Nongovernmental Organizations (NGOs) and Community-Based Organizations (CBOs) are typically the first to respond to natural disasters and remain the longest after their occurrence. In Grenada, some of the various types of nonprofits were created out of necessity and to support specific societal groups. Additionally, these local NGOs were successful in garnering a large amount of public support. This is largely because of their ability to handle significant and interesting topics that capture the public’s attention.
- As international benefactors, NGOs now play a larger part in the development of underdeveloped nations
- the leadership of Grenada’s development NGOs is a reflection of its founding principles and place in history
- A nonprofit organization must limit its activities to those that are patriotic, religious, charitable, and philanthropic.
What are the types of nonprofits in Grenada?
In this article, we will consider the three prominent nonprofit classes in Grenada and their operations.
1. Cooperative Societies
These types of nonprofits are governed by the Cooperative Societies Act. Likewise, the act also governs the establishment, registration, administration, operation, and dissolution of cooperative organizations in Grenada. All organizations under the society group must adhere to the guidelines for the selling of products through cooperative societies and adopt its mechanism for resolving conflicts.
2. Companies Limited by Guarantee
These types of nonprofits are established by one or more people through the signing and delivery of articles of incorporation to the Registrar. All entities established as CLG are governed by the Companies Act.
The main characteristic of a company limited by guarantee is that each guarantor member agrees to make a guaranteed contribution in the event that the organization is wound up. In addition, the firm may also have share capital and shareholders. By and large, different guarantee amounts may apply to the guarantor members, but this does not change their ownership stake in the organization.
3. International Trusts
All foreign trusts are created, operated, and terminated in accordance with the International Trusts Act of 1996. This Act has been updated for enhanced asset protection and is based on English common law. A Grenada International Trust was created to provide a platform for asset protection and estate planning for foreigners with assets held outside of Grenada.
Essentially, a charitable trust is established to hold and protect resources (money, property, etc.) for philanthropic purposes. As a result, the trust’s assets are managed in compliance with its objectives or a set of generally accepted rules.
What nonprofit laws govern the types of nonprofits in Grenada?
The Companies Act demands that all nonprofits must have at least three directors when it is first established, and when the company’s articles are sent to the CAIPO for registration. This should also include a notice with the directors’ names and the address of the registered office.
Likewise, a nonprofit organization must limit its activities to those that are patriotic, religious, charitable, philanthropic, educational, scientific, literary, historical, artistic, social, professional, fraternal, sporting, or athletic to be eligible for approval at the Attorney General Chambers.
In addition, the nonprofit’s Articles of Incorporation must get the approval of the Attorney General Chambers before being registered at the Corporate Affairs and Intellectual Property Office (CAIPO). An NGO registration at CAIPO costs $100.
Other rules of compliance include the submission of annual returns every year no later than the first day of April. Consequently, the Registrar may remove an organization from the Register if it is in default. Also, the registered office address alongside that of the directors and secretaries must be listed in an annual return.
Conclusion
As international benefactors, NGOs now play a larger part in the development of underdeveloped nations. Likewise, the leadership of Grenada’s development NGOs is a reflection of its founding principles and place in history. The various types of nonprofits have contributed to strengthening community resilience to disasters and promoting local implementation.
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