International human rights organisations and a federation of Poland's NGOs had appealed to President Andrzej Duda to veto the bill, which they saw as harmful to the development of Poland's civil society.
The bill establishes at the prime minister's office a new National Freedom Institute that will distribute funds among the 100,000 NGOs in Poland, focusing on small regional projects and consumer protection.
Critics say women's rights groups and LGBT organisations, unpopular with the predominantly Catholic government, will be overlooked.
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