Charitable activities of religious organisations

1. Legal basis for the implementation of charitable activities by religious organisations

The legal basis for the implementation of charitable activities of religious organisations is the provisions of the Constitution of the Kyrgyz Republic (Article 44(4)), the Civil Code of the Kyrgyz Republic (hereinafter - the CC KR), the Laws of the Kyrgyz Republic “On Patronage and Charitable Activities”, “On Freedom of Religion and Religious Organisations in the Kyrgyz Republic”, “On the Basics of Social Services for the Population in the Kyrgyz Republic” and other regulatory legal acts of the Kyrgyz Republic (hereinafter - the KR). The legislation of the Kyrgyz Republic contains the necessary provisions that enable religious organisations to engage in a wide range of charitable activities, provide social assistance to the population, reintegrate and rehabilitate people who find themselves in a difficult life situation.
The definition of charitable activity is given in the Law of the Kyrgyz Republic “On Patronage and Charitable Activities” (Article 1(3)) as “voluntary activity of an individual and/or legal entity aimed at achieving charitable goals, providing services and performing work on a disinterested (gratuitous basis or on preferential terms) or for payment not exceeding the costs incurred in their implementation”.
The legislation of the Kyrgyz Republic is flexible enough to allow religious organisations to engage in various areas of society, where their interests coincide with those of the State. Thus, religious organisations have the right to carry out charitable activities in the form of the establishment of charitable foundations with the status of a non-profit organisation pursuant to Article 85(3) of the CC KR or directly within the framework of the activities of religious organisations as specified in Article 15(1) of the Law of the KR “On Freedom of Religion and Religious Organisations in the Kyrgyz Republic”.
The trend in the development of the religious organisations’ activity in recent years shows that it is not purely cultic in nature, but is gradually becoming one of the main partners of the state in the implementation of social functions. On this basis, the state has created a legal framework for the implementation of charitable activities by religious organisations in the Kyrgyz Republic, which, as practice shows, justifies itself.

1.2. Main areas of charitable activities of religious organisations

Charity and social services for the population have always been a priority area for religious organisations, the latter have accumulated vast experience in conducting charitable activities, and recently religious organisations are actively involved in the implementation of various social programmes adopted by the Cabinet of Ministers of the Kyrgyz Republic.
Charitable activities of religious organisations are carried out on a voluntary basis for the disinterested transfer of property, including financial resources, the disinterested performance of work, the provision of services and other support.
The Law of the Kyrgyz Republic “On Patronage and Charitable Activities” in Article 1(4) defines the goals of charitable activities, namely for the purposes of social support and protection of citizens, assistance to those affected by natural disasters, assistance in strengthening peace, friendship and harmony among peoples, promotion of protection of motherhood, childhood, promotion of activities in the field of prevention and health protection, etc.
In particular, the charitable activities of religious organisations and activities in the field of social assistance to the population can be divided into several areas, and one of the important ones is in the field of shared use, protection and restoration of places of worship, which are monuments of history and culture of the Kyrgyz Republic.
In accordance with Article 8(2), Article 11 of the Law “On the Basics of Social Services for the Population in the Kyrgyz Republic”, religious organisations, like other public organisations, are actively involved in the provision of social services, and provide material assistance for the social integration and rehabilitation of citizens who find themselves in a difficult life situation.
The Special Law of the KR “On Freedom of Religion and Religious Organisations in the Kyrgyz Republic” (Article 17(1) and (2)) establishes that religious organisations have the right to freely carry out patronage and charitable activities directly or through charitable organisations on the basis of voluntariness and freedom to choose their goals. At the same time, religious organisations themselves have the right to establish charitable institutions, shelters, boarding schools, hospitals and other institutions for the provision of social services and material assistance, as well as for the social integration and rehabilitation of citizens who find themselves in a difficult life situation.
In addition, pursuant to Article 18(1) of the same Law, the charitable, cultural and educational activities of religious organisations shall be aimed at providing material assistance to people in difficult living conditions, and providing care for the elderly, the infirm and the incapacitated people.
However, the aforementioned Law (Article 18(2)), while providing for other aspects of this activity, establishes a ban on taking advantage of the social vulnerability of a certain part of the population, and strictly prohibits the dissemination of religious teachings or beliefs during the implementation of charitable activities by religious organisations.
The logic of this Law is aimed at ensuring that religious organisations do not have the right to influence the religious feelings of citizens by taking advantage of their difficult social situation to spread religious ideas and views alien to them under the guise of social and charitable activities. This provision, however, is difficult to enforce, since it is not possible to monitor whether or not the dissemination of religious beliefs has indeed taken place during the provision of charitable assistance by religious organisations. Moreover, the legislation of the Kyrgyz Republic does not provide for any liability for such violations. But, on the other hand, this provision aims to reduce the competition between religions for the flock, while establishing some ethical rules in the said area so that religious organisations must observe a certain decorum, since charitable activities must be provided for all parties who are the target of charitable actions, regardless of the religious affiliation of citizens.
Thus, charitable activities and social services should not be tied to the propagation of religious teachings or beliefs, so that financial or other material incentives are not used to induce people to adhere to or change certain religious beliefs, abusing the needs of the poor and disadvantaged members of society.
As stated in Article 18(2) of this Law, the charitable activities of religious organisations are voluntary activities for the disinterested transfer of property to citizens or legal entities, including financial resources, the disinterested performance of work, the provision of services and other support on a disinterested (gratuitous basis or on preferential terms).

1.3. Property rights of religious organisations

Material sources for the implementation of charitable activities of religious organisations are material and monetary funds collected by individuals on the basis of religious considerations or religiously established obligations of believers. Therefore, religious organisations face a difficult dilemma and must take into account the wishes of sponsors in the use of collected funds, as well as comply with the requirements established by the laws of the Kyrgyz Republic, and certain etiquette of interreligious relations established in the Kyrgyz Republic. Article 15(1) of the Law of the Kyrgyz Republic “On Freedom of Religion and Religious Organisations in the Kyrgyz Republic” establishes that religious organisations shall be allowed to own buildings, structures, industrial and social facilities, monetary funds and other property necessary to ensure their activities. The property of religious organisations is acquired at their own expense, donated (bequeathed) by citizens, public organisations, in addition, religious organisations shall have the right to apply for and receive voluntary financial and other donations (Article 15(2) and (3)) of the Law of the KR “On Freedom of Religion and Religious Organisations in Kyrgyz Republic).
At the same time, according to Article 16 of the aforementioned Law, a religious organisation has the right to take for use for its own needs, including for charitable activities, buildings and property provided by any individuals and legal entities on a contractual basis in accordance with the procedure established by the legislation of the KR. In the event of the termination of the activities of religious organisations and missions, the property used for this purpose shall be returned by religious organisations to its former owner or legal successor, while the property in their ownership shall be managed in accordance with their Charter (regulation) and the legislation of the KR (Article 19(1) and (2) of the same Law).
Today there is a tendency that religious organisations carry out charitable activities for all citizens without any religious agitation or propaganda.

2. Basic guarantees and control over the implementation of charitable activities by religious organisations 2.1. Basic guarantees in the implementation of charitable activities by religious organisations

2.1. Basic guarantees in the implementation of charitable activities by religious organisations

In the context of the development of civil society institutions, great importance is attached to private initiatives in addressing socially significant issues, the joint settlement of various problems of a state nature in cooperation with public organisations. The State may provide assistance and support to the charitable activities of religious organisations and missions in the implementation of socially significant, cultural and educational programmes and events. Religious organisations have the right to freely carry out charitable activities directly or through charitable organisations on the basis of voluntariness and freedom to choose their goals. No one shall have the right to restrict the freedom of religious organisations to choose the goals of charitable activities and their forms of implementation if it complies with the legislation of the KR.
In addition, the State provides assistance and support to the charitable activities of religious organisations (Article 18(3) of the Law of the KR “On Freedom of Religion and Religious Organisations in the Kyrgyz Republic”), the State may also, among other things, provide benefits for the payment of taxes, customs and other fees and charges as well as other benefits (Article 11(4) of the Law “On Patronage and Charitable Activities”) to actors of charity activities, including religious organisations and charity organisations established by them.
For the purposes of the Tax Code of the KR, in accordance with Article 174(5), a charitable organisation is a non-profit organisation that meets the following three requirements:
a) established and implementing charitable activities in accordance with the legislation of the KR on non-profit organisations and charitable activities;
b) not engaged in the production and/or sale of excisable goods;
c) not involved in supporting political parties or election campaigns.
In practice, state authorities grant certain privileges to patrons, for example, by awarding them the title of “Honorary Citizen of the City”, by granting the right to name the deeds of patrons and by awarding them with badges of honour and distinctions.
Moreover, the tax legislation of the KR provides for a number of tax reliefs not only for charitable organisations, but also for institutions established by them. Thus, pursuant to the Tax Code of the KR, the profit of charitable organisations shall be exempt from taxation (part 1, paragraph 1, Article 239); deliveries made by charitable organisations for charitable purposes in accordance with the Law of the KR “On Patronage and Charitable Activities” (Article 281) shall be exempt from VAT; likewise, buildings and premises of charitable organisations shall not be subject to taxation (part 4, paragraph 1, Article 409), in addition, the State provides tax benefits for the incentive purposes (part 2, paragraph 5, Article 14).

2.2. Control over the implementation of charitable activities by religious organisations

Charitable organisations established by religious organisations must provide open access, including access for the mass media, to their annual reports (Article 12(1) of the Law of the Kyrgyz Republic “On Patronage and Charitable Activities”. Religious organisations shall provide state authorities with information about their activities, including in the field of charity. In addition, religious organisations shall be obliged to submit documents containing a report on their activities, including charitable activities (Article 26(2) and (4) of the Law of the KR “On Freedom of Religion and Religious Organisations in the Kyrgyz Republic”) to the state body in charge of official statistics, tax authorities, the state body in charge of religious affairs, and the prosecution authorities.
The state body in charge of religious affairs and its territorial offices, as well as tax authorities, shall exercise control over the compliance of the activities of a religious organisation with the goals stipulated by its Charter and the legislation of the KR. In this case, the charitable activities of religious organisations shall also be subject to inspection by the relevant state bodies. For these purposes, the prosecution authorities, the state body in charge of religious affairs and its territorial offices, and tax authorities shall have the right to (Article 26(6) “On Freedom of Religion and Religious Organisations in the Kyrgyz Republic"):
• request from the governing bodies of the religious organisation their administrative and financial documents;
• request and receive information about the financial and economic activities of religious organisations from tax authorities and other bodies of state supervision and control;
• send their representatives to take part in events held by a religious organisation, etc.
If a violation of the legislation of the KR is detected, the relevant state bodies may issue a written warning that specifies the violation committed and the deadline for its elimination, which shall not be less than one month. A warning issued to a religious organisation may be appealed to a higher authority or court.

Conclusion

Thus, the State allows religious organisations to engage in almost all types of charitable activities, while giving special confidence to deal with a wide range of socially vulnerable groups. With a view to supporting charitable activities and ensuring cooperation between state authorities, local self-government bodies and charitable organisations, councils (committees) for the support of charitable activities may be set up, consisting of representatives of legislative and executive authorities, charitable organisations, public organisations, as well as public figures. These councils (committees)have no authority over the actors involved in charitable activities and their decisions are advisory in nature.