As a socially responsible individual or group, setting up a charity organization in Nigeria can be a rewarding way to give back to your community and make a great and positive impact on the lives of others at large. A charity organization can be grouped under an NGO (Non-Governmental Organization) which is not profit oriented.
A Non-Governmental Organization (NGO) is a body or association of persons registered as Incorporated Trustees under Section 590 of the Companies and Allied Matters Act, Cap C20 Laws of the Federation of Nigeria 2010 for the advancement of any religious, educational, literary, scientific, social/cultural development, sporting and charitable Causes. This article is designed to help those who wants to give back to the society out of what God has blessed them with and wanting to establish a charity organization but do not know how to find a way around it.
Here are step-by-step guides on how to set up a charity organization in Nigeria, highlighting the key requirements, regulations, and best practices to ensure a successful and sustainable charity organization.Happy reading/viewing
1. Research and Plan well:
Before setting up a charity organization, it is essential to conduct thorough research and planning, which could involve :
– Defining your mission and objectives
– Conduct a needs assessment to identify the specific needs of the community or group you want to serve
– Developing a business plan that outlines your organization’s structure, budget, and strategies for achieving your objectives.
– Pray and carry God along for help, guidance, and blessings.
2. Register with the Corporate Affairs Commission (CAC):
To establish a charity organization in Nigeria, you must register with the Corporate Affairs Commission (CAC). This involves:
– Choosing a unique name for your organization
– Submitting your application and supporting documents to the CAC
– Obtaining a certificate of incorporation.
3. Register with the Special Control Unit Against Money Laundering (SCUML):
As a charity organization, you are required to register with a body called Special Control Unit Against Money Laundering (SCUML) to comply with anti-money laundering regulations. Which involves:
Register with SCUML
– Obtaining a SCUML certificate.
4. Consider Obtaining a Tax Identification Number (TIN):
You must obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS) to comply with tax regulations,which involves:
– Registering with the FIRS
– Obtaining a TIN certificate.
5.Registering with the National Planning Commission (NPC):
As a charity organization, you are required to register with the National Planning Commission (NPC) to obtain a permit to operate. Which involves:
– Registering with the NPC
– Obtaining an NPC permit.
6. Consider establishing a Board of Trustees:
A board of trustees is essential for the governance and oversight of your charity organization. Which involves:
– Recruiting board members with the necessary skills and expertise
– Establishing a board of trustees and registering them with the CAC.
You may also engage volunteers.
7. Open a Bank Account:
You must open a bank account in the name of your charity organization to receive donations and manage your finances. Which involves:
– Choosing a bank that is suitable for your organization’s needs
– Opening a bank account and obtaining a bank statement.
8. Consider a Good Location:
You must choose a location depending on the charitable cause your foundation is offering. Some foundations will need a large space and warehouses for storage while some may just need an office. Your location must be easily accessible.
9&10. Consider building a system for Fundraising and promotion of your NGO : This very important because, You need to promote your foundation through various means such as the media in order to expand your outreach and to also attract donors to your foundation.
You can promote your foundation through the following means:
Connecting to donors by making appeals and using storytelling, images, and videos to show them the impact of their donations
– Engage in fundraising activities to attract more donors
– Make a user-friendly website for your foundation
Develop materials that are specifically designed to highlight your charity and community work
– Reach out to newspapers as well as online magazines to write about your organisation.
– Promote your organisation through social media platforms.
– Network with other organisations for specific charitable activity.