Question: Hello Yaneek, I am a huge fan of yours and really appreciate how you help young people to understand starting a business. I have always had a dream of being a social entrepreneur where I can give back to students who are in need and help them to learn other skills outside of what is in the school. I don’t want to talk too much about the details in case someone steals my ideas but in short, my mother loves the concept and says it is a good idea and that she will help me to register, but I don’t know where to start. Can you please tell me how to register as a charity?
– Kamieka
Businesswise: Your first homework assignment, which I suggest you undertake before registering, is to read the Charities Act of 2013, which is the law specifically governing charities in Jamaica. This will help you understand the legal definition of a charity as well as the designated purpose to which it must adhere so you can determine whether the entity you envisioned (and all the activities you intend to pursue) fall within the realm of a charity.
The act also gives insight into the magnitude of the powers of the State in monitoring, examining, investigating and even auditing registered charities to ensure they are compliant with the statute. There are also serious penalties for non-compliance, which I want you to review with your mother so you both understand the personal responsibility and liabilities you will face in undertaking the registration and operation of a charity in Jamaica.
Fortunately, the document is a relatively short read, at fewer than 50 pages, and can be found online at https://japarliament.gov.jm. An important point to note is that while the Charities Act of 2013 is the primary law governing charities, it is not the only statute to which you will be subject. If you are hiring people you will be subject to several employment laws; if you are erecting signage you will have to adhere to regulations of your municipality; and depending on the type of education and training you are offering, you may be subject to the Education Act. I’ve just named a few statutes. There will likely be many more that apply.
The reality is that operating any enterprise, including a social enterprise, is no walk in the park. It’s complex and costly. Aside from your core functions you will have many other state-imposed administrative responsibilities which take time, money, resources and sometimes even specific expertise to fully interpret and implement to ensure compliance. Therefore, you must carefully consider your capacity before starting this journey.
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