The National Lotteries Commission (NLC) Announces New Requirement: The submission of Tax Clearance Certificates for Funding Applications
In a move aimed at ensuring transparency and accountability in the distribution of funds, the NLC has recently announced a significant change to its funding application process. “As of 20 June 2023 (retrospectively applied as 2 May 2023), organisations applying for National Lotteries Commission funding are required to submit a valid and original Tax Clearance Certificate when submitting their applications,” they mentioned in their funding notice. This means that organisations seeking funding from the NLC will now be required to submit their tax clearance certificates along with their applications.
They further mentioned that, “This measure has been adopted in line with the requirements of the Public Finance Management Act No. 1 of 1999 (“PFMA”), and Section 18A of the Income Tax Act, that all applicants for government funding must have a valid Tax Clearance Certificate or Public Benefit Organisation (PBO) number.”
While this new measure aims to enhance transparency and accountability, the change has positive implications and impact on grant applicants and the broader community, it however also raises concerns about the financial burden it may impose on organisations.