Regulating Punjab’s charities

In these times of increased scrutiny and oversight, it is heartening to learn that the provincial government in Punjab has drawn up a landmark piece of legislation to regulate charities and nonprofits. The objective is to ensure that all fund-raising initiatives are transparent and made in accordance with the law and not siphoned off by unscrupulous individuals and outfits or fall into the wrong hands. The Punjab Charities Ordinance – drafted in the background of several controversies raging over the work of non-governmental organisations – is intended to cover cash and goods collected temporarily for a charitable purpose by an individual or organisation not registered as a charity.

The proposed law recommends that a commission oversee the registration of charities and beneficiaries as stipulated under the Voluntary Social Welfare Agencies (Registration and Control) Ordinance and other relevant laws. This will help charities stick to their legal obligations in exercising control and management of funds and ensure effective use of funds as well as institute a mechanism for accountability. The commission is expected also to conduct inquiries into the affairs of a charity, pore over the annual audit report and conduct a special audit of its own. This seems like a tall order indeed.

In case of straying away from its stated goals, a charity will risk foregoing its registration. If the violation is far more serious, the commission will be empowered to move a reference against the charity in question. Curiously, not all registrations will be carried out by the commission. The district commissioner or assistant commissioner will act as the registering authority at the tehsil level. It is not clear whether these officials will have the same authority as the commission itself.

Given the sheer volume of the charitable funds doled out by Pakistanis every year, it would be only fair to keep tabs on the funds collected and ensure they are not misused in any way.  Similarly the provinces and the centre must see that the funds collected from abroad are not misspent or used by others to line their pockets. Punjab has at last taken a good legislative step towards that end. But only its proper enforcement will make a difference.

Published in The Express Tribune, January 29^th, 2018.

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