10 Key Benefits of Registering Your Public Benefit Organisation (PBO) in Kenya
The world of non-profit organizations in Kenya is changing! A new law, the Public Benefit Organisations Act (PBO Act), came into effect in May 2024. This Act replaces the older Non-Governmental Organizations Co-ordination Act (NGO Coordination Act) and offers a clearer and more supportive framework for non-profits, now called Public Benefit Organizations (PBOs).
Good News for Non-Profits!
The PBO Act brings positive changes for non-profits in Kenya. Here are some of the key benefits:
1. More Organizations Can Register: Previously, some government-backed organizations couldn’t register as NGOs. Now, they can register as PBOs, allowing for stronger collaboration between the government and non-profits.
2. Stronger Rights: The Act protects the freedom of PBOs to speak out, assemble peacefully, and work together. This aligns with Kenya’s constitution and gives non-profits a stronger voice.
3. Fairer Dispute Resolution: A new PBO Disputes Tribunal will handle disagreements within the non-profit community. This is a more transparent and accountable way to resolve issues compared to the old system.
Financial Responsibility is Important
The Act emphasizes responsible money management for PBOs:
4. Clearer Financial Rules: PBOs must now follow stricter rules for managing their accounts, getting them audited, and reporting their finances. This helps ensure transparency and builds public trust in non-profits.
5. Independent Audits: PBOs need to have their finances audited by independent professionals before submitting them to the government. This provides an extra layer of accountability.
Unlocking Support and Benefits
Registering as a PBO opens doors to valuable resources for non-profits:
6. Tax Breaks: PBOs can enjoy tax breaks on income from memberships, donations, and approved activities that benefit the public. The Act also encourages donations by giving tax benefits to donors.
7. Government Funding: The Act allows PBOs to access government funding through grants and contracts for public benefit projects. This strengthens the financial health of non-profits and fosters collaboration with the government.
8. Better Public Image: Being a registered PBO shows that you meet legal requirements and follow good practices. This builds public trust and attracts more donors, allowing PBOs to make a bigger impact.
9. Speaking Out While Staying Neutral
The Act allows PBOs to comment on government policies and public issues, but they cannot be political. They can’t raise money or campaign for political parties or candidates.
10. Closer Collaboration with the Government
The Act encourages government ministries to work more closely with PBOs, particularly at the local level. This will allow for better decision-making on issues that affect both parties.
A Brighter Future for Non-Profits
The PBO Act is a significant step forward for non-profit organizations in Kenya. It empowers PBOs with stronger rights, protections, and access to resources. This paves the way for a more vibrant and impactful non-profit sector that can make a real difference in Kenya.
Remember: The above is not specific legal advice for you. Always consult a lawyer to determine the best option for your specific situation
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