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Wednesday, November 25, 2015

Overview of External Service Providers for Non-Profit Organisations


If you’ve registered your non-profit organisation with the Jabatan Pendaftaran Pertubuhan or Registry of Societies (ROS), here are some brief pointers on the kinds of external service providers you would need in order to comply with the relevant compliance requirements.

As costs are always a factor for new non-profit organisations, you might be able to use existing volunteers  or founding members to contribute their time and expertise – if any of them has a legal or financial background. 

In the event you are not able to enlist the help of a volunteer with the right expertise, you would probably need to get in touch with the following professionals.

Company Secretary
Company secretaries could either be practising lawyers or licensed company secretaries in public practice. Meaning, such professionals would be attached to a legal firm or a company secretarial firm. Basically, you would contact one of these firms to act for your non-profit organisation and take care of company secretarial matters such as preparation of documentation for Executive Committee meetings, as well as Annual General Meetings (AGMs) or Emergency General Meetings (EGMs).  These documents could include notices of agenda, minutes and circular resolutions. Such a professional could also assist with compilation and lodgement of the registered society’s annual returns with ROS every year  (though with the advent of the new eROSES system, it is possible for any of the founding members/volunteers to do this, with some guidance on how to fill the online forms).  

To locate a company secretarial firm near you, here’s a list of chartered company secretaries in public practice  provided by the Malaysian Institute of Chartered Secretaries and Administrators (MAICSA) http://www.maicsa.org.my/pc_holders_dir.aspx.

External Auditor
In order to come up with a set of audited accounts which need to be tabled before the members of the registered society during its AGM, you will also need an external auditor. The ROS guidelines provide for an internal auditor to be appointed by the registered society (juruaudit dalaman) as well. But an external auditor would  still be required to conduct the full year audit of the registered society’s accounts, which would need to be tabled before the members in general meeting (that is, during the AGM) within 6 months of the close of the society’s financial year. The external auditor would also need to comment/advise on tax issues.
To locate an audit firm,  there’s a member firm directory search provided by the Malaysian Institute of Accountants at http://www.mia.org.my/new/members_memberfirms_directory.asp.Be sure to refine the search based on the state in which your non-profit organisation is located, and also, select “audit firms” instead of “non-audit firms”.

As always, the cost of appointing an external service provider varies. On the whole, large established firms charge more than smaller firms. In order to save costs, perhaps you could try to interest your preferred service provider in the possibility of “adopting” your non-profit organisation as a corporate CSR project . In return for a programme run by your non-profit organisation in collaboration with the service provider, such as volunteer sessions for the staff, perhaps the firm could subsidise the cost of services, or better still, provide them to your non-profit organisation FOC. An added selling point might be some positive publicity for the firm, in your social media postings, newsletter or email blasts to your members.



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