The 2013 Charities Act was the first piece of legislation that the Jamaican government passed to formally establish the sector. This act outlines the various nonprofit laws that serve as a formal framework for charity registration, oversight, and tax advantages.
- The Charity Authority will permit a renewal of the Charity’s Certificate for a maximum of six months following the expiration date.
- The majority of charitable giving on the island is made up of foreign donors.
What are the various Jamaican Nonprofit Laws?
To begin with, not all nonprofits operating in Jamaica are registered, particularly in rural areas. The nation’s charitable industry has a sizable number of unregistered community-based and civil society organisations. This is despite the fact that organisations must be registered to receive tax benefits.
In this section, we will outline the various nonprofit laws in Jamaica that govern the sector’s activities and operations.
1. Legal Definition of Charitable Organisations
According to Schedule 1 of the Charities Act of 2013, a “Charitable Organisation” is any trust or organisation that was founded solely for charitable purposes. By and large, this also demands that it does not have any portion of its assets or net income allocated to the personal gain of any of its settlors, governing board members, or other private individuals.
2. Registration Bodies
Either the Companies Office of Jamaica or the Department of Cooperatives and Friendly Societies can assist with the registration of a nonprofit organisation. However, this does not make a nonprofit eligible for a tax waiver. The Charity Act of 2013 would still require an application for Charity Status. A nonprofit must register under the Charities Act to obtain charitable status and be eligible to receive any waivers.
3. Certificate Renewal
The Charity Authority will permit a renewal of the Charity’s Certificate for a maximum of six months following the expiration date. Likewise, a charity wishing to reapply for charity status after the allotted six months must submit a new application along with additional paperwork.
The re-application will be processed in ten working days if the Charity’s constitutive documents, objects, and powers remain unchanged. Also, it should be recalled that a charity has two months to renew its certificate before it expires.
4. Donations
In Jamaica, receiving donations from overseas is common. Oftentimes, diaspora residents and international donors offer local nonprofits a variety of services. Also, the majority of charitable giving on the island is made up of foreign donors, such as individuals from the diaspora in Canada, the United Kingdom, and the United States, in addition to local companies.
As a result, the government decided to pass anti-money laundering laws in response to a substantial remittance flow to increase transparency for incoming funds, including charitable contributions.
Conclusion
In summary, Jamaica stands out for its buoyant relationship between the government and the nonprofit sector. In addition, the government continues to provide funding and technical assistance for charitable projects through direct collaboration with NGOs. This includes teaming up with umbrella organisations like United Way of Jamaica.
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