UPDATED charities regulations, expected to be promulgated in June 2022, are said to be aimed at strengthening oversight by the sector’s regulator, the Department of Co-operatives and Friendly Societies (DCFS).

The regulations are expected to support the department’s efforts toward implementing a risk-based supervisory framework for the charities sector, the DCFS informed the Jamaica Observer.

In this regard, the new law will introduce a regime to deal with the threats of money laundering and terrorist financing, outlined Odane Brooks, policy and research officer with the DCFS.

The numbers of charities registered and assets reported have been fluctuating over the last three years. As at the end of 2021, 91 new charities were registered, adding to 1,228 registered charities declared in 2020.

Total assets declared in 2021 were $112.31 billion.

In 2020, new registrants numbered 116, with total sector assets of $333.22 billion.

Brooks noted that, “The data (re-assets) are an approximation given various considerations of some entities being delinquent with their filings.”

In 2019, there were 198 new charities registered with total sector assets declared at $43.66 billion.

Delinquency

Apart from the delinquency in filing, the official said, “ For the most part, incorporated entities remain the vast number of entities that are registering with us.”

The Charities Act implemented by the charities authority and the Registrar of Charities which took effect on December 24, 2013 provides for a comprehensive regime for registration, monitoring, and tax treatment of charities.

The Act requires that registered bodies be established exclusively for a charitable purpose, is intended to and does operate for the public benefit; and no part of its net income or assets benefits any governing board member or settler of the charity, or of any other private individual.

“Charitable purpose” is defined among 13 purposes, exercised for the public benefit. These include the prevention or relief of poverty; the advancement of education; the advancement of religion; the advancement of health or saving of lives; and the advancement of good citizenship or community development.

The other listed purposes are the advancement of the arts, culture, heritage, or science; the advancement of amateur sport; the advancement of human rights, conflict resolution, or reconciliation; and the relief of those in need because of youth, advanced age, ill-health, disability, and financial hardship or “other disadvantage”.

The Act notes that the minister of finance “can add other purposes to the list” which are close in meaning to the current listed purposes.

“Public benefit” is defined to include benefits available to members of the public at large or to members of the public determined by reference to a specific geographic area.

Each of the governing board members (ie the directors or trustees and the secretary) of a charity must be a fit and proper person. This means that such persons must not have been convicted of an offense involving dishonesty or be an undischarged bankrupt, and must be, in the authority’s assessment, a person of sound probity, able to exercise competence, diligence and sound judgment in fulfilling his or her responsibilities.

Applications for registration are to be made to the DCFS. When an application for registration is being made the directors or other governing members of the charitable entity must satisfy the DCFS that they are ‘fit and proper’ persons.

It is noted that charities are required to periodically file corporate information and financial statements with the DCFS in order to maintain approved charitable status.