Potential Benefits, Requirements and Implications of Registering Uganda WASH

Alliance as a Non- Governmental Organization

1.0 Introduction

The Uganda WASH Alliance (UWA) is a consortium of local not-for-profit

organizations working in the areas of water, sanitation and hygiene since 2011.
Up until now, UWA has not been registered as an independent legally existing
entity in Uganda. This has imposed limitations on its potential to grow as its
activities have had to be coordinated through other registered organizations.

This brief outlines the potential advantages, procedure and implications, among
other things, of making the bold and long overdue move to register the UWA as
an independent non-governmental organization (NGO).

2.0 Benefits of Registering as an NGO

The proposed move to have UWA registered as an NGO would confer to it

numerous advantages both at the secretariat level and across its membership.
Upon registration, UWA will attain legal status that will enable it to interact at the
official level, and among donors and other organizations. The benefits will include,
but will not be limited to, the following:

 Registration will enable UWA to engage in fundraising activities that are

currently not supported by its present structure. To elaborate on this
further, UWA can only, presently, fundraise through its partner
organizations and as such, it has little to no control over how raised
resources are utilized. Furthermore, tax deductions would be extended to
people or organizations that make contributions to UWA thus giving it a
competitive edge when it comes to resource mobilization.
 UWA will be able to open and operate a bank account in its name.
 It will be able to sign contracts with service providers and employees in its
name.

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  UWA as an NGO will also qualify for financial assistance from government
agencies and local, national and international donors.
 Accessing guidance and help from relevant registration authorities (such as
Uganda Registration Services Bureau, Uganda National NGO Bureau).
 Gaining access to training opportunities and technical assistance from
government departments and other international agencies.
 Tax exemption from certain incomes such as grants.
 Concessions when obtaining vehicles, equipment and commodities.

The above benefits will streamline the operations of UWA and enable it to grow
and sustain its operations.

3.0 Requirements for Registration

In line with present Ugandan laws*, any entity desirous of attaining NGO status is
required to first attain incorporation status before applying for NGO status. As
such, UWA being a not-for-profit entity will apply to the Uganda Registration
Services Bureau (URSB) to be registered as a Company Limited by Guarantee with
no share capital. Upon obtaining a certificate of incorporation from URSB, UWA
will present this, together with other documentation to the Uganda NGO Bureau
in fulfillment of its application to be registered as an NGO.

3.1 Procedure and Documentation for Applying for Incorporation

 Name reservation; the proposed name (in this case UWA) will be subjected
to a search in the business registry. Once the name passes the similarity,
defensive, offensive and desirability test, it will be reserved. The
reservation is valid for 30 days, during which time, UWA should have
submitted other documentation required to complete the application for
incorporation.

 Company Registration; registration application forms accompanied by a

memorandum and articles of association are submitted to URSB. A
certificate of incorporation is awarded within a period not exceeding 24
hours from the time of submission of these documents.
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3.2 Procedure and Documentation for Applying for NGO Status

 Certified copy of a certificate of incorporation (obtained from the URSB);

 Copy of the organization’s constitution;

 Chart showing the organization’s governance structure;

 Proof of payment of a prescribed fee;

 Sources of funding;

 Copies of valid identification documents for at least two founder members;

 Minutes and resolutions of members authorizing the organization to

register with the NGO Bureau;

 A statement of compliance with Section 45 of the NGO Act (Staffing

requirements);

 A recommendation from the responsible Ministry or government

department or agency.

Upon completion and submission of all the application requirements, the NGO
Bureau shall issue a permit within 45 days. The Bureau may issue an organization
with a permit to operate for not more than 5 years at a time.

3.3 Implications of Registering UWA as an NGO

Besides the numerous benefits that would result from having UWA registered as
an NGO, the new status would imply that UWA has to maintain and submit
audited books of accounts to relevant authorities from time to time (usually
annually). This would be necessary to facilitate permit renewal whenever the
need arises. Furthermore, UWA would have to maintain properly articulated
MoUs with all its partners, members, affiliates and donors. By applying to Uganda
Revenue Authority, UWA would also be able to attain tax exempt status.

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3.4 Conclusion

The benefits that would accrue from UWA’s registering as an NGO are immense
compared to the minor planning, financial input and work load required to make
this happen. If UWA is to grow and operate sustainably, this is the (only) way to
go. Considering the number of years UWA has been operational, the process of
having it registered as an independent, legally existent entity is long overdue.