Article 1. The basic concepts used in this Law of the Law on Endowment Funds and Endowment Funds (Endowments)

Home / RLA / Article 1. The basic concepts used in this Law of the Law on Endowment Funds and Endowment Funds (Endowments)

The following basic concepts are used in this Law:

1) diversification – the placement of assets of an endowment fund (endowment capital) in various financial instruments in order to reduce the risk of reducing their value;

2) a management company (fiduciary) is a professional participant in the securities market engaged in investment portfolio management under a license from the authorized body for regulation, control and supervision of the financial market and financial organizations, or an endowment fund engaged in asset management of endowment funds (endowments) independently.;

3) voluntary donations – money, as well as other property, transferred to the endowment fund or endowment fund (endowment capital) for the provision of charitable assistance;

4) investment declaration – a document providing a list of investment objects, goals, strategies, fiduciary obligations, conditions and restrictions of investment activity in relation to assets of endowment funds (target capitals), conditions of hedging and diversification;

5) investment income – the increase in assets of the endowment fund (endowment capital) in monetary terms, resulting from their investment;

6) the authorized body in the field of charity is the central executive body that carries out management in the field of charity;

7) the authorized body for regulation, control and supervision of the financial market and financial organizations is a state body that carries out state regulation, control and supervision of the financial market and financial organizations.;

8) endowment fund – a non-profit organization established in the organizational and legal form of the fund, carrying out activities in the social sphere, managing assets of the endowment fund (endowment capital) to ensure investment income and financing of charity facilities provided for by the endowment fund (endowment capital) charitable program, in accordance with the procedure provided for by this Law;

9) affiliated persons of the endowment fund – individuals or legal entities (with the exception of state bodies exercising control and supervisory functions within the scope of their powers) who, in relation to the endowment fund, have the opportunity to directly and (or) indirectly determine decisions and (or) influence those taken by each other (one of the persons) decisions, including by virtue of a concluded transaction;

10) endowment agreement – an agreement according to which one party (depositor) transfers an endowment (endowment) to the other party (endowment fund) for a period of at least ten years to receive investment income while ensuring the safety and integrity of the endowment (endowment) and financing objects of charity provided for by the endowment fund's charitable program (endowment capital);

11) beneficiary – a person receiving charitable assistance from the endowment fund or endowment fund (endowment fund);

12) depositor – a natural or legal person who is a party to the target contribution agreement;

13) trust management agreement – an agreement for the management of an investment portfolio comprising the assets of an endowment fund (endowment capital), concluded by the management company (fiduciary) with the endowment fund on the transfer to trust management of assets of endowment funds (endowment capital) in accordance with the requirements established by the Civil Code of the Republic of Kazakhstan and this Law;

14) net asset value is the monetary value of the assets of endowment funds (endowment funds), defined as the difference between the value of all assets of endowment funds (endowment funds) and their liabilities or accrued expenses payable from the assets of endowment funds (endowment funds);

15) fiduciary obligations – obligations to carry out asset management activities of endowment funds (endowments) and invest them reasonably, in good faith and honestly, accepted by the management company (fiduciary) in accordance with this Law;

16) assets of the endowment fund (endowment capital) - a set of assets owned by the endowment fund on the basis of ownership rights or a target contribution agreement;

17) the endowment fund (endowment capital) charitable program is a system of measures that includes the timing and procedure for charitable assistance funded by investment income.;

18) endowment fund (endowment capital) – the property of the endowment fund, which is formed and (or) replenished at the expense of endowments (endowment contributions) and investment income, as well as the endowment fund's own funds and is used to finance charitable objects provided for by the endowment fund's (endowment capital) charitable program;

19) endowment (endowment) – property donated or transferred for possession, use and disposal with preservation and integrity in accordance with the terms of the contract (agreements) of donation, donation or endowment, as well as bequests.

The Law of the Republic of Kazakhstan dated June 30, 2025 No. 199-VIII SAM.

This Law regulates public relations that arise during the creation, management and liquidation of endowment funds, the formation, replenishment, and dissolution of endowment funds (endowment funds) and the use of their investment income, and the trust management of assets of endowment funds (endowment funds).

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases