Attachment_4_-_Local_Organization_Definition.docx

SOL-165-16-000003: ACTIVITY FOR CIVIC ENGAGEMENT (ACE)

ATTACHMENT 4

LOCAL ORGANIZATION DEFINITION

For purposes of indicator reporting, at the time of the award a “local organization” must,

· Be organized under the laws of the recipient country;

· Have its principal place of business in the recipient country;

· Be majority owned by individuals who are citizens or lawful permanent residents of the recipient country or be managed by a governing body, the majority of whom are citizens or lawful permanent residents of a recipient country; and

· Not be controlled by a foreign entity or by an individual or individuals who are not citizens or permanent residents of the recipient country.

The term “controlled by”, means a majority ownership or beneficiary interest as defined above , or the power, either directly or indirectly, whether exercised or exercisable, to control the election, appointment, or tenure of the organization’s managers or a majority of the organization’s governing body by any means, e.g., ownership, contract, or operation of law.

“Foreign entity” means an organization that fails to meet any part of the “local organization” definition.

Government controlled and government owned organizations in which the recipient government owns a majority interest or in which the majority of a governing body are government employees, are included in the above definition of local organization.

For regional platforms the definition of a local organization can be expanded to include regional organizations that meet the following criteria:

· Be organized under the laws of a country in the region served by the platform;

· Have its principal place of business in the region;

· Be majority owned by individuals who are citizens or lawful permanent residents of the region or be managed by a governing body, the majority of whom are citizens or lawful permanent residents of the region; and

· Not be controlled by a foreign entity or by an individual or individuals who are not citizens or permanent residents of the region.

Both direct and indirect awardees should be included.

Regional platforms and bilateral missions also may include obligations or sub-obligations to international organizations composed principally of countries to which membership is limited to countries within the region, provided the funds are to be implemented directly by or through the regional international organization.

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