LEGAL MATTERS: Harnessing PVOs to enhance CSR goals

THE Covid-19 pandemic has drawn attention to a number of socio-economic issues bedevilling Zimbabwean society.
Issues to do with mental health, food insecurity and access to basic amenities such as potable water have gained new significance in the wake of the pandemic.
This is a perfect opportunity for those looking to participate in humanitarian endeavours to do some of their best work.

This is also a good opportunity for companies seeking to deepen their Corporate Social Responsibility (CSR) imprint to step to the fore. In Zimbabwe, those seeking to establish entities that do sustainability or social outreach work are mandated by the law to register Private Voluntary Organisations (PVOs) in terms of the Private Voluntary Organisations Act [Chapter 17:05].
Who should register as a PVO?
Corporates looking to expand their CSR footprint should generally register PVOs before they can do any social work.
Non-governmental organisations seeking to be established must also do the same.
Further, entities that are currently doing charitable and other social impact work that is governed by the PVO Act have to register PVOs, if they have not already done so.
This includes entities currently established in terms of notarial deeds of trust. As a matter of law, if one is engaged in a formal process of doing charitable work, they must be operating under the umbrella of a PVO.
The Act defines a PVO in part as any body or association of persons, corporate or unincorporate, or any institution, the objects of which include the rendering of charity to persons or families in distress and the prevention of social distress or destitution of persons or families.
In short, any person or entity looking to do charitable work, including NGOs must register as a PVO.
Why would a corporate register a PVO?
Research has shown that engagement in CSR activities has a significant positive impact on financial performance.
It therefore, makes business sense to engage in philanthropy.
The benefit of registering a PVO is that the company’s strategic thrust can be clearly outlined in the PVO constitution, doing away with the need to craft and re-craft CSR policies.
At the very least, a PVO constitution helps streamline CSR policies with company objectives by using the constitution as a source of terms of reference.
Should there be any significant changes to a company’s philanthropic objectives, the constitution can simply be amended.
A number of Zimbabwean corporates have a vibrant CSR presence. In order to administer their CSR obligations, they associate themselves with reputable philanthropic organisations through don