Individuals seeking how to start a nonprofit organization in Tanzania are required to be registered before commencing operations. Likewise, some regulations govern NGO registration in the country. In this article, we will lay down the step-by-step process of how to start a nonprofit in Tanzania.
- All NPOs in Tanzania may qualify for a partial income tax exemption
- A “Board of Trustees” is responsible for overseeing and managing NGOs and CSOs.
- A nonprofit needs a strong, forward-thinking vision that outlines its service goals as well as the direction
What are the guidelines on how to start a nonprofit in Tanzania?
For the most part, NGOs can be registered under Part A of the Companies and Allied Matters Act as a company limited by guarantee. A nonprofit may also choose to register under Part C of the same law as Incorporated Trustees. However, this article will outline the procedure for registering an NGO under Part C as Incorporated Trustees.
1. Choose the name of your nonprofit
One of the steps in the process on how to start a nonprofit is to search for the name in question. This is to confirm whether it is already taken and if not so, to reserve the name. Also, always keep at least two names on hand. The other can pose as a backup in case the primary name becomes unavailable.
2. Choose your Board of Trustees
A “Board of Trustees” is responsible for overseeing and managing NGOs and CSOs. Conversely, this would be the equivalent of a shareholder or director in a corporation. An NGO or CSO’s Trustees are in charge of the organization’s management and direction.
3. Submit the Application
The next step in the process of how to start a nonprofit is to complete and submit the application. This is done through the NGOs information System. However, this should only follow after your name has been approved and your board of trustees is in place.
By and large, the NGOs information system (NiS) will require the personal information of the organization’s Trustees—their names, sexes, nationalities, permanent addresses, occupations, etc.
The completed application form must be submitted electronically via the NGOs information system. Afterward, you can wait for the TNNC to provide you with a certificate proving that your NGO has been registered.
The Tanzania National NGO Coordination (TNNC) reviews all the paperwork, and if there are no questions, the NGO is registered and may begin operations.
4. Request a tax break
All NPOs may qualify for a partial income tax exemption in both Mainland Tanzania and Zanzibar by gaining “charitable” or “religious” organization status. Another key point is, for an NPO to be accepted as a “charitable” or “religious” organization, the Commissioner-General of the Tanzania Revenue Authority must receive an application.
All things considered, all funds allocated to the organization’s projects to alleviate public suffering, promote education, finance public health, or benefit Tanzanian citizens are liable to tax exemption.
At the same time, a “charitable” or “religious” organization must pay taxes on any revenue it gets that is not used to further its missions throughout the fiscal year.
The journey on how to start a nonprofit is often motivated by a desire to undertake goodwill projects through beneficial contributions. In general, a nonprofit needs a strong, forward-thinking vision that outlines its service goals as well as direction. Basically, the value should convey the principles that guide nonprofits. By matching strategies with the guiding principles of the organization, you can understand what and how to prioritize to accomplish your main objectives.
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