Legal and Governance Issues



             Basic Training on Conservation Trust Funds
    Cape Town, South Africa    Marc...
Legal Establishment
• Legal registration depends on the legal framework in the
  country where the fund is created

Regist...
Legal Framework
• Common Law vs. Civil Law

• CTFs can be established
  through:
  Foundation or Trust Law
  Special Law
 ...
Definition of Trust Fund
A trust (fund) is an entity managed by one
person or group (trustee) for the identified
goals or ...
Legal Instruments
• Trust Deed or Articles of Incorporation

• By-laws

• Grant Agreements – based on donor
  requirements...
Tax Exemption
• Based on national laws for not-for-profit
  organizations or funds

• May require special exemption prior ...
Offshore “Twinning”

• “Friends of”

• U.S. 501(c) 3
Governance
• By-laws      Build on legal statutes
   – Set Board rules for selection
     and rotation of members,
     me...
Successful Boards

• Independent with majority non-governmental
• Balance of stakeholder interests represented
• Board mem...
Criteria for Selection of Board Members
• Expertise
  (conservation, legal,
  finance, other)
• Regional
  representation
...
Board Committees
• Boards function more
  effectively when they
                            • Finance/Investment
  delegat...
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C Legal Governance

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Moye, Legal Governance, Conservation Trust Funds

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C Legal Governance

  1. 1. Legal and Governance Issues Basic Training on Conservation Trust Funds Cape Town, South Africa March 31 – April 2, 2009
  2. 2. Legal Establishment • Legal registration depends on the legal framework in the country where the fund is created Registration of fund • Legal statutes, articles of incorporation or deed • Creation of board of directors or trustees • Deposit of initial capital of fund • Recognition of “public benefit” and/or tax exempt status of fund All of this depends on active government support for the creation of an independent fund
  3. 3. Legal Framework • Common Law vs. Civil Law • CTFs can be established through: Foundation or Trust Law Special Law Offshore Bilateral or International Agreement
  4. 4. Definition of Trust Fund A trust (fund) is an entity managed by one person or group (trustee) for the identified goals or benefit of a sector person or group (beneficiary).
  5. 5. Legal Instruments • Trust Deed or Articles of Incorporation • By-laws • Grant Agreements – based on donor requirements (e.g., dissolution, no changes to statutes without approval, reporting)
  6. 6. Tax Exemption • Based on national laws for not-for-profit organizations or funds • May require special exemption prior to establishment of fund, if not provided by law • Exemptions include: donations, investment income, procurement
  7. 7. Offshore “Twinning” • “Friends of” • U.S. 501(c) 3
  8. 8. Governance • By-laws Build on legal statutes – Set Board rules for selection and rotation of members, meetings, committees, voting, conflict of interest – Duties of Board – Define relationship with Secretariat – Requirements for operational manuals and reporting Mexican Nature Conservation Fund www.fmcn.org
  9. 9. Successful Boards • Independent with majority non-governmental • Balance of stakeholder interests represented • Board members serve in individual capacity • Board member commitment to mission • Leadership in strategic planning and fundraising • Measures to strengthen Board capacity
  10. 10. Criteria for Selection of Board Members • Expertise (conservation, legal, finance, other) • Regional representation • Gender • Stakeholders Madagascar Biodiversity Fund Board, 2006
  11. 11. Board Committees • Boards function more effectively when they • Finance/Investment delegate certain topics to expert committees • Technical that make • Local or regional recommendations to advisory the full board

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