Asset Purchase & Management
Ownership or Lease Of Assets
Context: All assets considered material assets of PROJECT will be owned or leased by The Family Connection Foundation (FCF) for legal use within Thailand. This is a legal necessity to operate as a non-profit organization.
- will maintain a list of material assets with a value equal to or greater than 10,000 THB. This list should be submitted to FCF annually prior to December 31st.
- will ensure that all locations of substantial social activity under the authority of PROJECT are leased by FCF.
- will donate all cash assets to FCF for use within its social mandate before the funds can be used as part of PROJECT.
- will facilitate the leasing of property on behalf of projects.
- will designate properties leased or purchased for use by the project intended when the donation was made. FCF reserves the right to manage assets as it sees fit for the benefit of the projects but strives for local project management and to honor donor intent.
- intends to honor designation suggestions by PROJECT but it must retain full control and ownership of the cash & material assets in order to fulfill International Tax Law and GAAP requirements. The funds can be formally requested in writing for expenditures that are within the FCF social mandate.
Ownership of Commercial Vehicles
Due to the complexities of the Thai laws concerning car ownership, we ask that under no circumstances PROJECT or volunteers purchase a commercial vehicle.
Purchase Of Assets
Funds Raised Through CORD
As part of our partnership with CORD we must ensure legal purchase of assets in Thailand when using CORD funding. Any funds raised by CORD to purchase material assets must take one of the following two routes:
- If the assets are to be owned legally by a private citizen of the US or Thailand, they must be taken as income and appropriately disclosed on that private individuals personal taxes in any country the disclosure might be relevant. After taking the funds as income, the private individual may purchase personal assets to be used for ministry and retain ownership of these assets. This allows the said individual to liquidate the assets for personal gain when their use is concluded. Any assets purchased in this manner must comply with CORD stated not-for-profit status requirements and align with its mission.
- Any assets that will not be privately owned in accordance with the above option must be purchased and owned solely by The Family Connection Foundation. As partnering organizations, both have agreed to comply with each other’s not-for-profit purposes and the asset can be utilized accordingly under the Foundation’s Ownership. There are requirements levied by both the Thai and US government on these assets. Please consult with the FCF operations department to better understand how these assets can and cannot be used. The intrinsic value of this route is that a private individual does not need to claim the assets as income and pay taxes accordingly. In this case, the local leadership of the project is delegated authority from FCF to use these assets in compliance with FCF's foundation charter and Thai law.
FCF does not assume any liability for the illegal purchase or use of assets that do not comply with these policies. Any asset obtained outside of compliance with this policy is not considered the possession of FCF and should not be used by the project. Any use would be considered illegal by both the US and Thai governments. If in doubt about how your situation applies, please contact FCF administration for a consultation.
Funds Not Raised Through CORD
Funds not raised through CORD must comply with all local laws and be used only for legal purposes under Thai law. Any assets such as vehicles and property must be properly leased by FCF for use for a private individual or company in Thailand if they are not the owned property of FCF. Any use, purchase, lease or management not compliant with Thai laws or laws in the country of origin is prohibited.