Religious Organizations

A development initiative’s institutional profile impacts its options for targeting certain problems and populations, establishing partnerships and raising and managing funds. Some projects become more self-sustainable by legally registering as religious organizations, because in many countries, these are recognized as procurers of a social good and, therefore, they are considered a public (rather than private) entity that is granted certain benefits such as tax exemptions, or a legal status that allows them to have assets and staff.

This legal profile’s features vary from country to country and depend on culture and legislation, but, in general, registering as a religious organization can be a useful way to receive support with fewer setbacks, as well as to gain some benefits in terms of the initiative’s operations and growth –even if, in some countries, religious organizations cannot have a profit motive and can only earn what they need to operate.

Registering as a religious organization can help an initiative’s self-sustainability by encouraging contributions from groups that are drawn to its causes or ways of working (such as associations of the same religion, fellow believers, etc.), which may diversify the project’s support. These contributions can be monetary or, in many cases, also include in-kind donations, collaborations or volunteer work, all of which contribute to an initiative’s ability to design solutions that are more comprehensive and relevant to its local context. In addition, the legal benefits afforded to religious organizations in some countries (such as not paying taxes), allow for better use of resources and more efficient operations which can be more readily scaled. And these same benefits sometimes facilitate access to funds needed to assist very vulnerable populations (people affected by violence, natural disasters, war, etc.) and thus promote conditions of greater equity in development at the local and global level.