PVO AMENDMENT BILL PASSES THIRD READING
Posted on 06 January, 2023 at 14:42
For many Zimbabwean NGOs not registered as
Private Voluntary Organisations (PVOs), much of 2022 was spent agonising over
the PVO Amendment Bill and what it would mean for their existence if the bill
was passed into law. Towards the end of the year it looked like the law making
process over the Bill in Parliament was availing precious time to non-profit organisations to strategize. Alas!
On the 16th of December, the country woke up to the news that
the Bill had gone through its third
reading in Parliament and was now well on its way to being passed! This news meant
and continue to mean that non-profits had and have to deliberate and strategize
over their respective reaction to the Bill with heightened urgency.
For the Bill to be finalised it now has to
go through Senate after which it will be presented to the President for
signing. The President can either withhold his assent and send the Bill back
with queries or he can give his assent and the amended Act will come into
operation on an agreed date published in the Government Gazette. The general
feeling is that the Bill will become law sooner than later and the question now
becomes how the Non PVO registered organisations should react. There are a
number of options open to them but not much time to make decisions as it is
anticipated that when Senate reconvenes on 31 January, then the Bill will be
dealt with soon after.
As a consulting firm that services the non-profit
sector in Zimbabwe with the aim of helping this critical sector thrive and
effect positive change, KFM Consultant postulates the following as possible
alternative that NGO’s should consider. NGOs and their Board could choose to:
1. Comply with the new law and
register as PVOs
The seemingly obvious course of
action for an organisation wishing to continue operation within the confines of
the law would be to register as a PVO and this could be undertaken either
before or after the amended Act is passed. In taking this course of action, organisations
would need to recognise that it has taken some organisations a painfully long
time to register as PVOs and it is not yet crystal clear how the process will
run under the amended Act. Organisations should also be aware of the contents
of the new Act and be clear on the way that government will now oversee NGOs as
well as potentially be involved in how NGOs are run. Beyond the process hurdles,
organizations must be very aware of the structural, operational and financial
implications of compliance. Liability on
Board Members, effect on resource mobilization models and strategies, financial
management and reporting and asset management are a few of the issues
organizations would have to be intentional about.
2. Fold and stop operating
For NGOs not considering registering as PVOs then an option could be to simply fold and stop operating! The Bill comes with some scary civil and criminal punishments for noncompliance and exposed would be Board members and organisational staff. The biggest losers in this instance would be the beneficiaries being serviced by these organisations.
3. Change Form and model of operating
A key definition of the new definition of PVOs is that it covers all organisations receiving funds from abroad and also collecting money from the general public.
If not keen to register but still intending to operate, organisations could then relook at how they are constituted as an organisation and how they obtain their funding. It will mean operating without receiving donor funds and without getting general donations from the public. As it is, the majority of NGOs struggle with generating their own unrestricted income but this could still be an option that organisations can look at. It might also involve operating as a different type of organisation for example as a private company or a social enterprise.
4. Collaborate or Merge
Another option that could also be considered is to find likeminded NGOs that are already registered as PVOs and work with these. It can also be possible to of course also cease operating and become part of an existing PVO. From a conceptual view point, this option ultimately allows for works of positive impact to continue in the different areas organizations work in. Needless to say, this option is not devoid of challenges.
From experience though these collaborative ways of working might be easier discussed than actually implemented. It is difficult enough for independent organisations to work together, one can only imagine the sort of headaches that might come from working closer together! This could also entail organisations losing their very soul and ending up just being swallowed up by the organisation with the PVO registration. Beyond the stated pitfalls, organizations would also have staffing and recruitment issues to contend with.
5. Challenge the Law
There has been a lot of discontent in the sector about some clauses in the PVO Amendment Bill and it has been said that there are some clauses that are potentially unconstitutional. The law making process for this particular Bill has been questioned though it is not clear if this could successfully be challenged in court. I am not a lawyer thus cannot discuss this much further but I have often heard my learned legal friends speak of approaching the court with dirty hands and this might be the case if organisations that have not bothered to even try to register seek legal recourse. As this option is considered, it would be critical to have realistic expectation on the feasibility of the option from a time perspective as well as an outcome view point.
The
options are not many for affected organisations and time is definitely not on
their side. It thus becomes important that NGOs take immediate steps to
deliberate on possible actions and to plans are made to implement what would
have been decided on. While some
organisations had adopted a wait and see attitude, it might be prudent for
organisations to act on the assumption that when 31 January comes the Senate
will not take long to deliberate on and pass the Bill and then it would just be
one small step away from being law. It
will also be very critical that we appreciate that organizations within this
heterogeneous sector will be affected disproportionally with some affected more
than others. As such, bespoke and tailored strategies become a must.
Should your organizations require facilitated guidance in developing these strategies, do not hesitate to contact KFM Consultants. We are more steadfast in our commitment to help non-profits thrive in these challenging time and would be ready to help in any way we can!
Kudzai Midzi
Managing
Consultant
KFM
Consultants
