This action might not be possible to undo. Are you sure you want to continue?
) an N.P.O(Non Profit Organization) is defined in terms of their characteristics that distinguishes them from a business entity as a contribution of significant amount of resources from resources providers who do not expect commensurate or proportionate pecuniary returns, operating purposely other than to provide goods or services at a profit and absence of ownership interest like business enterprises. Non-profit organizations (NPO) do not distribute its surplus to stakeholders but instead use them to pursue its goals as outlined by its object clause. They are known as Non-profit organizations (NPOs) because they provide services not with the aim of making profit. In general, NPOs are organizations formed by individuals or group with the primary motive of providing social services and other developmental activities at local, national and international levels. E.g. Sweetwater Ministries. The broad categories are however: Mutual Non-Profits: e.g. Professional associations Social Welfare: e.g. Employee Associations Charitable Religious Communities: e.g. Churches
In Ghana there are laid down procedure to be satisfied in other to be registered. The NPOs are to be duly approved by the Regulators: 1. The department of the registrar general. 2. The ministry of social welfare and employments. 3. The GHANA REVENUE AUTHORITY.
According to the companies’ code 1963 act 179 section 10, for example gives legislation on NPOs which states that “a company limited by guarantee may not be lawfully incorporated with the object of carrying on business for the purpose of making profit”. And by this virtue they are tax exempted, but whenever found of carrying any other unrelated activities the organization may be compelled to pay tax since that activity do not form part of its primary aim or purpose. The (GRA) Act 592 states that “when exempted organizations participate in business ventures unrelated to their objectives, and then tax would be assessed on the income derived from such business”. The nature of the Non-Profit organization is mainly identified by what they exist to do. Their mission may be geared towards meeting a necessary societal need, which may not be available otherwise. It therefore calls for commitment in advancing their true values. The object clause of the NPO help them to be focused on what they intend to do. But it must be made clear that the promoters are not seeking their personal interest since they only have a fiduciary relationship with the Organization. The Selected Non profit Organization SWEETWATER MINISTRIES
INTRODUCTION Sweetwater ministries is an organization that is registered as a company limited by guarantee with the registration number: G-17845 and have been incorporated since 1993 with six principal directors, a secretary, Standard Chartered Bank as their bankers and Beamat Associates as their auditors. They also have Today’s Choices Incorporation – U.S.A as their Holding Company and Primary resource providers.
History Sweetwater ministries was established through Today’s Choices—USA by two American women (Debbie French and Pam Hawkins) who desired to help young girls in Ghana, West Africa acquire vocational skills training, come to know Christ and be disciple in the Word of God. Sweetwater ministries have been ministering in Ghana, West Africa since 1993 by operating a vocational day school. Then in December of 2005, they were able to purchase a residential home where these precious young girls live for three years, learn a trade, and are fed and cared for at no cost to them. When they bought the home in December of 2005, they were able to completely pay for it, furnish it and hire staff. The first class to live in the new residential house graduated in June of 2008. Mission Statement: “Today’s Choices - USA is a ministry that affirms the value of human life and the transforming power of Jesus Christ in the lives of individuals through evangelism, discipleship, and education.” Motto: Serving young women in Ghana and giving them hope
Sweetwater House is a ministry and discipleship program to young women located in Accra, Ghana, West Africa. The ministry is dedicated to raising up the next generation of Ghanaian leaders by focusing on emotional, physical, mental, spiritual, and vocational development. There are 24 girls who are currently living at Sweetwater House. Many have been abused physically, emotionally, or sexually, and some were barely surviving on the street, sleeping on the dirt floor of outside shops, some were recently released from heinous trafficking in neighboring countries. While the girls live at Sweetwater House, they learn to sew and take a national exam(NVTI- National Vocational Training Institute) upon graduation from the
program. This allows the young women, upon graduation, to earn a living and live independently. Sweetwater House, through Today’s Choices— USA, operates solely through contributions, which are tax – deductible (personal income taxes by the donors) and go straight to the house and girls.
The school is operated by Ghanaians and the girls in Sweetwater house are between the ages of 16 and 24 when they are admitted to the boarding facility of Sweetwater House. They undergo vocational training for a period of 3 years. The primary skills taught are Sewing, Cosmetology, Baking, English, Basic Business Management, Basic Health and Hygiene, Fabric Dying, and other supplemental skills. Over the three years, these Sweetwater girls will be taught the Holy Bible using the Teen Challenge Curriculum, English reading and writing skills (the official business language of Ghana). The young women at Sweetwater House are trained for three years in the vocation of sewing. They make wonderful aprons, dolls, and purses.
Over 200 young women have graduated from this ministry! To God be the glory!
Ghana Companies Code 1963 (Act 179)
Article 14 (In Part) A company limited by guarantee shall be formed in manner following, that is to say, (a) there shall be delivered to the Registrar for registration a copy of the proposed Regulations of the Company stating:
(a) the name of the company;
(b) the nature of the object or objects for which it is established;
(c) that the company has, for the furtherance of its authorized business or objects, all the powers of a natural person of full capacity except in so far as such powers are expressly excluded by the Regulations;
(d) the names of the first directors of the company;
(e) that the powers of the first directors are limited in accordance with section 202 of this Code.
(3) The Regulations of the company guarantee shall also state that the liability of its members limited.
The Regulations shall also,
(a) contain a regulation in the terms of regulation 3 of Table B in the Second Schedule to this Code, with such modifications as the Registrar shall allow, stating that the income and property of the company shall be applied solely towards the promotion of its objects, and that no portion thereof shall be paid or transferred directly or indirectly to the members of the company except as therein permitted;
(b) state that each member undertakes to contribute to the assets of the company in the event of its being wound up while he is a member or within one year after he ceases to be a member, for payment of the
debts and liabilities of the company, and of the costs of winding up, such amount as may be required not exceeding a specified amount, and
(c) state that if, upon the winding up of the company there remains after the discharge of all its debts and if liabilities any property of the company the same shall not be distributed among the members but shall be transferred to some other company limited by guarantee having objects similar to the objects of the company or applied to some charitable objects, such other company or charity to be determined by the members prior to the dissolution of the company.
Your charity’s annual report and accounts not only help you manage your charity well by recapping on the achievements of the past year but can help you attract money from organizations or people who are interested in what you do. The annual report and accounts together form a package that provides accountability to stakeholders in the widest sense. The whole purpose of your charity’s annual report and accounts is to demonstrate to your funders, donors, beneficiaries and suppliers in an open and transparent way, how you have spent the money you have received, how what you have spent supports your work and the resources available to you at the end of your financial year. Every registered charity is expected to produce an annual report and accounts that explains where your money came from and what you did with it. However, the SORP only applies if your charity reports its income and expenditure on the basis of when the activity happens, rather than when you receive and spend the cash. The income an d expenditure basis is called accruals based accounting.
RECOMMENDATIONS Preparation of financial statements according to SORP (The Statement of Recommended Practice (commonly referred to as the SORP) is issued by the Charity Commission and the Office of the Scottish Charity Regulator (OSCR) and basically gives instructions as to how charities are expected to report their activities, income and expenditure and financial position in their annual report and accounts.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.