NIGERIAN CHURCHES/NGOs/the SUPER RICH - principles and practice of charity Any company engaged in ecclesiastical, charitable or educational activities of a public character in so far as such profits are not derived from a trade or business carried on by such company. Section 23(1) subsection (c) of the Companies Income Tax Act, Cap C21, LFN 2004 – Profits Exempted from Tax All over the world, it has become fashionable for wealthy individuals to devote surplus income to philanthropic causes. In recent times, there have been controversies regarding the morality of charismatic pastors acquiring vast personal assets and owning millions of dollars worth of private planes and luxury cars. From a personal standpoint, the bulk of these incomes may be legitimate, because pastors as private individuals, have the right to earn income and royalties from sale of books, music, audio books, etc, and private investments. In Nigeria, churches and other not-for-profit organisations are registrable entities under the corporate affairs commission, as charitable institutions. These are tax - exempt, as in many other countries, however, there is no government agency that oversees their activities. The justice system is not properly set up to regulate the activities of unscrupulous persons and organizations. Generally, charitable organizations perform these functions in society: 1. the relief of poverty 2. the advancement of education 3. the advancement of religion 4. the advancement of health or the saving of lives 5. the advancement of citizenship or community development 6. the advancement of the arts, culture, heritage or science 7. the advancement of amateur sport 8. the advancement of human rights , conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity 9. the advancement of environmental protection or improvement 10. the relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage 11. the advancement of animal welfare 12. the promotion of the efficiency of the armed forces or of the police, fire and rescue services or ambulance services 13. other purposes currently recognized as charitable and any new charitable purposes which are similar to another charitable purpose. As a matter of fact, a charity must provide a public benefit. It is important to recognize that tax exemption does not apply to businesses owned by charitable organizations. In my opinion, it has become necessary to comprehensively legislate the regulation of these groups which serve the public in diverse ways. 1. the members of a charitable organisation may recoup costs based on reasonable/justifiable expenses, but enriching themselves with resources donated to the charity, crosses the red line. 2. the law should protect the public from fraudsters who, posing as prophets and herbalists, make false and unsubstantiated claims, sometimes defrauding or harming unsuspecting members of the public. 3. churches should publish their quarterly financial statements for review by a competent government agency, to promote transparency. All donations should be well accounted for, nd expenditures should be reasonable. 4. churches which fail to register with the corporate affairs commission should be sanctioned. 5. an outsider person or group should be permitted by law to audit financial records of churches. 6. other NGOs should be subject to the same rules.
Posted on: Sat, 25 Oct 2014 06:44:04 +0000
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