By Watmore Makokoba
The Private Voluntary Organisations Amendment Bill, currently under consideration by the Zimbabwean government, has the potential to significantly impact the landscape of charitable giving both domestically and internationally.
While the bill aims to enhance regulation and transparency within the PVO sector, it also raises concerns about its potential consequences for civil society and the ability of PVOs to effectively carry out their charitable activities.
Veritas, a non-governmental organisation dedicated to providing information on the work of the Parliament of Zimbabwe and the Laws of Zimbabwe says the bill introduces stricter regulations and oversight measures, which could increase the administrative burden on PVOs and potentially stifle their operations.
“Clause 2 of the Bill also contains a provision permitting the Registrar (i.e. the Director of Social Welfare) to prohibit trusts that are registered with the High Court, but are not registered PVOs, from collecting contributions from the public or from outside Zimbabwe for any of the purposes specified in the definition of “private voluntary organisation” (i.e. charitable purposes, social welfare assistance, legal aid and animal welfare).
“ The Registrar will send a notice to the trustees of such a trust compelling them either to sign a sworn declaration that they will not collect contributions for those purposes, or else to register their trust as a PVO. Trustees will be able to avoid doing so only if they can persuade the Registrar that the notice was made in error.
“It is not clear what the purpose of this provision is, and the Bill’s memorandum does not answer” reads a statement from Veritas.
According to its memorandum, the Bill was crafted to comply with the Financial Action Task Force Recommendations against money laundering as well as to enhance efficient regulation of voluntary organisations and to prevent organisations from participating in political lobbying. However, the PVO Bill in its current state poses a threat on the independence and operations of voluntary organisations.
Tendai Murisa, Executive Director of SIVIO Institute, development practitioner and researcher in the areas of public policy, in a policy brief titled “The potential
effects of the PVO Amendment Bill on Community Philanthropy”, proffered that the bill puts Charitable organisation under a shaky ground where every registered trust in Zimbabwe will lose its legal personality and become an unlawful entity until it is registered as a PVO in terms of the PVO Act.
“ Trusts registered with the High Court without registering as PVO’s will be prohibited from fundraising and collecting any contributions from internal and external players through a sworn declaration,
“ PVO’s will be prohibited from engaging in political activities although the
Bill does not define what these political activities involve, a PVO deemed to be conducting political activities will have its registration cancelled.
“Secondly, government will be able to interfere with the operations of Trusts by compelling an appointment of any individual of its choice to the position of a Trustee who will run the affairs of the Trust for a period not exceeding 60 days,
“The state will have the power to summarily dissolve any Trust that is deemed to be critical of the government, every Trust that conducts internal and external fundraising will have its
books and accounts monitored by the government,
“Government will monitor any material amendment of the constitution of a Trust, the government will have the discretion to interfere with the programming and decision making of a Trust through the PVO Board” reads her statement.
Concerns have been raised also on the bill’s requirements for foreign PVOs to register and comply with local regulations, it is feared that this legislation may deter international funding, which is crucial for many Zimbabwean organizations.
While the bill aims to enhance financial accountability, some critics argue that the new regulations could disproportionately burden smaller PVOs with limited resources.
“ If the bill limits the ability of PVOs to operate freely and advocate for social change, it could lead to a decline in civic engagement and a weakening of civil society, the increased regulatory burden and potential for government interference could deter donors from supporting PVOs, leading to a decline in charitable donations,
“PVOs play a vital role in providing essential services to vulnerable communities. If their operations are hindered, it could negatively impact the lives of many Zimbabweans” reads a statement from the SIVI institute.
The PVO Bill has attracted international attention, with concerns raised about its potential impact on human rights and democratic freedoms. The bill’s passage could have implications for Zimbabwe’s relationship with international donors and partners.
The Private Voluntary Organisations Amendment Bill has the potential to significantly shape the future of charitable giving in Zimbabwe. While the government’s intention may be to improve regulation and transparency, the bill’s provisions could have unintended consequences that negatively impact civil society and the ability of PVOs to effectively serve their communities.
It is crucial for all stakeholders to carefully consider the potential implications of the bill and advocate for a balanced approach that promotes both accountability and the vitality of civil society.