ISLAMABAD, July 8: The government has decided to regulate the working and funding sources of non-profit organizations by establishing national and provincial commissions through an ordinance.
The non-profit organizations would be regulated through a law, titled, “The Non-Profit Organizations (Governance and Support) Ordinance 2002.”
According to the draft ordinance available with Dawn, the National Commission for Non-Profit Organizations would operate a public registry of organizations in the country, including initial registration information and all organizational reports.
Official documents indicate that Pakistan’s 45,000 citizen organizations employ about 300,000 persons and utilize 200,000 full-time volunteers.
The new law, if implemented, would be applicable to NGOs, non-profit voluntary organizations, citizen organizations, civil society organizations, private voluntary organizations etc.
The powers and functions of the proposed national commission would include development of a system of independent verification of public benefit organizations and their accreditation with appropriate agency for independent verification, including certification of tax benefit eligibility.
The draft law stipulates compulsory registration for all organzations that apply for or receive any government funds; apply for or receive any foreign fund in excess of Rs300,000 in a single financial year; solicit or receive any funds from non- members, where the funds received in any one fiscal year exceed Rs300,000.
Regarding foreign funds, the draft ordinance makes it obligatory for all organizations to file with the national commission at the end of each fiscal year, details of foreign funds received in excess of Rs100,000. The details regarding identity of the donor, and the amount and the purposes for which the funds were received, would have to be provided under the proposed law.
Regarding financial irregularities, the draft ordinance empowers the national commission to initiate civil as well as criminal proceedings against any office bearer or member of the organization involved in serious financial irregularities.
Moreover, in instances where the entire organization is found involved in criminal activity, it may be closed and liquidated after a due process of law in the district courts.
The draft ordinance includes provisions for dissolution of an organization on account of failure to comply with its charter or the provisions of the ordinance, when it come into force.
The draft ordinance has a provision for public disclosure, whereby any person may inspect and obtain certified copies of any document filed by an organization, by depositing a requisite fee.
It is further provided that any person may inspect and obtain certified copies of the annual reports of the commission, the copies of finalized inquiry reports and any other document deemed to be a public one by the commission for the purposes of the proposed ordinance.
Sources said an attempt was made during the second tenure of the Pakistan People’s Party’s government in mid-1990s to regulate the working of the NGOs, but it was stifled in view of opposition received from the civil society organizations.