International Journal of Law And Criminology
68
https://theusajournals.com/index.php/ijlc
VOLUME
Vol.05 Issue06 2025
PAGE NO.
68-71
10.37547/ijlc/Volume05Issue06-14
The Role of Non-Profit Organizations in The
Development of Society
Ahrorqulov Anvar Anvarovich
Associate Professor, Department of Legal Education, Fergana State University, Uzbekistan
To‘xtasinov Asadbek
Second
‑
Year Student, Law Program, Fergana State University, Uzbekistan
Received:
30 April 2025;
Accepted:
28 May 2025;
Published:
30 June 2025
Abstract:
The role of non-profit organizations in the context of reforms in our country is important today. The
main focus of this goal is to improve the activities of NGOs from a legal point of view, as well as providing ideas,
suggestions and recommendations for filling legal gaps in the current Civil Code of the Republic of Uzbekistan and
a number of other relevant legislative acts.
Keywords:
legal entity, press cooperative, public associations, public funds, municipal institutions, private
institutions, associations of legal entities, self-government bodies of citizens, non-profit organization.
Introduction:
The adoption of the Action Strategy gave
a powerful impetus to the development of all spheres
of the country's socio
‑
political and socio
‑
economic life.
In essence, the Strategy became a five
‑
year 'road map'
encouraging the accelerated, targeted and priority
development of our country and society.
The laws of the Republic of Uzbekistan 'On Public
Associations in the Republic of Uzbekistan', 'On Non
Governmental Non Profit Organizations', 'On Political
Parties', 'On Public Funds', 'On Guarantees of the
Activity
of
Non
Governmental
Non
Profit
Organizations', as well as a number of presidential
decrees, resolutions and Government decisions have
been adopted. In total, more than 200 legal acts aimed
at reinforcing the legal status, role and significance of
civil society institutions have been adopted, and their
number continues to increase year by year.
Within the framework of the Action Strategy, special
attention was paid to the further development of the
'third sector' and the provision of comprehensive
support. During the past period a series of measures
were taken to enhance the activities of civil society
institutions. In order to ensure the effective
implementation of the tasks set in the Action Strategy,
state authorities supported proposals by public
organizations to establish and revise a number of new
non governmental non profit organizations. Among
them are the Independent Institute for Monitoring the
Formation of Civil Society (IIMFCS), the 'Mahalla' and
'Nuroniy' foundations, the Chamber of Commerce and
Industry of Uzbekistan, the Youth Movement of
Uzbekistan, the Council of Farmers, Dehkan Farms and
Household Land Owners of Uzbekistan, the
'Development Strategy' Center, the 'Noble Purpose'
Foundation, and the Culture and Art Development
Foundation under the Ministry of Culture.
International non profit organizations are also active
today. For instance, the international NGO 'Buyuk
kelajak' has been registered with the Ministry of
Justice. An expert council has reportedly been formed
within the organization with the participation of Uzbek
professionals working abroad who are leading
specialists in their fields.
The 'Buyuk kelajak' international NGO has set itself the
goal of presenting new proposals on the reforms being
carried out in Uzbekistan. It works in close cooperation
with the 'Development Strategy' Center within the
framework of the Action Strategy adopted up to 2021.
By actively involving members of the expert council
made up of specialists in various fields, joint proposals
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International Journal of Law And Criminology (ISSN: 2771-2214)
are submitted for the State Programmes to be drawn
up in the coming years. The organization’s main
objective is to develop long term proposals and
strategies that will serve the accelerated development
of Uzbekistan.
It should also be noted that the National Association of
Electronic Mass Media of Uzbekistan
—
which unites the
efforts of 575 NGOs
—
has itself given a significant
impetus to expanding the circle of NGOs enlisted in the
State Programme.
The transition of the national economy to a market
economy has created the conditions for profound
changes in all spheres of social life. At the same time it
necessitated a new approach to the legal forms for
effective use of non profit organizations
—
legal entities
that fulfil predominantly non commercial objectives
while actively participating in property relations. The
broad involvement of non profit organizations in civil
turnover requires a reassessment of their legal status
and of the property basis of their activities.
It should be emphasized that non profit organizations
and their specific organizational legal forms are among
the most widespread types of legal entities and play an
important role in ensuring the interests of the state and
society. As the First President of the Republic of
Uzbekistan, I. A. Karimov, rightly remarked, the
institutions of civil society and NGOs are becoming an
essential factor in protecting democratic values, human
rights and freedoms and legitimate interests, creating
conditions for citizens to realize their potential,
increasing their socio economic activity and legal
culture, and assisting in ensuring a balance of interests
in society.
Indeed, non profit organizations may be state owned or
established
as
non
governmental
entities.
Consequently, it is important to clarify the general
principles that combine their dual nature as legal
entities
—
including their legal status as state or non
state bodies, ownership of property and participation
in civil turnover.
Moreover, the diversity of non profit organizations as
legal entities and the fact that their participation in civil
law relations is regulated by various legal acts make this
issue particularly pressing.
The rules concerning the ownership of property by non
profit organizations are contained in the Civil Code.
However, the Code contains only a few provisions on
the legal capacity of non profit organizations and on
their property, mainly concerning state owned non
profit organizations, in particular institutions.
Therefore it seems advisable to expand the CC with
general provisions common to all non profit
organizations and their separate types.
In many cases non profit organizations
—
such as
institutions established by an owner for managerial,
socio cultural or other non commercial purposes
—
occupy an important place in state and public life.
Although institutions do not aim to make a profit, they
may engage in entrepreneurial activity and thus earn
income. It is therefore important to improve the rules
governing such activity.
The current legislation does not lay down specific rules
as to the form of property on the basis of which
institutions may be established. This creates difficulties
in recognizing as an institution and determining the
legal status of an entity established and financed by an
owner to fulfil certain socio cultural tasks. Hence, the
legislation should stipulate that institutions may be
established by both state and private persons.
The Civil Code defines institutions as organizations
established by an owner and fully or partly financed by
that owner; however, it does not specify the minimum
amount of such financing or the terms for providing it.
At present the property liability of institutions is
regulated in different ways. Law enforcement and
court practice confronts cases in which creditors seek
to levy execution specifically on an institution’s funds,
while execution may not be levied on its other
property.
In this connection, Plenum Resolution No. 21 of the
Supreme Arbitration Court of the Russian Federation of
22 June 2006 and Information Letter No. 45 of 14 July
1999 provide explanations on levying execution on an
institution’s property as set out in the RF Civil Code.
The limits of liability for budgetary institutions are
determined by various categories of property, and a
distinctive feature is the levying of execution on funds.
Unlike the civil law liability of private and budgetary
institutions, the subsidiary liability of budget
institutions is not envisaged. Nevertheless, both share
the feature of execution being levied on funds. The
absence of subsidiary liability leads to legal uncertainty
when the debtor’s property is lacking or insufficient to
satisfy creditors’ claims
. Some scholars suggest
changing the organizational legal form of the institution
as a solution, while others consider this approach
debatable.
The existing provisions on the independent property
liability of a state institution do not adequately protect
creditors’
interests.
In
some
instances
the
establishment of 'profitable institutions' seems to be a
fiction, since the social orientation of their activities
eliminates the prospect of earning profit.
All of an institution’s funds are spent on maintainin
g its
property. Moreover, the RF Civil Code prohibits
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International Journal of Law And Criminology (ISSN: 2771-2214)
execution against property of special value. Therefore,
there may be no funds left to satisfy creditors’ claims,
and the residual property
—
including that of special
value
—
is unlikely to be attractive to creditors.
Article 28 of the Law of the Republic of Uzbekistan 'On
Non Governmental Non Profit Organizations' provides
that a non governmental NGO is liable for its
obligations with its property to which execution may be
levied under the law. However, it remains unclear what
property of an NGO falls under this category. By
contrast, the Russian Laws 'On Non Profit
Organizations' and 'On Autonomous Institutions'
stipulate that such property types are determined by
the relevant public authority. The list of such property
is established by the competent authority performing
the functions and powers of the founder. In addition,
the Procedure for Recognizing Property of an
Autonomous or Budget Institution as Having Special
Value, approved by Government Resolution No. 538 of
26 July 2010, sets the following criteria:
1)
for
federal
autonomous
and
budget
institutions
—
from 200,000 to 500,000 roubles; for the
entities of the Russian Federation
—
from 50,000 to
500,000 roubles; for municipal institutions
—
from
50,000 to 200,000 roubles;
2)
other property, if its removal would make it
impossible for the institution to achieve the statutory
objectives laid down in its charter;
3)
property whose alienation requires a special
procedure under the law, including museum collections
and objects, items of the museum fund, archival
documents, etc.
According to Article 3 of the Law of the Republic of
Uzbekistan 'On Museums', a museum is a permanent
non profit cultural institution established by an owner
for the preservation, study and public display of
museum items and collections. Thus, the legislator
includes a museum among the non profit organizations
in the form of an institution.
Paragraph 19 of the Regulations on the Procedure for
Establishing, Reorganizing and Liquidating Museums,
approved by Resolution No. 68 of the Cabinet of
Ministers of the Republic of Uzbekistan of 12 April
2010, states that a museum’s material and technical
base consists of the buildings, communications,
equipment, and other property used to enrich the
museum fund with items and collections, to store,
identify, collect and exhibit them, and to carry out
cultural, educational, scientific and educational
activities and other tasks in this field.
In our view, setting such criteria is inappropriate,
because they effectively make it impossible to levy
execution on the property of an institution. Any
institution may naturally hold funds amounting to at
least 50,000 roubles. Moreover, certain institutions
possess property the alienation of which would prevent
them from fulfilling their functional tasks
—
for
example, vehicles, special equipment, machinery,
intellectual property objects, etc.
Part 3 of Article 40 of the Civil Code of the Republic of
Uzbekistan provides that a non commercial legal entity
may be established as a public association, a social fund
or an institution financed by its owner; yet paragraph 3
concerning non commercial organizations later
describes them as press cooperatives (Art. 73), public
associations (Art. 74) and public funds (Art. 75).
Although the amendments of 30 April 2004 properly
set out separate articles, the third part of Article 40
remained in its old wording, i.e. referring to a social
fund. This deficiency has remained unaddressed and
should now be remedied.
Furthermore, the Civil Code contains no specific
provisions concerning the types of non profit
organizations and the organizational legal forms in
which they may be established.
Consequently, before listing non profit organizations
and their types in the CC, it would be appropriate to
establish general provisions regarding non profit
organizations. Such an approach is employed in the
legislation of several foreign countries. For example, a
separate paragraph
—
Articles 1231 to 12316
—
of the RF
Civil Code is devoted entirely to non profit
organizations.
The provisions of the Civil Code dealing with
institutions are very abstract; they do not determine
the forms of property under which institutions may be
established. Nor do they establish rules regarding their
status where they are established simultaneously as
state or private property.
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