying information, ID number, nationality, date of joining and leaving; email and personal telephone numbers
  19. Maintain formal accounting of their patrimony, with generally accepted accounting systems and in accordance with the tax dispositions existing in the country
  20. Maintain a book of Minutes where agreements made by the General Assembly and the Board of Directors are recorded.
  21. Maintain two accounting books, a daily ledger and a general ledger in an organized form, applying generally accepted accounting principles.
  22. Maintain and inventory of the patrimony of the NPO
  23. Save, conserve and ensure the good management of the book of Minutes, of members and the daily and general ledgers
  24. Send to the General Office for the Registration and Control of NPOs the accounting balances for the existing fiscal period, accompanied by a copy of the fiscal declaration made to the General Office on Income
  25. Report the projects to be developed, prior to their execution, to the General Office for the Registration and Control of NPOs
  26. Apply the following measures to reveal their donors, beneficiaries and associated organizations
    • Verify the identity and good reputation of their donors and their organizations
    • Verify the identity of their beneficiaries and/or final destination of their donations
    • Document the identity of their sources of funds
  27. Update immediately all information, documents or acts subject to registration in the Ministry of the Interior
  28. Report to the General Office for the Registration and Control of NPOs in advance of national and foreign donations, assets or any object of value coming from an individual or legal entity and comply with the requirements which the existing legislation establishes for everything related to the reception of donations
  29. Verify that the funds that come in for the benefit of their beneficiaries are being used to comply with the objectives and purposes, through:
    • Confirming the execution of projects
    • Determining whether the beneficiaries really exist
    • Confirming that the beneficiaries received the funds sent
    • Doing the accounting for the funds
  30. Save for a period of 10 years:
    • Annual financial statements with detailed breakdowns of income and expenses, counting from the date of their approval
    • Records of local and international transactions, counting from the date the transactions were done
    • Information about the identity of their source of funds, their beneficiaries and their associated organizations
  31. In the case of the dissolution of the NPO, it should present to the General Office for the Registration and Control of NPOs:
    • Liquidation of goods and assets, certified by a Certified Public Accountant
    • Book of Minutes, book of members and Accounting books (Daily and General Ledgers), for safekeeping
    • Bank accounts, with their corresponding closings
    • Certification of CPA where it is confirmed that they do not have any pending commitments with public institutions (DGI, DGA, INSS, INATEC, Municipal Govt, among others)
    • Certificate issued by the General Income Office (DGI) about the termination of activities

Article 35 Prohibitions on NPOs

  1. Publicly identify themselves with a name different from the registered name
  2. Carrying out activities for the personal profit of its members
  3. Distribute among its members dividends, profits, financial or material surpluses coming from donations, public contributions or surpluses of any nature obtained in accordance with its objectives and purposes
  4. Holding activities directly or indirectly that would imply political proselytism
  5. Hold activities different from its objectives and purposes
  6. Use its patrimony for objectives and purposes different from the ones for which it was founded
  7. Omit information or include false information in the reports presented to the General Office for the Registration and Control of NPOs
  8. NPOs cannot intervene in partisan political affairs, no violate their objectives for which it was created and registered in this country
  9. The board members or members of the NPO who are from other nationalities will remain subject to the prohibitions established in article 27, second paragraph of the Constitution of Nicaragua, article 38 number 1,2 and 3 of Law No 761, General Law on Migration and Immigation.
  10. Using the organizational scheme to violate public order, promote destabilization campaigns in the country, supporting, facilitating and inciting the impact on citizen security and the legitimate exercise of the human rights of Nicaraguan families.

CHAPTER VII

CONCERNING THE SUPERVISION AND CONTROL OF NPOS

Artilce 36 Faculty for supervision and control of NPOs

The Ministry of the Interior through the General Office for the Registration and Control of NPOs has the faculty to carry out visits of supervision and control of the NPOs, with the purpose of verifying the compliance with what is established in the current law, its regulations, norms, Founding Charter and Statutes.

CHAPTER VIII

INFRACTIONS AND SANCTIONS OF NPOS

Article 37 Infractions of NPOs

The following are infractions of NPOs:

  1. Noncompliance with the obligations established in the current law, its regulations; and the rest of the laws concerning this issue
  2. Carrying out prohibited actions established in the current law and its regulations
  3. Blocking the control functions of the authority in the application of the current law and its regulations

 Article 38 Sanctions

The General Office for the Registration and Control of NPOs will be able to apply to NPOs what this law has to say about the administrative sanctions of fines, intervention or suspension, when applicable. Likewise, it will be able to issue Legal Decisions to request the cancelation of the legal status of the NPO before the National Assembly of the Republic of Nicaragua

The sanctions which the current law refers to, will be applied without prejudice to the civil and penal responsibilities that may apply.

Article 39 Fines

A fine from $C5,0000 to 10,000 córdobas will be imposed to the benefit of the State for each non-compliance of the obligations, or for incurring in the prohibitions established in the current law and its regulations.

In the case of repeat offense, the fine will be doubled.

The Regulations of this law will establish the graduality of the fine for each infraction

Article 40 Intervention

The General Office for the Registration and Control of NPO will be able to intervene the NPO for the time it considers necessary, when they incur in infractions in their application of the current law, its regulations and norms, the intervention will be able to allow for the suspension or issuance of a Legal Judgement to request the cancelation of the legal status of the NPO

Article 41 Suspension

 The General Office for the Registration and Control of NPO will be able to suspend the functioning of NPOs up to a period of 3 years, because of non-compliance of an obligation or carrying out prohibited acts as established in this law, its regulations and norms.

CHAPTER IX

DISSOLUTION, LIQUIDATION AND CANCELATION OF LEGAL STATUS OF NPOS

Article 42 Dissolution of NPOs

NPOs will be dissolved for the following causes:

  1. By the will of its members in accordance with the causes and procedures foreseen in its Statutes
  2. By expiration of its term
  3. By fulfillment of its purposes and objectives or clear impossibility of achieving them
  4. By the decrease in number of members to less than the minimum set by the current law for its constitution, if this situation lasts for more than a year

Article 43 Voluntary dissolution of NPOs

Dissolution agreed upon by the members of the NPO will be formalized through a Public Document of Dissolution which will designate the people responsible for the liquidation and their faculties. The Public Document must be registered in the The General Office for the Registration and Control of NPOs.

Article 44 Conservation of accounting books of the NPOs

In the case of the dissolution of the NPOs, the accounting books will be deposited in the The General Office for the Registration and Control of NPOs with the purpose that they be conserved for a period of 10 years.

Article 45 Nomination of liquidators of the NPOs

Once the dissolution of the NPO is agreed upon, liquidators will be named in accordance with the Statutes, who will have the legal and administrative power of the NPO for the period of the liquidation, and will respond personally and in the corresponding venue for the acts that they carry out when they exceed the limits of their mandate.

Article 46 Use of the patrimony of the NPO

The use of the surplus of the liquidation of assets, rights and shares of the NPO will be done in accordance with what is established in its Founding Charter or Statutes, it must be provided to an organization with similar objectives and purposes, it will not be able to be shared among its members, and if nothing was disposed about it, it will become the property of the State of Nicaragua.

Article 47 Cancelation of the legal status of the NPOs

It is up to the National Assembly of the Republic of Nicaragua in accordance with its constitutional faculties and procedures and requirements established in law No 606, the Organic Law of the Legislative Branch, the cancelation of the legal status of national NPOs, after request from that same NPO or the Ministry of the Interior through The General Office for the Registration and Control of NPOs, in the following cases:

  1. Dissolution and liquidation
  2. When it was used for the commission of illicit acts
  3. When it was used for violating public order
  4. For blocking the control and oversight of The General Office for the Registration and Control of NPOs
  5. When the objectives and purposes are perverted for which it was created, in accordance with its Founding Charter and its Statutes
  6. When they have at least 1 year of non compliance with the authority for its application, by not reporting financial statements and changes in the Board of Directors
  7. When their activities are contrary to the nature of their legal status, including for profit interest
  8. For using the organizational scheme to promote destabilization campaigns in the country, supporting, facilitating and inciting the impact of citizen security and the legitimate exercise of the human rights of Nicaraguan families
  9. For administrative sanction derived from the noncompliance with the obligations or carrying out prohibited actions in accordance with what is established in the current law, its regulations and norms.

When the cancelation is derived from the causes established in number 2 to 9 of this article, the patrimony of the NPO will become the property of the State.

Article 48 Complaints

Members of the NPOs will be able to lodge a complaint with the General Office for the Registration and Control of NPOs of the Ministry of the Interior against the Directors of Administrators of the NPOs for noncompliance with the Founding Charter and Statutes, when they think that there is an improper use of the patrimony, transgression of their rights as members, or noncompliance with this law, its regulations and norms. Prior to lodging the complaint the internal procedure established in the Statutes should be exhausted.

Article 49 Legal Judgement for the cancelation of the legal status

The General Office for the Registration and Control of NPOs will issue a ruling and request that the National Assembly through the Ministry of the Interior cancel the legal status of the NPO, when they incur in any of the causes for cancelation stipulated in this Law.

CHAPTER X

RATES FOR SERVICES AND FINANCIAL RESOURCES

Article 50 Rates

Service Rate
Registration of national NPO C$3,000
Registration of foreign NPO C$5,000
Registration of name change C$3,000
Certificate of non registration C$200
Certificate of registration C$200
Certificate of Compliance C$200
Certificate of members C$200
Certificate of publication of Statutes C$200
Miscellaneous certificates C$200
Certification of board members C$200
Certification of legal representative C$200
Certificate of General Power of Attorney C$200
Certification of Reform of Statutes C$3,000
Photocopies of legal documents of NPOs (cost per page)  

C$100
Seal for books (cost for each book) C$400
Seal of continuous pages (cost per page) C$3

Article 51 Financial resources

The Ministry of the Interior will have the financial resources assigned in the Annual Law for the General Budget of the Republic for the application of the current law and its regulations

The amounts received as payment of fines and rates for services will be considered Income with a Specific Use and will be deposited in the Sole Account of the Treasury, for which the Ministry of the Treasury and Public Credit will monthly liquidate and transfer to the Ministry of the Interior, 100% of the amounts received, in accordance wi4th the Annual Law for the General Budget of the Republic, the norms and procedures for the Budgetary Control and Execution, and the other laws of the matter.

CHAPTER XI

ADMINISTRATIVE RECOURSE

Article 52 Administrative recourses

Concerning the Administrative Resolutions issued by the General Office for the Registration and Control of NPOs, the Recourse of Review and that of Appeal will proceed, as appropriate, in conformity with the dispositions established in Law 290, Law for the Organization, Competency and Procedures of the Executive Branch, and its reforms.

CHAPTER XII

FINAL DISPOSITIONS

Article 53 Updating fines and rates for services

The fines and rates for services established in the current law will be updated every 2 years by the Ministry of the Interior through Ministerial Accord, starting on January 1, 2024.

Article 54 Derogations

Law No 147, the General Law on Non Profit Legal Entities, approved on March 19, 1992 and published in La Gaceta, Offiicial Newspaper No 102 of May 29, 1992 is repealed.

Article 55 Denomination

For all corresponding legal effects, where Non-Governmental Organizations is read, Non Profit Organizations should be read.

Article 56 Regulations

The President of the Republic will regulate the current Law, in accordance with the term established in the Constitution of the Republic of Nicaragua.

Article 57 Validity

The current law will take effect 30 days after its publication in La Gaceta, the Official Newspaper.

Issued in the Session Hall of the National Assembly, in the city of Managua 31 days in the month of March in the year two thousand twenty two. Deputy Loria Raquel Dixon Brautigam, First Secretary of the National Assembly.

Therefore, to be published and executed as Law of the Republic. Managua, the fifth day of April of year two thousand and twenty two. Daniel Ortega Saavedra, President of the Republic.