Page 182 - Social Enterprise A New Business Paradigm for Thailand

This includes 4,594 foundations in Bangkok and 9,736 in other provinces, along with 5,121
associations in Bangkok and 13,385 128 in other provinces. These figures are summarized in Table

6.3.

Table 6.3 Number of Foundations and Associations Nationwide
Other Provinces Bangkok Total (Units) Other Provinces
Foundations 9,736 4,594 Foundations
Associations 13,385 5,121 Associations
Source: Ministry of Interior, cited in Prachachat Business, April 22, 2023

Of the 9,736 foundations located outside Bangkok, 7,966 were found to be operating in
accordance with the law, while 1,770 129 foundations, approximately 18% of all provincial
foundations, were subject to dissolution under Section 131 of the Civil and Commercial Code.

The issue of regulating foundations and associations has been the subject of considerable debate,
particularly following reports of groups using some foundations or associations for money

laundering, conducting illegal activities, or facilitating visa applications. The Ministry of Interior
has acknowledged that there has been lax and negligent oversight of foundations and
associations over the past several years. Since 2023, the ministry has ordered surveys and audits
of active foundations and associations and has tightened the review process for new foundation
registration applications. Additionally, the Ministry of Interior has set up a committee to improve
the laws governing foundations and associations, with the possibility of drafting a dedicated law
to replace the current provisions under the Civil and Commercial Code 130 . As for the minimum

capital requirement of just 200,000 baht for establishing a foundation, the Department of
Provincial Administration considers this amount too low. Likewise, the penalty for unauthorized
fundraising, which currently carries only a 200 baht 131 fine, is viewed as absurdly lenient 132 .

128 Prachachat Business, “Strict Inspection of 32,836 Foundations and Associations: Committee Set Up to Amend the
Law, Awaiting Next Government,” Source: https://www.prachachat.net/general/news-1269324, April 22, 2023.
129 Ibid
130 Ibid
131 The Fundraising Control Act, B.E. 2487 (1944), Section 6 stipulates that “Fundraising claimed to benefit the
government, municipalities, or the public interest may only be conducted with permission from the Fundraising
Control Committee.” Section 17 stipulates that violators are subject to a fine not exceeding 200 baht, imprisonment
for a term not exceeding one month, or both.
132 Prachachat Business, “Interior Ministry Tightens Inspection of 30,000 Foundations and Associations,” Source:
https://www.prachachat.net/politics/news-1210208, February 22, 2023.
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