Karen Harverson
A draft Non-Profit Organisations Bill aimed at=20 improving and regulating the legal, policy and funding=20 environment for development organisations, such as non- governmental organisations (NGOs) and voluntary=20 associations, is to be finalised this month and=20 submitted to Parliament in February next year.
The draft Bill calls for the scrapping of existing=20 fund-raising laws which are regarded as bureaucratic=20 and prejudicial to small community-based organisations=20
It proposes the compulsory registration of all non- profit organisations as either trusts, section 21=20 companies or voluntary associations.
Accountability will be ensured through the compulsory=20 submission by all organisations of a statement of=20 accounts to the Registry Office for public scrutiny.
“In essence, all registered organisations will be=20 required to account for how funds raised are spent,”=20 says executive director Gavin Andersson of the=20 Development Resources Centre (DRC), the initiator of=20 the draft Bill.
He says the draft Bill recommends that control of fund- raising be retained for consultants raising funds on=20 behalf of other organisations.
Recommended tax amendments include that taxation be=20 waived on unspent funds in the banking accounts of non- profit organisations to promote better financial=20 practices and spending patterns.
Liberty Life Foundation research officer Kathryn Kure=20 says the proposed legislation should ease the problems=20 CBOs face in registering as non-profit organisations.
In some cases CBOs have to wait up to 16 months just to=20 obtain a fund-raising number before being able to raise=20