Since January 2019, we have a specific law regulating Equity Fund Management Organizations – Law N. 13.800/2019. It regulates the functioning of the legal entities responsible for the management of these funds, which aim to collect, manage and allocate donations from individuals and private legal entities to programs, projects and other purposes of public interest. It also regulates the fundraising that will feed them.
Also known as endowments, these funds should be used to finance long-term public (federal, state or municipal) and private institutions of public interest. The new law encourages private donations to institutions in the areas of Education; Science, Technology, Research and Innovation; Culture, Health, Environment, Social Assistance, Sports, Public Security and Human Rights. Collected in equity funds, these private donations are invested in the financial market and will generate constant revenue for investment in projects of public interest.
In addition to advising the constitution of Equity Fund Management Organizations, SBSA assists civil associations and foundations in creating, within their own structures, equity funds that, despite not being subject to Law 13.800/2019, must adopt good management practices that guarantee their purpose, continuity , and credibility with donors.
