BENEFITS OF PROTECTING YOUR INTEREST AS AN NGO WITH THE CAC

A Non-Governmental Organization (NGO) is a not-for-profit entity that contributes a range of social, economic, sporting, educational, scientific, cultural or developmental growth in the society. This type of organization - that can be incorporated as a foundation or any other type of establishment - has defined visions and missions from the onset. More importantly it channels its resources solely for the good of the beneficiaries.

So if your interest is in founding a church, society, mosque, association, club, union, forum, etc… registering as an Incorporated Trustees - I. T. for short as with the Corporate Affairs Commission is the best way to achieve your goals.

An I. T. is a corporate entity, and its registration comes with legal and ancillary benefits. By legal benefits, I mean the advantages of incorporating the organization according to statutory requirements as provided by the CAMA, and registered with the Corporate Affairs Commission - CAC as an Incorporated Trustee.

These legal benefits include:

1. The organisation acquires a Legal personality status. As a legal entity this empowers the organization to sue and be sued, it can acquire, transfer, assign and dispose of any property or interests belonging to or held in the interest of such organization, amongst others.

2. Trustees’ Limited Liability: By attaining a legal personality status, the organisation becomes distinct from the Trustees and members, who are not personally liable for the organisation’s debts and liabilities. This means the Trustees properties do not attach to the organisation in case of legal responsibility.

3. Access to funding: The I. T. becomes eligible to apply for grants and receive donations that furthers its objectives. In this case, presentation of the organisation’s incorporation documents is a requirement to accessing the funds.

4. Structured governance: One of the incorporation documents is the organisation’s constitution which contains articles that have clear governance systems in place that can promote transparency and accountability.

5. Tax exemptions: There are exemptions on operational expenses of the organization. For instance contributions, donations, grants, zakat, tithes, funds realized from launchings, etc are tax-exemptions for NGOs.

6. Perpetual succession: This means the organization continues for life and can outlive its founders. The existence of the organization is not threatened by death, bankruptcy, insanity, etc of its Trustees or members.

7. Time-frame project optimization: An I.T can be incorporated for projects with specific timeframe or that are time-bound. In this case where the reason for its incorporation has been achieved, it can transfer its interest to another organization with a similar objective, or legally dissolve it all together.

Going on to the ancillary benefits, they are those arising from the organisation’s registration with the CAC and the fulfilment of their objectives on behalf of the beneficiaries.

The ancillary benefits include:

• Community development: This is done to better the lives of people and meet the specific needs of society thereby influencing positive outcomes and improving the quality of life for communities by building schools, hospitals, and other infrastructure and development. For example Slum2School Africa is a volunteer-driven development organization whose mission is to empower children in underserved communities by providing quality education and psychosocial support. They help children realize their full potential by building new learning centers, and design and implement programs that meet community needs.
• Volunteering opportunities: NGOs encourage humanitarian activities by making provisions for public-spirited individuals and groups in the society to volunteer their services. For example, the Tony Elumelu Foundation, a leading philanthropy organization whose mission is to empower African entrepreneurs to help drive economic growth and job creation on the continent has a mentorship program that involves volunteer mentors who will guide entrepreneurs. Again, the Lagos Food Bank Initiative that has over 14,000 registered volunteers who help with food packaging, distribution, and other activities. Lagos Food Bank is a nutrition-focused initiative committed to fighting hunger, reducing food waste and solving the problem of malnutrition through its targeted programs.
• Humanitarian assistance: NGOs are often the first to respond to humanitarian crises, such as natural disasters and conflicts whether local, international or through collaborations. One example is The Nigerian Red Cross Society whose aim is to alleviate the suffering of vulnerable people, especially those affected by disasters and epidemics, through humanitarian aid and support, while promoting respect for human dignity and peace. Another NGO is the International Rescue Committee. They operate in 40 countries. They help people affected by humanitarian crises to survive, recover and rebuild their lives. There is also Leap Africa, an NGO whose mission is to inspire and empower the African youth by developing capacity and providing resources for transformative personal, organizational, and community leadership. 22 secs
• Advocacy: NGOs and foundations help in the achievement of certain government developmental goals through advocacy. NGOs advocate for marginalized groups through rallies, demonstrations, and policy development. For example, Project Alert on Violence Against Women was founded to educate society on violence against women and girls, and to offer practical support to victims of violence. Another example is the The National Council on Climate Change Secretariat in Nigeria whose objective is to promote climate-friendly practices in Nigeria and work towards sustainable development.
• Local and international collaborations: This type of partnership provides the ability to network and build relationships with indigenous NGOs, donors, and stakeholders. For example, the USAID, that’s the United States Agency for International Development, has a mission to help countries become self-reliant and to promote democratic values and economic growth around the world. In Nigeria, the USAID partners with the government on a variety of initiatives on education, health, agriculture, democracy, economic growth amongst others.
• Enhance public trust: Generally, these activities mentioned increases visibility and trust among donors, beneficiaries, and partners and the public at large. It reignites faith and hope in humanity.

CONCLUSION

Without doubt, NGOs play an important role in sustainable development. So apparently, you gain more as an Incorporated Trustees as it gives some sense of value, belonging and purpose to everyone involved.