Financial Crime World

URT’s Legal Landscape: A Glimpse into Non-Profit Organisations

Introduction

The United Republic of Tanzania (URT) is home to a diverse range of legal forms, with non-profit organisations (NPOs) playing a significant role in the country’s social and economic landscape. In this article, we will take a closer look at the various legal forms that exist in Tanzania, including NPOs, and explore their characteristics.

According to Figure 1, NGOs are the most common type of NPO in Tanzania, followed by societies and trusts. It is essential to note that not all entities registered under these legal forms meet the definition of an NPO as per the Financial Action Task Force (FATF). These non-FATF NPOs may not necessarily engage in fundraising activities.

The URT’s legal framework is divided into two main categories: public organisations and private entities. Public organisations are formed through Acts of Parliament or the House of Representatives, while private entities include:

  • Trade unions
  • Companies and partnerships
  • Non-governmental organisations (NGOs)
  • Societies
  • Cooperative societies
  • Trusts

Entities Formed by Acts of Parliament/House of Representatives

These predominantly public organisations include government ministries, departments, and institutions such as:

  • Tanzania Revenue Authority (TRA)
  • Zanzibar Revenue Authority (ZRA)
  • Supervisory authorities like the Bank of Tanzania (BOT) and the Tanzania Insurance Regulatory Authority (TIRA)

Trade Unions

Trade unions are membership-based organisations that aim to protect and advance the interests of their members. They are governed by:

  • Employment and Labour Relations Act in Tanzania Mainland
  • Labour Relations Act in Zanzibar

Companies and Partnerships

A company is a legal entity formed by an association of persons with a specific objective. Companies can be either limited or unlimited, and they are governed by:

  • Companies Act in Tanzania Mainland
  • Companies Act in Zanzibar

Partnerships, on the other hand, are arrangements between two or more natural persons to oversee business operations and share profits and liabilities.

Non-Governmental Organisations (NGOs)

An NGO is a voluntary group of individuals or organisations that operate independently from government. They are governed by:

  • NGOs Act in Tanzania Mainland
  • Societies Act in Zanzibar

Societies

A society is a community of people or an organised group with common traditions, interests, or beliefs. They are governed by:

  • Societies Act in Tanzania Mainland
  • Societies Act in Zanzibar

Cooperative Societies

Cooperative societies are associations formed by people with common interests to promote their welfare. They are governed by:

  • Cooperative Societies Act in Tanzania Mainland
  • Cooperative Societies Act in Zanzibar

Trusts

A trust is a legal relationship created between the creator of the trust and trustees, where specified property or interests are placed under control and management for the benefit of another party or parties.

Conclusion

In conclusion, the URT’s legal landscape is diverse, with NPOs playing a vital role in the country’s social and economic development. Understanding the different legal forms and their characteristics is essential for effective governance and regulation.