Reform of the Voluntary and Not‑for‑Profit Sector

Overview

The reform recognises the voluntary sector as a key socio‑economic pillar and seeks to modernise its regulatory framework. Developed through extensive consultation—including over 1,300 meetings and sector-wide reviews—the proposals address longstanding challenges such as administrative burden, recruitment difficulties, funding constraints, and regulatory complexity. 

Key Objectives

The reform is built on six principal pillars:

• Stronger legislative framework
• Reduced bureaucracy
• Enhanced development of the regulatory office (OCVO)
• A more comprehensive and inclusive sector
• More appropriate and proportionate criteria
• Increased awareness and recognition of the sector 

Main Proposed Changes

1. Revised Institutional Role

   • The Office of the Commissioner will evolve into a body that both regulates and supports organisations.

2. Classification & Categorisation

   • Organisations will be clearly classified based on purpose, size, and structure, differentiating between:
     • Public Purpose / Public Benefit entities
     • Public Purpose / Private Benefit entities

3. Simplified Processes

   • Introduction of a mandatory notification system for all entities, with registration reserved for those serving public interest.
   • Proportionate Reporting Requirements
   • Reporting obligations will vary according to financial size and activity, easing the burden on smaller organisations.

Sector Classification Framework

The reform introduces a structured framework covering:

• Types of organisations (e.g. voluntary, NGO/advocacy, service providers, philanthropic entities)
• Structures (associations, foundations, trusts)
• Categories of activity (social, environmental, governance, sports, faith-based, etc.)

Implementation Approach

Key implementation measures include:

• Drafting a clear, user-friendly legal framework
• Establishing a One‑Stop‑Shop model to centralise processes and reduce duplication
• Strengthening the OCVO as both regulator and facilitator
• Aligning requirements to organisational size and purpose

Consultation and Stakeholder Engagement

The Government is inviting feedback from organisations, volunteers, administrators, and the public to refine the reform. Key consultation questions focus on:

• The proposed strategic framework
• Effective implementation methods
• Additional initiatives to support the sector

The document can be found here.