By offering valuable services, the various types of nonprofits significantly contribute to the development of thriving communities. Generally, NGOs exist to enhance the quality of life of citizens and communities. Above all, these groups are committed to promoting the public interest at no cost.
In this article, we will consider the types of nonprofits in Tuvalu and their operations.
- The mark of a nonprofit is largely measured by its ability to influence the community where it operates.
- Nonprofits must seek effective ways to promote community development.
What are the types of nonprofits in Tuvalu?
Tuvalu recognizes three classes of nonprofits in the country. We will provide a brief overview of the various categories.
1. Trust
The Falekaupule Trust Fund Deed of 31st July 1999 governs all Trust in Tuvalu. These types of nonprofits are considered perpetual succession corporations with a common seal. Likewise, nonprofit trusts are free to operate in whatever choice of location.
The Trust Act bestows entities with the rights and powers of a natural person of legal age and capacity. Furthermore, trustees are chosen based on the Trust Deed and are allowed to exercise Trust powers.
By and large, funds from Trusts can only be used based on the specified directives of the Trust Deed.
2. Company Limited by Guarantee
These types of nonprofits are established under the Companies Act by one or more people to carry out specific purposes. The date identified in the issued certificate of incorporation marks the period the company was established.
Essentially, each member is required to contribute to the assets of the company. Above all, the amount must be sufficient to clear the company’s debts in the case of a winding up.
3. Co-operative Societies
The registration and operation of cooperative societies in Tuvalu are governed by the Cooperative Societies Act. Like trusts, when these types of nonprofits are registered, they become a body corporate with perpetual succession.
These entities are free to obtain property, make contracts, undertake legal claims, and other actions to embark on their objectives. The Registrar for resolution is responsible for addressing conflicts among members. Primarily, nonprofits must fulfill certain requirements laid down in the act to be eligible for operation.
In general, a society is formed to carry on the organization’s objectives. Also, cooperative societies work to promote the economic interests of their members in line with cooperative principles.
What organization governs the nonprofit sector in Tuvalu?
The Tuvalu Association of Non-Governmental Organizations (TANGO) is the umbrella club for the various types of nonprofits in the country. The community-based group provides assistance and support to NGOs working to advance Tuvalu’s human development.
Additionally, the organization provides a range of training courses in subjects like management, accounting, and ICT.
In 2001, TANGO joined the Pacific Skills Project with financial assistance from the EU. The organization also entered into a regional initiative to define the legal standing of nonprofits. The initiative is spearheaded by the International Center for Not-for-Profit Law (ICNL). The program’s objective is to analyze the legal systems of Fiji, Samoa, Vanuatu, and Tuvalu—all little island states with similar problems caused by their small size and lack of resources.
Conclusion
It is fair to say that the diverse types of nonprofits can largely be considered mission-driven businesses. Likewise, evaluations of an organization’s successes are based on its influence on the community. Hence, nonprofits must seek effective ways to impact and promote community development.
If you enjoyed reading this article, please share your comments and suggestions below this post.