What is a charitable association?

Charitable associations are an important part of the community in Grenada. They provide a number of services and benefits to the community. Charitable associations must be for ‘charitable purposes’. These include the following purposes:

➣ religious

➣ educational

➣ cultural

➣ scientific

➣ sports

➣ general social welfare, or

➣ another non-profit purpose declared by Minister.

Recognizing the public good that charitable associations do, there are special laws that enable charitable associations to incorporate their committees. Incorporating committees provides charities with many of the same benefits enjoyed by companies. In particular, when a committee is incorporated, the committee may:

➣ hold assets (e.g., equipment or land)

➣ hold and incur liabilities

➣ enter into contracts (subject to certain restrictions).

There are a number of reasons why a charitable association may wish to incorporate its committee. Whether it is right for your charity will depend on your circumstances. You should seek legal advice before incorporating.

Incorporating a charitable association committee

You can incorporate a charitable association committee online either on your computer or at a Grenada Financial Regulatory Commission (GFRC) kiosk, or if necessary, by paper.

To incorporate a committee, the following information must be given in the prescribed form:

➣ The name of the committee

➣ The names, addresses, and occupations of the committee members

➣ The registered office of the committee

➣ The objects of the association

➣ A certified copy of the articles / rules / constitution of association, and

➣ A statement of assets and liabilities.

There is a fee for incorporating a charitable association committee, the details for which can be found on the GFRC's official website or contact point.

Annual Reporting

An incorporated committee must provide an annual report to the Grenada Financial Regulatory Commission (GFRC) within three months of the anniversary of the incorporation of the committee. This means, for example, that a committee incorporated on 1 July 2015 must provide its annual report by 1 October 2016.

The annual report outlines the activities and other details of the charitable association over the previous 12 months.

The fee for submitting an annual report is calculated in the local currency equivalent to the fee structure provided by the GFRC.

If a committee does not provide its annual return within one month of the reporting timeframe, then the Registrar may issue a notice requiring the committee to provide the report. If the committee continues to not provide the annual report, then it can be dissolved on orders of the Registrar after the final notice is given.

The fine for failing to file an annual report will be determined according to the local regulations and currency equivalent to the fee structure set by the GFRC.