By Watmore Makokoba
The landscape for Private Voluntary Organizations (PVOs) in Zimbabwe is becoming increasingly complex as the government moves to amend the existing PVO Act.
The proposed changes, aimed at regulating voluntary organizations to combat money laundering and political lobbying, have raised significant concerns among PVOs about their ability to operate effectively and maintain compliance.
The PVO Amendment Bill, published in November 2021, introduces a series of stringent regulations that could drastically alter the operational framework for PVOs. One of the most pressing issues is the potential loss of legal status for many organizations that fail to register under the new Act. This could render them unlawful entities, prohibiting them from fundraising and collecting contributions, both internally and externally.
According to a recent policy brief by the Sivio Institute, the implications of the PVO Bill are far-reaching. “Every registered trust in Zimbabwe will lose its legal personality unless it registers as a PVO under the new Act,” the brief states. This change could lead to a significant decline in funding for essential services, as many organizations rely on their legal status to attract donations and support.
The Bill also empowers the responsible minister to impose arbitrary conditions for the registration of PVOs, raising concerns about potential political interference. Organizations that engage in advocacy or criticize government policies may find themselves targeted, further complicating their compliance efforts.
“The lack of clarity around what constitutes political activity could lead to organizations inadvertently violating the law,” warns Tendai Murisa, a policy analyst at the Sivio Institute.
Moreover, the PVO Bill grants the government the authority to inspect the operations of registered PVOs, which could create an environment of fear and mistrust. Many organizations worry that such oversight could be used to suppress dissenting voices within civil society.
“The potential for arbitrary inspections and the threat of suspension for perceived mismanagement could deter organizations from pursuing their missions,” says Ebenezer Nobela, a civil society advocate.
The challenges of compliance extend beyond legal registration. PVOs are also grappling with the financial implications of the proposed regulations. The requirement for government oversight of fundraising activities means that organizations will have to allocate additional resources to ensure compliance, diverting funds away from their core missions. This could hinder their ability to deliver essential services to marginalized communities.
Furthermore, the Bill’s provisions regarding imprisonment for members of PVOs conducting operations contrary to the Act have raised alarm bells. The fear of legal repercussions could discourage individuals from participating in community philanthropy, ultimately impacting the support available for vital initiatives.
“The potential for criminal charges creates a chilling effect on the willingness of people to engage in charitable work,” Murisa adds.
The PVO Amendment Bill also lacks clarity on the definition of “political activities,” leaving organizations uncertain about what actions may lead to penalties. This ambiguity could result in self-censorship, as PVOs may choose to avoid any activities that could be perceived as politically motivated.
“Without clear guidelines, organizations may be hesitant to advocate for the rights of their beneficiaries, which is a fundamental aspect of their work,” Nobela explains.
As the government moves forward with the PVO Bill, many stakeholders are calling for a more inclusive approach to policy-making. They argue that the government should engage with civil society organizations to co-design regulations that support their work rather than hinder it.
In light of these challenges, PVOs have to take proactive steps to navigate the legal maze created by the PVO Amendment Bill. This includes seeking legal advice, engaging in advocacy efforts to influence policy changes, and building coalitions with other organizations to amplify their voices.
The PVO Amendment Bill presents significant challenges for compliance among Private Voluntary Organizations in Zimbabwe. As organizations grapple with the complexities of the proposed regulations, the future of community philanthropy hangs in the balance.