Chokehold on charity

LEADERS of some of the country’s top charities are warning that a proposed Non-Profit Organisations (NPO) Act could push some volunteer-run charities out of existence if new compliance requirements are imposed without consultation with the sector, while also reducing support for communities that depend on them.

The concerns were raised during a Jamaica Observer Monday Exchange as representatives of charities and non-profit organisations argued that, while they support transparency and accountability, additional regulatory burdens could have unintended consequences for organisations already struggling to navigate what they describe as a cumbersome compliance environment.

At the heart of their concern is the Government’s stated intention to introduce a new NPO Act by October 2026. The legislation is expected to replace the existing framework governing charities and non-profit organisations as Jamaica continues efforts to strengthen compliance with international anti-money laundering and counterterrorism financing standards established by the Financial Action Task Force (FATF).

However, sector representatives contend that the organisations expected to be governed by the new law have not been meaningfully involved in its development.

Christine Gore, director of the Phillip and Christine Gore Family Foundation speaking during a Jamaica Observer Monday Exchange at the newspaper’s St Andrew headquarters last week.

Executive director of the Council of Voluntary Social Service (CVSS) Nancy Pinchas said the sector’s stakeholders fear the proposed legislation could formalise an already burdensome regulatory system without sufficient evidence that charities pose a significant risk.

She argued that the impact would be particularly severe for smaller organisations.

“Most civil society organisations are run entirely by volunteers; maybe they’ll have one paid staff. So these compliance burdens are real burdens that are going to push them out of existence, and we have experienced that. We have had a number of small organisations — because of who we are at CVSS — say, ‘Where do we go? What do we do?,’ ” she said.

The warning was echoed by representatives of organisations working directly with some of the country’s most vulnerable groups.

Executive Director of the Council of Voluntary Social Service (CVSS) Nancy Pinchas makes a point during a Jamaica Observer Monday Exchange last week.

Joy Crawford, executive director of EVE for Life, which supports women and girls affected by HIV, gender-based violence, and social exclusion, argued that additional bureaucracy could disrupt services reaching people who often have nowhere else to turn.

“What you have here is disruption and burden of a sector that is offering services, support, advocacy development, real money to Jamaican people, and those who will not get it, most times, from the mainstream spaces,” Crawford said.

“These are people who are not employed in government, are self-employed, non-employed, disenfranchised people — elderly people, disabled people, pregnant young girls who drop out of school, people living with HIV — who are experiencing stigma and discrimination. These are a huge population of Jamaica who are solely benefiting from the work and the existence of these NGOs [non-governmental organisations],”she added.

Perhaps the starkest warning came from Christine Gore, director of the Phillip and Christine Gore Family Foundation, which funds educational initiatives and community programmes.

From left: Nancy Pinchas, executive director of the Council of Voluntary Social Services, Blake Widmer, co-founder of Deaf Can Coffee, Joy Crawford, executive director of Eve for Life, and Christine Gore, director of the Phillip and Christine Gore Family Foundation, engage in conversation outside the Jamaica Observer’s Beechwood Avenue, St Andrew offices after participating in a Jamaica Observer Monday Exchange on the future of Jamaica’s non-profit sector last week. (Photo: Naphtali Junior)

Gore said that, while larger organisations may be able to absorb additional compliance costs, there comes a point at which the burden outweighs the value of continuing charitable work.

“If it is that the Government is going to make it impossible for me to run this thing properly, and overburden me with too much bureaucracy, I’m just going to go home…Why am I fighting them? Why? I’ll just go home,” she said while reiterating the impact her foundation has had on Jamaica’s education sector.

Others raised concerns about the effect regulatory changes could have on programmes providing employment and other economic opportunities.

Blake Widmer, co-founder of Deaf Can Coffee, said uncertainty surrounding future rules and benefits is creating anxiety within the sector.

“What if things drastically change? What if we don’t have access to the same GCT [General Consumption Tax] refunds that we have access to today, that allows us to put more back into our bottom line, which is giving more to people? That would affect us tremendously.

Blake Widmer, co-founder of Deaf Can Coffee, speaking during a Jamaica Observer Monday Exchange last week. (Photo: Naphtali Junior)

“The 45 full-time deaf staff that we have at Deaf Can Coffee, they’re paying statutory taxes every month, [and] we’re getting close to a million dollars in monthly statutory taxes we’re paying back to the Government of Jamaica,” he expressed.

While acknowledging the need for Jamaica to maintain international credibility and meet global standards, Widmer urged policymakers not to develop regulations in isolation.

“I want them to be able to do what they need to do to protect Jamaica’s status, but don’t overreact to a problem that doesn’t actually exist and miss where the problems are actually coming from. Talk to us,” he said.