President sanctions law creating endowment funds

President Jair Bolsonaro sanctioned a law on Monday (January 7) that allows the creation of endowment funds, as a way to encourage private donations to projects of public interest. With the decision, the areas of education, science, technology, research and innovation, culture, health, environment, social assistance, and the sport will be strengthened.

In practice, all money donated by individuals and private companies, along with the income received from their investment, will be passed on to institutions and projects of public interest, increasing the sustainability of important public policies.

Made up of private donations, endowment funds invest the money in the financial market to generate continuous revenue for public projects. These investments are based on good practices and clear rules, with guaranteed transparency. The proceeds of the investment in the financial market, plus the donations themselves, guarantee the execution of the projects.

The law sanctioned by the president explains how these funds will be created, managed and monitored. It also determines the rules for investments and the use of the funds for the maintenance and execution of projects and public policies.

The sanction converts into law Provisional Measure 851/18. The text has been sanctioned with five vetoes and creates a regulatory framework for the raising of private funding for endowment funds.

 

ISSUED BY: BRAZIL GOV

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