Incorporation

A charity may loosely be defined as any benevolent or philanthropic institution or organization established with the object or purpose of helping those in need.

Section 2 of the Charities Act, Cap. 243 defines the word “charity” to mean, “any institution (corporate or not) which is established for charitable objects or purposes, and which is intended to and does operate for the public benefit, and is subject to the control of the High Court in the exercise of its jurisdiction with respect to charities”.

While such well-known objects or ideals as the relief and prevention of poverty, the relief of suffering and distress or disability caused by old age or the relief and prevention of sickness and disability, whether physical and mental will undoubtedly qualify as “charitable”, the law also expressly recognizes, inter alia, other noble or spiritual ideals such as the advancement of education or religion and the cultivation of public aesthetic taste in music, art, fine craftsmanship and literature as charitable objects.

Section 3 of the Charities Act, Cap. 243 of the laws of Barbados sets out the types of objects which the law regards as “charitable purposes” for purposes of the Act. The statutory definition does not constitute an exhaustive list. However, only those objects which, in the opinion of the Registrar, fall within the “spirit of, and are analogous to”, the “charitable purposes” listed in the Act will be registered as charities under the Act.

As a general rule, unless expressly exempted by law from registration, any institution which qualifies as a “charity” should be registered with the Registrar under the Charities Act, Cap. 243. Section 5(6)(a) of the Charities Act, Cap. 243 imposes a statutory duty on the charity trustees of any charity which is not registered nor excepted from registration to apply for it to be registered, and to supply the documents and information required by law to be filed with the Registrar.

• the “Exempt Charities” identified in the First Schedule to the Act. Such charities include institutions such as the Barbados Community College, the National Sports Council, the National Assistance Board, the Queen Elizabeth Hospital Board, the Child Care Board, the Sanitation Service Authority, schools administered under the Education Act, Cap. 41, public and private hospitals and churches within the meaning of section 2 of the Anglican Church Act, Cap. 375 and churches whose Superintendent or Minister receives any sum by way of grant-in-aid under the Grant-In-Aid (Churches) Act, Cap. 376;
• charities excepted from registration by order made by the Attorney General;
• charities having no permanent endowment nor income more than BDS $100 per year.

Section 6 of the Charities Act, Cap. 306 states that where charity trustees fail to register a charity in accordance with the Act, the charity trustees shall not be entitled to claim any tax exemptions under any enactment in respect of that charity for the income year during which it remains unregistered.

To this end, the Registrar, the Commissioner of Inland Revenue and other Government Departments are authorized to exchange information relevant to determining whether an institution ought to be treated as established for charitable purposes, including information as to the purposes of the institution and the trusts under which it is established or regulated.

1. The trust deed appointing the trustees and establishing the objects and purposes of the trust;
2. In the absence of a Trust deed, the Constitution or By-laws of the proposed Charity setting out the powers of the charity, providing for its officers, the timing of its annual general meeting and financial year and other organizational and administrative matters.

• The name of the proposed charity;
• The date of establishment of the Charity;
• The precise objects of the charity; (See Section 3 of the Charities Act, Cap. 243 for the usual types of charitable objects)
• The mailing address of the administrative office of the charity;
• The full names, occupations and mailing addresses of the charity trustees;
• The full name, address and occupation of the Secretary;
• The full name, address and occupation of the treasurer;
• The name and address of the bank(s) at which the charity account is held;
• The name, address and professional qualifications of the auditor of the charity accounts;
• A list of properties (if any) owned by the charity.

• to register the charity; (section 5(6)(a))
• to notify the Registrar if it ceases to exist or if there is a change in its trusts or in any of the registered particulars; (section 5(6)(b))
• to supply the Registrar with particulars of such changes and copies of any new trusts or alterations thereto; (section 5(6)(b))
• to keep proper books of account with respect to the affairs of the charity; (section 41(1))
• to prepare consecutive statements of account of income and expenditure and a balance sheet relating to a period of not more than 15 months; (section 41(1))
• to preserve the books and statements of account for at least seven (7) years; (section 41(2))
• to transmit the statements of account to the Registrar within one month; (section 42(1)).