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Law on Legacies, Foundations and Funds of the Socialist Republic of Serbia

(Official Gazette of the Republic of Serbia, no.59 of 28.12.1989)

I Basic provisions

Article 1

This law shall regulate  conditions for the establishment of Legacy, Fund and Foundation, purpose for its establishment, management and grounds and modes for the termination of Legacies, Foundations and Funds.

Article 2

Legacy, Foundation and Fund shall be established for the purpose of stimulating creativity, accomplishment of humanitarian and other goals of public interest.

Article 3

Legacy, Foundation and Fund  shall be established if it shall be possible to fulfill  set goals which are the purpose of its  establishment with provided resources.

The establishment of Legacy, Foundation and Fund, except for those Foundations and Funds which are established by socio-political community, is granted by the Republic administrative organ in charge of the cultural affairs.

Article 4

Legacy can be established by natural persons with  privately owned resources.

Foundation can be established by legal persons with socially owned resources.

Fund can be established by natural and legal persons with exclusively socially owned resources or with both privately and socially owned resources.

Article 5

Other legal and natural persons can join already established Foundation as co-founders.

Article 6

The work of Legacy, Foundation and Fund shall be public.

Article 7

Legacy, Foundation and Fund are entered into the Register of Legacies, Foundations and Funds.

Legacy, Foundation and Fund can proceed to the realization of their goals upon the entry into the Register.

Character of  resources is entered into the Register.

Legacy, Foundation and Fund are entered into the Register upon the permission for the establishment.

Article 8

Legacy, Foundation and Fund shall acquire the status of legal person upon the entry into the Register.

Fund  shall keep the status of legal person in the case of  the undertaking  of management by another socio-legal entity, upon the consent of the founder.

Article 9

Legacy is managed by the founder. Legacy can be managed , upon the will of the founder, by another private person or private persons. Upon the death of the founder, if not arranged differently by the will, Legacy is managed  by socio-political community.

Article 10

Legacy and Foundation have Statute and Fund has Regulations.

Article 11

The resources of the Legacy, Foundation and Fund shall be socially or privately owned .

Article 12

Legacy, Foundation and Fund can own real estate and goods and can dispose of rights and goods.

Article 13

Legacy, Foundation and Fund resources can be used exclusively for the purpose and in the manner determined by the founder, if not determined differently by the law.

The income from the rights and property can be used for the realization of goals of the Legacy, Foundation and Fund in compliance with the will of the founder.

The form of socially owned resources of the Legacy, Fund and  Foundation can be modified, without the transformation of the property character, if this process would ensure preservation of the property value and enable easier and long-term realization of the institutional goals.

Article 14

Upon the accomplishment of the goals of the Legacy, Foundation and Fund with socially owned resources or in a case that the institutions loose the purpose for its establishment, on the proposal of the managing organ of the Legacy or Foundation, and on the proposal of the social-legal person managing the Fund, the Republic administrative organ in charge of cultural affairs shall authorize the modification of goals of the Legacy, Foundation and Fund.

Article 15

Legacy, Foundation and Fund can:

- acquire income  and collect benefits in conformity with the law (lease, interest, dividends, income from agricultural land, income from paternity rights, patents etc.)

- acquire income in conformity with the provisions of this law and other regulations and organize actions determined by the (Memorandum) Deed on foundation,

- receive gifts and legacies for the realization of goals set as a purpose of its establishment.

Article 16

Donations and other gifts to the Legacy, Foundation and Fund are exempt of all taxation and other charges prescribed by the Republic Regulations.

Article 17

The socially owned resources of the Legacy, Foundation and Fund shall be allocated and spent according to the financial plan.

The managing organ of the Legacy and Foundation and managing organ of the Fund, shall prepare financial plan and balance sheet.

Article 18

Republican administrative organ in charge of cultural affairs can allow that the Foundation established as a sign of gratitude towards a person whose work contributed to the scientific, cultural or artistic development, bears a name of the Legacy, or Fund of this person, except when the founder of the Foundation is socio-political community.

Article 19

Supervision over the legality of work of the Legacy, Foundation and Fund shall be conducted by the Republic administrative organ in charge of the cultural affairs.

II  Foundation of the Legacy, Foundation and Fund

Article 20

Natural person shall establish Legacy (Fund) by declaration of intention in the form of official document issued by the court , or by will.

Legal person shall establish Foundation (Fund) by general act.

Several founders can establish Legacy, Foundation and Fund by contract or by other relevant collective act.

Foreign citizens can establish Legacy (Fund) in conformity with provisions of this law, in the same manner as domestic persons.

Foreign citizens can be co-founders of the Foundation in conformity with this law.

Article 21

The Memorandum (deed of foundation) of incorporation of Legacy and Foundation  shall contain:  name, i.e. the name(s) of the founders, purpose of the organization, information  on resources  and their character, on the name of Legacy or Foundation, management and methods of  allocating resources.

If organs and managing strategy has not been determined by the founder in Memorandum, Municipal Assembly in which the founder has  residence (registered seat), shall determine organ and managing method of the Legacy (Foundation).

Article 22

The Memorandum (Deed of foundation) of incorporation of Legacy and Foundation  shall contain:  name, i.e. the name(s) of the founders, purpose of the organization, information  on resources  and their quality, information on the name of Legacy or Foundation, management and methods of  allocating resources.

Article 23

In the event that the Legacy, Foundation and the Fund are established by will, and that the founder did not determine who shall manage Legacy (Fund) resources , Municipal administrative organ in charge of the cultural affairs shall undertake measures for preserving resources until the establishment of the managing organ of the Legacy (until the management of the Fund is transferred to the organization).

III Rights and obligations of the Republic organ

Article 24

Republic administrative organ in charge of cultural affairs:

- shall evaluate appropriateness of the establishment and shall make decision on granting permit for the establishment of the Legacy, Foundation and Fund

- shall manage Register and shall determine data and methods for managing Register.

- shall provide professional assistance to working people, citizens and municipal organs in work related to the establishment and work of the Legacies, Foundation and Funds

Article 25

Administrative decision on establishment of the Legacy, Foundation and Fund is delivered to the founders and Municipal administrative organ in charge of cultural affairs on the territory of the registered seat of the Legacy, Foundation and Fund.

IV Management of the Legacy, Foundation and Fund

Article 26

Statute of the Legacy (Foundation) is enacted by the managing organ. Fund Regulations are enacted by the founder or managing organ of the organization which is managing the Fund.

Statute shall determine: composition of managing organs and working method; detailed description of the realization of goals; registered seat of the Legacy (Foundation); organ (individual) which represents Legacy (Foundation) ; disposition of income and resources; supervision ; measures for ensuring proper allocation of resources and manner of preservation of the memory of the founder, or of the person the Legacy (Foundation) is named after.

Fund Regulations shall determine: detailed description of the realization of goals, organ (individual) which represents Fund, supervision, measures for ensuring proper allocation of resources and manner of preservation of the memory of the founder, or of the person the Fund is named after.

Article 27

The organization which manages Fund shall be responsible for obligations arising from managing Fund resources to the relevant Municipal Assembly.

Article 28

The organ which manages the work of the Legacy and Foundation, or organization which manages Fund with socially-owned resources, shall deliver annual report on the activities to the  Municipal administrative organ in charge of cultural affairs.

V Termination of the activities of Legacy, Foundation and Fund

Article 29

Legacy, Foundation and Fund shall cease with activities upon the realization of the goal for which it was established or upon the exhaustion of the resources.

Decision on the realization of the goal and exhaustion of its resources shall be made by the founder or by the organ managing Legacy, Foundation and Fund or by the administrative organ of the organization which manages Fund.

Article 30

In the event that Legacy (Foundation) , upon the accomplishment of its goal, cease their work or do not accomplish set goals for a long period of time, the remaining resources are allocated by the Statute.

In the event the Statute does not contain provisions on this matter, the decision on resource allocation is made by the founder or by the Municipal Assembly on the territory of  registered seat of the Legacy (Foundation).

Article 31

If  costs of the management of the Legacy (Foundation ) exceed the income,  managing organ shall make a decision on the incorporation of the Legacy (Foundation) to another Legacy (Foundation) with the same or similar goals with their consent and upon the opinion of the founder.

If the managing organ referred to in Paragraph 1 of this article does not make a decision on incorporation or if there is no Legacy or Foundation  with the same or similar goals in the territory of municipality, decision on the ceasure of work and  decision on the allocation of remaining resources will be made by the Municipal Assembly upon the opinion of the founder.

Republican administrative organ in charge of cultural affairs shall give consent on the decision from Paragraph 1 and 2 of this article.

Article 32

When the organization, which undertook the management of the Fund, ceases with its work, Municipal Assembly shall transfer management to another organization, upon its consent. If there is no such organization, the Fund shall be managed by the Municipal Assembly.

VI Transitory and closing provisions

Article 33

The undecided request for the establishment of the Legacy, Foundation and Fund submitted prior to the effective date of this law shall be decided by the Republic administrative organ in charge of cultural affairs, in conformity with the provisions of this law.

Article 34

The Regulation on data and manner of keeping the Register of the Legacies, Foundations and Funds shall be applied until the enactment of the sub-legal Act on data and manner of keeping the Register of the Legacies, Foundations and Funds (“Official gazette of the SR of Serbia”, number 19/73).

Article 35

On the day of coming into force of this law, the Law on Legacies, Foundation and Funds  (“Official Gazette of the SR Serbia”, number 48/72, 1/83 and 23/86) shall cease with application .

Article 36

This law shall come into force on the eighth day upon its publication in “Official Gazette of the SR Serbia”.