Historically, NGOs in Thailand were mostly family-based foundations. However, domestic NGOs have become increasingly linked with international NGOs in recent years. This change in the domestic NGO sector has been closely linked to the 2005 Tsunami, which led to a large influx of funds, particularly from abroad, and severely tested the capacity of the sector and its regulators.
NGOs in Thailand are usually either an association or a foundation.
An association is a group of persons from the private sector who share the same interest to conduct non-profit activities. They are member organisations, which are not required to hold capital.
A foundation is a not-for-profit asset set up for the public benefit. Public benefit purposes include charity, religion, art, science, literature, education and other activities in the public interest. It excludes activities harmful to Thai culture, morals, and national stability and political activities. NGOs that provide benefits exclusively to non-Thai nationals may not be registered.
Section 115 of the Civil and Commercial Code allows Thai nationals to establish foundations and associations.
Additionally, the Social Welfare Promotion Act BE 2546 provides for the establishment Public Benefit Organisations (PBOs), a foundation or association which has the objectives of social welfare provision or a private organisation which has works relating to the provision of social welfare.
The Ministry of Finance can also designate certain NGOs Public Charitable Institutions (PCIs) under The Thai Revenue Law.
There are two main regulations for foreign NGOs. These are:
All associations and foundations must register with the Ministry of the Interior, according to the Act of National Culture B.E 2489 and the Civil and Commercial Code. Registered organisations receive a certificate of registration with a registered number.
In Bangkok, the registering authority is the Ministry of the Interior, while initial applications are considered by the Bangkok Metropolitan Officer of the Department of Provincial Administration. In other provinces, the governor of the province is the registering authority, and the district office is the receiver and initial assessor of information about the NGO.
NGOs working in the field of culture or religion also need to register with the relevant Ministry (Office of the National Culture Commission or Ministry of Religious Affairs).
PBOs are under the supervision of the Office of the National Commission on Social Welfare, under the Ministry of Social Development and Human Security. Registration as a PBO is voluntary.
Foreign NGOs must be approved by the Committee on Consideration of the Entry of Foreign Private Organisations (FPO). The Committee is chaired by the Permanent Secretary or Deputy Permanent Secretary for Labour and Social Welfare and includes representatives from a range of government agencies. The Committee grants permits to operate to each foreign NGO as well as permits to stay for foreign employees.
NGOs that operate in more than one province are required to register with the province in which they are most active. Once registered, there is no requirement to inform other provinces of their activities.
Benefits of registration:
Under the Revenue Code, registered NGOs are taxed at 10% and are entitled to tax exemption on income from donations, membership fees and registration fee for members.
NGOs that achieve PBO status become eligible for training, advice and financial support from the Social Welfare Promotion Fund – see Government NGO policy below.
NGOs designated by the Ministry of Finance as a Public Charitable Institution also benefit from complete exemption from income tax.
Foundations: provincial offices of the Ministry of Interior are required to collect information (including number of the members or names of new committee members; copies of the agenda of the committee meeting; and copies of the annual report) and undertake regulatory inspections. In their annual report, foundations are required to summarise their work and submit financial balance information, which has been prepared by a registered and authorised auditor. Foundations set their own financial year and are required to hold an AGM within either 90 or 120 days. The report, accounts and minutes from the AGM should be sent to all the relevant authorities.
There appears to be no equivalent obligation for associations to provide information to the authorities. Responsibility for oversight has recently passed from the Police to the district authorities. A change to the law to bring them in line with foundations is apparently planned.
Public Benefit Organisations are subject to additional scrutiny by the Provincial Welfare Promotion Councils (PSWPC).
Foreign NGOs must report to the Department of Employment every 6 months on projects and/or activities that have been carried out. Failure to comply may result in withdrawal of permission to operate. They are also visited and monitored by the FPO committee.
Public Charitable Institutions: The Ministry of Finance designates certain NGOs as a Public Charitable Institution. These oganisations are required to submit the following documents to the Revenue Department:
1. Minutes of their general meeting;
2. Balance sheet;
3. Statement of revenues and expenditures;
4. Report on operations for the previous annual accounting period.
These must be submitted within 150 days of the organisation’s financial year end.
There are additional requirements for cultural NGOs. They must provide the following information to the National Culture Council (annually unless stated otherwise):
1. A list of all types of members classified into sex and nationality;
2. Names of all directors within seven days of their appointment;
3. Agendas of meetings within fifteen days, and a report of the meeting if requested;
4. An annual report on their activities;
5. Notification of any general or extraordinary meeting (at least seven days in advance);
6. Any alterations to its regulations (within fourteen days of the resolution being passed);
7. Copies of any speech made at any event organised by the NGO, and copies of any books or magazines published.
The Ministry of Religious Affairs does no formal monitoring. However, it maintains a close relationship with those NGOs under its remit through information sharing exercises and regular consultation.
Under the Social Welfare Promotion Act promotion, support and supervision of social welfare organisations is under the direction of the National Social Welfare Promotion Commission (NSWPC). This is a senior body chaired by the Prime Minister and includes representatives from the government and social welfare organisations. It has a strategic and advisory role, which includes laying down rules for and overseeing a Social Welfare Promotion Fund.
The Social Welfare Promotion Act requires the NSWPC to promote and support the participation of social welfare organisations in the provision of social welfare. The Department of Social Welfare and Human Security also facilitates wider capacity building and networking with PBOs, consulting with them, encouraging their inputs into policy development and promoting co-operation on projects.
The Bangkok Metropolitan Office organises some events to engage with foundations and associations registered in Bangkok
In 2006, there were 9,733 foundations and 10,780 associations registered with the Ministry of Interior. It is estimated that Bangkok accounts for approximately half of the registered NGOs.
Defining the Nonprofit sector: Thailand, CNP Working Paper (1993)
For more information about our work in Thailand please email Ben Evans at ben.evans@charitycommission.gsi.gov.uk