Dar es Salaam, TZ – Molly’s Network helps formalize small community organizations – 11 Mar 2016

In 2015 Molly’s Network helped two Better Lives partners in Tanzania become officially registered Community Based Organizations (CBO) and open up bank accounts as CBOs. Both of these accomplishments were important steps towards the self-reliance of the organizations.

Kikundi Cha Mafanikio (Success Group) in Utete and Lishe Bora (Better Nutrition) on Mount Kilimanjaro benefitted from Molly’s Network’s assistance. Officially registering as CBOs has many benefits for the groups because it means they are now recognized by both government and private organizations in Tanzania. Three of the most important benefits of registration are:

• CBOs can receive grants the Tanzanian government as well as USAID and other international aid agencies
• CBOs receive a Tax ID number which allows them to start formal income generating activities
• CBOs are recognized by banks and can open bank accounts as an organization

The most immediate benefit of registration is the ability of the groups to open bank accounts. By opening accounts at formal banks partners can receive wires directly from Better Lives and can offer official bank statements to back up account information. Before they had bank accounts Better Lives’ partners managed money using mobile money services like M-Pesa and Airtel Money. While the services were effective for new organizations, they became expensive as the organizations grew. The services also offered limited transparency because partners could not print bank statements or offer access to online banking. This means they could only verbally report their account balance and could not offer official documents as back up.

For others looking to maneuver bureaucracy, register organizations as CBOs, and open bank accounts Molly’s Network Program and Admin Officer, Projestus Bakenga, offers the following steps:

1. Draft a constitution to guide the CBOs official activities and identify board members.
2. Bring the constitution and members’ list to the District Council, who will verify the documents through the Department of Social Welfare.
3. When documents have been verified, receive a letter from the village government approving the signatories for a bank account. The signatories’ names should appear on the constitution as leaders of the CBO.
4. Create an official stamp for the CBO, which will be used to verify financial transactions.
5. Submit verified constitution, local government approval letter, and official stamp to bank.

Now that both organizations have bank accounts, they are focusing on starting income generating projects to further increase their self-reliance.