By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Non-profit organisations yesterday gave mixed reactions to the Registrar General's demand that they produce their financial statements, with some saying they had "nothing to hide" and others arguing it would be easier to "wind-up".
Leslie Vanderpool,the Bahamas International Film Festival's founder and executive director, told Tribune Business: "We're a non-profit organisation and we are receiving funds from private individuals and also government. If we have to disclose, we have nothing to hide.
"We have been involved in what we do since 2004, and if we need to give some transparency I'm 100 per cent for it. We are also demanding transparency from the Government, so I have no issue with it. It depends on how much digging they want to do. Obviously, some of the people who have given anonymously, I wouldn't want to disclose that, but I would be happy to give all of the financial statements that I have."
Hundreds of non-profits, including churches and environmental groups, have been given 14 days, or two weeks, from July 19 to comply with the Registrar General's Department request under the Companies (Non-profit Organisations) Regulations 2014 to produce their audited financial statements. Other records requested by the Registrar General include: the organisation's purpose, objective, and activities; and identity of persons who control or direct the activities of the organisation, including senior officers, directors, and trustees.
One organisation that appears not to be included, though, is the Coalition to Protect Clifton Bay, otherwise known as Save the Bays, which filed two ongoing Judicial Review actions with the Supreme Court challenging the Registrar General's Department's actions.
The Registrar General's now-vastly expanded demands appear to be almost identical to those made of the Coalition to Protect Clifton Bay. However, the Coalition's action argues that the only time the Registrar General can demand financial statements and records is if it believes the non-profit is "assisting terrorism financing".
Some observers are likely to interpret the Registrar General's July 19 notice as a response to Coalition to Protect Clifton Bay charges that it was being singled out by the demands for financial disclosure, which were made under the former Christie administration. Tribune Business was referred by the Registrar General's Department to the Attorney General's Office when it attempted to obtain comment yesterday. Carl Bethel QC, the attorney general, could not be reached before press time.
Meanwhile, Bishop Walter Hanchell, president of Great Commission Ministries (GCM), told Tribune Business he had no problem with the requirements as long as non-profit organisations were given certain benefits.
"I saw the notice in the newspapers concerning the Government regulating churches and civic organisations," he added. "I really don't have a problem with regulation as long as there are benefits such as tax-free status and assistance through funding and other initiatives.
"With regards to the financial statements, I still believe it's not a problem to be accountable if you are using public funds. We get small funding from the Government for some of our programmes, but we provide them with an annual financial statement. We have nothing to hide."
Bishop Hanchell added: "With the amount of things happening in this country, the Government should reach out more to these non-profit and civic organisations to help with the social programmes, which they are doing now and getting no funding for.
"Regulation is fine but it should also give organisations some incentive to initiate programmes to help lower crime and poverty. As a non-profit we know how much of a struggle it is to stay open."
But Cindy Pinder, vice-president of the Abaco Fly Fishing Guides Association (AFFGA), told Tribune Business: "As is typical with the Government, the requirement is redundant. If I recall correctly, in order to be given non-profit status in the first place we had to file paperwork with the Government regarding the organisation's purpose, objective and activities, and provide officer and director information and the source of our prospective income.
"If an applicant meets the government criteria as a non-profit, what difference does it make how much money they make or receive? If the Government wants to base non-profit status on financials, why don't they just change the requirements legally instead of arbitrarily?"
She added: "It was interesting to read that Save the Bays is feeling picked on because a few months ago, I thought the same thing after receiving an email from AFFGA's counsel stating that he had received a notice regarding non-profits needing to file financials for the first time ever [because of the two contentious years during the promulgation of the flats fishing regulation.]
"If the Registrar can only request financials from non-profits that are engaged in terror financing, according to the Act and regulations, I suspect we will withhold the information, too, in solidarity with other non-profits until a time that the Act is changed by Parliament.
"In addition to being a non-profit, we are also all volunteer. There are no paid positions and our dues are inexpensive. Since dues and donations are our only source of income, it would probably be easier to wind-up our company than to have to comply with even more government requirements."
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