Churches in Jamaica will have to register as charities under the proposed Non-Profit Organisations (NPOs) Act, which started its online registeration process on September 1.
Under the Act, all Non-Profit Organisations (NPOs), including churches, will be governed by a Non-Profit Organisations Authority.
The new law defines NPO as a legal person, arrangement, or organisation that primarily engages in raising or disbursing funds for purposes such as charitable, religious, cultural, educational, social, or fraternal purposes, or for the carrying out of other types of “good work”.
The inclusion of churches under the Act was revealed during a meeting last year July with Department of Co-operatives and Friendly Societies, Tax Administration Jamaica, Companies Office of Jamaica, the Anti-Terrorism Task Force, and the Ministry of Industry and Commerce.
The disclosure raised several concerns within the church community. The move is seen as the latest effort by the government and its international partners to reduce Christian influence within the society.
The amendments to the bill are being finalised, but so far, it has already been made clear that the NPOs, including churches, that run afoul of the Act will be liable on summary conviction to a fine not exceeding one million dollars. Additionally, the legislation will provide that a non-profit organisation should not solicit or cause to be solicited contributions from the public or the state, whether locally or internationally, whilst not registered under this Act. This means that the church will not be able to collect tithes and offerings from members without being registered.
Once passed, NPOs will have six months to get registered. Church foundations and other non-profit organisations that are already registered will have to re-register once the legislation is passed. Similar to what obtains with companies generally, churches must have their accounts professionally audited, provide fit and proper records, file annual returns, and keep minutes which can be scrutinised by external individuals or organisations.
While churches are now required to register as charities under the current Charities Act in order to benefit from tax exemptions or receive concessions, church leaders are particularly concerned that all NPOs, will have to register under this amended bill even if they are not benefiting from government incentives.
several Jamaican civil society organisations and charitable foundations have also publicly expressed concerns about the proposed NPO Act. There was a meeting to discuss the Act on August 26, organised by the Ministry of Industry, Investment and Commerce and the Department of Co-operatives and Friendly Societies.
Minister Hill stated that Jamaica must demonstrate that its systems for regulating charitable organisations are fully operational and effective.
He insisted that strengthening oversight of charities is critical to safeguarding Jamaica’s financial system and maintaining the country’s credibility within the international financial community.